MIRA INFORM REPORT
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Report No. : |
346469 |
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Report Date : |
26.10.2015 |
IDENTIFICATION DETAILS
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Name : |
LINYI QIANGSHENG TOOLS CO., LTD. |
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Registered Office : |
Fengming Road, Hedong Industry District, Linyi Shandong Province
276034 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
28.01.1999 |
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Com. Reg. No.: |
371312228005059 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Processing and Selling hardware tools; selling construction
scaffolding, construction fasteners, building disc, construction of
guardrails, construction hardware, traffic guardrail, and road safety
barrier; importing and exporting commodities. |
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No. of Employee : |
360 |
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
|
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
LINYI QIANGSHENG TOOLS CO., LTD.
FENGMING ROAD, HEDONG INDUSTRY DISTRICT, LINYI SHANDONG PROVINCE 276034
PR CHINA
TEL: 86 (0) 539-8381781
FAX: 86 (0) 539-8381999
EXECUTIVE
SUMMARY
Date of Registration : january 28, 1999
REGISTRATION NO. : 371312228005059
LEGAL FORM : shares limited company
CHIEF EXECUTIVE :
meng qingdeng (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : cny 6,000,000
staff :
360
BUSINESS CATEGORY : processing &
trading
Revenue :
CNY 26,833,000 (AS OF DEC. 31,
2014)
EQUITIES :
CNY 2,089,000 (AS OF DEC. 31, 2014)
WEBSITE : www.lyqiangsheng.com
E-MAIL :
info@lyqiangsheng.com
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIR
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.35 = 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 on January 28, 1999. However, SC changed to
present legal form, and was registered as shares limited company of PRC with
State Administration for Industry & Commerce (SAIC) under registration No.:
371312228005059 on August 18, 2014.
SC’s Organization Code Certificate No.:
16831699-X
SC’s Tax No.: 37131216831699X
SC’s registered capital: CNY 6,000,000
sc’s paid-in capital: CNY 6,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2014-8-18 |
Legal Form |
Limited Liabilities Company |
Shares Limited Company |
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Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Meng Qingdeng |
63.33 |
|
Meng Fanxin |
20 |
|
Liu Ziqiang |
16.67 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman and General Manager |
Meng Qingdeng |
|
Director |
Fu Yuzi |
|
Meng Fanxin |
|
|
Fu Deqing |
|
|
Liu Ziqiang |
|
|
Supervisor |
Liu Shuyin |
|
Liu Feilin |
|
|
Meng Fandong |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Meng Qingdeng 63.33
Meng Fanxin 20
Liu Ziqiang 16.67
MANAGEMENT
Meng Qingdeng,
Legal Representative, Chairman and General Manager
---------------------------------------------------------------------------------------------------------
Gender: M
Qualification: University
Working experience
(s):
At present, working in SC as legal representative, chairman and general
manager
Director
-----------
Fu Yuzi
Meng Fanxin
Fu Deqing
Liu Ziqiang
Supervisor
--------------
Liu Shuyin
Liu Feilin
Meng Fandong
BUSINESS
OPERATION
SC’s registered business scope includes processing and
selling hardware tools; selling construction scaffolding, construction
fasteners, building disc, construction of guardrails, construction hardware,
traffic guardrail, and road safety barrier; importing and exporting
commodities.
SC is mainly engaged in processing and selling hardware tools.
SC’s products mainly include:
Scaffold
Ring-lock System
Cup-lock System
Kwikstage-system
Frame system
Prop System
Coupler
Fence
Walk Board
Base Jack
Accessories
Wrench Series
Adjustable Wrench
Ratchet wrench
Heavier type ratchet wrench
Combination Ratchet
Flexible Ratchet Wre
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 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. 360
staff at present.
SC owns 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
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
|
Cash |
8,119 |
35,818 |
|
Notes receivable |
0 |
0 |
|
Accounts receivable |
8,509 |
12,068 |
|
Advances to suppliers |
0 |
1,097 |
|
Other receivable |
35 |
5,555 |
|
Inventory |
16,511 |
20,280 |
|
Prepaid expenses |
0 |
0 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
33,174 |
74,818 |
|
Fixed assets |
43,317 |
43,545 |
|
Construction in progress |
0 |
0 |
|
Intangible assets |
0 |
10,309 |
|
Long-term prepaid expenses |
0 |
0 |
|
Deferred income tax assets |
152 |
232 |
|
Other non-current assets |
9,242 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
85,885 |
128,904 |
|
|
============= |
============= |
|
Short-term loans |
43,000 |
46,500 |
|
Notes payable |
5,000 |
60,300 |
|
Accounts payable |
712 |
5,749 |
|
Wages payable |
826 |
383 |
|
Taxes payable |
-286 |
-48 |
|
Advances from clients |
1,875 |
477 |
|
Other payable |
28,598 |
13,454 |
|
Accrued expenses |
0 |
0 |
|
Other current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current liabilities |
79,725 |
126,815 |
|
Non-current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total liabilities |
79,725 |
126,815 |
|
Equities |
6,160 |
2,089 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
85,885 |
128,904 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
|
Revenue |
29,657 |
26,833 |
|
Cost of sales |
23,954 |
23,373 |
|
Taxes and surcharges |
84 |
55 |
|
Sales expense |
412 |
474 |
|
Management expense |
937 |
927 |
|
Finance expense |
3,796 |
5,827 |
|
Profit before tax |
536 |
-4,146 |
|
Less: profit tax |
137 |
-80 |
|
Profits |
399 |
-4,066 |
Important Ratios
=============
|
|
As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
|
*Current ratio |
0.42 |
0.59 |
|
*Quick ratio |
0.21 |
0.43 |
|
*Liabilities to assets |
0.93 |
0.98 |
|
*Net profit margin (%) |
1.35 |
-15.15 |
|
*Return on total assets (%) |
0.46 |
-3.15 |
|
*Inventory / Revenue ×365 |
204 days |
276 days |
|
*Accounts receivable / Revenue ×365 |
105 days |
165 days |
|
*Revenue / Total assets |
0.35 |
0.21 |
|
*Cost of sales / Revenue |
0.81 |
0.87 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIR
The revenue of SC appears average in its line.
SC’s net profit margin is average in 2013, poor in 2014.
SC’s return on total assets is average in 2013, fair in 2014.
SC’s cost of sales is average, comparing with its revenue.
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 appears large.
The accounts receivable of SC appears large.
The short-term loans of SC appear large.
SC’s revenue is in a fair level, comparing with the size of its total
assets.
LEVERAGE: FAIR
The debt ratio of SC is high.
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 & accounts receivable &
short-term loans may be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.88 |
|
|
1 |
Rs.99.89 |
|
Euro |
1 |
Rs.72.06 |
INFORMATION DETAILS
|
Analysis Done by
: |
KIN |
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Report Prepared
by : |
SDA |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>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.