MIRA
INFORM REPORT
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Report No. : |
343595 |
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Report Date : |
09.10.2015 |
IDENTIFICATION DETAILS
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Name : |
JINXI AXLE
COMPANY LIMITED |
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Registered Office : |
No.5,
North Lane, Heping North Road Taiyuan, Shanxi Province 030027 Pr |
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Country : |
China |
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Financials (as on) : |
30.06.2015 |
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Date of Incorporation : |
27.12.2000 |
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Com. Reg. No.: |
140000100092893 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject is mainly
engaged in manufacturing and selling railway vehicle parts, axles, precision
forging products. |
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No. of Employees : |
1,968 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 : |
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 – March 31, 2015
|
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.
|
Source
: CIA |
Company Name and address
JINXI AXLE COMPANY LIMITED
NO.5, NORTH LANE, HEPING NORTH
ROAD
TAIYUAN, SHANXI PROVINCE 030027
PR CHINA
TEL: 86 (0) 351-6629027
FAX: 86 (0) 351-6628286
EXECUTIVE SUMMARY
Date of Registration : DECEMBER 27, 2000
REGISTRATION NO. : 140000100092893
LEGAL FORM : SHARES LIMITED COMPANY
REGISTERED CAPITAL : CNY 1,208,190,886
staff : 1,968
BUSINESS CATEGORY : manufacturing & trading
REVENUE : CNY 967,650,000 (Consolidated, Jan. 1 to Jun. 30, 2015)
EQUITIES : CNY 3,037,733,000 (Consolidated, as of Jun. 30, 2015)
WEBSITE : www.jinxiaxle.com
E-MAIL : jinxi@jinxiaxle.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.35 = 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 shares limited company of PRC
with State Administration of Industry & Commerce (SAIC) under registration
No.: 140000100092893 on December
27, 2000.
SC’s Organization Code Certificate No.:
72590961-7
SC’s registered capital: CNY 1,208,190,886
SC’s paid-in capital: CNY 1,208,190,886
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2014-9-23 |
Registered Capital |
CNY 419,510,724 |
CNY 671,217,159 |
|
2015-8-6 |
Registered Capital |
CNY 671,217,159 |
CNY 1,208,190,886 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) (As of June 30,
2015) |
% of Shareholding |
|
Jinxi Industries Group Co., Ltd. |
30.57 |
|
Inner
Mongolia North Equipment Co., Ltd. |
0.74 |
|
China Merchants
Bank Co., Ltd. - Penghua. Zhongzheng Highway Industry Index Classified.
Securities Investment Fund |
0.57 |
|
Tang Zhihui |
0.55 |
|
China Merchants Securities Co., Ltd.-Anxin Zhongzheng
One-Belt-One-Road Subject Index Classified Securities Investment Fund |
0.34 |
|
Guosen Securities Co., Ltd. |
0.33 |
|
Agricultural Bank of China Co., Ltd.-Zhongrong
Zhongzheng One-Belt-One-Road Subject Index Classified Securities Investment
Fund |
0.31 |
|
Mao Ouyue |
0.26 |
|
Zeng Yuangui |
0.24 |
|
Wang Yan |
0.24 |
|
Other Shareholders |
65.85 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal
Representative and Chairman |
Li Zhaozhi |
|
General
Manager and Director |
Yang Wanlin |
|
Director |
Liu Jingwei |
|
Zhao Baodong |
|
|
Kong Jionggang |
|
|
Pan Pingying |
|
|
Zhang Chaohong |
|
|
Zhang Guoping |
|
|
Zhang Hongru |
|
|
Supervisor |
Xing Jianzhong |
|
Yao Zhong |
|
|
Zhang Shuzhen |
RECENT DEVELOPMENT
SC is a listed company in Shanghai Stock Exchange Market with the code
of 600495.
SHAREHOLDER CHART & BACKGROUND
Name % of Shareholding
(As of June 30, 2015)
----------------------------------
Jinxi Industries Group Co., Ltd. 30.57
Inner Mongolia North Equipment Co., Ltd. 0.74
China Merchants Bank Co., Ltd.- Penghua.
Zhongzheng Highway Industry Index
Classified. Securities Investment Fund 0.57
Tang Zhihui 0.55
China Merchants Securities Co., Ltd.-Anxin Zhongzheng
One-Belt-One-Road Subject
Index Classified Securities Investment Fund 0.34
Guosen Securities Co., Ltd. 0.33
Agricultural Bank of China Co.,
Ltd.-Zhongrong Zhongzheng One-Belt-One-Road
Subject Index Classified Securities
Investment Fund 0.31
Mao Ouyue 0.26
Zeng Yuangui 0.24
Wang Yan 0.24
Other Shareholders 65.85
Jinxi Industries Group Co., Ltd.
-------------------------------------
Registration No.: 140000100006191
Date of Registration: June 23, 1980
Legal Form: Limited Liabilities Company
Registered Capital: CNY 1,722,727,300
Legal Representative: Li Zhaozhi
Inner Mongolia North Equipment Co., Ltd.
---------------------------------------------------
Registration No.: 150200000015152
Legal Form: Limited Liabilities Company
Registered Capital: CNY 567,760,800
Legal Representative: Wang Jinzhong
Guosen Securities Co., Ltd.
---------------------------------
Registration No.: 440301103244209
Date of Registration: June 30, 1994
Legal Form: Shares Limited Company
Registered Capital: CNY 8,200,000,000
Legal Representative: He Ru
MANAGEMENT
Li Zhaozhi, Legal
Representative and Chairman
-------------------------------------------------------------------------
Ø
Gender: M
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal
representative and chairman
Also working in Jinxi Industries Group Co.,
Ltd. as legal representative
Yang Wanlin,
General Manager and Director
----------------------------------------------------------------------
Ø
Gender: M
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as general
manager and director
Director
------------
Liu Jingwei
Zhao Baodong
Kong Jionggang
Pan Pingying
Zhang Chaohong
Zhang Guoping
Zhang Hongru
Supervisor
--------------
Xing Jianzhong
Yao Zhong
Zhang Shuzhen
BUSINESS OPERATION
SC’s registered
business scope includes manufacturing and selling railway vehicle parts, axles,
precision forging products, and related technology consulting service;
repairing equipment; designing, manufacturing and selling non standard
equipment; exporting its products and technology; importing raw materials &
accessories, meters & instruments, machinery, components, raw materials
& accessories, and technology; processing with imported materials,
processing with imported samples, assemblying with imported parts, and
compensation trade in agreement.
SC is mainly
engaged in manufacturing and selling railway vehicle parts, axles, precision
forging products.
SC’s products mainly include: steering frame, axle, etc.
SC sources its materials 90% from domestic
market, and 10% from overseas market, mainly U.S.A. and Europe. SC sells 70% of
its products in domestic market, and 30% to overseas market, mainly Southeast
Asia, etc.
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.
Staff & Office:
--------------------------
SC is known
to have approx. 1,968 staff
at present.
SC owns an area as its operating office and factory, but the detailed
information is unknown.
RELATED COMPANY
SC is known to
invest in the following companies.
----------------------------------------------
Baotou
North Railroad Product Company Ltd.
Jinxi
Equipment Manufacturing 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’s supplier declined
to make any commends.
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
Consolidated Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2014 |
As of Jun. 30,
2015 |
|
879,661 |
572,014 |
|
|
Trading financial assets |
0 |
0 |
|
Accounts receivable |
381,114 |
456,962 |
|
Notes receivable |
167,560 |
30,465 |
|
Advances to suppliers |
57,014 |
62,047 |
|
Interest receivable |
5,794 |
15,295 |
|
Other receivable |
14,027 |
48,427 |
|
Inventory |
626,807 |
698,264 |
|
Non-current assets within one year |
0 |
0 |
|
Other current assets |
634,064 |
811,764 |
|
|
------------------ |
------------------ |
|
Current assets |
2,766,041 |
2,695,238 |
|
Long-term investments |
0 |
0 |
|
Financial assets available for sale |
139,000 |
139,000 |
|
Real estate investment |
0 |
0 |
|
Fixed assets |
729,232 |
737,585 |
|
Construction in progress |
340,677 |
320,299 |
|
Project materials |
0 |
0 |
|
Fixed assets in liquidation |
0 |
51 |
|
Intangible assets |
190,308 |
103,314 |
|
Long-term deferred expense |
0 |
0 |
|
Deferred income tax assets |
9,344 |
11,317 |
|
Other non-current assets |
92,971 |
73,549 |
|
|
------------------ |
------------------ |
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Total assets |
4,267,573 |
4,080,353 |
|
|
============= |
============= |
|
Short-term loans |
25,000 |
100,000 |
|
Transaction financial liabilities |
0 |
0 |
|
Notes payable |
490,573 |
471,428 |
|
Accounts payable |
318,322 |
254,561 |
|
Payroll payable |
8,020 |
9,766 |
|
Taxes payable |
12,559 |
4,054 |
|
Interest payable |
68 |
163 |
|
Dividends payable |
0 |
43,629 |
|
Advances from clients |
56,068 |
30,929 |
|
Other payable |
46,700 |
41,410 |
|
Non-current liabilities maturing within one year |
50,000 |
50,000 |
|
Other current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current liabilities |
1,007,310 |
1,005,940 |
|
Non-current liabilities |
38,478 |
36,680 |
|
|
------------------ |
------------------ |
|
Total liabilities |
1,045,788 |
1,042,620 |
|
Equities |
3,221,785 |
3,037,733 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
4,267,573 |
4,080,353 |
|
|
============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2014 |
Jan. 1
to Jun. 30, 2015 |
|
Revenue |
2,502,590 |
967,650 |
|
Cost of
sales |
2,286,974 |
868,272 |
|
Business Taxes
and Surcharges |
2,460 |
358 |
|
Sales expense |
41,493 |
31,893 |
|
Management expense |
164,436 |
62,125 |
|
Finance expense |
-9,471 |
-6,444 |
|
Asset impairment loss |
8,262 |
570 |
|
Investment income |
122,653 |
23,946 |
|
Non-operating income |
29,320 |
1,858 |
|
Non-operating expense |
271 |
157 |
|
Profit before tax |
160,138 |
36,524 |
|
Less: profit tax |
19,766 |
6,460 |
|
140,372 |
30,064 |
Important Ratios
=============
|
|
As
of Dec. 31, 2014 |
As of Jun. 30, 2015 |
|
*Current ratio |
2.75 |
2.68 |
|
*Quick ratio |
2.12 |
1.99 |
|
*Liabilities to assets |
0.25 |
0.26 |
|
*Net profit margin (%) |
5.61 |
3.11 |
|
*Return on total assets (%) |
3.29 |
0.74 |
|
*Inventory / Revenue ×365/180 |
92 days |
130 days |
|
*Accounts receivable / Revenue ×365/180 |
56 days |
86 days |
|
*Revenue / Total assets |
0.59 |
0.24 |
|
*Cost of sales / Revenue |
0.91 |
0.90 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
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 goods sold is average, comparing with
its revenue.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a fairly
good level.
l
SC’s quick ratio is maintained in a fairly good
level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears average.
l
The short-term loans of SC appear average.
l
SC’s revenue is in a fair 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 low.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.16 |
|
|
1 |
Rs.99.78 |
|
Euro |
1 |
Rs.73.33 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
|
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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.