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MIRA INFORM REPORT
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Report No. : |
495664 |
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Report Date : |
08.03.2018 |
IDENTIFICATION DETAILS
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Name : |
NANJING GUANGDA CHEMICAL EQUIPMENT CO., LTD. |
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Registered Office : |
Chunhua
Industrial Park, Jiangning District, Nanjing, Jiangsu Province, 211112
Pr China |
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Country : |
China |
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Financials (as on) : |
31.07.2016 |
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Date of Incorporation : |
16.03.2006 |
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Credibility Code: |
91320115783822608W |
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Legal Form : |
Limited Liabilities Co |
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Line of Business : |
Subject registered business scope
includes manufacturing and selling rubber machinery; selling hardware,
mechanical and electrical products; importing and exporting goods and
technologies (excluding the items limited or prohibited by the state). (with
permit if needed) |
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No. of Employees : |
56 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
C |
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Credit Rating |
Explanation |
Rating Comments |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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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
NANJING GUANGDA CHEMICAL EQUIPMENT Co., Ltd.
CHUNHUA
INDUSTRIAL park, JIANGNING DISTRICT,
NANJING, JIANGSU PROVINCE, 211112 PR CHINA
TEL: 86
(0) 25-52645564/ 52295217 FAX: 86 (0) 25-52645564
EXECUTIVE
SUMMARY
INCORPORATION DATE : MAR. 16, 2006
CREDIBILITY CODE : 91320115783822608W
REGISTERED LEGAL FORM : Limited
liabilities co.
STAFF STRENGTH : 56
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE : MANUFACTURING
AND trading
TURNOVER : CNY 2,230,000 (JAN. 1 TO JULY 31, 2016)
EQUITIES : CNY -1,930,000 (AS OF JULY 31, 2016)
PAYMENT : SLOW
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIR (as of year 2016)
OPERATIONAL TREND : FAIR (AS OF YEAR 2016)
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 Renminbi
Note: The given company name
is misspelt, the heading one is the correct one. The given address is the
former address of SC.
SC was registered as a limited
liabilities co. at local Administration for industry & commerce (AIC - the
official body of issuing and renewing business license) on Mar. 16, 2006.
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 rubber machinery;
selling hardware, mechanical and electrical products; importing and exporting
goods and technologies (excluding the items limited or prohibited by the
state). (with permit if needed)
SC is
mainly engaged in manufacturing and selling rubber machinery.
Mr.
Wang Changlong is legal representative, executive director
and general manager of SC at present.
SC is
known to have approx. 56 employees at present.
SC is currently operating at the above stated address, and this
address houses its operating office and factory in the industrial park of Nanjing.
Our checks reveal that SC rents the total premise, but the gross area of the
premise is unspecific.
http://www.nj-guangda.com The design is professional and the content
is well organized. At present it is in Chinese version.
E-mail: wchl@nj-guangda.com
According to SC’s website, SC’s predecessor
was Nanjing Guangda Rubber-Plastics
Machine Factory
Changes of its registered information are as follows:
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Date of change |
Item |
Before the change |
After the change |
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Unknown |
Registration no./Credibility
code |
320114000023780 |
91320115783822608W |
HS Code: 3201961446
Import/ Export License No: 3201783822608
See below records for SC as executive party (defendant).
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Executed
Party |
SC |
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Court |
Nanjing City Jiangning District People's Court |
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Date
of Case |
2012-11-28 |
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Case
Number |
(2012) 03643 |
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Claim
Amount |
RMB 35,000 |
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Case
Status |
N/A |
Remark: Due to the lack of information, we are
unable to provide the cause of action, judgment or other information.
MAIN SHAREHOLDERS:
Name % of Shareholding
Wang Changlong 70
Wang Yanping 30
l Legal
representative, Executive director and General Manager:
Mr. Wang Changlong ID#32011319650709****, born in 1965, with high
school education. He 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.
l Supervisor:
Wang
Yanping
ID#32011319720314****
SC is
mainly engaged in manufacturing and selling rubber machinery.
SC’s products mainly include: twin-screw extruder,
single-screw extruder, line and application, spare parts.
SC sources its materials 95%
from domestic market, and 5% from overseas market. SC sells 95% of its products
in domestic market, and 5% to overseas market.
The buying terms of SC include Check, T/T, L/C and Credit of
30-60 days. 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. |
10959204 |
10959202 |
10959201 |
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Registration Date |
2013-09-07 |
2013-09-07 |
2013-09-07 |
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Trademark Design |
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Note: SC’s management declined to release its major clients and
suppliers.
SC is known to invest in the following company:
Shanghai Hui Bi Shou Plastic Co., Ltd.
==============================
Incorporation date: 2006-6-1
Credibility code: 91310120787895089X
Legal rep.: Chen Yangjie
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.
Agricultural Bank of China Nanjing Chunhua Sub-branch
AC# 10130701040008951
Relationship:
Normal.
Balance
Sheet
Unit:
CNY’000
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as of July 31, 2016 |
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Cash
& bank |
11,390 |
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Inventory |
3,690 |
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Accounts
receivable |
36,950 |
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Advances
to suppliers |
20 |
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Other
receivables |
4,220 |
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Other
current assets |
0 |
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------------------ |
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Current
assets |
56,270 |
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Long-term
investments |
0 |
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Fixed
assets net value |
480 |
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Projects
under construction |
0 |
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Intangible
assets |
0 |
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Other
assets |
0 |
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------------------ |
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Total
assets |
56,750 |
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============= |
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Short
loans |
4,410 |
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Accounts
payable |
33,100 |
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Advances
from customers |
260 |
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Accrued
Payroll |
0 |
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Taxes
payable |
100 |
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Other
payable |
80 |
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Other
accounts payable |
3,550 |
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Other
current liabilities |
0 |
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----------------- |
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Current
liabilities |
41,500 |
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Long
term liabilities |
17,180 |
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------------------ |
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Total
liabilities |
58,680 |
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Shareholders
equities |
-1,930 |
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------------------ |
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Total
liabilities & equities |
56,750 |
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============= |
Income
Statement
Unit:
CNY’000
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|
Jan. 1 to July 31, 2016 |
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Turnover |
2,230 |
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Cost
of goods sold |
2,070 |
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Taxes
and additional of main operation |
0 |
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Sales expense |
120 |
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Management expense |
170 |
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Finance expense |
20 |
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Non-operating
income |
0 |
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Non-operating expense |
0 |
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Profit
before tax |
-150 |
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Less:
profit tax |
0 |
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Net
profit |
-150 |
Important
Ratios
=============
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as
of July 31, 2016 |
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*Current
ratio |
1.36 |
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*Quick
ratio |
1.27 |
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*Liabilities
to assets |
1.03 |
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*Net
profit margin (%) |
-6.73 |
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*Return
on total assets (%) |
-0.26 |
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*Inventory
/Turnover ×365 |
/ |
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*Accounts
receivable/Turnover ×365 |
/ |
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*Turnover/Total
assets |
0.04 |
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*
Cost of goods sold/Turnover |
0.93 |
PROFITABILITY: FAIR
The turnover of SC appears average in its
line.
l
SC’s net profit margin is fair.
SC’s return on total assets is fair.
SC’s cost of goods sold is average,
comparing with its turnover.
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 average.
l The
accounts receivable of SC appears large.
l The
short-term loan of SC appears large.
l SC’s
turnover is in a poor level, comparing with the size of its total assets.
LEVERAGE: POOR
l The
debt ratio of SC is too high.
l The
risk for SC to go bankrupt is above average.
Overall
financial condition of the SC: Fair. (AS OF YEAR 2016)
SC is considered small-sized in its line with a development
of 12 years.
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 64.96 |
|
|
1 |
INR 90.34 |
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Euro |
1 |
INR 80.75 |
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CNY |
1 |
INR 10.28 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
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
·
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.