MIRA INFORM REPORT
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Report No. : |
343084 |
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Report Date : |
01.10.2015 |
IDENTIFICATION DETAILS
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Name : |
TAIZHOU ZHONGHAO MACHINE CO., LTD. |
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Registered Office : |
Sifentou Village, Pengjie Town, Luqiao District, Taizhou City, Zhejiang
Province, 318057 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
25.04.1995 |
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Com. Reg. No.: |
331004000046282 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Subject is engaged in general management project: manufacturing and
selling needle textile machinery, plastic products, rubber products, motor,
auto parts, water & heating equipment; copper and copper alloy casting
(operating by Jinqing Branch only). |
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No. of Employees : |
300 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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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 & address
TAIZHOU ZHONGHAO MACHINE CO., LTD.
SIFENTOU VILLAGE, PENGJIE TOWN, LUQIAO DISTRICT, TAIZHOU CITY,
ZHEJIANG PROVINCE, 318057 PR CHINA
TEL: 86 (0) 576-82730882 FAX:
86 (0) 576-82758275
EXECUTIVE
SUMMARY
INCORPORATION DATE :
APR. 25, 1995
REGISTRATION NO. :
331004000046282
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MR. LUO WENMIN (LEGAL
REPRESENTATIVE)
STAFF STRENGTH :
300
REGISTERED CAPITAL :
CNY 20,800,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER :
CNY 125,190,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 30,950,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.3569 = 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 company at local Administration for Industry & Commerce
(AIC - The official body of issuing and renewing business license) on Apr. 25,
1995.
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 general management project:
manufacturing and selling needle
textile machinery, plastic products, rubber products, motor, auto parts, water
& heating equipment; copper and copper alloy casting (operating by Jinqing
Branch only).
SC is mainly engaged in manufacturing and selling water & heating
equipment.
Mr. Luo Wenmin is legal representative, executive director and general
manager of SC at present.
SC is known to have approx. 300 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in Taizhou. The detailed premise
information is unknown.
www.cnzhonghao.com The design is
professional and the content is well organized. At present it is in English and
Chinese versions.
E-mail: info@cnzhonhao.com
Changes of its registered information are as follows:
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Date of change |
Item |
Before the change |
After the change |
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1997-4-18 |
Company name |
Taizhou Luqiao Zhonghao Machine Co., Ltd. |
Taizhou Luqiao Zhonghao Copper Bed Furniture Co., Ltd. (Literal
Translation) |
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2000-1-12 |
Taizhou Luqiao Zhonghao Copper Bed Furniture Co., Ltd. (Literal
Translation) |
Present one |
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|
2006-2-15 |
Registered capital |
CNY 580,000 |
CNY 5,800,000 |
|
2009-10-16 |
Registration No. |
3310042000008 |
Present one |
|
2014-7-28 |
Registered capital |
CNY 5,800,000 |
Present amount |
Organization Code: 255650822
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Luo Wenmin 80
Luo Xianju 20
Legal representative, Executive director and General manager:
Mr. Luo Wenmin is currently responsible for the overall and daily management
of SC.
Working Experience(s):
At present Working
in SC as legal representative, executive director and general manager.
Also working in Taizhou Zhonghao Machine Co., Ltd. Luqiao Branch and Taizhou
Zhonghao Machine Co., Ltd. Luqiao Jinqing Branch as principal.
Supervisor:
Luo Xianju
SC is mainly engaged in manufacturing and selling water & heating
equipment.
SC’s products mainly include: ceramic cartridge, sanitary fitting, brass
fitting, ceramic disc core valve, faucet fitting, etc.
SC sources its materials 100% from domestic market. SC sells 30% of its
products in domestic market, and 70% to overseas market.
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.
Note: SC refused
to release its major suppliers and customers.
TRADEMARKS & PATENTS
Registration No. 13211319
Registration Date 2015-01-28
Trademark Design 
Registration No. 10218589
Registration Date 2013-01-21
Trademark Design 
Registration No. 3337585
Registration Date 2004-04-14
Trademark Design 
Registration No. 5293769
Registration Date 2009-07-21
Trademark Design 
Registration No. 13211380
Registration Date 2015-02-07
Trademark Design 
SC is known to invest in the following company:
Taizhou City Luqiao District General Chamber of Commerce Corporate Headquarters
Building Co., Ltd. (Literal Translation)
=================================
Incorporation Date: 2010-08-13
Registered No.: 331004000061152
Registered Capital: CNY 18,600,000
Legal Representative: Liu Peng
Branch:
Taizhou Zhonghao Machine Co., Ltd. Luqiao Branch
==================================
Incorporation date: 2009-09-27
Registration no.: 331004000045683
Principal: Luo Wenmin
Taizhou Zhonghao Machine Co., Ltd. Luqiao Jinqing Branch
==================================
Incorporation date: 2012-10-11
Registration no.: 331004000102271
Principal: Luo Wenmin
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.
SC’s management declined to release its bank details.
Balance
Sheet
Unit: CNY’000
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as of Dec. 31,
2014 |
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Cash & bank |
2,320 |
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Inventory |
17,540 |
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Accounts receivable |
20,340 |
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Advances to suppliers |
0 |
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Other receivables |
1,420 |
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Notes receivable |
0 |
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------------------ |
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Current assets |
41,620 |
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Fixed assets net value |
15,230 |
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Long term investment |
0 |
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Projects under construction |
7,940 |
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Intangible assets & other assets |
19,840 |
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------------------ |
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Total assets |
84,630 |
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============= |
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Short loans |
30,000 |
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Accounts payable |
2,250 |
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Accounts from customers |
0 |
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Taxes payable |
-940 |
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Other accounts payable |
22,370 |
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Other fees payable |
0 |
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Notes payable |
0 |
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------------------ |
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Current liabilities |
53,680 |
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Long term liabilities |
0 |
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------------------ |
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Total liabilities |
53,680 |
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Equities |
30,950 |
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------------------ |
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Total liabilities & equities |
84,630 |
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============= |
Income
Statement
Unit: CNY’000
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as of Dec. 31,
2014 |
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Turnover |
125,190 |
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Cost of goods sold |
112,270 |
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Taxes and additional of main operation |
610 |
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Sales expense |
2,490 |
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Management expense |
3,660 |
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Finance expense |
3,000 |
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Assets impairment loss |
0 |
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Other operating profit |
0 |
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Non-operation income |
620 |
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Non-operating expenses |
60 |
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Profit before tax |
3,720 |
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Less: profit tax |
920 |
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Profits |
2,800 |
Important
Ratios
=============
|
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as of Dec. 31,
2014 |
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*Current ratio |
0.78 |
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*Quick ratio |
0.45 |
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*Liabilities to assets |
0.63 |
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*Net profit margin (%) |
2.24 |
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*Return on total assets (%) |
3.31 |
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*Inventory /Turnover ×365 |
52 days |
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*Accounts receivable/Turnover ×365 |
60 days |
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*Turnover/Total assets |
1.48 |
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* Cost of goods sold/Turnover |
0.90 |
PROFITABILITY:
AVERAGE
The turnover of SC appears fairly good in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level.
SC’s quick ratio is maintained in a fair level.
SC’s inventory appears average.
SC’s accounts receivable appears fairly large.
SC’s short-term loan appears large.
SC’s turnover is in an average 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 medium-sized in its line with fairly stable financial
conditions. The large amount of short-term loan could be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.74 |
|
|
1 |
Rs.99.53 |
|
Euro |
1 |
Rs.73.80 |
INFORMATION DETAILS
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Analysis Done by
: |
RAS |
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Report Prepared
by : |
TPT |
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.