MIRA INFORM REPORT

Report No. :	495702
Report Date :	03.03.2018

IDENTIFICATION DETAILS

Name :	JUNMA TYRE CORD COMPANY LIMITED

Registered Office :	No. 8, Dongyi Road, Industrial Park Zone, Hongze County, Huaian, Jiangsu Province 223100 Pr

Country :	China

Financials (as on) :	31.12.2016

Date of Incorporation :	12.06.1998

Unified Social Credit Code :	91320000703680751F

Legal Form :	Shares Limited Company

Line of Business :	Subject registered business scope includes manufacturing and selling cord fabric, thread, wholesaling its products and similar products.

No. of Employees :	1,200

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

Credit Rating

Explanation

Rating Comments

Acceptable Risk

Business dealings permissible with moderate risk of default

Status :	Good

Payment Behaviour :	Regular

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

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

China

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
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.

Source : CIA

Company name & address

COMPANY NAME	JUNMA TYRE CORD COMPANY LIMITED
CURRENT ADDRESS	NO. 80 CHENGHANGHE EAST ROAD, YANGSHE TOWN, ZHANGJIAGANG JIANGSU PROVINCE 215617 PR CHINA
REGISTERED ADDRESS	NO. 8, DONGYI ROAD, INDUSTRIAL PARK ZONE, HONGZE COUNTY, HUAIAN, JIANGSU PROVINCE 223100 PR CHINA
TEL. NO.	86 (0) 512-58291688/58299116
FAX NO.	86 (0) 512-58292308/58140216

EXECUTIVE SUMMARY

Date of Registration : june 12, 1998

UNIFIED SOCIAL CREDIT CODE : 91320000703680751F

LEGAL FORM : SHARES LIMITED COMPANY

CHIEF EXECUTIVE : yang peixing (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL : CNY 73,400,000

staff : 1,200

BUSINESS CATEGORY : manufacturing & trading

Revenue : CNY 2,583,083,000 (AS OF DEC. 31, 2016)

EQUITIES : CNY 807,253,000 (AS OF DEC. 31, 2016)

WEBSITE : www.junmachina.com

E-MAIL : master@junmachina.com

PAYMENT : regular

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : stable

OPERATIONAL TREND : fairly steady

GENERAL REPUTATION : AVERAGE

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: 91320000703680751F.

SC’s Import and Export Enterprise Code: 3200703680751

SC’s registered capital: CNY 73,400,000

SC’s paid-in capital: CNY 73,400,000

Registration Change Record:-

Date	Change of Contents	Before the change	After the change
2008	Registration No.	000435	320000400001617
2016-11-17	Registration No./ Unified Social Credit Code	320000400001617	91320000703680751F

Current Co search indicates SC’s shareholders & chief executives are as follows:-

Name of Shareholder (s)	% of Shareholding
Chen Zufu	5.96
Jiang Jianping	3.41
Liu Yaoxiang	3.41
Liu Zhenfeng	6.13
Yang Peixing	14.98
Zhangjiagang Bole Investment & Development Co., Ltd.	41.04
S Shares Issued In Singapore	25.07

SC’s Chief Executives:-

Position	Name
Legal Representative, Chairman, and General Manager	Yang Peixing
Vice Chairman	Liu Yaoxiang
Director	Liu Zhenfeng
	Jen Shek Voon
	Teng Cheong Kwee
	Zhou Zhidan
	Shan Wenfeng
Supervisor	Yang Renming
Supervisor	Xu Feng

RECENT DEVELOPMENT

SC has got the certificate ISO 9000, ISO 9001, ISO/TS 16949 certificates, and was awarded as Scientific and Technological Progress Advanced Enterprises, Jiangsu Province Class AAA Trustworthy Enterprise, Jiangsu Famous Trademark, etc.

SHAREHOLDER CHART & BACKGROUND

Name % of Shareholding

Chen Zufu 5.96

Jiang Jianping 3.41

Liu Yaoxiang 3.41

Liu Zhenfeng 6.13

Yang Peixing 14.98

Zhangjiagang Bole Investment & Development Co., Ltd. 41.04

S Shares Issued In Singapore 25.07

Zhangjiagang Bole Investment & Development Co., Ltd.

--------------------------------------------------------------------------

Date of Registration: July 2, 2002

Registration No.: 913205827394210304

Legal Form: Limited Liabilities Company

Chief Executive: Yang Peiying

Registered Capital: CNY 60,852,500

Address: No.61 Zhenxing Road, Chenghang Street, Yangshe Town, Zhangjiagang, Jiangsu Province

Tel: 86 0512-58292953

MANAGEMENT

Yang Peixing, Legal Representative, Chairman and General Manager

---------------------------------------------------------------------------------------------------------

Gender: M

Nationality: China

ID# 320521196206077611

Age: 55

Qualification: University

Working experience (s):

From 1998 to present, working in SC as legal representative, chairman and general manager

Also working in Zhangjiagang Junma Steel Cord Co., Ltd. as chairman, and in Zhangjiagang Junma Fine Chemical Factory as principal

Liu Yaoxiang, Vice Chairman

--------------------------------------------------

Gender: M

Nationality: China

Age: 64

ID# 320521531212481

Qualification: University

Working experience (s):

At present, working in SC as vice chairman.

Director

-----------

Liu Zhenfeng

Jen Shek Voon

Teng Cheong Kwee

Zhou Zhidan

Shan Wenfeng

Supervisor

--------------

Yang Renming

Xu Feng

BUSINESS OPERATION

SC’s registered business scope includes manufacturing and selling cord fabric, thread, wholesaling its products and similar products.

SC is mainly engaged in manufacturing and selling cord fabric and steel yarn.

Brand: JUNMA

SC’s products mainly include: steel cord, gumming cord fabric.

SC sources its materials 100% from domestic market, mainly Jiangsu. SC sells 70% of its products in domestic market, and 30% to overseas market, mainly U.S.A., Europe and Southeast Asian 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.

*Major Customers:

==============

Redepesca S.A.S.

Industrial Fiber Sales International Inc

Novatec Braids Ltd.

Hamilton International LLC.

Madura Industrial Textiles Limited

*Major Supplier:

============

Zhangjiagang Junma Polyester Fibre Products Co., Ltd.

Staff & Office:

--------------------------

SC is known to have approx. 1,200 staff at present.

SC owns an area as its operating office & factory of approx. 165,000 sq. meters at the heading address.

RELATED COMPANY

SC is known to have a subsidiary at present,

Suqian Junma Tyre Cord Co., Ltd.

---------------------------------

Date of Registration: February 5, 2010

Unified Social Credit Code: 91321311550299035B

Chief Executive : Yang Peixing 杨培兴

Registered Capital: CNY 20,000,000

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 records and our debt collection record concerning SC.

Trade payment experience: SC’s suppliers declined to make any comments.

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:

Industrial and Commercial Bank of China

AC#: 1102028009000079352

FINANCIALS

Balance Sheet

Unit: CNY’000	As of Dec. 31, 2015	As of Dec. 31, 2016
Cash	740,912	376,706
Notes receivable	54,225	29,200
Accounts receivable	625,909	560,890
Advances to suppliers	689,765	1,255,638
Other receivable	1,347,120	891,969
Inventory	194,729	172,426
Non-current assets within one year	0	0
Other current assets	0	0
	------------------	------------------
Current assets	3,652,660	3,286,829
Long-term investment	20,000	20,000
Fixed assets	193,120	188,905
Construction in progress	2,478	1,247
Intangible assets	15,227	14,814
Long-term prepaid expenses	0	0
Deferred income tax assets	0	0
Other non-current assets	0	0
	------------------	------------------
Total assets	3,883,485	3,511,795
	=============	=============
Short-term loans	1,458,724	1,493,651
Notes payable	1,160,228	735,903
Accounts payable	492,190	42,316
Wages payable	16,473	16,972
Taxes payable	-1,090	-13,062
Advances from clients	42,891	71,052
Other payable	-25,244	-25,290
Other current liabilities	966	383,000
	------------------	------------------
Current liabilities	3,145,138	2,704,542
Non-current liabilities	0	0
	------------------	------------------
Total liabilities	3,145,138	2,704,542
Equities	738,347	807,253
	------------------	------------------
Total liabilities & equities	3,883,485	3,511,795
	=============	=============

Income Statement

Unit: CNY’000	As of Dec. 31, 2016
Revenue	2,583,083
Cost of sales	2,312,851
Sales expense	69,437
Management expense	39,378
Finance expense	87,793
Non-business income	3,524
Non-business expenditure	7,052
Profit before tax	67,416
Less: profit tax	0
Profits	67,416

Important Ratios

=============

	As of Dec. 31, 2015	As of Dec. 31, 2016
*Current ratio	1.16	1.22
*Quick ratio	1.10	1.15
*Liabilities to assets	0.81	0.77
*Net profit margin (%)	--	2.61
*Return on total assets (%)	--	1.92
*Inventory / Revenue ×365	--	25 days
*Accounts receivable/ Revenue ×365	--	80 days
*Revenue/Total assets	--	0.74
*Cost of sales / Revenue	--	0.90

FINANCIAL COMMENTS

PROFITABILITY: AVERAGE

The revenue of SC appears fairly good in its line.

SC’s net profit margin is average.

SC’s return on total assets is average.

SC’s cost of sales is average, comparing with its revenue.

LIQUIDITY: AVERAGE

The current ratio of SC is maintained in a normal level.

SC’s quick ratio is maintained in a fairly good level.

The inventory of SC is maintained in an average level.

The accounts receivable of SC is maintained in an average level.

The short-term loans of SC appear large.

SC’s revenue is in a fair level, comparing with the size of its total assets.

LEVERAGE: AVERAGE

The debt ratio of SC is average.

The risk for SC to go bankrupt is low.

Overall financial condition of the SC: Stable.

CONCLUSIONS

SC is considered large-sized in its line with stable financial conditions.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 65.23
UK Pound	1	INR 89.71
Euro	1	INR 79.50
CNY	1	INR 10.27

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	NIS

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)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.