MIRA
INFORM REPORT
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Report No. : |
346727 |
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Report Date : |
26.10.2015 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
No. 666B Chaoqun Street, High-Technology Development Zone, Changchun, Jilin province, 130103 PR |
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Country : |
China |
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Financials (as on) : |
30.09.2014 |
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Date of Incorporation : |
30.03.2004 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in manufacturing and
selling polyimide fiber materials and products, polymer materials |
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No. of Employees : |
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
Changchun Hipolyking CO., LTD.
No. 666B Chaoqun Street, High-Technology Development Zone,
Changchun, Jilin province, 130103 PR CHINA
TEL: 86 (0) 431-89652511 FAX: n/a
EXECUTIVE SUMMARY
INCORPORATION DATE :
march 30, 2004
REGISTRATION NO. : 220107020003149
REGISTERED LEGAL FORM : Limited liabilities
company
chief executive :
yang cheng
(CHAIRMAN)
STAFF STRENGTH :
100
REGISTERED CAPITAL : CNY 115,663,400
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER :
CNY 33,414,000 (JAN. 1 TO SEP. 30, 2014)
EQUITIES :
CNY 456,238,000 (AS OF SEP. 30, 2014)
PAYMENT :
SLOW BUT CORRECT
MARKET CONDITION :
average
FINANCIAL CONDITION :
Fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION :
average
EXCHANGE RATE :
CNY 6.3572 = 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 limited liabilities co. at local Administration for
Industry & Commerce (AIC - The official body of issuing and renewing business
license) on March 30, 2004.
Company Status: Limited liabilities co.
This form of business in PR China
is defined as a legal person. No more than fifty shareholders contribute its
registered capital jointly. Shareholders bear limited liability to the extent
of shareholding, and the co. is liable for its debts only to extent of its
total assets. The characteristics of this form of co. are as follows:
Upon the establishment of the co.,
an investment certificate is issued to the each of shareholders.
The board of directors is
comprised of three to thirteen members.
The minimum registered capital for
a co. is CNY 30,000.
Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology.
Cash contributed by all
shareholders must account for at least 30% of the registered capital.
Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the other
shareholders and to subscribe for the newly increased registered capital of the
co.
SC’s
registered business scope includes production and technical advice, technology
development of polyimide fiber materials and products, polymer materials,
non-asbestos friction materials, special engineering plastics.
SC
is mainly engaged in manufacturing and selling polyimide fiber materials and
products, polymer materials.
Yang
Cheng has been legal representative and chairman of SC since 2015.
SC
is known to have approx. 100 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the High-Technology Development Zone of
Changchun. SC’s employee refused to release the detailed
information of the premise.
http://www.hipolyking.com/ The design is professional and the content is
well organized. At present it is in Chinese version.
Email:
hipolyking_office@163.com
Changes of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2007-06-27 |
Registered capital |
CNY 1,000,000 |
CNY 1,800,000 |
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2008-03-28 |
Legal representative |
Ding Mengxian |
Lv Xiaoyi |
|
Registered capital |
CNY 1,800,000 |
CNY 5,625,000 |
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2008-06-24 |
Registered capital |
CNY 5,625,000 |
CNY 11,250,000 |
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2009-06-09 |
Registered capital |
CNY 11,250,000 |
CNY 22,725,000 |
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2009-07-31 |
Company’s name |
Changchun Yinghua Special Type Engineering Plastic Co., Ltd. |
Present one |
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2009-12-11 |
Registered capital |
CNY 22,725,000 |
CNY 25,875,000 |
|
2011-01-27 |
Registered capital |
CNY 25,875,000 |
CNY 97,596,200 |
|
2014-05-19 |
Legal representative |
Lv Xiaoyi |
Ji Xiaowen |
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2015-04-23 |
Legal representative |
Ji Xiaowen |
Present one |
|
2015-06-16 |
Registered capital |
CNY 97,596,200 |
Present amount |
Organization
Code: 756167206
For
the past two years there is no record of litigation.
MAIN
SHAREHOLDERS:
Name Amount
(CNY’0000) %
of Shareholding
Lv
Xiaoyi 8,959.85 77.46
Liu
Bin 592.26 5.12
Zhu
Yu 582.5 5.04
Other
shareholders 1,431.73 12.38
Legal representative and chairman:
Yang
Cheng is currently responsible for the overall management of SC.
Working
Experience(s):
From
2015 to present
Working in SC as legal representative and chairman.
Also
working in Jilin Gao Hang Composite Materials Co., Ltd. (in Chinese pinyin) as
legal representative, and in Jilin Hipolyking Co., Ltd. as director.
General manager:
Liu
Bin is currently responsible for the daily management of SC.
Working
Experience(s):
At
present
Working in SC as general manager
Also
working in Jilin Hipolyking Co., Ltd. as director.
Directors:
Gao
Lianxun
Geng
Li
Yu
Zhonghua
Zhu
Jin
Liu
Bin
Supervisors:
Qiu
Xuepeng
Wu
Yan
SC
is mainly engaged in manufacturing and selling polyimide fiber materials and
products, polymer materials.
SC’s
products mainly include:
Polyimide
materials
Resin
and engineering plastic products
Polyimide
fibers
Polyimide
specialty paper
Polyimide
film
SC
sources its materials 100% from domestic market. SC sells 50% of its products
in domestic market, and 50% 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 refused to release its main clients.
Major
suppliers:
============
Jilin
Chemical Group Northern Construction Co. Ltd.
China
Nuclear Industry 23 Construction Co., Ltd.
TRADEMARKS & PATENTS
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Registration No. |
7750363 |
7750429 |
7750434 |
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Registration Date |
2013-01-07 |
2010-12-14 |
2010-12-07 |
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Trademark Design |
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SC is known to invest in the following companies:
Jilin
Hipolyking Co., Ltd.
==========================
Registration
no.: 220294000001185
Legal
representative: Fu Rao
Incorporation
date: 2008-08-28
Jilin
Gao Hang Composite Materials Co., Ltd. (in Chinese pinyin)
==========================
Registration
no.: 110304013768760
Legal
representative: Yang Cheng
Incorporation
date: 2011-04-12
Changchun
Juming Photoelectric Materials Co., Ltd.
=============================
Registration
no.: 220107000006186
Legal
representative: Lv Xiaoyi
Incorporation
date: 2010-10-26
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 banking details.
Balance Sheet
Unit:
CNY’000
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As of Sep. 30, 2014 |
As of Dec. 31, 2013 |
|
Cash & bank |
3,842 |
18,525 |
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Inventory |
7,273 |
8,057 |
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Accounts receivable |
12,534 |
5,146 |
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Bills receivable |
1,165 |
90 |
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Other Accounts receivable |
19,763 |
15,514 |
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Advances to suppliers |
844 |
1,177 |
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Other current assets |
871 |
2,124 |
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------------------ |
------------------ |
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Current assets |
46,292 |
50,633 |
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Financial assets available for sale |
13,500 |
13,500 |
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Fixed assets net value |
29,720 |
32,523 |
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Long-term investment |
397,636 |
397,636 |
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Intangible assets |
18,798 |
20,633 |
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Development expenditure |
23,413 |
15,940 |
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Deferred tax assets |
0 |
949 |
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Other assets |
158 |
0 |
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------------------ |
------------------ |
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Total assets |
529,517 |
531,814 |
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============= |
============= |
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Short loans |
20,000 |
20,000 |
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Accounts payable |
4,936 |
5,735 |
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Advance from customers |
3,510 |
1,496 |
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Accrued payroll |
457 |
797 |
|
Other Accounts payable |
17 |
19 |
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Notes payable |
0 |
0 |
|
Taxes payable |
914 |
914 |
|
Interest payable |
1,535 |
1,535 |
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Non-current liabilities due within one year |
40,000 |
40,000 |
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Other current liabilities |
1,528 |
882 |
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|
------------------ |
------------------ |
|
72,897 |
71,378 |
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Deferred income |
382 |
829 |
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Other liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Total liabilities |
73,279 |
72,207 |
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Equities |
456,238 |
459,607 |
|
|
------------------ |
------------------ |
|
529,517 |
531,814 |
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============= |
============= |
Income Statement
Unit:
CNY’000
|
|
Jan. 1 to Sep. 30, 2014 |
As of Dec. 31, 2013 |
|
Turnover |
33,414 |
30,006 |
|
Cost of goods sold |
27,405 |
23,679 |
|
Taxes and additional of main operation |
0 |
1 |
|
Sales expense |
2,142 |
2,389 |
|
Management expense |
4,042 |
7,950 |
|
Finance expense |
2,649 |
3,605 |
|
Assets impairment
loss |
781 |
39 |
|
Non-operating income |
1,216 |
1,498 |
|
Non-operating expense |
31 |
0 |
|
Profit before tax |
-2,420 |
-6,159 |
|
Less: profit tax |
949 |
-1,193 |
|
Profits |
-3,369 |
-4,966 |
Note: we did not find SC’s latest financial information.
Important Ratios
=============
|
|
As of Sep. 30, 2014 |
As of Dec. 31, 2013 |
|
*Current ratio |
0.64 |
0.71 |
|
*Quick ratio |
0.54 |
0.60 |
|
*Liabilities to assets |
0.14 |
0.14 |
|
*Net profit margin (%) |
-10.08 |
-16.55 |
|
*Return on total assets (%) |
-0.64 |
-0.93 |
|
*Inventory /Turnover ×365 |
/ |
99 days |
|
*Accounts receivable/Turnover ×365 |
/ |
63 days |
|
*Turnover/Total assets |
0.06 |
0.06 |
|
* Cost of goods sold/Turnover |
0.82 |
0.79 |
PROFITABILITY: FAIR
The
turnover of SC appears average in its line.
SC’s
net profit margin is poor.
SC’s
return on total assets is fair.
SC’s
cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
The
current ratio of SC is maintained in a fair level.
SC’s
quick ratio is maintained in a fair level.
The
inventory of SC is maintained in an average level.
The
accounts receivable of SC is maintained in an average level.
SC’s
short-term loan is average.
SC’s
turnover is in a poor level, comparing with the size of its total assets.
LEVERAGE: FAIRLY GOOD
The
debt ratio of SC is low.
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.64.88 |
|
UK Pound |
1 |
Rs.99.89 |
|
Euro |
1 |
Rs.72.06 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
TRU |
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 |
|
|
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.