MIRA INFORM REPORT
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Report No. : |
349489 |
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Report Date : |
18.11.2015 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
Yan’gang Village, No. 101 Pingchao
Industrial Zone, Tongzhou District, Nantong City, Jiangsu Province, 226361 Pr
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
11.01.2006 |
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Com. Reg. No.: |
320683000156142 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject
is engaged in manufacturing & selling various kinds of welding wire,
welding materials and other related products. |
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No. of Employees : |
50 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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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 – March 31, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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China |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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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 |
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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. 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 for the first time in modern history. Still, China's per capita income is below the world average.
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 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 2014 more than 274 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 also implemented several economic reforms in 2014, including passing legislation to allow local governments to issue bonds, opening several state-owned enterprises to further private investment, loosening the one-child policy, passing harsher pollution fines, and cutting administrative red tape.
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Source
: CIA |
Company
name and address
NANTONG CHENXI WELDING CO., LTD.
yan’gang village, no. 101 pingchao industrial zone,
tongzhou district, nantong city, jiangsu province, 226361 PR CHINA
TEL: 86 (0) 513-86728376/86728295 FAX: 86 (0) 513-86728376
EXECUTIVE
SUMMARY
INCORPORATION
DATE : JANUARY 11, 2006
REGISTRATION
NO. : 320683000156142
REGISTERED
LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF
EXECUTIVE : MS. YANG GUIHUA杨桂花 (LEGAL REPRESENTATIVE)
STAFF
STRENGTH : 50
REGISTERED
CAPITAL :
CNY 26,000,000
BUSINESS
LINE :
MANUFACTURING & TRADING
TURNOVER : CNY 35,410,000
(AS OF DEC. 31, 2014)
EQUITIES : CNY
30,750,000 (AS OF DEC. 31, 2014)
PAYMENT
: SLOW BUT CORRECT
MARKET
CONDITION : AVERAGE
FINANCIAL
CONDITION : FAIRLY STABLE
OPERATIONAL
TREND :
FAIRLY STEADY
GENERAL
REPUTATION : AVERAGE
EXCHANGE
RATE : CNY 6.365 = USD
1
Adopted abbreviations:
ANS
- amount not stated
NS
- not stated
SC
- subject company (the company inquired by you)
NA
- not available
CNY
- China Yuan Renminbi
SC
was registered as a limited liabilities co. at local Administration for
Industry & Commerce (AIC - The official body of issuing and renewing
business license) on January 11, 2006.
Company Status: Limited liabilities co.
This form of business in PR China is
defined as a legal person. No more than fifty shareholders contribute its
registered capital jointly. Shareholders bear limited liability to the extent
of shareholding, and the co. is liable for its debts only to extent of its
total assets. The characteristics of this form of co. are as follows:
Upon the establishment of the co.,
an investment certificate is issued to the each of shareholders.
The board of directors is
comprised of three to thirteen members.
The minimum registered capital for
a co. is CNY 30,000.
Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology.
Cash contributed by all
shareholders must account for at least 30% of the registered capital.
Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the other
shareholders and to subscribe for the newly increased registered capital of the
co.
SC’s
registered business scope includes manufacturing and selling welding wire,
welding equipment; selling flux cored wire, welding rod, welding materials;
repairing hardfacing; technical service and transfer; goods importing and
exporting. (except goods and technologies prohibited by the State) (with permit if needed)
SC is mainly engaged in manufacturing & selling various kinds
of welding wire, welding materials and other related products.
Ms.
Yang Guihua is legal representative of SC at present.
SC
is known to have approx. 50 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Nantong. The detailed
information of the premise is unspecified.
http://www.ntchenxi.cn/ The design is professional and the content is
well organized. At present it is in both Chinese and English versions.
Email:
chenxiwelding@163.com
No
significant changes were found during our checks with the local Administration
for Industry and Commerce.
Organization
code: 783367924
See
below for SC as executive party (defendant).
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Executed
Party |
Nantong Chenxi Welding Co., Ltd. |
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Court |
He’nan
Province Dengfeng City People's Court |
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Date of
Case |
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Case
Number |
(2014) 00802 |
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Claim
Amount |
RMB 720,178 |
Remark: Due to the lack of information, we are unable to provide the cause
of action, judgment or other information.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Yang
Guihua 29.7
Ge
Chunhong 22.5
Chen
Gang 13.5
Yang
Xiaojun 10
Lu
Guoqing 5.4
Peng
Wenhua 4.5
He
Xiao何萧 4.5
Xiong
Huiling 4.5
Wang
Jianguo 3.6
Zhou
Cuihua 1.8
·
Legal Representative and chairman:
Ms.
Yang Guihua is currently responsible for the overall management of SC.
Working
Experience(s):
At
present Working in SC as legal
representative and chairman.
·
General manager:
Li
Ping is currently responsible for the daily management of SC.
Working
Experience(s):
At
present
Working in SC as general manager.
·
Directors:
Ge
Chunhong
Xiong
Huiling
Peng
Wenhua
Chen
Gang
Supervisors:
Wang
Jianguo
Lu
Guoqing
SC
is mainly engaged in manufacturing & selling various kinds of welding wire,
welding materials and other related products.
SC’s
products mainly include: mild and low-alloy high strength steel, low
temperature service steel, heat resistance steel and corrosion resistance
steel, stainless steel, hardfacing
SC
sources its materials from domestic market and overseas market. SC sells its
products in domestic market and overseas market.
The
buying terms of SC include Check, T/T, L/C and Credit of 30-60 days. The
payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
Note: SC refused to
release its major clients and suppliers.
Trademarks:
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Trademark |
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Registration No. |
5688618 |
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Registration Date |
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SC is not known to have any subsidiary at present.
Overall payment appraisal:
( ) Excellent (
) Good (X) Average (
) Fair ( ) Poor
( ) Not yet 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.
N/A
Balance Sheet
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Unit: CNY’000 |
As
of Dec. 31, 2014 |
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Cash & bank |
1,270 |
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Inventory |
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Notes receivable |
50 |
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Accounts receivable |
24,860 |
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Other receivable |
290 |
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------------------ |
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Current assets |
33,760 |
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Deferred tax asset |
60 |
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Fixed assets net value |
20,340 |
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Projects under construction |
2,870 |
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Total intangible and other assets |
15,020 |
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------------------ |
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Total assets |
72,050 |
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=========== |
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Short loans |
25,350 |
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Accounts payable |
12,140 |
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Notes payable |
540 |
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Taxes payable |
310 |
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Other accounts payable |
2,960 |
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------------------ |
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Current liabilities |
41,300 |
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Long term liabilities |
0 |
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------------------ |
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Total liabilities |
41,300 |
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Equities |
30,750 |
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------------------ |
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Total liabilities & equities |
72,050 |
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=========== |
Income Statement
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Unit: CNY’000 |
As of Dec. 31, 2014 |
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Turnover |
35,410 |
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Cost of goods sold |
32,750 |
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Taxes
and additional of main operation |
160 |
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Sales expense |
740 |
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Management expense |
4,530 |
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Finance expense |
1,820 |
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Non-operating income |
60 |
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Non-operating expense |
30 |
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Profit before tax |
-4,560 |
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Less: profit tax |
0 |
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Profits |
-4,560 |
Important Ratios
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|
As of Dec. 31, 2014 |
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*Current ratio |
0.82 |
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*Quick ratio |
0.64 |
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*Liabilities to assets |
0.57 |
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*Net profit margin (%) |
-12.88 |
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*Return on total assets (%) |
-6.33 |
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*Inventory /Turnover ×365 |
76 days |
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*Accounts receivable/Turnover ×365 |
257 days |
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*Turnover/Total assets |
0.49 |
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* Cost of goods sold/Turnover |
0.92 |
PROFITABILITY: FAIR
The turnover of SC appears average.
SC’s net profit margin is poor.
SC’s return on total assets is fair.
SC’s cost of goods sold is in an average level.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level.
SC’s quick ratio is maintained in a fair level.
The inventory of SC appears average.
SC’s accounts receivable is large.
SC’s short term loan appears large.
SC’s turnover is in a fair level, comparing with the
size of its total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
The risk for SC to go bankrupt is average.
Overall financial condition of the SC:
Fairly Stable.
SC
is considered small-sized in its line with fairly stable financial conditions.
The large amount of accounts receivable and
short term loan could be a threat to its financial condition
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.98 |
|
UK Pound |
1 |
Rs.100.11 |
|
Euro |
1 |
Rs.70.35 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
TRU |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
|
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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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.