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MIRA INFORM REPORT
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Report No. : |
483779 |
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Report Date : |
02.01.2018 |
IDENTIFICATION DETAILS
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Name : |
LAUNCH TECH CO.,LTD. |
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Registered Office : |
Launch Industrial
Park, No. 4012 North Wuhe Avenue Bantian Street Longgang District, Shenzhen
Guangdong Province, Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2016 |
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Date of Incorporation : |
27.07.1993 |
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Credibility Code : |
914403002794287320 |
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Legal Form : |
Shares limited co. |
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Line of Business : |
The subject’s registered
business scope includes development, production and sale of automobile diagnosis,
inspection, maintenance, maintenance equipment and related software;
developing, manufacturing and selling automotive electronic products;
information network service (excluding confined items); import and export
business. |
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No. of Employees : |
900 |
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 (30.06.2017) |
Current Rating (30.09.2017) |
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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 allowed resumption of a gradual liberalization. In 2015, the People’s Bank of China announced it would continue to carefully push for full convertibility of the renminbi (RMB) after the currency was accepted as part of the IMF’s special drawing rights basket. After engaging in one-way, large-scale intervention to resist appreciation of the RMB for a decade, China’s 2016 intervention in foreign exchange markets has sought to prevent a rapid RMB depreciation that would have negative consequences for the United States, China, and the global economy.
China’s economic growth has slowed since 2011. The Chinese Government faces numerous economic challenges including: (a) reducing its high domestic savings rate and correspondingly low domestic household consumption; (b) servicing its high corporate debt burdens to maintain financial stability; (c) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and college graduates, while maintaining competitiveness; (d) dampening speculative investment in the real estate sector; (e) reducing industrial overcapacity; and (f) raising productivity growth rates through the more efficient allocation of capital. 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 only marginal progress toward these rebalancing goals. Under President XI Jinping, Beijing has signaled its understanding that China's long-term economic health depends on giving the market a more decisive role in allocating resources, but has moved slowly on market-oriented reforms because of potential negative consequences for stability and short-term economic growth. He has also increased state-control over key sectors and Party control over state-owned enterprises. 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.
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Source
: CIA |
Company
name and address
Company
Name : LAUNCH
TECH CO.,LTD.
Address : Launch Industrial Park, North Wuhe Avenue Banxuegang
Industrial Park,
Longgang
District, Shenzhen guangdong PROVINCE,
PR CHINA
Telephone : 0086-755-84528859
Facsimile : 0086-755-84528872
Website : www.cnlaunch.com
Email :
DOD@cnlaunch.com
Note: The given number 0086-755-84528861 does not exist.
REGISTRATION INFORMATION
Established
Date : 1993-07-27
Credibility Code : 914403002794287320
Legal
Form : Shares limited co.
Issuing
Authority : Administration for Industry &
Commerce (AIC) – Shenzhen
Status : Active
Registered
Capital : RMB
375,460,000
Turnover : RMB
835,053,000 (as of Dec. 31, 2016)
Equities : RMB 723,382,000
(as of Dec. 31, 2016)
Chief
Executive : Liu
Xin
Business
Line : Manufacturer
Manpower : 900
Tax
Registration
Certificate
No. : 914403002794287320
Organization
Code : 27942873-2
HS code : 4403137519
Import & Export code : 4403279428732
Financial
Condition : Stable
Business
Size : Medium
Enterprise
Payment
:
Regular
Registered
Address
LAUNCH INDUSTRIAL PARK, NO. 4012 NORTH
WUHE AVENUE BANTIAN STREET LONGGANG DISTRICT, SHENZHEN GUANGDONG PROVINCE, PR
CHINA
Company
Status: Shares limited co.
This form of business in PR China is defined as a legal person.
Its registered capital is divided into shares of equal par value and the co.
raises capital by issuing share certificates by promotion or by public offer.
Shareholders bear limited liability to the extent of shareholding, and the co.
is liable for its debts only to the extent of its total assets. The co has
independent property of legal person and enjoys property rights of legal
person. The characteristics of the shares limited co. are as follows:
The establishment of the co. requires at least two promoters and
no more than 200, half of whom shall be domiciled in China. Natural person are
allowed to serve as promoters.
The minimum registered capital of a co. is RMB 5M. while that of
the co. with foreign investment is RMB 5M. The total capital of a co. which
propose to apply for publicly listed must be no less than RMB 30M.
The board of directors must consist of five to nineteen directors.
If the co. raises capital by public offer, the promoters must not
subscribe less than 35% of the total shares. the promoters’ shares are
restricted to transfer- within one year of the offer.
A state-owned enterprise that is restructured into a shares
limited co. must comply with the conditions & requirements specified under
the law & administrative rule.
Premise
The subject operates from premises
located at the heading address, and this address houses its operating office
and factory in Shenzhen. Our checks reveal that the subject owns the total
premise, but the square meters are unknown.
MANAGEMENT
|
Position |
Name |
Nationality |
|
Legal
representative, General Manager Chairman |
Liu
Xin |
Chinese |
|
Directors |
Jiang Shiwen Ning Bo Huang Zhaohuan Liu Yong Liu Jun Liu Yuan Zhang Yan |
Chinese |
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Supervisors |
Du Xuan Sun Zhongwen Yang Yi |
Chinese |
MAJOR SHAREHOLDERS
Name (2017-6-30) %
Shareholding
Shenzhen
Langqu Science And Technology Development Co., Ltd. 16.37
Beijing Ruidong
Wealth Capital Investment Management Center (Limited Partnership) 6.62
Liu Xin 21.86
Other
Shareholders 55.15
KEY EVENTS
Changes of its registered
information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2017-08-21 |
Registered
capital |
RMB 329,160,000 |
Present one |
|
2016-03-29 |
Registered
capital |
RMB 301,800,000 |
RMB 329,160,000 |
|
2015-06-23 |
Registered
capital |
RMB 60,360,000 |
RMB 301,800,000 |
BUSINESS OPERATIONS
The subject’s registered
business scope includes development, production and sale of automobile
diagnosis, inspection, maintenance, maintenance equipment and related software;
developing, manufacturing and selling automotive electronic products; information
network service (excluding confined items); import and export business.
The subject is mainly engaged in
manufacturing and selling auto diagnosis & maintenance
equipment.
Products:
X-431 HD III Heavy Duty Module
X-431 Automotive Diagnostic
Maintenance Equipment
DIY Professional Diagnostic Tools
Etc.
The subject sources its materials 80% from domestic
market, and 20% from overseas market. the subject sells 50% of its products in
domestic market, and 50% to overseas market, mainly Peru, Argentina, United
States, etc.
The buying terms of the subject include Check, T/T,
L/C and Credit of 30-60 days. The payment terms of the subject include Check,
T/T, L/C and Credit of 30-60 days.
SUPPLIER
& CUSTOMER
*Major
customer:
Launch Technologies USA Inc.
Coexito S.A. (Colombia)
Etc.
RELATED COMPANIES
Subsidiaries
Nanjing Launch Intelligent Technology
Co., Ltd.
========================
Credibility
Code: 91320114MA1P40AT42
Legal
representative: Liu Xin
Registered Capital:
RMB 50,000,000
Established
Date: 2017-06-01
Shenzhen
Pengaoda Technology Co. Ltd.
========================
Credibility
Code: 91440300691164177U
Legal
representative: Liu Jun
Registered
Capital: RMB 1,000,000
Established
Date: 2009-06-15
Etc.
Branches
Launch Tech
Co.,Ltd. Shandong Branch
========================
Credibility
Code: 913701007677991378
Principal:
Liu Xin
Established
Date: 2004-10-13
Launch Tech
Co.,Ltd. Luohu Branch
========================
Credibility
Code: 91440300770335050L
Principal:
Liu Xin
Established
Date: 2005-01-05
Etc.
NEGATIVE INFORMATION
Lawsuit
Record:
|
Date |
Case No. |
Petitioner |
Defendant |
Executive court |
Status |
|
2015-08-14 |
2014- 2640 |
The subject company. |
Haining Xianghe Automotive Components Co Limited |
People's Court of Wucheng District, Jinhua |
Concluded |
Trade payment
experience: The subject 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 the subject
was placed to us for collection within the last 6 years.
Customs
administrative penalty: No
record.
Equity freeze information: No record.
Administrative Penalty: No record.
MORTGAGE
There is no record of mortgage
information at present.
TRADEMARK
|
Registration No. |
Registration Date |
Trademark Design |
|
4343856 |
2004-11-03 |
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4042013 |
2004-04-28 |
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Etc.
PATENT
|
Patent name |
Published Application Number |
Application number |
Date of publication |
|
Request
processing method and server |
CN107454167A |
CN201710664208.7 |
2017-12-08 |
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A USB connection
line |
CN104617172B |
CN201510004625.X |
2017-10-27 |
Etc.
BANKING
Ping An Bank Shenzhen Huafu Subbranch
Account No.: 11002892976201
ABBREVIATED FINANCIAL STATEMENT
Balance Sheet
Unit: RMB’000
|
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As
of Dec. 31, 2015 |
As
of Dec. 31, 2016 |
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Current assets |
880,544 |
721,691 |
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Non-current assets |
599,330 |
591,858 |
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------------------ |
------------------ |
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Total assets |
1,479,874 |
1,313,549 |
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============= |
============= |
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Current liabilities |
750,550 |
567,160 |
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Non-current liabilities |
26,690 |
23,007 |
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------------------ |
------------------ |
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Total liabilities |
777,240 |
590,167 |
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Equities |
702,634 |
723,382 |
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|
------------------ |
------------------ |
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Total liabilities & equities |
1,479,874 |
1,313,549 |
Income Statement
Unit: RMB’000
|
|
As
of Dec. 31, 2015 |
As
of Dec. 31, 2016 |
|
Turnover |
697,597 |
835,053 |
|
Profits |
-94,857 |
25,181 |
|
Less: tax |
-904 |
4,144 |
|
Net profits |
-93,953 |
21,037 |
Important Ratios
=============
|
|
As of Dec. 31, 2015 |
As of Dec. 31, 2016 |
|
*Current
ratio |
1.17 |
1.27 |
|
*Liabilities
to assets |
0.53 |
0.45 |
|
*Net
profit margin (%) |
-13.47 |
2.52 |
|
*Return
on total assets (%) |
-6.35 |
1.60 |
|
*Turnover/Total
assets |
0.47 |
0.64 |
PROFITABILITY: AVERAGE
The turnover of the subject appears fairly good.
The subject’s
net profit margin is fair in 2015 and
average in 2016.
The subject’s return on total assets is fair in 2015 and average in 2016.
LIQUIDITY:
AVERAGE
The current ratio of the subject is maintained in a normal level.
The subject’s turnover is
fair, comparing with the size of its total assets.
LEVERAGE: AVERAGE
The debt ratio of the subject is average.
The risk for the subject to go bankrupt is average.
TREND ANALYSIS
===========
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2014 |
2015 |
2016 |
|
Sales Trend |
-- |
-- |
Ç |
|
Profit margin |
-- |
-- |
Ç |
|
Debt to assets ratio |
-- |
-- |
È |
|
Overall
Financial Condition |
□Good □Fairly Good ■Stable □Fairly Stable □Fair □Poor |
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COMMENT
The subject was registered as a Shares limited co. at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license).
The subject is considered medium-sized in its line with stable
financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 63.67 |
|
|
1 |
INR 85.90 |
|
Euro |
1 |
INR 75.47 |
|
CNY |
1 |
INR 9.79 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
TRU |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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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.