3decades

MIRA INFORM REPORT

Report No. :	497845
Report Date :	13.03.2018

IDENTIFICATION DETAILS

Name :	TRIANGLE TYRE CO., LTD

Registered Office :	No. 56, Qingdao Middle Road, Weihai, Shandong Province, 264200 Pr

Country :	China

Financials (as on) :	30.09.2016 [Consolidated]

Date of Incorporation :	22.02.2001

Credibility Code	91370000726700647B

Legal Form :	Shares Limited Co.

Line of Business :	Subject’s registered business scope includes researching, manufacturing and selling tyres, rubber products, rubber machinery, instruments and meters, chemical products (excluding hazardous chemicals), nylon cords, steel wire cords and tyre raw materials, supplying related technology services; importing and exporting within permitted scope; designing and installing chemical engineering (in accordance with license); leasing machinery equipment and houses; warehouse services (excluding hazardous chemicals), loading, unloading and logistics services; enterprises managing consulting services; recycling and wholesaling renewable materials (excluding hazardous waste and permitted items). (with permit if needed)

No. of Employees :	4950

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 announced it would allow a resumption of gradual liberalization. From 2013 until early 2015, 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.

Source : CIA

Company name and address

Given Name : TRIANGLE TYRE CO LTD.

Given Address : NO.56 , QINGDAO MIDDLE ROAD, WEIHAI

Company Name: TRIANGLE TYRE CO., LTD

Address : NO. 56, QINGDAO MIDDLE ROAD, WEIHAI, SHANDONG PROVINCE,

264200 PR CHINA

Telephone : 0631-5322983

Facsimile : 0631-5321246

Website : http://www.triangle.com.cn/

Email : jqgc@triangle.com.cn

REGISTRATION INFORMATION

Established Date : 2001-02-22

Credibility Code : 91370000726700647B

Legal Form : Shares Limited Co.

Status : Active

Registered Capital : RMB 800,000,000

Turnover : RMB 4,951,381,000 (Consolidated, Jan. 1 to Sep. 30, 2016)

Equities : RMB 7,584,505,000 (Consolidated, as of Sep. 30, 2016)

Chief Executive : Ding Yuhua

Business Line : Manufacturer

Manpower : 4950

Tax Registration

Certificate No. : 371002726700647

Organization Code : 72670064-7

HS code : 3710911216

Import & Export code : 3700726700647

Financial Condition : Fairly good

Business Size : Large Enterprise

Payment : Regular

Registered Address

NO. 56, QINGDAO MIDDLE ROAD, WEIHAI, SHANDONG PROVINCE, 264200 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

SC is currently operating at the above stated address, and this address houses its operating office and factory in the industrial zone of Weihai. SC’s management declined to release detailed information of the premise.

MANAGEMENT

Position	Name
Legal representative, Chairman	Ding Yuhua, born in 1948
Vice General Manager	Ding Mu born in 1981 Lin Xiaobin born in 1973
Directors	Chi Lei born in 1968 Shan Guoling born in 1958 Wang Zuxing born in 1962 Li Xiande born in 1960 Yu Yong born in 1952 Geng Jianxin born in 1954
Supervisors	Wei Nan born in 1975 Wang Lifang born in 1972 Gu Zhifu born in 1979 Li Qiuhong born in 1977 Deng Shitao born in 1972

MAJOR SHAREHOLDERS

Name % Shareholding (As of Sep. 30, 2016)

Triangle Group Co., Ltd. 56.840

CNHTC Jinan Investment Co., Ltd. 5.220

Ding Yuhua 3.460

The National Council For Social Security Fund 2^ndAccount 2.500

Shan Guoling 1.920

Hou Rucheng 1.670

Chifa Electronic Vehicle Technology Co., Ltd. 1.130

Wang Wenhao 0.870

Guilin Rubber Machinery Co., Ltd. 0.290

Weihai Rubber & Chemical Industry Imp. & Exp. Co., Ltd. 0.210

Other shareholders 25.89

Triangle Group Co., Ltd.

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

Established Date : 1997-09-26

Credibility Code : 91371000166709570L

Registered Capital : RMB 468,800,000

Chief Executive : Ding Yuhua

Business Line : Manufacturer

http://www.triangle.com.cn/

KEY EVENTS

Changes of its registered information are as follows:

Date of change	Item	Before the change	After the change
2016-10-12	Registered capital	RMB 600,000,000	Present one

The subject is a listed company in Shanghai Stock Exchange Market with the code 601163.

BUSINESS OPERATIONS

SC’s registered business scope includes researching, manufacturing and selling tyres, rubber products, rubber machinery, instruments and meters, chemical products (excluding hazardous chemicals), nylon cords, steel wire cords and tyre raw materials, supplying related technology services; importing and exporting within permitted scope; designing and installing chemical engineering (in accordance with license); leasing machinery equipment and houses; warehouse services (excluding hazardous chemicals), loading, unloading and logistics services; enterprises managing consulting services; recycling and wholesaling renewable materials (excluding hazardous waste and permitted items). (with permit if needed)

The subject is mainly engaged in researching, developing, manufacturing and selling tyres.

Products:

Commercial tires

Passenger tires

Bias OTR tires

Radial OTR tires

Jumbo OTR tires

SC sources its materials 80% from domestic market and 20% from the overseas market. SC sells 50% of its products to overseas market, and 50% in domestic market, mainly Southeast Asia.

Caterpillar

In 2004, making business cooperation with Caterpillar

In 2006, the England Caterpillar Peter Lee factory OTR provided ancillary services of engineering radial tire, and carry out 6-SIGMA project cooperation with Caterpillar Inc.; Caterpillar Inc. has been named "2005 Global Sourcing in Asia Pacific Excellence Award"; Caterpillar global CEO Mr. Wareing visit Triangle.

In 2007, providing ancillary services of engineering radial tire for the Caterpillar plant in Belgium Gosselie, North Aurora factories OTR.

In 2008, the company was named "Global Silver Award for outstanding strategic cooperation" by Caterpillar Inc.

In 2009, the company was named "Global excellent strategic cooperation Gold" by Caterpillar Inc.

Volvo

In 2007, offering ancillary services (29.5 specification ) for Volvo.

In 2008, Volvo Construction Equipment (China) Co., Ltd. CEO Alex visited Triangle, the two companies signed a strategic cooperation agreement; former CEO of Volvo Construction Equipment Tony Hill • Haier and the new CEO Ofer • Parsons visited Triangle; Triangle, Volvo and Weichai Power co- sponsored " green Dragon " fleet to participate in " Volvo Ocean Race ."

Korean Hyundai

In 2004, Triangle provided Hyundai supporting service for Korean Hyundai.

Korean Doosan

In 2007, Triangle provided supporting service for Korean Doosan.

IVECO

In 2006, Triangle provided supporting service for IVECO.

Keith Twist in the Netherlands

In 2006, Triangle provided supporting service for Keith Twist in the Netherlands.

TEREX

In 2006, Triangle provided supporting service for TEREX.

Poland Trailer Car Company

In 2006, Triangle provided supporting service for Poland trailer Car Company.

Modern American Trailer Group

In 2008, providing supporting service for Modern American trailer Group

CEMEX

In 2010, providing support service for CEMEX

The buying terms of SC include Check, L/C, 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.

RELATED COMPANIES

SC is known to invest in the following companies:

Hangzhou Triangle Tyre Sale Co., Ltd.

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

Incorporation date: 2014-12-03

Credibility code: 91330109321872096W

Registered capital: RMB 500,000

Legal rep.: Jiang Xiubo

Legal form: One-person Limited Liability Company

Triangle Huatai (Shanghai) International Trade Co., Ltd.

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

Incorporation date: 2013-03-18

Credibility code: 91310000063789993H

Registered capital: RMB 10,000,000

Legal rep.: Ding Yuhua

Legal form: One-person Limited Liability Company

Triangle (Weihai) Huada Tyre Refresh Co., Ltd.

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

Incorporation date: 2004-07-05

Credibility code: 913710817648089820

Registered capital: RMB 3,000,000

Legal rep.: Ding Yuhua

Triangle (Weihai) Huasheng Tyre Co., Ltd.

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

Incorporation date: 2003-11-20

Credibility code: 91371000756385422Q

Registered capital: RMB 107,520,000

Legal rep.: Ding Yuhua

Legal form: One-person Limited Liability Company

NEGATIVE INFORMATION

Case no.	Date	Execution of court	Amount	Status

2016-1002-2388	2016-09-30	The People’s Court of Huancui District, Weihai	RMB 96,340	Processing

2016-0106-361	2016-05-17	The People’s Court of Lvyuan District, Changchun	RMB 329,450	Processing

2012-00494	2012-04-12	The People’s Court of Huancui District, Weihai	RMB 84,062	Processing

2011-00084	2011-11-16	The People’s Court of Huancui District, Weihai	RMB 0	Processing

2008-00391	2011-10-08	The People’s Court of Huancui District, Weihai	RMB 42,393	Processing

2011-00679	2011-06-27	The People’s Court of Huancui District, Weihai	RMB 120,008.2	Processing

2011-00061	2011-05-13	The Intermediate People's Court of Weihai	RMB 29,911,620	Processing

2011-00487	2011-05-05	The People’s Court of Huancui District, Weihai	RMB 10,123	Processing

2010-01438	2010-05-25	The People’s Court of Huancui District, Weihai	RMB 65,203	Processing

2010-00119	2010-01-18	The People’s Court of Huancui District, Weihai	RMB 18,286	Processing

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.

MORTGAGE

There is no record of mortgage information at present.

TRADEMARK

Registration No.	9173709	9173710	8497753
Registration Date	2011-03-04	2011-03-04	2010-07-21
Trademark Design

PATENT

Patent name：Tyre (1610)

Published Application Number：CN303977754S

Application number：CN201630409317.0

Date of publication：2016-12-21

Patent name：Tyre (1612)

Published Application Number：CN303977753S

Application number：CN201630409316.6
Date of publication：2016-12-21

BANKING

No record

ABBREVIATED FINANCIAL STATEMENT

Consolidated Balance Sheet

Unit: RMB’000

	As of Dec. 31, 2015	As of Sep. 30, 2016
Cash & bank	2,039,319	5,117,975
Inventory	1,105,409	857,512
Accounts receivable	456,220	635,943
Advances to suppliers	3,616	30,487
Notes receivable	250,929	191,011
Interest receivable	0	7,535
Other receivables	13,283	21,339
Other current assets	36,998	757,801
	---------------	---------------
Current assets	3,905,774	7,619,603
Available for sale financial assets	1,959	1,959
Investment real estate	3,374	3,216
Fixed assets net value	2,299,795	3,876,794
Projects under construction	1,904,015	686,366
Long-term deferred expense	1,398	1,279
Disposal of fixed assets	270,072	271,855
Intangible assets	289,315	282,465
Deferred income tax assets	28,488	30,875
Other non-current assets	159,415	159,483
	---------------	---------------
Total assets	8,863,605	12,933,895
	============	============
Short term loan	0	0
Accounts payable	1,640,593	2,355,433
Advances from clients	178,501	111,392
Note payable	881,038	644,370
Accrued payroll	12,230	15,605
Taxes payable	24,499	28,985
Interest payable	7,076	9,935
Other accounts payable	158,355	155,829
Due within one year of non-current liabilities	925,310	667,470
Other current liabilities	3	4
	-------------------	-------------------
Current liabilities	3,827,605	3,989,023
Deferred income	2,302,832	1,360,367
	-------------------	-------------------
Total liabilities	6,130,437	5,349,390
Equities	2,733,168	7,584,505
	-------------------	-------------------
Total liabilities & equities	8,863,605	12,933,895
	===========	===========

Consolidated Income Statement

Unit: RMB’000

	As of Dec. 31, 2015	Jan. 1 to Sep. 30, 2016
Turnover	7,186,944	4,951,381
Cost of goods sold	5,536,585	3,620,218
Taxes and additional of main operation	24,534	36,195
Sales expense	336,361	247,718
Management expense	369,356	318,474
Finance expense	56,944	68,678
Asset impairment loss	-13,041	14,481
Investment income	0	3,497
Non-operating income	46,779	22,666
Non-operating expense	3,651	1,469
Profit before tax	919,331	670,377
Less: profit tax	113,918	103,523
Profits	805,413	566,854

Important Ratios

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

	As of Dec. 31, 2015	As of Sep. 30, 2016
*Current ratio	1.02	1.91
*Quick ratio	0.73	1.70
*Liabilities to assets	0.69	0.41
*Net profit margin (%)	11.21	11.45
*Return on total assets (%)	9.09	4.38
*Inventory /Turnover ×365	57 days	/
*Accounts receivable/Turnover ×365	24 days	/
*Turnover/Total assets	0.81	0.38
* Cost of goods sold/Turnover	0.77	0.73

PROFITABILITY: FAIRLY GOOD

The turnover of SC appears good in its line.

SC’s net profit margin is fairly good.

SC’s return on total assets is fairly good.

SC’s cost of goods sold is average, comparing with its turnover.

LIQUIDITY: AVERAGE

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

SC’s quick ratio is maintained in a fair level in 2015 and in a normal level in the first three quarters of 2016.

The inventory of SC appears average.

The accounts receivable of SC appears average.

SC has no short-term loan.

SC’s turnover 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: Fairly good.

COMMENT

SC was registered as a shares limited company at Shandong Provincial Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license).

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 65.02
UK Pound	1	INR 90.12
Euro	1	INR 80.09
CNY	1	INR 10.26

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

INFORMATION DETAILS

Report Prepared by :

KET

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