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MIRA
INFORM REPORT
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Report No. : |
494889 |
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Report Date : |
05.03.2018 |
IDENTIFICATION DETAILS
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Name : |
DONGGUANG HAIRUIBAO CARTON MACHINERY CO., LTD. |
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Registered Office : |
Development
Zone, East Of Dongguang County, Cangzhou City, Hebei Province, 061600, Pr
China |
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Country : |
China |
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Financials (as on) : |
31.12.2015 |
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Date of Incorporation : |
07.09.2009 |
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Credibility code: |
911309236946645483 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject
registered business scope includes manufacturing and selling carton
machinery, plastic packaging machinery and accessories, importing and
exporting self-produced products. |
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No. of Employees : |
27 |
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 : |
Slow but Correct |
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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 early2015, 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
DONGGUANG HAIRUIBAO CARTON
MACHINERY CO., LTD.
DEVELOPMENT ZONE, EAST OF DONGGUANG COUNTY,
CANGZHOU CITY, HEBEI PROVINCE, 061600, PR CHINA
TEL: 86 (0) 317-7691588/7691566/5538055 FAX:
86 (0) 317-7691566
EXECUTIVE SUMMARY
INCORPORATION
DATE : SEP.
7, 2009
Credibility Code : 911309236946645483
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE :
MS. NING WENRUI (LEGAL
REPRESENTATIVE)
STAFF STRENGTH :
27
REGISTERED
CAPITAL : CNY 850,000
BUSINESS
LINE :
MANUFACTURING AND TRADING
TURNOVER :
CNY 9,030,000 (AS OF DEC. 31, 2015)
EQUITIES :
CNY 1,280,000 (AS OF DEC. 31, 2015)
PAYMENT :
SLOW
BUT CORRECT
MARKET CONDITION :
AVERAGE
FINANCIAL
CONDITION :
FAIRLY STABLE (AS OF YEAR 2015)
OPERATIONAL
TREND : STEADY (AS OF YEAR 2015)
GENERAL
REPUTATION :
AVERAGE
Adopted
abbreviations:
ANS - amount not stated NS
- not stated SC - subject company (the
company inquired by you)
NA - not available CNY
- China Yuan Ren Min Bi
Note: The correct company name should be the heading one
instead of the given one.
SC was registered as a limited liabilities company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Sep. 7, 2009.
Company Status: Limited liabilities co. This
form of business in PR China is defined as a legal person. No more than
fifty shareholders contribute its registered capital jointly. Shareholders
bear limited liability to the extent of shareholding, and the co. is liable
for its debts only to extent of its total assets. The characteristics of
this form of co. are as follows: Upon the establishment of the co., an investment
certificate is issued to the each of shareholders. The
board of directors is comprised of three to thirteen members. The
minimum registered capital for a co. is CNY 30,000. Shareholders
may take their capital contributions in cash or by means of tangible assets
or intangible assets such as industrial property and non-patented
technology. Cash
contributed by all shareholders must account for at least 30% of the
registered capital. Existing
shareholders have pre-exemption right to purchase shares of the co. offered
for sale by the other shareholders and to subscribe for the newly increased
registered capital of the co.
SC’s registered business scope includes manufacturing and
selling carton machinery, plastic packaging machinery and accessories,
importing and exporting
self-produced products.
SC is mainly engaged in manufacturing
and selling carton machinery, plastic packaging machinery and accessories.
Ms. Ning Wenrui is the legal representative,
executive director and general manager of SC at present.
SC is known to have approx. 27 employees at
present.
SC is currently operating at the above stated address, and
this address houses its operating office and factory in the development zone of
Dongguang County. The detailed information of the area is unspecified.
http://www.hairuibao.com/
The design is professional and the content is well organized. At present it is
in Chinese version.
Email: hairuibao@hairuibao.com.cn
No significant
changes were found during our checks with the local AIC.
Import/ Export License: 1300694664548
HS Code: 1309961981
For the past two years, there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Ning Wenrui 52.94
Ning Baohai 47.06
Legal Representative, Executive Director and General Manager:
Ms.
Ning Wenrui is currently responsible for the overall management of SC.
Working Experience(s):
At
present Working in SC as legal representative, executive director
and general manager
Supervisor
Ning Baohai
SC is mainly engaged in manufacturing and selling carton
machinery, plastic packaging machinery and accessories.
SC’s products mainly include: HRB-H high speed adsorption
type veneer machine, HRB-HI high speed straight rolling
machine, HRB-HII automatic lifting type veneer machine, YL box covering
machine, HR tying machine, etc.
SC sources its materials 100% from domestic market. SC sells
100% of its products in domestic market.
The buying terms of SC include Check, T/T and Credit of
30-60 days. The payment terms of SC include T/T and Credit of 30-60 days.
Note: SC’s management declined to release its major
customers and suppliers.
Trademark
& Patents
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Registration No. |
15316701 |
16101831 |
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Registration Date |
2015-10-21 |
2016-03-14 |
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Trademark Design |
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Industry code: 3468
Industry name: Packaging special equipment manufacturing
The gross domestic product of China in 2016 which is
74,412.72 billion that is increased 6.7% than previous year.
In recent years, packaging machinery toward high-end
oriented transition has showed its strong momentum of development, equipment
automation, intelligent degree increase greatly. Domestic packaging machinery
manufacturing enterprises will face the test of industry transformation and
upgrading.
In former years, total industrial output value and sales
value year-on-year growth are 11.64% and 11.17% respectively, the total output
of special packaging equipment is 8,2673, year-on-year growth is 21.97%, total
increased 20.64% year-on-year. The output of special packaging equipment is
10,184 in December of 2015 and which is increased 3.3% year on year. As of
December 31, 2015 the total output is 100,507, decreased 2% year on year.
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 records 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.
Bank of China Dongguang County Sub-branch
AC# 100148497287
Relationship: Normal
Balance Sheet
Unit: CNY’000
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As of Dec. 31, 2015 |
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Cash &
bank |
160 |
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Inventory |
1,430 |
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Accounts
receivable |
3,540 |
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Advances to
suppliers |
200 |
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Other
receivables |
260 |
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Current
assets |
5,590 |
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Fixed assets
net value |
290 |
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Total assets |
5,880 |
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Short loan |
0 |
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Accounts
payable |
750 |
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Advances from
customers |
120 |
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Taxes payable |
-270 |
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Other accounts payable |
4,000 |
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Current
liabilities |
4,600 |
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Long term
liabilities |
0 |
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Total
liabilities |
4,600 |
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Equities |
1,280 |
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Total
liabilities & equities |
5,880 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2015 |
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Turnover |
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Cost of goods sold |
8,140 |
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Taxes and additional of main operation |
2 |
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Sales expense |
450 |
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Management expense |
390 |
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Finance expense |
1 |
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Non-operating
income |
30 |
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Non-operating
expense |
2 |
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Profit before
tax |
75 |
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Less: profit
tax |
48 |
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Profits |
27 |
Note: We did not find SC’s latest financial reports.
Important Ratios
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As
of Dec. 31, 2015 |
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*Current ratio |
1.22 |
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*Quick ratio |
0.90 |
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*Liabilities to assets |
0.78 |
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*Net profit margin (%) |
0.30 |
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*Return on total assets (%) |
0.46 |
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*Inventory /Turnover ×365 |
58 days |
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*Accounts receivable/Turnover ×365 |
144 days |
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*Turnover/Total assets |
1.54 |
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* Cost of goods sold/Turnover |
0.90 |
PROFITABILITY: AVERAGE
The turnover of
SC appears average in its
line.
SC’s net profit
margin is average.
SC’s return on
total assets is average.
SC’s cost of
goods sold is average.
LIQUIDITY: AVERAGE
The current
ratio of SC is maintained in a normal level.
SC’s quick
ratio is maintained in a normal level.
The inventory
of SC appears average.
The accounts
receivable of SC appears large.
SC has
no short loans in 2015.
SC’s turnover
is in an average level,
comparing with the size of its total assets.
LEVERAGE: FAIR
The debt ratio
of SC is fairly high.
The risk for SC
to go bankrupt is average.
Overall financial condition of the SC: Fairly stable. (AS OF YEAR 2015
SC is considered small-sized in its line with a development
history of 9 years.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 64.10 |
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1 |
INR 94.44 |
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Euro |
1 |
INR 79.59 |
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CNY |
1 |
INR 10.27 |
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 : |
KET |
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
·
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.