MIRA INFORM REPORT
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Report No. : |
323505 |
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Report Date : |
22.05.2015 |
IDENTIFICATION DETAILS
|
Name : |
LUVATA ALLTOP (ZHONGSHAN) LIMITED |
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Registered Office : |
Maxin Industrial Zone,
Huangpu Town Zhongshan, Guangdong Province 528429 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
28.07.2005 |
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Com. Reg. No.: |
442000400019095 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Subject is engaged in
manufacturing and selling copper tube. |
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No. of Employee : |
300 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
CHINA ECONOMIC OVERVIEW
Since the
late 1970s China has moved from a closed, centrally planned system to a more
market-oriented one that plays a major global role - in 2010 China became the world's
largest exporter. Reforms began with the phasing out of collectivized
agriculture, and expanded to include the gradual liberalization of prices,
fiscal decentralization, increased autonomy for state enterprises, growth of
the private sector, development of stock markets and a modern banking system,
and opening to foreign trade and investment. China has implemented reforms in a
gradualist fashion. In recent years, China has renewed its support for
state-owned enterprises in sectors considered important to "economic
security," explicitly looking to foster globally competitive industries.
After keeping its currency tightly linked to the US dollar for years, in July
2005 China moved to an exchange rate system that references a basket of currencies.
From mid 2005 to late 2008 cumulative appreciation of the renminbi against the
US dollar was more than 20%, but the exchange rate remained virtually pegged to
the dollar from the onset of the global financial crisis until June 2010, when
Beijing allowed resumption of a gradual appreciation. In 2014 the People’s Bank
of China (PBOC) doubled the daily trading band within which the RMB is
permitted to fluctuate. The restructuring of the economy and resulting
efficiency gains have contributed to a more than tenfold increase in GDP since
1978. Measured on a purchasing power parity (PPP) basis that adjusts for price
differences, China in 2014 stood as the largest economy in the world,
surpassing the US that year... Still, per capita income is below the world
average.
The
Chinese government faces numerous economic challenges, including: (a) reducing
its high domestic savings rate and correspondingly low domestic consumption;
(b) facilitating higher-wage job opportunities for the aspiring middle class,
including rural migrants and increasing numbers of college graduates; (c)
reducing corruption and other economic crimes; and (d) containing environmental
damage and social strife related to the economy's rapid transformation.
Economic development has progressed further in coastal provinces than in the
interior, and by 2011 more than 250 million migrant workers and their
dependents had relocated to urban areas to find work. One consequence of
population control policy is that China is now one of the most rapidly aging
countries in the world. Deterioration in the environment - notably air
pollution, soil erosion, and the steady fall of the water table, especially in
the North - is another long-term problem. China continues to lose arable land
because of erosion and economic development. The Chinese government is seeking
to add energy production capacity from sources other than coal and oil,
focusing on nuclear and alternative energy development. Several factors are
converging to slow China's growth, including debt overhang from its
credit-fueled stimulus program, industrial overcapacity, inefficient allocation
of capital by state-owned banks, and the slow recovery of China's trading
partners. The government's 12th Five-Year Plan, adopted in March 2011 and
reiterated at the Communist Party's "Third Plenum" meeting in
November 2013, emphasizes continued economic reforms and the need to increase
domestic consumption in order to make the economy less dependent in the future
on fixed investments, exports, and heavy industry. However, China has made only
marginal progress toward these rebalancing goals. The new government of
President XI Jinping has signaled a greater willingness to undertake reforms
that focus on China's long-term economic health, including giving the market a
more decisive role in allocating resources. In 2014 China agreed to begin
limiting carbon dioxide emissions by 2030. China implemented several economic
reforms in 2014, including legislation allowing local governments to issue
bonds, further opening several state-owned enterprises to private investment,
loosening the one-child policy, passing harsher pollution fines, and cutting
administrative red tape.
|
Source
: CIA |
Company
name and address
LUVATA ALLTOP (ZHONGSHAN) LIMITED
MAXIN INDUSTRIAL ZONE,
HUANGPU TOWN
ZHONGSHAN,
GUANGDONG PROVINCE 528429 PR CHINA
TEL: 86 (0)
760-23222277/22501166
FAX: N/A
EXECUTIVE
SUMMARY
Date
of Registration : july
28, 2005
REGISTRATION
NO. :
442000400019095
LEGAL
FORM : Wholly foreign-owned enterprise
REGISTERED
CAPITAL : usd 12,000,000
staff :
300
BUSINESS
CATEGORY : manufacturing & TRADING
REVENUE : CNY 468,446,000 (AS OF DEC. 31, 2014)
EQUITIES : CNY 100,834,000 (AS OF DEC. 31, 2014)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT
:
AVERAGE
MARKET
CONDITION :
average
FINANCIAL
CONDITION : fairly
stable
OPERATIONAL
TREND : fairly steady
GENERAL
REPUTATION : average
EXCHANGE
RATE : CNY
6.20 = USD 1 AS
ADOPTED ABBREVIATIONS (AS FOLLOWS)
SC - Subject Company (the company inquired by you)
N/A – Not available
CNY – China Yuan Ren Min Bi
OPERATIONAL
TREND & GENERAL REPUTATION
This section aims
at indicating the relative positions of SC in respect of its operational trend
& general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be
determined
LEGAL
STATUS & HISTORY
SC was established as a wholly foreign-owned
enterprise of PRC with State Administration for Industry & Commerce (SAIC)
under registration No.: 442000400019095
on July 28, 2005.
SC’s Organization Code Certificate No.: 77830401-3
%20LIMITED%20-%20323505%2022-May-2015_files/image006.jpg)
SC’s Tax No.: 442000778304013
SC’s registered capital: usd 12,000,000
SC’s paid-in capital: usd 12,000,000
Registration
Change Record:-
No significant changes of SC have been noted in SAIC since its
incorporation.
Current Co
search indicates SC’s shareholders & chief executives are as follows:-
|
Name of
Shareholder (s) |
% of
Shareholding |
|
Luvata Hong Kong Limited |
100 |
SC’s Chief
Executives:-
|
Position |
Name |
|
Legal Representative, Chairman and General Manager |
Ronald Cameron Beal |
|
Director |
Hannu Kalevi Wahlroos |
|
Lawrence Blatt |
|
|
Supervisor |
Rong Jingping |
RECENT
DEVELOPMENT
No recent
development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Luvata Hong Kong Limited 100
--------------------------
Company File No.: 0988811
Legal Form: Private
Status: Live
MANAGEMENT
Ronald Cameron Beal, Legal
Representative, Chairman and General Manager
-----------------------------------------------------------------------------------------------------
Ø Gender: M
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal representative,
chairman and general manager
Director
-----------
Hannu Kalevi Wahlroos
Lawrence Blatt
Supervisor
--------------
Rong Jingping
BUSINESS
OPERATION
SC’s registered business scope
includes designing, developing, manufacturing and selling metal materials,
metal composite materials, and new type of alloy materials; providing after
service and technology consulting service; wholesaling, importing and exporting
electrolytic copper, and commission agency.
SC is mainly engaged in manufacturing and
selling copper tube.
SC’s products mainly include: copper tube
SC sources its materials 100% from domestic
market. SC sells 20% in domestic market and 80% to overseas market, mainly
U.S.A., India
The buying terms of
SC include Check, T/T and Credit of 30-60 days. The payment terms of SC include
Check, T/T, L/C and Credit of 30-60 days.
*Major
Clients*
-----------------
LUVATA MONTERREY S. DE R. L. DE C.V.
Times Microwave Systems Inc.
LS CABLE INDIA PRIVATE LIMITED
Staff
& Office:
--------------------------
SC is known to have approx. 300 staff at present.
SC owns an area as its operating office and
factory, but the detailed information is unknown.
RELATED
COMPANY
Luvata Tube (Zhongshan) Ltd.
Registration No.: 442000400018112
Date of Registration: December 31, 1992
Legal Form: wholly foreign-owned enterprise
Registered Capital: USD 59,400,000
Legal Representative: Ronald Beal
Luvata Heat Transfer Solutions (Zhongshan) Co.,
Ltd.
Registration No.: 442000400011210
Date of Registration: January 27, 2003
Legal Form: wholly foreign-owned enterprise
Registered Capital: USD 3,100,000
Luvata Heat Transfer Solutions (Wuxi) Co., Ltd.
Registration No.: 320200400025724
Date of Registration: January 19, 2006
Legal Form: wholly foreign-owned enterprise
Registered Capital: USD 2,500,000
Legal Representative: Hannu Kalevi Wahlroos
Luvata Suzhou Ltd.
Registration No.: 320594400013725
Date of Registration: November 30, 2005
Legal Form: wholly foreign-owned enterprise
Registered Capital: USD 7,500,000
Legal Representative: Hannu K. Wahlroos
PAYMENT
Overall payment
appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be determined
The appraisal
serves as a reference to reveal SC's payments habits and ability to pay. It is based on the 3 weighed factors: Trade
payment experience (through current enquiry with SC's suppliers), our
delinquent payment and our debt collection record concerning SC.
Trade payment experience: SC did not provide any name of trade/service suppliers and we have no
other sources to conduct the enquiry at present.
Delinquent payment record: None in our database.
Debt collection
record: No overdue amount owed by
SC was placed to us for collection within the last 6 years.
BANKING
The bank
information of SC is not filed in local SAIC.
FINANCIALS
Balance
Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
Cash |
7,952 |
9,953 |
|
Notes receivable |
0 |
495 |
|
Accounts receivable |
35,868 |
143,653 |
|
Advances to suppliers |
0 |
377 |
|
Other receivable |
547 |
897 |
|
Inventory |
25,810 |
19,049 |
|
Prepaid expenses |
0 |
0 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
70,177 |
174,424 |
|
Fixed assets |
82,906 |
74,298 |
|
Construction in progress |
2,027 |
234 |
|
Fixed assets liquidation |
10 |
334 |
|
Intangible assets |
13,395 |
13,512 |
|
Long-term prepaid expenses |
0 |
0 |
|
Deferred income tax assets |
0 |
0 |
|
Other non-current assets |
1,595 |
1,590 |
|
|
------------------ |
------------------ |
|
Total assets |
170,110 |
264,392 |
|
|
============= |
============= |
|
Short-term loans |
0 |
0 |
|
Notes payable |
15,700 |
36,903 |
|
Accounts payable |
25,300 |
103,815 |
|
Wages payable |
3,379 |
3,996 |
|
Taxes payable |
3,663 |
6,838 |
|
Advances from clients |
11,872 |
7 |
|
Other payable |
10,421 |
11,999 |
|
Accrued expenses |
0 |
0 |
|
Other current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current liabilities |
70,335 |
163,558 |
|
Non-current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total liabilities |
70,335 |
163,558 |
|
Equities |
99,775 |
100,834 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
170,110 |
264,392 |
|
|
============= |
============= |
Income
Statement
|
Unit: CNY’000 |
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
Revenue |
367,022 |
468,446 |
|
Cost of sales |
342,010 |
439,251 |
|
Taxes and surcharges |
964 |
824 |
|
Sales expense |
6,564 |
7,467 |
|
Management expense |
10,196 |
11,666 |
|
Finance expense |
5,364 |
5,026 |
|
Non-operating income |
1,667 |
713 |
|
Non-operating expense |
1,071 |
3,115 |
|
Profit before tax |
2,520 |
1,810 |
|
Less: profit tax |
291 |
1,187 |
|
Profits |
2,229 |
623 |
Important Ratios
=============
|
|
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
*Current ratio |
1.00 |
1.07 |
|
*Quick ratio |
0.63 |
0.95 |
|
*Liabilities
to assets |
0.41 |
0.62 |
|
*Net profit
margin (%) |
0.61 |
0.13 |
|
*Return on
total assets (%) |
1.31 |
0.24 |
|
*Inventory /
Revenue ×365 |
26 days |
15 days |
|
*Accounts
receivable / Revenue ×365 |
36 days |
112 days |
|
*Revenue /
Total assets |
2.16 |
1.77 |
|
*Cost of sales
/ Revenue |
0.93 |
0.94 |
FINANCIAL
COMMENTS
PROFITABILITY: AVERAGE
l
The
revenue of SC appears fairly good in its line.
l
SC’s
net profit margin is average.
l
SC’s
return on total assets is average.
l SC’s cost of sales is average, comparing
with its revenue.
LIQUIDITY: AVERAGE
l The current ratio of SC is maintained in a
normal level.
l SC’s quick ratio is maintained in a normal
level.
l The inventory of SC appears average.
l The accounts receivable of SC appears large
in 2014.
l SC has no short-term loans.
l SC’s revenue is in an average level,
comparing with the size of its total assets.
LEVERAGE: AVERAGE
l The debt ratio of SC is average.
l The risk for SC to go bankrupt is average.
Overall financial condition of the SC:
Fairly Stable.
CONCLUSIONS
SC is considered
medium-sized in its line with fairly stable financial conditions. The large
amount of accounts receivable may be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.70 |
|
|
1 |
Rs.98.92 |
|
Euro |
1 |
Rs.70.67 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
ANK |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This score serves as a reference to assess SC’s
credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.