MIRA
INFORM REPORT
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Report No. : |
346024 |
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Report Date : |
21.10.2015 |
IDENTIFICATION DETAILS
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Name : |
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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 : |
07.01.2002 |
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Com. Reg. No.: |
370684018009860 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in processing and selling diamond
products, abrasives Products
mainly include: ·
Hot-Rolled Bar, Cemented Carbide
Composite ·
Three Dimensional Carbide Rolls Tor
Roll ·
Cemented Carbide Roll Rings For
Seamless ·
Kocks Cemented Caebide Roll Rings |
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No. of Employee : |
292 |
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
PENGLAI CITY SUPERHARD COMPOUND MATERIAL CO., LTD.
NO. 289 NANGUAN ROAD, PENGLAI, SHANDONG PROVINCE 265607 PR CHINA
TEL: 86 (0) 535-5610159/5610386
FAX: 86 (0) 535-5642845
EXECUTIVE SUMMARY
Date of Registration : january 7, 2002
REGISTRATION NO. : 370684018009860
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : cny 10,000,000
staff : 292
BUSINESS CATEGORY : processing & trading
Revenue : CNY 241,213,000 (AS OF DEC. 31, 2014)
EQUITIES : CNY 129,688,000 (AS OF DEC. 31, 2014)
WEBSITE : www.sd-yuanda.com
E-MAIL : csvsc@126.com
PAYMENT : AVERAGE
RECOMMENDED CREDIT LIMIT :
UP TO USD 300,000 (PERIODICAL REVIEW)
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIR
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE : CNY
6.20 = 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 limited liabilities company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 370684018009860 on January 7, 2002.
SC’s Organization Code Certificate No.:
96606065-0
SC’s Tax No.: 370684966060650
SC’s registered capital: cny 10,000,000
SC’s paid-in capital: cny 10,000,000
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 |
|
Sun Haobin |
95 |
|
Sun Jijiang |
5 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman and General
Manager |
Sun Haobin |
|
Supervisor |
Sun Jijiang |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Sun Haobin 95
Sun Jijiang 5
MANAGEMENT
Sun Haobin, Legal
Representative, Chairman and General Manager
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Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative, chairman
and general manager
Sun Jijiang, Supervisor
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Ø
Gender: M
Ø
Qualification:
University
BUSINESS OPERATION
SC’s registered business scope includes processing
diamond, cubic boron nitride products, abrasive, abrasive, hard alloy roller,
roller ring, electric locomotive pantograph pure carbon slide, and
metallurgical powder; processing machinery; importing and exporting commodities
and technology.
SC is
mainly engaged in processing and selling diamond products, abrasives,
SC’s
products mainly include:
Hot-Rolled
Bar, Cemented Carbide Composite
Three
Dimensional Carbide Rolls Tor Roll
Cemented
Carbide Roll Rings For Seamless
Kocks Cemented
Caebide Roll Rings
SC sources its materials 100% from domestic market. SC sells 30% of its products in domestic market, and 70% to overseas market.
The
buying terms of SC include Check, T/T 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. 292 staff at present.
SC
rents an area as its operating office and factory, but the detailed information
is unknown.
RELATED COMPANY
SC is not known to have any subsidiary 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
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Unit: CNY’000 |
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
Cash |
15,988 |
19,797 |
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Notes receivable |
8,957 |
19,093 |
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Accounts
receivable |
130,449 |
120,970 |
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Advances to
suppliers |
0 |
0 |
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Other receivable |
5,550 |
3,782 |
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Inventory |
141,177 |
120,371 |
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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 |
302,121 |
284,013 |
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Long-term
investment |
1,306 |
15,300 |
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Fixed assets |
39,445 |
55,634 |
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Construction in
progress |
10,023 |
85 |
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Intangible
assets |
11,132 |
13,378 |
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Long-term prepaid
expenses |
0 |
0 |
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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 |
364,027 |
368,410 |
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============= |
============= |
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Short-term loans |
30,000 |
30,000 |
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Notes payable |
5,000 |
25,000 |
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Accounts payable |
47,077 |
56,656 |
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Wages payable |
-8 |
2 |
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Taxes payable |
443 |
544 |
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Advances from
clients |
0 |
0 |
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Other payable |
113,329 |
126,520 |
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Accrued expenses |
0 |
0 |
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Other current
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current
liabilities |
195,841 |
238,722 |
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Non-current
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
195,841 |
238,722 |
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Equities |
168,186 |
129,688 |
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------------------ |
------------------ |
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Total
liabilities & equities |
364,027 |
368,410 |
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Income Statement
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Unit: CNY’000 |
As of Dec. 31,
2014 |
|
Revenue |
241,213 |
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Cost of sales |
214,402 |
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Taxes and surcharges |
634 |
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Sales expense |
2,872 |
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Management expense |
52,464 |
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Finance expense |
2,074 |
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Investment
income |
99 |
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Subsidy income |
1,632 |
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Non-operating
income |
3,299 |
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Non-operating expense |
12,293 |
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Profit before
tax |
-38,498 |
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Less: profit tax |
0 |
|
Profits |
-38,498 |
Important Ratios
=============
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As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
*Current ratio |
1.54 |
1.19 |
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*Quick ratio |
0.82 |
0.69 |
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*Liabilities
to assets |
0.54 |
0.65 |
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*Net profit
margin (%) |
-- |
-15.96 |
|
*Return on
total assets (%) |
-- |
-10.45 |
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*Inventory /
Revenue ×365 |
-- |
183 days |
|
*Accounts
receivable / Revenue ×365 |
-- |
184 days |
|
*Revenue / Total
assets |
-- |
0.65 |
|
*Cost of sales
/ Revenue |
-- |
0.89 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
l
The revenue of SC appears
average in its line in 2014.
l
SC’s net profit margin is fair in 2014.
l
SC’s return on total assets is fair in 2014.
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 normal level.
l
The inventory of SC appears large.
l
The accounts receivable of SC appears large.
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 above average.
Overall financial condition
of the SC: Fair.
CONCLUSIONS
SC is considered medium-sized in its line with fair
financial conditions. The large amount of inventory and accounts receivable may
be a threat to SC’s financial condition.
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
: |
KIN |
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Report Prepared
by : |
ANK |
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 |
|
<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.