MIRA INFORM REPORT
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Report No. : |
342069 |
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Report Date : |
24.09.2015 |
IDENTIFICATION DETAILS
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Name : |
ZIBO CHEMET EQUIPMENT
CO., LTD. |
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Registered Office : |
No.137, New World Commercial Street, Zibo City Shandong Province, 255000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
07.01.2003 |
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Com. Reg. No.: |
370300228041447 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Manufacturing, sales of D1 first-class pressure vessel, D2
second-category of low and medium pressure container (operating within valid period);
production, sales, installation and maintenance of chemical equipment; sales
of chemical raw materials (excluding monitored and hazardous chemicals,
excluding storage); import and export of goods and technology (with permit if
needed) |
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|
|
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No. of Employees : |
75 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Exist |
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 & address
ZIBO CHEMET EQUIPMENT CO., LTD.
NO.137, NEW WORLD COMMERCIAL STREET, ZIBO CITY SHANDONG PROVINCE, 255000
PR CHINA
TEL: 86 (0) 533 2303085/3884877 FAX: 86 (0) 533
2302197
EXECUTIVE
SUMMARY
YEAR OF ESTABLISHMENT :
JAN. 7, 2003
REGISTRATION NO. :
370300228041447
LEGAL FORM :
ONE-PERSON LIMITED LIABILITY COMPANY
CHIEF EXECUTIVE
: HUO SHIHONG (LEGAL REPRESENTITIVE)
STAFF STRENGTH : 75
PAID-UP CAPITAL :
CNY 30,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 12,790,000 (AS OF DEC. 31,
2014)
EQUITIES :
CNY -1,350,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIR
OPERATIONAL TREND :
FAIR
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.3888 = USD 1
Adopted
abbreviations:
ANS - amount not stated NS
- not stated SC - Subject Company (the
company inquired by you)
NA - not available M
– million INR- Indian Rupee
SC was registered as a One-person
Limited Liability Company at local Administration for Industry &
Commerce (AIC - The official body of issuing and renewing business license) on
Jan. 7, 2003.
One-person Limited
Liability Company 一人有限责任公司 Single person LLC refers to a
limited liability company set up by only one natural person or legal person
as the single shareholder of it. The minimum registered capital
of Single person LLC is CNY100,000. The shareholder’s capital contributes,
as set out by the articles of associations should be a lump-sum payment in
full. One natural person can only
invest in and set up one limited liability company, which is not permitted to
invest in and set up a new Single person LLC. As to any one-person limited
liability company, the sole-investor nature of the natural person or legal
person shall be indicated in the registration documents of the company and
shall be indicated in the business license thereof as well. The regulation of Single person
LLC should be set up by the shareholder The regulation of Single person
LLC has no shareholder meeting.
Registered Business Scope: manufacturing, sales of D1 first-class
pressure vessel, D2 second-category of low and medium pressure container
(operating within valid period); production, sales, installation and
maintenance of chemical equipment; sales of chemical raw materials (excluding
monitored and hazardous chemicals, excluding storage); import and export of
goods and technology (with permit if needed)
SC is mainly engaged in manufacturing chemical equipment and chemical raw materials.
Huo Shihong is legal representative, executive director and manager of
SC.
SC is known to have approx. 75 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the commercial zone of Zibo City, another
operating address is “Fangdong Villege, Fangzhen Town, Zhangdian District, Zibo
City”. SC’s employee refused to release the detailed information of the
premise.
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2014-12-18 |
Registered Capital |
CNY 3,000,000 |
Present one |
Organization Code: 744539295
Website: http://www.chemet.net The design is professional and the content is
well organized. At present it is in Chinese and English versions.
E-mail: chemet@chemet.net
NEGATIVE
INFORMATION
See below for SC
as executive party (defendant).
|
SC |
|
|
Court |
Qingdao Maritime
Court |
|
Date of Case |
|
|
Case Number |
(2011) 00080 |
|
Claim Amount |
RMB 341,652.38 |
|
Case Status |
Completed |
|
Executed Party |
SC |
|
Court |
Zibo Zhangdian People’s Court |
|
Date of Case |
|
|
Case Number |
(2010) 01664 |
|
Claim Amount |
RMB 165,386.8 |
|
Case Status |
Completed |
|
Executed Party |
SC |
|
Court |
Beijing Dongcheng People’s Court |
|
Date of Case |
|
|
Case Number |
(2008) 01596 |
|
Claim Amount |
RMB 450,000 |
|
Case Status |
Completed |
|
Executed Party |
SC |
|
Court |
Zibo Intermediate People's court |
|
Date of Case |
|
|
Case Number |
(2007) 00130 |
|
Claim Amount |
RMB 34,255 |
|
Case Status |
Completed |
Remark: Due to the lack of information, we are unable to provide the cause
of action, judgment or other information.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Huo Shihong 100
Legal
representative, Executive Director and Manager:
Huo Shihong is currently responsible for the overall
management of SC.
Working Experience(s):
At present Working
in SC as legal representative, executive director and manager
Supervisors:
Huang Xiaohui
SC is mainly engaged in manufacturing chemical equipment and chemical raw materials.
SC’s products mainly include:
Glass-lined Reactor
Glass-lined Tank
Heat Exchanger
Plate Heat Exchanger
Wipe Film Evaporators
Rotary Dryer
Glass-lined Agitator
Column
SC sources its materials 100% from domestic market. SC sells 70% of its
products in domestic market, and 30% to the 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.
Trademark &
Patents
|
Registration No. |
4353474 |
3468521 |
|
Registration Date |
|
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|
Trademark Design |
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|
Note: SC’s management declined to release its main clients and
suppliers.
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 is not known to have related or affiliated
company.
Balance
Sheet
|
as
of Dec. 31, 2014 |
|
|
Cash & bank |
2,720 |
|
Short-term
investments |
0 |
|
Inventory |
9,210 |
|
Accounts
receivable |
-1,650 |
|
Other receivable |
2,000 |
|
Advanced to
suppliers |
10 |
|
Other current
assets |
0 |
|
|
------------------ |
|
Current assets |
12,290 |
|
Fixed assets net
value |
5,520 |
|
Projects under
construction |
0 |
|
Long term
investment |
0 |
|
Total intangible
and other assets |
0 |
|
|
------------------ |
|
Total assets |
17,810 |
|
|
============= |
|
Short loans |
15,220 |
|
Accounts payable |
-40 |
|
Accounts
advanced from customers |
0 |
|
Taxes payable |
20 |
|
Other accounts
payable |
5,860 |
|
Accrued expenses |
-1,900 |
|
Other current
liabilities |
0 |
|
|
------------------ |
|
Current
liabilities |
19,160 |
|
Long term
liabilities |
0 |
|
Other
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
19,160 |
|
Equities |
|
|
|
------------------ |
|
Total
liabilities & equities |
17,810 |
|
|
============= |
Income
Statement
|
Unit: CNY’000 |
as of Dec. 31,
2014 |
|
Turnover |
12,790 |
|
Cost of goods sold |
11,390 |
|
Taxes and additional of main
operation |
10 |
|
Income from other operations |
0 |
|
Sales expense |
860 |
|
Management expense |
2,020 |
|
Finance expense |
1,080 |
|
Non-operating income |
300 |
|
Non-operating expenses |
0 |
|
Profit before tax |
-2,270 |
|
Less: profit tax |
0 |
|
Profits |
-2,270 |
Important
Ratios
=============
|
|
as of Dec. 31,
2014 |
|
*Current ratio |
0.64 |
|
*Quick ratio |
0.16 |
|
*Liabilities to assets |
1.08 |
|
*Net profit margin (%) |
-17.75 |
|
*Return on total assets (%) |
-12.75 |
|
*Inventory /Turnover ×365 |
263 days |
|
*Accounts receivable/Turnover ×365 |
/ |
|
*Turnover/Total assets |
0.72 |
|
* Cost of goods sold/Turnover |
0.89 |
PROFITABILITY: POOR
The turnover of SC appears average in 2014.
SC’s net profit margin is poor in 2014.
SC’s return on total assets is poor in 2014.
SC’s cost of goods sold appears average in 2014, comparing with the
turnover.
LIQUIDITY: FAIR
The current ratio of SC is fair in 2014.
SC’s quick ratio is poor in 2014.
SC’s inventory is fairly large in 2014.
SC’s short loan is large 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 above average.
Overall financial condition of the SC: FAIR
SC’s accountant refused to disclose the banking information.
SC is considered small-sized in its line with fair financial conditions.
In view of the above investigation results, caution should be given when
granting credit to SC and C.O.D. is recommended.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.97 |
|
|
1 |
Rs.101.19 |
|
Euro |
1 |
Rs.73.37 |
INFORMATION DETAILS
|
Analysis Done by
: |
TRI |
|
|
|
|
Report Prepared
by : |
TPT |
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.