MIRA INFORM REPORT
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Report No. : |
343565 |
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Report Date : |
03.10.2015 |
IDENTIFICATION DETAILS
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Name : |
QINGDAO JOINSET S&T CO., LTD. |
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Registered Office : |
Join S& T Park, No. 50 Tianshan 3rd Road, Daxin Town, Jimo
Qingdao, Shandong Province 266229 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
02.12.2005 |
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Com. Reg. No.: |
370200400146495 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Subject is engaged in manufacturing and
selling electronic products, shielding materials, cutting materials,
cutting equipment, textile materials. |
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No. of Employee : |
253 |
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
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
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. 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 and expanded 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 2013 stood as the second-largest economy in the
world after the US, having surpassed Japan in 2001. The dollar values of
China's agricultural and industrial output each exceed those of the US; China
is second to the US in the value of services it produces. 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.
|
Source
: CIA |
Company
name and address
QINGDAO JOINSET
S&T CO., LTD.
JOIN S& T PARK, NO. 50 TIANSHAN 3RD ROAD, DAXIN TOWN, JIMO
QINGDAO, SHANDONG PROVINCE 266229 PR CHINA
TEL: 86 (0) 532-82530005
FAX: 86 (0) 532-82530002
EXECUTIVE
SUMMARY
Date of Registration : december 2, 2005
REGISTRATION NO. : 370200400146495
LEGAL FORM : Chinese-foreign equity joint venture
enterprise
REGISTERED CAPITAL : usd 451,064
staff :
253
BUSINESS CATEGORY : MANUFACTURING & TRADING
Revenue :
CNY 270,256,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY 70,813,000 (AS OF DEC. 31, 2013)
WEBSITE : www.joinset.cn
E-MAIL :
zhangcm@joinset.cn
PAYMENT : AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.26 = USD
1
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 Chinese-foreign equity joint venture enterprise of PRC with
State Administration of Industry & Commerce (SAIC) under registration No.: 370200400146495 on December 2, 2005.
SC’s Organization Code Certificate
No.: 78037836-1
SC’s Tax No.: 370282780378361
SC’s Customs Registration No.:
SC’s registered capital: USD 451,064
SC’s paid-in capital: USD 451,064 (CNY 3,575,967.96)
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 |
|
Joinset Co., Ltd. (Korea) |
25 |
|
Qingdao Hengshunda Laser Knife
Mold Co., Ltd. |
6 |
|
Qingdao Kangchuandai Trade
Co., Ltd. |
69 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Wang
Enhu |
|
Director |
Jin
Shanj |
|
Zhang
Leyang |
|
|
Supervisor |
Gao
Kangxuan |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Joinset Co., Ltd. (Korea) 25
Qingdao Hengshunda Laser Knife
Mold Co., Ltd. 6
Qingdao Kangchuandai Trade Co.,
Ltd. 69
Qingdao
Hengshunda Laser Knife Mold Co., Ltd.
=======================================
Date of Registration: July 7, 2008
Registration No.: 370213230006042
Registered Capital: CNY 100,000
Qingdao
Kangchuandai Trade Co., Ltd.
================================
Date of Registration: October 24, 2005
Registration No.: 370202228171866
MANAGEMENT
Wang
Enhui, 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, also working in Qingdao
Kangchuandai Trade Co., Ltd. as legal representative
Director
-----------
Jin Shanji
Zhang Leyang
Supervisor
--------------
Gao Kangxuan
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing
electronic products, shielding materials, cutting materials, cutting equipment,
textile materials.
SC is
mainly engaged in manufacturing and selling electronic products, shielding materials,
cutting materials, cutting equipment, textile materials.
Brand: JOINSET
SC’s
products mainly include: Alshield, PCB-Gasket,
Join Clip, Both-M, Tape, Protective Film, Flake Graphite, ITO Film, Light Guide
Plate, Diffusion, LED Lighting, Remote
SC sources its materials 70% from domestic market, mainly Shandong, and 30% from overseas market, mainly Korea and Taiwan. SC sells 98% of its products in domestic market, and 2% to 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 T/T, L/C and Credit of 30-60 days.
Staff & Office:
--------------------------
SC is known to have approx. 253 staff at present.
SC rents an area as its operating office & factory of approx. 5,000 sq. meters at the heading address.
RELATED
COMPANY
Mianyang Joinset S&T Co., Ltd.
Kunshan Joinset s&t Co., Ltd.
Qingdao Joinset Electronics Co., Ltd.
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
Basic Bank:
Bank
of Qingdao
AC#:
802260200103242
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
4,778 |
31,292 |
|
|
Notes receivable |
260 |
2,125 |
|
Accounts
receivable |
62,318 |
82,244 |
|
Advances to
suppliers |
13,348 |
6,939 |
|
Other receivable |
9,799 |
28,548 |
|
Inventory |
17,945 |
28,259 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
108,448 |
179,407 |
|
Long-term
investment |
6,100 |
6,100 |
|
Fixed assets |
7,175 |
8,095 |
|
Construction in
progress |
0 |
0 |
|
Intangible
assets |
114 |
133 |
|
Long-term
prepaid expenses |
61 |
0 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
121,898 |
193,735 |
|
|
============= |
============= |
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Short-term loans |
11,870 |
10,300 |
|
Notes payable |
0 |
34,800 |
|
Accounts payable |
38,438 |
63,899 |
|
Wages payable |
795 |
763 |
|
Taxes payable |
-461 |
987 |
|
Advances from
clients |
496 |
8,325 |
|
Other payable |
8,368 |
3,848 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
59,506 |
122,922 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
59,506 |
122,922 |
|
Equities |
62,392 |
70,813 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
121,898 |
193,735 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
Revenue |
151,975 |
270,256 |
|
Cost of sales |
128,493 |
228,860 |
|
Taxes and surcharges |
549 |
1,853 |
|
Sales expense |
5,412 |
8,299 |
|
Management expense |
10,957 |
18,068 |
|
Finance expense |
1,167 |
3,922 |
|
Non-business
income |
284 |
733 |
|
Non-business expenditure |
119 |
282 |
|
Profit before
tax |
5,562 |
9,704 |
|
Less: profit tax |
817 |
1,283 |
|
4,745 |
8,421 |
Important Ratios
=============
|
|
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
*Current ratio |
1.82 |
1.46 |
|
*Quick ratio |
1.52 |
1.23 |
|
*Liabilities
to assets |
0.49 |
0.63 |
|
*Net profit
margin (%) |
3.12 |
3.12 |
|
*Return on
total assets (%) |
3.89 |
4.35 |
|
*Inventory /
Revenue ×365 |
44 days |
39 days |
|
*Accounts
receivable/ Revenue ×365 |
150 days |
112 days |
|
*Revenue/Total
assets |
1.25 |
1.39 |
|
*Cost of sales
/ Revenue |
0.85 |
0.85 |
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 fairly good
level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC appears large.
l
SC’s short-term loans are in an average level.
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.65.55 |
|
|
1 |
Rs.99.17 |
|
Euro |
1 |
Rs.73.08 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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|
Report Prepared
by : |
NIT |
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.