MIRA INFORM REPORT
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Report No. : |
342161 |
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Report Date : |
24.09.2015 |
IDENTIFICATION DETAILS
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Name : |
Jinan Testing
Equipment IE Corporation |
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Registered Office : |
10/F, Tower A Of Sanqing Century Fortune Plaza, High-Tech Zone, Ji’nan,
Shandong Province, 250000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
11.12.2003 |
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Com. Reg. No.: |
370100200027756 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in technology developing and selling testing
equipment, detecting instruments, mechanical equipment, electronic products,
electrical appliances, providing related technical consultation services,
import and export business. (With permit if needed) |
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No. of Employees : |
30 |
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 & address
Jinan Testing Equipment IE Corporation
10/f, Tower a of SANQING century fortune plaza,
high-tech zone,
ji’nan, shandong PROVINCE, 250000 PR CHINA
TEL: 86 (0) 531-86510531 FAX: 86 (0) 531-86510535
EXECUTIVE
SUMMARY
INCORPORATION DATE :
DECEMBER 11, 2003
REGISTRATION NO. :
370100200027756
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE :
MR. YU HONGMIN (LEGAL
REPRESENTATIVE)
STAFF STRENGTH :
30
REGISTERED CAPITAL :
CNY 3,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 18,700,000 (AS OF DEC. 31,
2014)
EQUITIES :
CNY 1,140,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIR
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.3833= 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 company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on December 11, 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 technology developing and
selling testing equipment, detecting instruments, mechanical equipment,
electronic products, electrical appliances, providing related technical
consultation services, import and export business. (With permit if needed)
SC is mainly engaged in selling instruments and meters.
Mr. Yu Hongmin has been the legal representative, executive director and
general manager of SC since 2003.
SC is known to have approx. 30 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the High-tech zone of Ji’nan. Our checks reveal
that SC rents the total premise about 200 square meters.
http://www.jinan-te.com
Chinese website
http://www.testingequipmentie.com
English website
E-mail: sales@testingequipmentie.com ; sales@jinan-te.com
Changes of its registered information are as follows:
|
Item |
Before the change |
After the change |
|
|
2013 |
Registered capital |
CNY 1,000,000 |
Present amount |
Organization Code:
757468668
MAIN SHAREHOLDERS:
Name %
of Shareholding
Yu Hongmin 90
Tao Liying 10
Legal
representative, Executive Director and General Manager:
Mr. Yu Hongmin, about 51 years old with university education, he is
currently responsible for the overall management of SC.
Working Experience(s):
From 2003 to present Working in SC as legal representative, executive
director and general manager.
Supervisor:
Tao Liying
SC is mainly engaged in selling instruments and meters.
SC’s products mainly include:
Electromechanical universal testing machine
Creep and rupture testing machine
Hydraulic universal testing machine
Horizontal tensile testing machine
Upset testing machine
Impact & drop weight testing machine
Dynamic and static testing machine
Resonance high frequency testing machine
Pulse fatigue testing machine
Compression testing machine
Torsion testing machines
Bending testing machines
Cupping & friction testing machine
Hardness tester
Torsion fatigue testing system
SC sources its merchandise 60% from domestic market, and 40% from
overseas market. SC sells 40% of its products in domestic market, and 60% to
overseas market.
The buying terms of SC include Check, T/T, L/C 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’s
management declined to release its major clients and suppliers.
SC is not known to have any subsidiary at present.
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.
China Construction Bank Ji’nan Branch
AC#：37001618806050147639
Relationship: Normal.
Balance
Sheet
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Unit: CNY’000 |
as of Dec. 31,
2014 |
|
Cash & bank |
5,270 |
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Inventory |
1,410 |
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Accounts receivable |
7,050 |
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Advances to suppliers |
5,690 |
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Other Accounts receivable |
7,150 |
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Short-time investment |
1,090 |
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------------------ |
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Current assets |
27,660 |
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Fixed assets net value |
100 |
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------------------ |
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Total assets |
27,760 |
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============= |
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Short loans |
0 |
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Accounts payable |
18,870 |
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Advances from clients |
6,540 |
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Taxes payable |
160 |
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Other Accounts payable |
1,050 |
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------------------ |
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Current liabilities |
26,620 |
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Long term liabilities |
0 |
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------------------ |
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Total liabilities |
26,620 |
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Equities |
1,140 |
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------------------ |
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Total liabilities & equities |
27,760 |
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|
============= |
Income
Statement
|
Unit: CNY’000 |
as of Dec. 31,
2014 |
|
Turnover |
18,700 |
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Cost of goods sold |
12,360 |
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Tax and additional of main
operation |
30 |
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Sales expense |
1,410 |
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Management expense |
5,090 |
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Finance expense |
10 |
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Subsidy income |
60 |
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Profit before tax |
-140 |
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Less: profit tax |
0 |
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Profits |
-140 |
Important
Ratios
=============
|
|
As of Dec. 31,
2014 |
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*Current ratio |
1.04 |
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*Quick ratio |
0.99 |
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*Liabilities to assets |
0.96 |
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*Net profit margin (%) |
-0.75 |
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*Return on total assets (%) |
-0.50 |
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*Inventory /Turnover ×365 |
28 days |
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*Accounts receivable/Turnover ×365 |
138 days |
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*Turnover/Total assets |
0.67 |
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* Cost of goods sold/Turnover |
0.66 |
PROFITABILITY:
FAIR
The turnover of SC appears average in its line.
SC’s net profit margin is fair in 2014.
SC’s return on total assets is fair in 2014.
SC’s cost of goods sold is average in 2014, 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 normal level.
The inventory of SC appears average.
The accounts receivable of SC appears fairly large.
SC has no short-term loan in 2014.
SC’s turnover is in a fair level in 2014, comparing with the size of its
total assets.
LEVERAGE: FAIR
The debt ratio of SC is high in 2014.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
SC is considered medium-sized in its line with fair financial
conditions. The large amount of accounts receivable could be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.97 |
|
|
1 |
Rs.101.19 |
|
Euro |
1 |
Rs.73.37 |
INFORMATION DETAILS
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Analysis Done by
: |
KAS |
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Report Prepared
by : |
TPT |
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 |
|
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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.