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MIRA INFORM REPORT
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Report No. : |
501691 |
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Report Date : |
10.04.2018 |
IDENTIFICATION DETAILS
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Name : |
YANGZHOU METAL FORMING MACHINE TOOL CO., LTD. |
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Registered Office : |
No. 1 Huagang Road, Hanjiang Economic Development
Zone, Yangzhou City, Jiangsu Province 225128 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
15.07.1998 |
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Com. Reg. No.: |
913210007039114765 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject includes developing, processing, manufacturing and selling
machine tools, metal forming machines, moulds, punch peripheral equipment, and
forging machinery accessories; manufacturing and selling abrasive tools &
abrasive materials (operated by its branch factory); repairing machine tools;
stamping metal cutting & processing; processing garment; developing and
selling process control software; exporting its products and technology;
importing machinery, components, raw materials & accessories, and
technology, excluding the goods forbidden by the government. |
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No. of Employees : |
1,006 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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. China has implemented reforms in a gradualist fashion, resulting in efficiency gains that have contributed to a more than tenfold increase in GDP since 1978. Reforms began with the phaseout 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 continues to pursue an industrial policy, state support of key sectors, and a restrictive investment regime. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2016 stood as the largest economy in the world, surpassing the US in 2014 for the first time in modern history. China became the world's largest exporter in 2010, and the largest trading nation in 2013. Still, China's per capita income is below the world average.
After keeping its currency tightly linked to the US dollar for years, China in July 2005 moved to an exchange rate system that references a basket of currencies. From mid-2005 to late 2008, the renminbi appreciated more than 20% against the US dollar, but the exchange rate remained virtually pegged to the dollar from the onset of the global financial crisis until June 2010, when Beijing announced it would allow a resumption of gradual liberalization. From 2013 until early 2015, the renminbi (RMB) appreciated roughly 2% against the dollar, but the exchange rate fell 13% from mid-2015 until end-2016 amid strong capital outflows in part stemming from the August 2015 official devaluation; in 2017 the RMB resumed appreciating against the dollar – roughly 7% from end-of-2016 to end-of-2017. From 2013 to 2017, China had one of the fastest growing economies in the world, averaging slightly more than 7% real growth per year. In 2015, the People’s Bank of China announced it would continue to carefully push for full convertibility of the renminbi, after the currency was accepted as part of the IMF’s special drawing rights basket. However, since late 2015 the Chinese Government has strengthened capital controls and oversight of overseas investments to better manage the exchange rate and maintain financial stability.
The Chinese Government faces numerous economic challenges including: (a) reducing its high domestic savings rate and correspondingly low domestic household consumption; (b) managing its high corporate debt burden to maintain financial stability; (c) controlling off-balance sheet local government debt used to finance infrastructure stimulus; (d) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and college graduates, while maintaining competitiveness; (e) dampening speculative investment in the real estate sector without sharply slowing the economy; (f) reducing industrial overcapacity; and (g) raising productivity growth rates through the more efficient allocation of capital and state-support for innovation. Economic development has progressed further in coastal provinces than in the interior, and by 2016 more than 169.3 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of China’s population control policy known as the “one-child policy” - which was relaxed in 2016 to permit all families to have two children - 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 urbanization. The Chinese Government is seeking to add energy production capacity from sources other than coal and oil, focusing on natural gas, nuclear, and clean energy development. In 2016, China ratified the Paris Agreement, a multilateral agreement to combat climate change, and committed to peak its carbon dioxide emissions between 2025 and 2030.
The government's 13th Five-Year Plan, unveiled in March 2016, emphasizes the need to increase innovation and boost domestic consumption to make the economy less dependent on government investment, exports, and heavy industry. However, China has made more progress on subsidizing innovation than rebalancing the economy. Beijing has committed to giving the market a more decisive role in allocating resources, but the Chinese Government’s policies continue to favor state-owned enterprises and emphasize stability. Chinese leaders in 2010 pledged to double China’s GDP by 2020, and the 13th Five Year Plan includes annual economic growth targets of at least 6.5% through 2020 to achieve that goal. 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. Chinese leaders also have undermined some market-oriented reforms by reaffirming the “dominant” role of the state in the economy, a stance that threatens to discourage private initiative and make the economy less efficient over time. The slight acceleration in economic growth in 2017—the first such uptick since 2010—gives Beijing more latitude to pursue its economic reforms, focusing on financial sector deleveraging and its Supply-Side Structural Reform agenda, first announced in late 2015.
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Source
: CIA |
Company
name and address
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COMPANY NAME |
Yangzhou Metal Forming Machine Tool Co.,
Ltd. |
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CURRENT ADDRESS/ REGISTERED ADDRESS |
No. 1 Huagang
Road, Hanjiang Economic Development Zone, Yangzhou City, Jiangsu Province
225128 PR China |
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TEL. NO. |
86 (0)
514-87849486/87517078 |
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FAX NO. |
86 (0)
514-87849136 |
EXECUTIVE
SUMMARY
Date of Registration : JULY 15, 1998
Unified social credit code : 913210007039114765
LEGAL FORM : Shares limited company
REGISTERED CAPITAL : CNY 111,800,000
staff : 1,006
BUSINESS CATEGORY : MANUFACTURING & trading
Revenue : CNY 746,608,000 (AS OF DEC. 31, 2017)
EQUITIES : CNY 643,092,000 (AS OF DEC. 31, 2017)
WEBSITE : www.duanya.com.cn
E-MAIL : yz@duanya.com.cn
PAYMENT : Regular
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : FAIRLY GOOD
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 shares
limited company of PRC with State Administration of Industry &
Commerce (SAIC) under Unified Social Credit Code: 913210007039114765.
SC’s Import and Export Enterprise Code:
3200703911476
SC’s registered capital: CNY 111,800,000
SC’s paid-in capital: CNY 111,800,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2010 |
Registered
Capital |
CNY 50,000,000 |
CNY 70,000,000 |
|
2011 |
Registered
Capital |
CNY 70,000,000 |
CNY 86,000,000 |
|
2016-7-6 |
Legal Representative |
Pan Yunhu |
Oemer Akyazici |
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Registration No./ Unified Social Credit Code |
321027000020174 |
913210007039114765 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Yangzhou
Yadong Investment Center (Limited Partnership) |
7.5 |
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Yangzhou
Huaizuo Investment Center (Limited Partnership) |
12.33 |
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Yangzhou
Ji’an Investment Center (Limited Partnership) |
8.41 |
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Yangzhou Jinduan
Investment Center (Limited Partnership) |
6.27 |
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China
Merchants Xiangjiang Industry Investment Co., Ltd. |
4.07 |
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Jiangsu
Huagong Venture Capital Co., Ltd. |
2.33 |
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Suzhou
Shengquan Wanze Equity Investment Partnerships (Limited Partnership) |
2.33 |
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Jiangsu
Gaotou Xinhai Venture Capital Co., Ltd. |
2.33 |
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Shenzhen
Shengqiao Chuangxin Investment Partnerships (Limited Partnership) |
1.74 |
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Huaxia
Junyue (Tianjin) Equity Investment Fund Partnerships (Limited Partnership) |
1.74 |
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Yangzhou Infinity
Venter Capital Center (Limited Partnership) |
1.74 |
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Shanghai
Ruihe Venture Capital Center (Limited Partnership) |
1.16 |
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Pan Yunhu |
16.75 |
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Zhong Jun |
2.18 |
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Dong
Hongbin |
7.38 |
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Geng
Changming |
8.11 |
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Zhao
Hongwei |
5.9 |
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Zhang Huisheng |
5.65 |
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He Cankun |
2.08 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal
Representative and Chairman |
Oemer
Akyazici |
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General
Manager |
Dong
Hongbin |
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Director |
Klebert
Stefan |
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Dr.Jost
Peter |
|
|
Dr.Arnold Stephan |
|
|
Geng Changming |
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|
Zhao Hongwei |
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Supervisor |
Zhong Jun |
|
Hu Yinghua |
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Luo Mingwu |
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|
Shi Yunzhong |
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|
Shen Xiaoyou |
RECENT
DEVELOPMENT
SC has the import & export rights, and obtained the Quality System
Certificate ISO 9001, then updated the 2000 version.
In 2010, SC as a whole moved to South Park, Hanjiang Economic
Development Zone, opening new logo"
".
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Yangzhou Yadong Investment Center (Limited
Partnership) 7.5
Yangzhou Huaizuo Investment Center (Limited
Partnership) 12.33
Yangzhou Ji’an Investment Center (Limited
Partnership) 8.41
Yangzhou Jinduan Investment Center (Limited
Partnership) 6.27
China Merchants Xiangjiang Industry
Investment Co., Ltd. 4.07
Jiangsu Huagong Venture Capital Co., Ltd. 2.33
Suzhou Shengquan Wanze Equity Investment
Partnerships
(Limited Partnership) 2.33
Jiangsu Gaotou Xinhai Venture Capital Co.,
Ltd. 2.33
Shenzhen Shengqiao Chuangxin Investment
Partnerships
(Limited Partnership) 1.74
Huaxia Junyue (Tianjin) Equity Investment
Fund Partnerships
(Limited Partnership)q 1.74
Yangzhou Infinity Venter Capital Center
(Limited Partnership) 1.74
Shanghai Ruihe Venture Capital Center
(Limited Partnership) 1.16
Pan Yunhu 16.75
Zhong Jun 2.18
Dong Hongbin 7.38
Geng Changming 8.11
Zhao Hongwei 5.9
Zhang Huisheng 5.65
He Cankun 2.08
MANAGEMENT
Oemer Akyazici,
Legal Representative and Chairman
---------------------------------------------------------------------
Ø
Gender: M
Ø
Passport No.: CF8GTC116
Ø
Qualification: University
Ø Working experience
(s):
Ø
At present, working in SC as legal
representative and chairman
Dong Hongbin,
General Manager
-------------------------------------------------------
Ø
Gender: M
Ø
Nationality: China
Ø
ID# 321027196611210019
Ø
Age: 52
Ø
Qualification: University
Ø Working experience
(s):
Ø
At present, working in SC as general manager
Director
-----------
Klebert Stefan
Dr.Jost Peter
Dr.Arnold Stephan
Geng Changming
Zhao Hongwei
Supervisor
--------------
Zhong Jun
Hu Yinghua
Luo Mingwu
Shi Yunzhong
Shen Xiaoyou
BUSINESS
OPERATION
SC’s registered business scope includes developing, processing,
manufacturing and selling machine tools, metal forming machines, moulds, punch
peripheral equipment, and forging machinery accessories; manufacturing and
selling abrasive tools & abrasive materials (operated by its branch
factory); repairing machine tools; stamping metal cutting & processing;
processing garment; developing and selling process control software; exporting
its products and technology; importing machinery, components, raw materials
& accessories, and technology, excluding the goods forbidden by the
government.
SC is mainly
engaged in manufacturing and selling machine tools, metal forming machines,
moulds, punch peripheral equipment, and forging machinery accessories.
SC’s products
mainly include:
Mechanical Press
High-speed Punches
Knuckle Precision
Press
Fine Blanking
Press
Hot Forging Press
Powder Compacting
Presses
Special Stamping
Equipment
General Punches
The annual
production of high-performance presses 2,000 / year; open type tilting press
1,300 / year; into the line equipment 200; closed single or double point press
200 units / year; and the production of a joint venture in Yangzhou Zimmer
Hydraulic machine 50 / year.
SC has 300 sets of
equipment, including sophisticated and advanced equipment, 40 sets of large
equipment WD
“
”
trademark was awarded “China Famous Brand”.
SC sources its materials 70% from domestic market, and 30% from overseas market, mainly Germany, Japan, etc. SC sells 60% of its products in domestic market, and 40% to overseas market.
The buying terms
of SC include T/T, L/C and Credit of 30-60 days. The payment terms of SC
include T/T, L/C and Credit of 30-60 days.
*Major Customers*
==============
Mintech Mexico Sa
De Cv
Proveedora De
Herramientas Y Accesorios Para Radiadores SA De Cv
Gupta Machine
Tools Ltd
Kumar Precision
Stampings Private Limited
Victora Tool
Engineers Pvt.Ltd.
Amber Enterprises
India
Staff & Office:
--------------------------
SC is known
to have approx. 1,006 staff at present.
SC rents an area
as its operating office & factory of approx. 60,000 sq. meters at the
heading address.
RELATED COMPANY
SC is known to
invest in the following companies:
n
Beenak (Yangzhou) Machinery Co., Ltd.
---------------------------------------
Date of Registration: May 18, 2004
Unified Social Credit Code: 91321000761546227Q
Registered Capital: USD 1,000,000
Etc.
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
Basic Bank:
Agricultural Bank of China Yangzhou Guazhou Sub-branch
AC#:
10154601040000563
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2016 |
As of Dec. 31, 2017 |
|
136,027 |
153,439 |
|
|
Notes receivable |
53,371 |
55,057 |
|
Accounts receivable |
165,395 |
162,754 |
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Advances to suppliers |
30,679 |
6,841 |
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Other receivable |
14,479 |
21,674 |
|
Inventory |
325,605 |
336,154 |
|
Non-current assets within one year |
0 |
0 |
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Other current assets |
101 |
13,440 |
|
|
------------------ |
------------------ |
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Current assets |
725,657 |
749,359 |
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Long-term investment |
9,191 |
9,191 |
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Fixed assets |
286,308 |
301,357 |
|
Construction in progress |
635 |
1,066 |
|
Intangible assets |
35,061 |
1,554 |
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Long-term prepaid expenses |
0 |
0 |
|
Deferred income tax assets |
23,374 |
24,248 |
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Other non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
1,080,226 |
1,086,775 |
|
|
============= |
============= |
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Short-term loans |
0 |
0 |
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Notes payable |
0 |
0 |
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Accounts payable |
185,377 |
174,094 |
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Wages payable |
19,880 |
14,830 |
|
Taxes payable |
23,685 |
5,449 |
|
Advances from clients |
198,448 |
212,083 |
|
Other payable |
6,931 |
9,052 |
|
Other current liabilities |
11,320 |
1,161 |
|
|
------------------ |
------------------ |
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Current liabilities |
445,641 |
416,669 |
|
Non-current liabilities |
23,152 |
27,014 |
|
|
------------------ |
------------------ |
|
Total liabilities |
468,793 |
443,683 |
|
Equities |
611,433 |
643,092 |
|
|
------------------ |
------------------ |
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Total liabilities & equities |
1,080,226 |
1,086,775 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2017 |
|
Revenue |
746,608 |
|
Cost of sales |
633,761 |
|
Sales expense |
24,894 |
|
Management expense |
22,495 |
|
Finance expense |
-1,385 |
|
Profit before tax |
74,746 |
|
Less: profit tax |
17,051 |
|
57,695 |
Important Ratios
=============
|
|
As of Dec. 31, 2016 |
As of Dec. 31, 2017 |
|
*Current ratio |
1.63 |
1.80 |
|
*Quick ratio |
0.90 |
0.99 |
|
*Liabilities to assets |
0.43 |
0.41 |
|
*Net profit margin (%) |
-- |
7.73 |
|
*Return on total assets (%) |
-- |
5.31 |
|
*Inventory / Revenue ×365 |
-- |
165 days |
|
*Accounts receivable/ Revenue ×365 |
-- |
80 days |
|
*Revenue/Total assets |
-- |
0.69 |
|
*Cost of sales / Revenue |
-- |
0.85 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIRLY GOOD
l The revenue of SC
appears fairly good in its line.
l SC’s net profit
margin is fairly good.
l SC’s return on
total assets is fairly good.
l
SC’s cost of sales is average, comparing with its
revenue.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears large.
l
The accounts receivable of SC appears average.
l
SC has no short-term loans.
l
SC’s revenue is in a fair level, comparing with the
size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered large-sized in its line with fairly stable financial
conditions. The large amount of inventory may be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 64.93 |
|
|
1 |
INR 91.50 |
|
Euro |
1 |
INR 79.69 |
|
CNY |
1 |
INR 10.31 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
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|
Report Prepared
by : |
NIT |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.