MIRA INFORM REPORT
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Report No. : |
338862 |
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Report Date : |
02.09.2015 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
No. 17 Xinyuan Road, Economic & Technological
Development Zone, Weifang, Shandong Province, 261031 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
07.11.2003 |
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Com. Reg. No.: |
370728228001268 |
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Legal Form : |
Limited
Liabilities Company |
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Line of Business : |
Subject is engaged in manufacturing and
selling glass machinery. |
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No. of Employees : |
200 |
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.
|
Source
: CIA |
Company
Name and address
WEIFANG SANJIANG
GLASS MACHINERY CO., LTD.
no. 17 xinyuan road,
economic & technological development zone, weifang, shandong province,
261031 PR CHINA
TEL: 86 (0)
536-8669650/8658850
FAX: 86 (0)
536-8669852
EXECUTIVE
SUMMARY
INCORPORATION DATE : Nov. 7, 2003
REGISTRATION NO. :
370728228001268
REGISTERED LEGAL
FORM : Limited liabilities company
chief executive :
MR. Li Xuejun (CHAIRMAN)
STAFF STRENGTH : 200
REGISTERED CAPITAL : CNY 1,600,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER : CNY
60,430,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 2,170,000 (AS OF DEC. 31, 2013)
PAYMENT : SLOW
BUT CORRECT
MARKET CONDITION : average
FINANCIAL CONDITION : Fairly stable (AS OF
DEC. 31, 2013)
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : average
EXCHANGE RATE : CNY 6.37
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 Nov. 7, 2003.
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
manufacturing & selling glass machinery; importing and exporting goods and
technologies permitted by state. (with permit if needed).
SC is mainly engaged in manufacturing and
selling glass machinery.
Mr. Li Xuejun is legal representative,
chairman and general manager of SC at present.
SC is known to have approx. 200 employees at
present.
SC is currently operating at the above stated
address, and this address houses its operating office and factory in the
economic and technological development zone of Weifang. Detailed premise
information is unspecified.
www.sanjiang-machine.com The design is
professional and the content is well-organized. At present it is in English and
Chinese versions.
Email: wf@sanjiang-machine.com
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2015-6-26 |
Registered capital |
CNY 1,000,000 |
Present amount |
Organization Code: 756354335
For the past two years there is no record of
litigation.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Huang Guoxiong 35
Li Xuejun 65
Legal
representative, chairman and general manager:
Mr. Li Xuejun is currently responsible for
the overall management of SC.
Working Experience(s):
At present Working in SC as
legal representative, chairman and general manager.
Also working in Weifang
Youqiang Machinery Co., Ltd. as legal representative
Supervisor:
Huang Guoxiong
SC is mainly engaged in manufacturing and
selling glass machinery.
SC’s products mainly include: forehearth,
feeder, melting glass stirrer, comprehensive testing machine, glassware
palletizing series, bottles and cans tray depalletizer, pallet shrink-wrapping
machine, palletizer & affiliated machine, automatic glassware
shrink-wrapping machine.
Trademarks
& patents: N/A
SC sources its materials 100% from domestic
market. SC sells 90% of its products in domestic market and 10% 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 major clients and suppliers.
Weifang Youqiang Machinery Co., Ltd. (literal
translation)
===========================
Reg. No.: 370728200003977
Incorporation date:
Legal representative: Li Xuejun
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 Dec. 31, 2013 |
|
Cash & bank |
390 |
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Inventory |
1,610 |
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Accounts receivable |
60 |
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Other Accounts receivable |
20 |
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Advances to suppliers |
0 |
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Other current assets |
0 |
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------------------ |
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Current assets |
2,080 |
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Fixed assets net value |
7,360 |
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Long-term investment |
0 |
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Intangible assets |
1,920 |
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------------------ |
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Total assets |
11,360 |
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============= |
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Short loans |
1,530 |
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Accounts payable |
2,450 |
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Advance from customers |
1,990 |
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Accrued payroll |
0 |
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Other accounts payable |
2,890 |
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Other payable to government |
30 |
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Taxes payable |
300 |
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Other current liabilities |
0 |
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------------------ |
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9,190 |
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Long term liabilities |
0 |
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------------------ |
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Total liabilities |
9,190 |
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Equities |
2,170 |
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------------------ |
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11,360 |
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============= |
Income Statement
Unit: CNY’000
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|
As of Dec. 31, 2013 |
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Turnover |
60,430 |
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Cost of goods sold |
55,050 |
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Taxes and additional of main operation |
220 |
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Sales expense |
2,100 |
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Management expense |
2,730 |
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Finance expense |
-10 |
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Profit before tax |
340 |
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Less: profit tax |
80 |
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Profits |
260 |
Note: SC’s management declined to release its latest
financial information.
Important
Ratios
=============
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As of Dec. 31, 2013 |
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*Current ratio |
0.23 |
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*Quick ratio |
0.05 |
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*Liabilities to assets |
0.81 |
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*Net profit margin (%) |
0.43 |
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*Return on total assets (%) |
2.29 |
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*Inventory /Turnover ×365 |
10 days |
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*Accounts receivable/Turnover ×365 |
1 day |
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*Turnover/Total assets |
5.32 |
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* Cost of goods sold/Turnover |
0.91 |
PROFITABILITY:
AVERAGE
·
The turnover of SC appears
average in its line.
·
SC’s net profit margin is
average.
·
SC’s return on total assets is
average.
·
SC’s cost of goods sold is average,
comparing with its turnover.
LIQUIDITY:
FAIR
·
The current ratio of SC is
maintained in a poor level.
·
SC’s quick ratio is maintained in
a poor level.
·
The inventory of SC is maintained
in a fairly large level.
·
The accounts receivable of SC is small.
·
SC’s short-term loan appears
large in 2013.
·
SC’s turnover is in a fairly good
level, comparing with the size of its total assets.
LEVERAGE:
FAIR
·
The debt ratio of SC is fairly
high.
·
The risk for SC to go bankrupt is
average.
Overall
financial condition of the SC: Fairly stable (As of Dec. 31, 2013)
SC is considered medium-sized in its line
with a development history of 12 years. Taking into consideration of SC’s
general performance and operation size
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.26 |
|
UK Pound |
1 |
Rs.101.99 |
|
Euro |
1 |
Rs.74.79 |
INFORMATION DETAILS
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Analysis Done by
: |
KAS |
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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 |
|
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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 |
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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.