MIRA
INFORM REPORT
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Report No. : |
345302 |
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Report Date : |
20.10.2015 |
IDENTIFICATION DETAILS
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Name : |
Duoleng New
Material Co., Ltd. |
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Registered Office : |
East of Train Station, Jiaomei Town, Longhai, Fujian Province, 363107 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
13.05.1999 |
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Com. Reg. No.: |
350600400000204 |
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Legal Form : |
Shares Limited Co. |
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Line of Business : |
Subject is mainly engaged in manufacturing and sales of new materials,
products mainly include: steel grit, saw blade. |
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No. of Employees : |
325 |
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 : |
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
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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.
|
Source
: CIA |
Company Name and address
Duoleng New Material Co., Ltd.
East
of train STATION, jiaomei town,
longhai, fujian PROVINCE,
363107 PR CHINA
TEL: 86 (0)
596-6773767/6770683 FAX: 86 (0)
596-6788523
EXECUTIVE SUMMARY
INCORPORATION DATE : MAY 13, 1999
REGISTRATION NO. : 350600400000204
REGISTERED LEGAL FORM : Shares limited
co.
STAFF STRENGTH : 325
REGISTERED CAPITAL : CNY
66,000,000
BUSINESS LINE :
manufacturing
TURNOVER : CNY 334,394,000
[AS OF DEC. 31, 2014]
EQUITIES : CNY 383,358,000 [AS OF DEC. 31, 2014]
PAYMENT : AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.3265 = 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 Shares limited co. at
local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on May 13, 1999.
Company Status: Shares limited co. This form of business in PR China is defined as a legal
person. Its registered capital is divided into shares of equal par value
and the co. raises capital by issuing share certificates by promotion or by
public offer. Shareholders bear limited liability to the extent of
shareholding, and the co. is liable for its debts only to the extent of its
total assets. The co has independent property of legal person and enjoys
property rights of legal person. The characteristics of the shares limited
co. are as follows: The establishment of the co. requires at least two
promoters and no more than 200, half of whom shall be domiciled in China..
Natural person are allowed to serve as promoters. The minimum registered capital of a co. is CNY 5M. while
that of the co. with foreign investment is CNY 5M. The total capital of a
co. which propose to apply for publicly listed must be no less than CNY
30M. The board of directors must consist of five to nineteen
directors. If the co. raises capital by public offer, the promoters
must not subscribe less than 35% of the total shares. the promoters’ shares
are restricted to transfer- within one year of the offer. A state-owned enterprise that is restructured into a
shares limited co. must comply with the conditions & requirements
specified under the law & administrative rule.
SC’s registered business scope includes manufacture of steel grit, saw blade
and steel shot cutting tools and abrasives, abrasive grain (if needed with
permit).
SC is mainly engaged in manufacturing and sales of new materials.
Mr. Wang Youjie is
legal representative, chairman and general manager of SC at present.
SC is known to
have approx. 325 employees at
present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in Longhai. Detailed premise information is not
available at present.
Note:
*SC has another office at 2/F, Building 9,
Guanyinshan International Business Center, Siming District, Xiamen, Fujian
Province (Tel: 0592-8268535/8268536; Fax: 0592-8268556)
http://www.duoleng.com/ (belongs to Fujian
Duoleng Steel Group Co., Ltd.) The design is professional and the content is
well organized. At present it is in English, Chinese, Japanese and Korean
versions.
Email: duoleng@duoleng.com
For the past two years there is no record of litigation.
SC’s former name was Longhai Duoleng Saw Blade
Co., Ltd.
No significant
events or changes were found during our checks with the local Administration for
Industry and Commerce.
Organization Code:
61147810X
Tax Registration
Number: 35068161147810X
MAIN
SHAREHOLDERS:
Name Amount
(CNY) % of Shareholding
Wang Youjie 7,340,000 11.12
Fujian Duoleng Steel Group Co., Ltd. 50,800,000 76.97
Fujian Duoleng Logistics Co., Ltd. 7,860,000 11.91
Fujian Duoleng Steel Group Co., Ltd.
===========================
Incorporation Date: 1994-03-31
Registration No.: 350681100015290
Legal representative: Wang Xinhui
Fujian Duoleng Logistics Co., Ltd.
=========================
Incorporation Date: 2009-07-07
Registration No.: 350681100027316
Legal representative: Wang Lili
l Legal
Representative, Chairman and General Manager:
Mr. Wang Youjie is currently responsible for
the overall and daily management of SC.
Working Experience(s):
At present Working in SC as legal
representative, chairman and general manager.
l Director:
Wang Yeping
Zhang Ruifen
Wang Xinhui
Huang Chaobao
l
Supervisor:
Zhou Yajuan
Chen Chunhui
Wang Peiyuan
SC is mainly engaged in manufacturing and sales of new materials.
SC’s products
mainly include: steel grit, saw blade.
SC sources its materials 100% from domestic
market. SC sells 25% of its products in domestic market, and 75% 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 declined to release its major
suppliers and clients.
TRADEMARKS & PATENTS
|
Registration No. |
10478560 |
1514785 |
6948985 |
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Registration Date |
2013-06-07 |
2001-01-28 |
2010-09-07 |
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Trademark Design |
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According
to the website:
Xiamen
Duoleng Renewable Resources Technology Co., Ltd.
============================================
Incorporation Date: 2010-9-17
Registration No.: 350203200227624
Legal representative: Wang Jiangzhuan
Xiamen
Duoleng Import & Export Co., Ltd.
================================
Incorporation Date: 2001-2-27
Registration No.: 350200200002018
Legal representative: Lin Dingshun
Haixi
(Dalian) Metal New Material Co. Ltd.
================================
Incorporation
Date: 2010-4-20
Registration
No.: 210281000011203
Legal
representative: Wang Xinhui
Etc.
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 accountant
refused to release the bank details.
Financial Summary
Unit: CNY’000
|
|
AS OF Dec. 31, 2014 |
|
Cash &
bank |
/ |
|
Inventory |
232,212 |
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Accounts
receivable |
45,385 |
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Other
current assets |
/ |
|
|
-------------------- |
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Current
assets |
287,698 |
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Long term
investment |
/ |
|
Fixed assets
net value |
238,574 |
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Construction
in process |
938 |
|
|
--------------------- |
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Total assets |
526,278 |
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|
============= |
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Accounts
payable |
26,077 |
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Other
current liabilities |
/ |
|
|
--------------------- |
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Current
liabilities |
142,920 |
|
Non- current
liabilities |
0 |
|
|
---------------------- |
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Total
liabilities |
142,920 |
|
Equities |
383,358 |
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|
------------------------ |
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Total
liabilities & equities |
526,278 |
|
|
=============== |
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As
of Dec. 31, 2013 |
|
Current assets |
258,740 |
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Total assets |
346,330 |
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Current
liabilities |
153,570 |
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Total
liabilities |
153,570 |
|
Equities |
192,760 |
Income Statement
Unit: CNY’000
|
|
AS OF Dec. 31, 2014 |
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Turnover |
334,394 |
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Cost of goods sold |
281,881 |
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Taxes and
additional of main operation |
981 |
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Sales expense |
15,314 |
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Management expense |
18,652 |
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Finance expense |
3,931 |
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Asset impairment loss |
0 |
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Income
from investment |
34,645 |
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Non-operating
income |
753 |
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Non-operating
expense |
206 |
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Profit before tax |
48,827 |
|
Less: profit tax |
832 |
|
Profits |
47,995 |
|
|
As of Dec. 31, 2013 |
|
Turnover |
215,460 |
|
Cost of goods
sold |
179,020 |
|
Profit before
tax |
6,660 |
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Less: profit tax |
850 |
|
Profits |
5,810 |
Note: We did not
find SC’s detailed financial reports.
Important
Ratios
=============
|
|
As of Dec. 31, 2014 |
As of Dec. 31, 2013 |
|
*Current ratio |
2.01 |
1.68 |
|
*Quick ratio |
0.39 |
/ |
|
*Liabilities to assets |
0.27 |
0.44 |
|
*Net profit margin (%) |
14.35 |
2.70 |
|
*Return on total assets (%) |
9.12 |
1.68 |
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*Inventory /Turnover ×365 |
253 days |
/ |
|
*Accounts receivable/Turnover ×365 |
50 days |
/ |
|
*Turnover/Total assets |
0.64 |
0.62 |
|
* Cost of goods sold/Turnover |
0.84 |
0.83 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line
in both 2013 and 2014.
l
SC’s net profit margin is average in 2013 and turns
good in 2014.
l
SC’s return on total assets is average in 2013 and
become fairly good in 2014.
l
SC’s cost of goods sold is average in both years,
comparing with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is normal in 2013 and
become good in 2014.
l
SC’s quick ratio is poor in 2014.
l
The inventory of SC appears large in 2014.
l
The accounts receivable of SC appears average in
2014.
l
SC’s turnover is in a fair level in both years,
comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC keeps low in both years.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable
SC is considered large-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.82 |
|
|
1 |
Rs.100.12 |
|
Euro |
1 |
Rs.73.75 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
NIT |
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 |
|
|
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 |
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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.