MIRA INFORM REPORT
|
Report No. : |
338495 |
|
Report Date : |
05.09.2015 |
IDENTIFICATION DETAILS
|
Name : |
LUOYANG LONGDING ALUMINIUM INDUSTRIES CO., LTD. |
|
|
|
|
Registered Office : |
Changling Village, Baisha Town, Yichuan County, Luoyang
City, Henan Province, 471322 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
24.12.2009 |
|
|
|
|
Com. Reg. No.: |
410300011005331 |
|
|
|
|
Legal Form : |
Limited Liabilities Co. |
|
|
|
|
Line of Business : |
Subject is engaged in manufacturing and
selling of aluminum alloy plate, strip, foil and deep processing products |
|
|
|
|
No. of Employee : |
1,582 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
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) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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
LUOYANG LONGDING ALUMINIUM INDUSTRIES CO., LTD.
CHANGLING VILLAGE, BAISHA TOWN, YICHUAN COUNTY, LUOYANG
CITY, HENAN PROVINCE, 471322 PR CHINA
TEL: 86 (0)
379-68319227/68319160 FAX: 86 (0)
379-68319061
EXECUTIVE
SUMMARY
INCORPORATION DATE : dec. 24, 2009
REGISTRATION NO. : 410300011005331
REGISTERED LEGAL FORM : Limited liabilities co.
CHIEF EXECUTIVE : MR.
ZHANG GANGZHI (LEGAL
REPRESENTATIve)
STAFF STRENGTH : 1,582
REGISTERED CAPITAL : CNY 300,000,000
BUSINESS LINE :
manufacturing & TRADING
TURNOVER : CNY 2,672,230,000 (AS OF DEC. 31, 2014)
EQUITIES : CNY 524,690,000 (AS OF DEC. 31, 2014)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 2,000,000 (periodical
review)
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND :
fairly steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
6.4063 = 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
Note: The complete address is the heading one.
SC was registered as a limited liabilities company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Dec. 24, 2009.
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 deep processing,
production and sales of aluminum, aluminum alloy plate, aluminum strip,
aluminum coil, aluminum coating materials and aluminum materials; sales of electrical
and mechanical equipment; import and export of goods and technology (if needed
with permit; or excluding those prohibited by the national laws and
regulations)
SC is mainly engaged in manufacturing
and selling of aluminum alloy plate, strip, foil and deep processing products.
Mr. Zhang Gangzhi is legal representative and general
manager of SC at present.
SC is known to have approx. 1,582 employees at present.
SC is currently operating at the above stated address, and
this address houses its operating office and factory in Luoyang. Detailed
premise information is not available at present.
http://www.ldlyal.cn/
The design is professional and the content is well organized. At present it is
in Chinese and English versions.
Email: xiaomu336@163.com
For the past two years there is no record of litigation.
Changes of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2014-5-16 |
Shareholders |
Henan Fuxin Investment Co., Ltd. Luoyang Longhai Investment Co., Ltd. |
Shanghai Yisheng International Trading
Co., Ltd. (literal translation)；Henan
Fuxin Investment Co., Ltd. |
|
2014-8-27 |
Shareholders |
Shanghai Yisheng International
Trading Co., Ltd. (literal translation)；Henan
Fuxin Investment Co., Ltd. |
The present ones |
Organization Code: 69872769X
MAIN SHAREHOLDERS:
Name % of Shareholding
Shanghai Yisheng International Trading Co., Ltd. (literal
translation) 51
Jiangsu Huate Investment Co., Ltd.
(literal translation) 49
Shanghai Yisheng International Trading Co., Ltd. (literal
translation)
==================================
Incorporation Date: 2013-10-16
Registration No.: 310141000000687
Registered Capital: CNY 200,000,000
Legal Representative: Guo Shengli
Jiangsu Huate Investment Co., Ltd. (literal translation)
=====================================
Incorporation Date: 2010-8-16
Registration No.: 321181000136596
Registered Capital: CNY 50,000,000
Legal Representative: Zhang Jianguo
Legal Representative and General Manager:
Mr. Zhang Gangzhi is currently responsible for the overall
management of SC.
Working
Experience(s):
At present Working
in SC as legal representative and general manager;
Also working in Luoyang Longhai Investment Co., Ltd. as
director; working in Henan Tianling Investment Co., Ltd. as legal
representative.
Chairman:
Mr. Wang Zhijun is currently responsible for the daily
management of SC.
Working
Experience(s):
At present Working
in SC as chairman.
Director:
Guo
Shengli
Supervisor:
Xu Honglin
SC is mainly engaged in manufacturing and selling of
aluminum alloy plate, strip, foil and deep processing products.
SC’s products mainly include: Aluminum plate: checkered
plate, curtain wall plate, PS plate
Aluminum strip: cable strip.
Aluminum foil: single zero foil, foil for air conditioner,
double zero foil
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 declined to release its major suppliers and clients.
Registration No. 11595151
Registration Date March 14, 2014
Trademark Design 
Luoyang Longhai Investment Co., Ltd.
================================
Incorporation Date: 2010-1-12
Registration No.: 410300011005663
Registered Capital: CNY 100,000,000
Legal Representative: Wu Junzhi
Henan Tianling Investment Co., Ltd. (In Chinese Pinyin)
================================
Incorporation Date: 2002-7-31
Registration No.: 410000100053196
Legal Representative: Zhang Gangzhi
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’s accountant refused to release the bank details.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2014 |
As
of Dec. 31, 2013 |
|
Cash & bank |
1,874,160 |
969,990 |
|
Inventory |
359,080 |
190,650 |
|
Accounts receivable |
607,090 |
367,300 |
|
Advanced to suppliers |
73,930 |
48,700 |
|
Other receivable |
6,020 |
1,310 |
|
Notes receivable |
2,830 |
32,190 |
|
Other current assets |
68,570 |
61,450 |
|
|
------------------ |
------------------ |
|
Current assets |
2,991,680 |
1,671,590 |
|
Deferred income tax assets |
18,030 |
19,610 |
|
Fixed assets net value |
1,129,370 |
969,140 |
|
Project materials |
59,850 |
54,810 |
|
Projects under construction |
302,580 |
0 |
|
Long term deferred expenses |
6,390 |
14,140 |
|
Intangible assets |
76,180 |
77,970 |
|
Other assets |
0 |
313,280 |
|
|
------------------ |
------------------ |
|
Total assets |
4,584,080 |
3,120,540 |
|
|
============= |
============= |
|
Short loans |
190,000 |
740,000 |
|
Accounts payable |
1,126,890 |
603,460 |
|
Advanced from customers |
10,560 |
5,070 |
|
Taxes payable |
2,500 |
2,290 |
|
Other accounts payable |
186,030 |
149,800 |
|
Interest payable |
9,600 |
2,890 |
|
Accrued payroll |
9,860 |
9,360 |
|
Notes payable |
2,474,000 |
1,262,000 |
|
Other current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current liabilities |
4,009,440 |
2,774,870 |
|
Long term liabilities |
49,950 |
75,700 |
|
|
------------------ |
------------------ |
|
Total liabilities |
4,059,390 |
2,850,570 |
|
Equities |
524,690 |
269,970 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
4,584,080 |
3,120,540 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
As
of Dec. 31, 2014 |
As
of Dec. 31, 2013 |
|
Turnover |
2,672,230 |
2,610,350 |
|
Cost of goods sold |
2,533,160 |
2,413,930 |
|
Taxes and additional of main operation |
0 |
30 |
|
Sales expense |
60,740 |
44,860 |
|
Management
expense |
37,930 |
46,870 |
|
Finance expense |
69,750 |
103,980 |
|
Asset impairment loss |
-1,260 |
1,690 |
|
Non-operating income |
34,430 |
4,710 |
|
Non-operating
expenses |
50 |
60 |
|
Profit before tax |
6,290 |
3,640 |
|
Less: profit tax |
1,570 |
10,650 |
|
Profits |
4,720 |
-7,010 |
Important Ratios
=============
|
|
As
of Dec. 31, 2014 |
As
of Dec. 31, 2013 |
|
*Current ratio |
0.75 |
0.60 |
|
*Quick ratio |
0.66 |
0.53 |
|
*Liabilities to assets |
0.89 |
0.91 |
|
*Net profit margin (%) |
0.18 |
-0.27 |
|
*Return on total assets (%) |
0.10 |
-0.22 |
|
*Inventory /Turnover ×365 |
50 days |
27 days |
|
*Accounts receivable/Turnover ×365 |
83 days |
52 days |
|
*Turnover/Total assets |
0.58 |
0.84 |
|
* Cost of goods sold/Turnover |
0.95 |
0.92 |
PROFITABILITY:
AVERAGE
The turnover of SC appears good in
its line.
SC’s net profit margin is fair in 2013, but average in 2014.
SC’s return on total assets is fair in 2013, but average in
2014.
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 average.
The accounts receivable of SC is maintained in an average
level.
SC’s short loans are large in 2013, but average in 2014.
SC’s turnover 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 average.
Overall
financial condition of the SC: Fairly stable.
SC is considered large-sized in its line with fairly stable
financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.40 |
|
|
1 |
Rs.101.19 |
|
Euro |
1 |
Rs.73.89 |
INFORMATION DETAILS
|
Analysis Done by
: |
TRI |
|
|
|
|
Report Prepared
by : |
ANK |
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.