MIRA
INFORM REPORT
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Report No. : |
345588 |
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Report Date : |
21.10.2015 |
IDENTIFICATION DETAILS
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Name : |
LIAONING MEC GROUP CO., LTD. |
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Registered Office : |
28/F, |
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Country : |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
04.09.1997 |
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Com. Reg. No.: |
210000004924023 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject is engaged in international trade of light industry machinery, rail vehicles, machine tool |
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No. of Employee : |
118 |
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.
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Source
: CIA |
Company name and address
LIAONING MEC GROUP
CO., LTD.
28/F, WORLD TRADE CENTER, NO. 25, TONGXING STREET,
DALIAN, LIAONING PROVINCE, 116001 PR
CHINA
TEL: 86 (0)
411-39803333/39803786/39803918 FAX:
86 (0) 411-39803888
EXECUTIVE SUMMARY
INCORPORATION DATE : SEP. 4, 1997
REGISTRATION NO. : 210000004924023
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
STAFF STRENGTH :
118
REGISTERED CAPITAL : CNY 28,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 505,560,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 346,280,000 (AS OF DEC. 31, 2014)
PAYMENT :
NO COMPLAINTS
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY steady
GENERAL REPUTATION : WELL-KNOWN
EXCHANGE RATE :
CNY 6.3597= USD
Adopted abbreviations:
ANS - amount not stated NS
- not stated SC - subject company (the
company inquired by you)
NA - not available CNY –
China Yuan Ren Min Bi
SC was registered as a shares limited company at Liaoning
Provincial Administration for Industry & Commerce (AIC - The official body
of issuing and renewing business license) on Sep. 4, 1997.
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 importing and exporting various
goods and technology; contracting
overseas mechanical and electrical industry projects and domestic international
bidding project; exporting the relevant equipment and materials; dispatching of the implementation of the labor required
for the relevant work overseas; auto sales (excluding cars); acquisition of
agricultural and sideline products (excluding grain); dispatching of various
labor service personnel to overseas (excluding seamen); medical equipment
management; housing leasing; management in Liaoning province: the Internet information
services business (excluding News, education, publishing, health care,
pharmaceuticals, medical devices and electronic bulletin); wholesale
pre-packaged food. (With permit if needed
SC is mainly
engaged in international trade.
Mr. Kang Jian has
been legal representative and chairman of SC since 1997.
SC is known to
have approx. 118 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Dalian. Detailed information of the
premise is unknown.
http://www.mec.com.cn The design is professional and the content
is well organized. At present it is in both Chinese and English versions.
Email: info@mec.com.cn
Certificates:
=========
SC has got the certificate of ISO 9001:2000, etc.
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the
change |
After the change |
|
2002-10-22 |
Registered Capital |
CNY 40,000,000 |
Present amount |
|
2007-9-18 |
Registered No. |
2100001049084 |
Present one |
Organization Code: 242690841
MAIN SHAREHOLDERS: (According to SC’s annual
report of Year 2014)
Name %
of Shareholding
Dalian Tiankun
Investment Co., Ltd. (in Chinese Pinyin) 78.39
Employee Stock 18.04
Dalian Refrigeration Co., Ltd. 3.57
Dalian Tiankun Investment Co., Ltd. (in
Chinese Pinyin)
============================
Registered no.: 210200000200567
Legal representative: Zuo Xindong
Registered capital: CNY 20,000,000
Incorporation date: 2001-07-02
Dalian Refrigeration Co., Ltd.
============================
Incorporation date: 1993-12-18
Registration no.: 210200000266757
Legal Representative: Ji Zhijian
Listing date: Dec., 1993
Stock Code: 000530
Tel. number: 86 (0) 411-86538130
Fax: 86 (0) 411-86654530
E-mail: 000530@bingshan.com
Web-site: http://www.daleng.cn
l
Legal Representative and Chairman:
Mr. Kang Jian , born in 1953, with EMBA
degree. He is currently responsible for the overall management of SC.
Working Experience(s):
From 1997 to present Working in SC as legal representative
and chairman.
Also
working in Dalian Tiankun Investment Co., Ltd. (in Chinese Pinyin), Dalian Yihe Real Estate Group Co.,
Ltd. and Shoppingbell Network (Dalian) Co., Ltd. as director, and in Dalian Huiyuan Investment
& Management Co., Ltd. as legal representative and chairman.
l
Vice-chairmen:
Mr. Wang Shuanghong , born in 1956 with university
degree, and Mr. Ma Yuxing are currently responsible for the overall management
of SC.
Working Experience(s):
At present
Working in SC as vice-chairman.
Also working in Dalian Tiankun Investment Co., Ltd. (in
Chinese Pinyin) as director.
Mr. Wang Shuanghong is also working in Dalian Huiyuan Investment
& Management Co., Ltd., Dalian Yihe Real Estate Group Co., Ltd. and
Shoppingbell Network (Dalian) Co., Ltd. as director; and in Dalian Sunasia Tourism
Holding Co., Ltd. as vice-chairman.
Mr. Ma Yuxing is also working in Dalian Huiyuan Investment
& Management Co., Ltd. as supervisor; and in Dalian Yihe Real Estate
Group Co., Ltd. as legal representative and chairman; and in Dalian MEC Environment
Technology & Engineering Co., Ltd. as director.
l
Directors:
Zuo Xindong
Yuan Meiyan
Chi Guohua
Li Min
Guan Zhihong
Fan Li
l
Supervisors:
Wang Xiuling
Wang Lixia
Wang Zhexing
SC is mainly
engaged in international trade.
SC’s products
mainly include: light industry machinery, rail vehicles, machine tool.
SC sources its
materials 90% from domestic market, and 10% from the overseas market. SC sells
10% of its products in domestic market, and 90% to the overseas market.
The buying terms of SC include Check, L/C, T/T and Credit of 30-60 days.
The payment terms of SC include Check, L/C, T/T, and Credit of 30-60 days.
Note:
SC’s employee refused to release its major customers or suppliers.
TRADEMARKS
& PATENTS
Registration No. 3859940
Registration Date 2005-12-28
Trademark Design 
Registration No. 7496405
Registration Date 2010-10-21
Trademark Design 
Registration No. 7505890
Registration Date 2010-10-21
Trademark Design 
SC is known to invest in the following companies:
Dalian Huiyuan Investment
& Management Co., Ltd.
==================================
Incorporation Date: 2006-11-23
Registered No.: 210200000188492
Legal Representative: Kang Jian
Tel.:
86 (0) 411-82518352
E-mail:
fanli@mec.com.cn
Dalian Yihe Real Estate Group Co., Ltd.
=================================
Incorporation Date: 2006-08-03
Registered No.: 210200400035829
Legal Representative: Ma Yuxing
Tel.: 86 (0) 411-62892289
Fax: 86 (0) 411-62892289
E-mail: YHDC_HR@163.com
Dalian MEC Environment Technology & Engineering Co., Ltd.
=================================
Incorporation Date: 2005-03-30
Registered No.: 210200000085625
Legal Representative: Zuo Xindong
Tel.: 86 (0) 411-39803673
Fax: 86 (0) 411-39803677
E-mail: mecetc@mec.com.cn
Shoppingbell Network (Dalian) Co., Ltd.
=================================
Incorporation Date: 2009-10-15
Registered No.: 210200000155041
Legal Representative: Guan Zhihong
Tel.: 86 (0) 411-39816333
Fax: 86 (0) 411-39816222
E-mail: info@shoppingbell.com
Website: http://www.shoppingbell.com/
Dalian Sunasia Tourism Holding Co., Ltd.
============================
Registration no.: 210200400029365
Legal Representative: Zhang Zhixin
Listing date: 2002-07-11
Stock Code: 600593
Tel. number: 86 (0) 411-84685225
Fax: 86 (0) 411-84685217
E-mail: dshbgs@sunasia.com
Web-site: http://www.sunasia.com
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 declined to
release its bank details.
Financial
Summary
Unit: CNY’000
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As of Dec. 31, 2014 |
As of Dec. 31, 2013 |
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Total assets |
1,009,130 |
1,135,009 |
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============= |
============ |
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Total
liabilities |
662,850 |
843,748 |
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Equities |
346,280 |
291,261 |
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|
-------------------- |
-------------------- |
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Total
liabilities & equities |
1,009,130 |
1,135,009 |
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============= |
============= |
Unit: CNY’000
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As of Dec. 31, 2014 |
As of Dec. 31, 2013 |
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Turnover |
505,560 |
919,379 |
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Profit before
tax |
81,870 |
123,157 |
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Profits |
63,700 |
96,296 |
Note: SC’s
accountant refused to release the financial details.
Important
Ratios
=============
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As of Dec. 31, 2014 |
As of Dec. 31, 2013 |
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*Liabilities
to assets |
0.66 |
0.74 |
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*Net profit
margin (%) |
12.60 |
10.47 |
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*Return on total
assets (%) |
6.31 |
8.48 |
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*Turnover/Total
assets |
0.50 |
0.81 |
PROFITABILITY: FAIRLY GOOD
l
The turnover of SC appears fairly good in its line,
but it declined in 2014.
l
SC’s net profit margin is good in both years.
l
SC’s return on total assets is fairly good in both
years.
l
SC’s turnover 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 average.
Overall financial condition of the SC: Fairly Stable
SC is considered medium-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.89 |
|
|
1 |
Rs.100.39 |
|
Euro |
1 |
Rs.73.52 |
INFORMATION DETAILS
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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 |
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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 |
|
-- |
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.