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MIRA INFORM REPORT
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Report No. : |
486425 |
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Report Date : |
17.01.2018 |
IDENTIFICATION DETAILS
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Name : |
QINGDAO
HONGHUA TYRE FACTORY |
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Registered Office : |
13y, Block B, Jinfu Mansion, No. 22, Shandong Road, Shinan District,
Qingdao, Shandong Province, 266071 Pr |
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Country : |
China |
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Date of Incorporation : |
11.05.1994 |
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Credibility Code : |
91370283X142121273 |
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Legal Form : |
Sole Proprietorship Enterprise |
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Line of Business : |
Subject is engaged in manufacturing tires and cover tires; importing
and exporting goods (excluding items prohibited by legal, administrative
rules and regulations, and operating the limited items after obtaining the
permits). |
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No. of Employees : |
62 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
B |
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Credit Rating |
Explanation |
Rating Comments |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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Status : |
Moderate |
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Payment Behaviour : |
Unknown |
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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
QINGDAO
HONGHUA TYRE FACTORY
13Y,
BLOCK B, JINFU MANSION, NO. 22, SHANDONG ROAD, SHINAN DISTRICT, QINGDAO,
SHANDONG province, 266071 PR CHINA
TEL:
86 (0) 532-85822568/85820926 FAX:
86 (0) 532-85820926
EXECUTIVE
SUMMARY
INCORPORATION
DATE : MAY 11, 1994
CREDIBILITY
CODE : 91370283X142121273
REGISTERED
LEGAL FORM : sole proprietorship
enterprise
chief
executive : ZHANG YONGJUN (PRINCIPAL)
STAFF
STRENGTH : 62
REGISTERED
CAPITAL : CNY 2,245,000
BUSINESS
LINE :
manufacturing and trading
TURNOVER : n/a
EQUITIES : n/a
PAYMENT
: AVERAGE
RECOMM.
CREDIT RANGE : SMALL AMOUNT
MARKET
CONDITION : AVERAGE
FINANCIAL
CONDITION : n/a
OPERATIONAL
TREND : STEADY
GENERAL
REPUTATION : AVERAGE
EXCHANGE
RATE : CNY 6.3245 = USD
1 AS OF 2018-1-16
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 Sole Proprietorship enterprise at local Administration for
Industry & Commerce (AIC - The official body of issuing and renewing
business license) on May 11, 1994.
Company Status: Sole Proprietorship enterprise This form of business in PR
China is a private enterprise formed by an individual, which does not have
the legal person or limited liability status. The co. is solely operated by
the sole investor who is responsible for all risks & liabilities of the
co.
SC’s
registered business scope includes general business items: manufacturing tires
and cover tires; importing and exporting goods (excluding items prohibited by
legal, administrative rules and regulations, and operating the limited items
after obtaining the permits). Other general management projects that can be
operated without administrative examination and approval. (with permit if
needed)
SC
is mainly engaged in manufacturing and selling tires.
Zhang
Yongjun is principal of SC at present.
SC
is known to have approx. 62 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Qingdao. The detailed information of
the premise is unspecified.
SC’s
factory is located in Honghua Rubber Park, Cuijiaji Town, Pingdu, Qingdao,
Shandong Province
http://www.honghuatyre.com
The design is professional and the content is well organized. At present it is
in Chinese and English versions.
E-mail: Liu@honghuatyre.com
No
significant events or changes were found during our checks with local AIC.
Import/
Export License No: 3702X14212127
SC
has got the ISO9001:2015 Quality Management System Certificate, ISO14001:2015
Environmental Management System Certificate, Chinese National Tyre Products
Safety Certification (CCC), etc.
For
the past two years there is no record of litigation.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Zhang
Honghua 100
Principal:
Zhang
Yongjun is currently responsible for the overall management of SC.
Working
Experience(s):
At
present
Working in SC as principal.
SC
is mainly engaged in manufacturing and selling tires.
SC’s
products mainly include:
- OTR Tire
- Forklift Tire
- Special Ind. Tire
- Solid Tire
- Agricultural Tire
- Mining Tire
- Indian Patterns Tire
- Truck Tire
According
to SC’s staff, SC sells its products in domestic market and to overseas market.
The
payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
Trademark
& Patents
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Registration
No. |
12340975 |
9682777 |
7112166 |
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Registration
Date |
2014/09/07 |
2012/08/14 |
2012/02/14 |
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Trademark
Design |
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Note:
SC refused to release its major suppliers and clients.
Industry
code: 2911
Industry
name: Tire manufacturing
The
gross domestic product of China in 2016 which is 74412.72 billion that is
increased 6.7% than previous year.
Chinese
tire industry started late but has developed rapidly; it has become one of the
world's fastest growing tire market. At present, China is the world largest
automobile producer, the car popularity rate gradually increased, pulling the
long-term and stable development of domestic tire market. According to National
Bureau of Statistics data released, the export volume of textile products,
rubber products and mining products was 39101.771 billion Yuan in 2015, declined
by 2..30% compared with 2014. And the export volume of new pneumatic rubber
tire was 4445.139 billion Yuan in 2015, declined by 6.59% compared with 2014.
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.
SC
declined to release its banking details.
As
a sole proprietorship enterprise, there is no legal requirement according to local
corporate law for public disclosure of detailed financials.
SC
is considered small-sized in its line with a development history of 24 years.
Taking into consideration of SC’s operating size as well as market conditions
we would rate SC as an above average credit risk company.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 63.76 |
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1 |
INR 87.91 |
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Euro |
1 |
INR 78.20 |
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CNY |
1 |
INR 9.93 |
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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NIS |
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Report Prepared
by : |
DNS |
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
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Payment
record
·
Litigation
against the subject
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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.