MIRA
INFORM REPORT
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Report No. : |
345372 |
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Report Date : |
19.10.2015 |
IDENTIFICATION DETAILS
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Name : |
NHI GROUP ENGINEERING EPC COMPANY |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
18.12.2009 |
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Com. Reg. No.: |
210131100004237 |
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Legal Form : |
Branch Company |
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Line of Business : |
Subject is engaged in technology development and design of special
equipment & complete sets of engineering, environmental protection
equipment & complete sets of engineering, engineering machinery & complete
sets of equipment, general machinery and complete sets of engineering, and
electrical engineering; complete sets of engineering general contract;
mechanical equipment installation, and commissioning; selling the above part
components, and international trade. |
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No. of Employee : |
100 |
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
NHI GROUP ENGINEERING
EPC COMPANY
NO. 16 KAIFA ROAD, SHENYANG ECONOMIC & TECHNOLOGICAL DEVELOPMENT ZONE, SHENYANG, LIAONING PROVINCE 110141 PR CHINA
TEL: 86 (0) 24-25138198/25802829/25802540
FAX: 86 (0) 24-25802626
EXECUTIVE SUMMARY
Date of Registration : december 18, 2009
REGISTRATION NO. : 210131100004237
LEGAL FORM : branch company
REGISTERED CAPITAL :
n/a
staff : 100
BUSINESS CATEGORY :
DESIGNING & TRADING
Revenue : CNY 554,208,000 (AS OF DEC. 31, 2014)
EQUITIES : CNY -1,288,000 (AS OF DEC. 31, 2014)
WEBSITE : N/A
E-MAIL : N/A
PAYMENT : SLOW BUT CORRECT
MARKET CONDITION : average
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.32 = USD 1 AS OF
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 branch company of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.: 210131100004237 on December 18,
2009.
SC’s Organization Code Certificate No.:
69652842-7
Registration Change Record:-
No significant changes of SC have
been noted in SAIC since its incorporation.
Current Co search indicates SC’s parent company & chief
executives are as follows:-
|
Name of Parent Company |
|
Northern Heavy Industries Group
Co., Ltd. |
SC’s Chief Executives:-
|
Position |
Name |
|
Principal |
Sun
Yanguo |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name of SC’s Parent Company
Northern Heavy Industries Group
Co., Ltd.
------------------------------
Registration No.: 210131000014690
Date of Registration: January 22
Legal Form: Limited Liabilities Company
Registered Capital: CNY 1,292,920,000
Legal Representative: Geng Hongchen
Web: www.china-sz.com
MANAGEMENT
Sun
Yanguo, Principal
-----------------------------------------
Ø
Gender: M
Ø
ID# 210106196510183813
Ø
Age: 50
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as principal
BUSINESS OPERATION
SC’s registered business scope includes technology
development and design of special equipment & complete sets of engineering,
environmental protection equipment & complete sets of engineering,
engineering machinery & complete sets of equipment, general machinery and
complete sets of engineering, and electrical engineering; complete sets of
engineering general contract; mechanical equipment installation, and
commissioning; selling the above part components, and international trade.
SC is
mainly engaged in technology development and design of special equipment & complete
sets of engineering, environmental protection equipment & complete sets of
engineering, engineering machinery & complete sets of equipment, general
machinery and complete sets of engineering, and electrical engineering.
SC’s
products mainly include: tunnel engineering equipment, power equipment,
building materials and equipment, etc.
SC sources its materials 70% from domestic market, and 30% from overseas market. SC sells 40% of its products in domestic market, and 60% 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. 100 staff at present.
SC rents an area
as its operating office, but the detailed information is unknown.
RELATED COMPANY
SC’s
subsidiary information is not available at present.
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 |
526 |
153 |
|
Notes receivable |
0 |
0 |
|
Accounts
receivable |
131,632 |
194,611 |
|
Advances to
suppliers |
138,206 |
126,244 |
|
Other receivable |
305,315 |
356,054 |
|
Inventory |
192,527 |
255,955 |
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Prepaid
expenses |
0 |
0 |
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Other current
assets |
0 |
0 |
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|
------------------ |
------------------ |
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Current assets |
768,206 |
933,017 |
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Fixed assets |
12,441 |
11,985 |
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Construction in
progress |
108 |
108 |
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Intangible
assets |
0 |
0 |
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Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
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Other
non-current assets |
0 |
0 |
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|
------------------ |
------------------ |
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Total assets |
780,755 |
945,110 |
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|
============= |
============= |
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Short-term loans |
285,324 |
382,277 |
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Notes payable |
0 |
0 |
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Accounts payable |
166,942 |
189,477 |
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Wages payable |
0 |
0 |
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Taxes payable |
2,145 |
10,478 |
|
Advances from
clients |
87,606 |
54,267 |
|
Other payable |
240,026 |
309,899 |
|
Accrued expenses |
0 |
0 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Current
liabilities |
782,043 |
946,398 |
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Non-current
liabilities |
0 |
0 |
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|
------------------ |
------------------ |
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Total
liabilities |
782,043 |
946,398 |
|
Equities |
-1,288 |
-1,288 |
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|
------------------ |
------------------ |
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Total
liabilities & equities |
780,755 |
945,110 |
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============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
|
Revenue |
462,616 |
554,208 |
|
Cost of sales |
378,688 |
497,022 |
|
Taxes and surcharges |
1,887 |
1,480 |
|
Sales expense |
9,546 |
28,917 |
|
Management expense |
31,429 |
6,605 |
|
Finance expense |
28,065 |
20,034 |
|
Non-operating
income |
0 |
5 |
|
Non-operating expense |
0 |
401 |
|
Profit before
tax |
10,239 |
10,791 |
|
Less: profit tax |
0 |
0 |
|
Profits |
10,239 |
10,791 |
Important Ratios
=============
|
|
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
*Current ratio |
0.98 |
0.99 |
|
*Quick ratio |
0.74 |
0.72 |
|
*Liabilities
to assets |
1.00 |
1.00 |
|
*Net profit
margin (%) |
2.21 |
1.95 |
|
*Return on
total assets (%) |
1.31 |
1.14 |
|
*Inventory /
Revenue ×365 |
152 days |
169 days |
|
*Accounts
receivable / Revenue ×365 |
104 days |
129 days |
|
*Revenue /
Total assets |
0.59 |
0.59 |
|
*Cost of sales
/ Revenue |
0.82 |
0.90 |
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:
FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears large.
l
The accounts receivable of SC appears large.
l
The short-term loans of SC appear large.
l
SC’s revenue is in a
fair level, comparing with the size of its total assets.
LEVERAGE:
FAIR
l
The debt ratio of SC is high.
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. Taking into consideration of SC’s good
background, credit dealings with SC should be confined into small amount at
present.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.97 |
|
|
1 |
Rs.100.55 |
|
Euro |
1 |
Rs.73.99 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
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Report Prepared
by : |
ASH |
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 |
|
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.