MIRA INFORM REPORT

Report No. :	499389
Report Date :	28.03.2018

IDENTIFICATION DETAILS

Name :	NINGBO JINTIAN COPPER (GROUP) CO., LTD.
Registered Office :	No. 1 Chengxi West Road, Cicheng, Jiangbei District, Ningbo City, Zhejiang Province, 315034 Pr
Country :	China
Financials (as on) :	30.06.2017
Date of Incorporation :	20.06.1992
Credibility Code :	91330200144229592C
Legal Form :	Shares Limited Co.
Line of Business :	Subject registered business scope includes non-ferrous metal, ferrous metal calender and processing; manufacture and processing of grinding wheel, wire, motor, hardware, valve, electronic component and fastener; manufacture and processing of enamelled wire, electrolytic copper, copper rod, plate, tape, wire, tube, magnetic material, stainless steel products (limited to the branch); wholesale, retail, consignment-sales and consignment-purchase of mechanical and electrical equipment (excluding cars), packing material, hardware and general merchandise; sales of precious metals and gold products; recovery of scrap copper, scrap stainless steel and chemical raw materials (excluding dangerous chemicals); metal testing, measurement and storage service; import and export of goods and technology, excluding those limited or prohibited by the state).
No. of Employees :	4,674

RATING & COMMENTS

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

MIRA’s Rating :

A+

Credit Rating	Explanation	Rating Comments
A+	Low Risk	Business dealings permissible with low 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	A2	A2

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 & address

NINGBO JINTIAN COPPER (GROUP) CO., LTD.

NO. 1 CHENGXI WEST ROAD, CICHENG, JIANGBEI DISTRICT,

NINGBO CITY, ZHEJIANG PROVINCE, 315034 PR CHINA

TEL: 86 (0) 574-87597760 FAX: 86 (0) 574-87597573

EXECUTIVE SUMMARY

INCORPORATION DATE : jun. 20, 1992

CREDIBILITY CODE : 91330200144229592C

REGISTERED LEGAL FORM : SHARES LIMITED CO.

CHIEF EXECUTIVE : Mr. Lou guoqiang (legal representative)

STAFF STRENGTH : 4,674

REGISTERED CAPITAL : CNY 1,214,969,000

BUSINESS LINE : TRADING, processing & manufacturing

TURNOVER : CNY 19,035,972,000 (CONSOLIDATED, JAN. 1 TO JUN. 30, 2017)

EQUITIES : CNY 3,638,899,000 (CONSOLIDATED, AS OF JUN. 30, 2017)

PAYMENT : REGULAR

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : FAIRLY STABLE

OPERATIONAL TREND : STEADY

GENERAL REPUTATION : well-known

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: We dialed the given number, and a lady answered the phone. But she said the number did not belong to SC.

SC was registered as a Shares limited co. at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license).

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 CNY 5M. while that of the co. with foreign investment is CNY 5M. The total capital of a co. which propose to apply for publicly listed must be no less than CNY 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.

SC’s registered business scope includes non-ferrous metal, ferrous metal calender and processing; manufacture and processing of grinding wheel, wire, motor, hardware, valve, electronic component and fastener; manufacture and processing of enamelled wire, electrolytic copper, copper rod, plate, tape, wire, tube, magnetic material, stainless steel products (limited to the branch); wholesale, retail, consignment-sales and consignment-purchase of mechanical and electrical equipment (excluding cars), packing material, hardware and general merchandise; sales of precious metals and gold products; recovery of scrap copper, scrap stainless steel and chemical raw materials (excluding dangerous chemicals); metal testing, measurement and storage service; import and export of goods and technology, excluding those limited or prohibited by the state).

SC is mainly engaged in manufacturing, processing and sales of copper products.

Mr. Lou Guoqiang is legal representative and chairman of SC at present.

SC is known to have approx. 4,674 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office and factory in Ningbo. Detailed premise information is not available at present.

http://www.jtgroup.com.cn/ The design is professional and the content is well organized. At present it is in Chinese and English versions.

Email: pzb@jtgroup.com.cn

Note: The correct email should be james.zhaoqian@163.com. We sent an email to the address, but we did not receive any reply.

SC is listed in National Equities Exchange and Quotations with the stock code 834178.

Changes of its registered information are as follows:

Date of change	Item	Before the change	After the change
2007-11-29	Registered capital	CNY 65,670,000	Present amount
2016-06-27	Registration no.	330200000017076	Credibility Code: 91330200144229592C

HS Code: 3302950026

Import/ Export License Number: 3302144229592

For the past two years there is no record of litigation.

MAIN SHAREHOLDERS: (as of June 30, 2017)

Name Amount (CNY) % of Shareholding

Ningbo Jintian Investment Holdings Co., Ltd. (In Chinese Pinyin) 410,550,000 33.79

Lou Guoqiang 322,115,500 26.51

Lou Guojun 63,476,000 5.22

Youngor Investment Co., Ltd. 37,000,000 3.05

Lou Guohua 26,032,500 2.14

Lou Jingjing 25,000,000 2.06

Lou Cheng 25,000,000 2.06

Zhu Hongyan 19,989,000 1.65

Zhejiang Hongshi Venture Capital Co., Ltd. (In Chinese Pinyin) 16,000,000 1.32

Lou Yun 10,660,000 0.88

Other shareholders 259,146,000 21.32

Ningbo Jintian Investment Holdings Co., Ltd. (In Chinese Pinyin)

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

Incorporation Date: 2007-09-11

Credibility Code: 9133020566558504X3

Legal representative: Lou Zhangliang

Legal Representative, Chairman:

Mr. Lou Guoqiang, ID# 33020519570825xxxx, born in 1957, with junior college education, senior economist. He is currently responsible for the overall management of SC.

Working Experience(s):

At present Working in SC as legal representative and chairman.

General Manager:

Mr. Lou Cheng, born in 1988, with university education. He is currently responsible for the daily management of SC.

Working Experience(s):

At present Working in SC as general manager.

Vice Chairman and Vice General Manager:

Mr. Lou Guojun, ID# 33020519640621xxxx, born in 1964, with junior college education, senior economist. He is currently responsible for the daily management of SC.

Working Experience(s):

At present Working in SC as vice chairman and vice general manager.

Vice General Manager:

Yang Jianjun

Cao Lisu

Ding Xingchi

Etc.

Director:

Wang Yongru

Yang Jianjun

Cao Lisu

Etc.

Supervisor:

Yu Yan

Wang Rui

Ding Liwu

SC is mainly engaged in manufacturing, processing and sales of copper products.

SC’s products mainly include: Copper tube, Copper Strip and Copper wire.

SC sources its materials from domestic market and overseas market. SC sells its products in domestic market, and 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

Registration No.	19093891	19093895	6155820
Registration Date	2017-06-14	2017-06-14	2010-03-21
Trademark Design

*Main customers

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

Ningbo Qiuguan Copper Industry Co., Ltd. (In Chinese Pinyin)

Zhejiang Chint Electric Cable Co., Ltd.

Huzhou Sanxing Cable Co., Ltd.

Etc.

*Main suppliers

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

Shanghai Jinjin Industry Co., Ltd.

Shenzhen Maike Metals Co., Ltd.

Maike Metal Resources (Shanghai) Co., Ltd.

Etc.

Industry code: 3200

Industry name: Non-ferrous Metals Smelting and Calendering Industry

The gross domestic product of China in 2016 which is 74412.72 billion that is increased 6.7% than previous year. 

In 2015, the output of ten kinds of non-ferrous metal (including aluminum, copper, lead, zinc, nickel, magnesium, tin, titanium, mercury and antimony) is 50.9 million tons, increased 5.8% year on year; growth decreased 1.4% compared to previous year. From the view of profits, the profit of non-ferrous metals industrial enterprises which above designated size for the whole year is 179.9 billion Yuan, decreased 13.2% year on year, and nearly 21% losses of the these enterprise. Among them, the profits of non-ferrous metal processing enterprises is up to 108.04 billion Yuan, increased 2.5% year on year, growth decreased 7.2% compared to previous year, it occupied 60% of industry profits.

In the first quarter of 2016, non-ferrous metals enterprises industry take the initiative to cut production, output appeared small contraction, cut excessive industrial capacity have achieved initial success. According to National Development and Reform Commission, the output of ten kinds of non-ferrous metal is 12.06 million tons, decreased 0.4% year-on-year, which decreased firstly since 2013.

From the view of price, the major non-ferrous metals appeared rebound in the first quarter of 2016, but it still in a lower level.

Branch:

Ningbo Jintian Copper (Group) Co., Ltd. Metallurgical Research Institute

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

Incorporation Date: 1997-10-06

Credibility Code: 913302057048366586

Principal: Wang Yongru

SC is known to invest in the following companies:

Ningbo Jintian New Material Co., Ltd.

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

Incorporation Date: 2007-11-01

Credibility Code: 91330201668459014E

Legal representative: Shao Gang

http://en.jtemcn.com/

Ningbo Jintian Copper Tube Co., Ltd.

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

Incorporation Date: 2003-06-04

Credibility Code: 91330205750359178M

Legal representative: Liang Gang

http://www.jt-tube.com/

Etc.

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’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.

Agricultural Bank of China Ningbo Cicheng Sub-branch

A/C #: 39105001040000376

Relationship: Normal

Consolidated Balance Sheet

Unit: CNY’000

	As of Jun. 30, 2017	As of Dec. 31, 2016
Cash & bank	1,268,490	1,306,068
Financial assets at fair value through profit or loss	250	4,881
Notes receivable	493,955	286,664
Inventory	1,629,209	1,493,597
Accounts receivable	1,536,847	1,068,196
Advances to supplies	728,681	462,036
Interest receivable	44,106	36,594
Other accounts receivable	160,858	298,108
Other current assets	411,384	1,399,700
	------------------	------------------
Current assets	6,273,780	6,355,844
Available for sale financial assets	32,457	21,676
Investment real estate	15,824	18,393
Fixed assets	1,166,813	1,214,827
Projects under construction	182,883	56,725
Intangible assets	212,083	215,024
Long-term deferred expense	6,632	7,422
Deferred tax assets	49,311	48,192
	------------------	------------------
Total assets	7,939,783	7,938,103
	=============	=============
Short loans	2,581,680	2,774,350
Financial liabilities at fair value through profit or loss	9,441	11,519
Notes payable	0	0
Accounts payable	549,717	511,437
Advances from customers	116,040	288,720
Employee pay payable	84,058	75,711
Taxes payable	60,040	63,976
Interest payable	44,091	34,559
Dividend payable	138	139
Other accounts payable	13,348	14,450
Non-current liabilities due within one year	572,324	25,253
Other current liabilities	7,930	0
	------------------	------------------
Current liabilities	4,038,807	3,800,114
Non-current liabilities	262,077	766,449
	------------------	------------------
Total liabilities	4,300,884	4,566,563
Equities	3,638,899	3,371,540
	------------------	------------------
Total liabilities & equities	7,939,783	7,938,103
	=============	=============

Consolidated Income Statement

Unit: CNY’000

	Jan. 1 to Jun. 30, 2017	As of Dec. 31, 2016
Turnover	19,035,972	33,370,414
Cost of goods sold	18,339,093	32,268,151
Taxes and additional of main operation	22,010	30,526
Sales expense	103,514	180,677
Management expense	197,385	339,417
Finance expense	45,773	114,688
Assets impairment loss	24,287	38,538
Profit and loss from fair value changes	-1,800	-4,540
Net exposure hedging gains and losses	4,922	0
Investment income	57,559	-117,202
Non-operating income	22,244	75,393
Non-operating expense	9,184	9,563
Profit before tax	377,651	342,505
Less: profit tax	82,015	55,904
Profits	295,636	286,601

Important Ratios

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

	As of Jun. 30, 2017	As of Dec. 31, 2016
*Current ratio	1.55	1.67
*Quick ratio	1.15	1.28
*Liabilities to assets	0.54	0.58
*Net profit margin (%)	1.55	0.86
*Return on total assets (%)	3.72	3.61
*Inventory /Turnover ×365	/	17 days
*Accounts receivable/Turnover ×365	/	12 days
*Turnover/Total assets	2.40	4.20
* Cost of goods sold/Turnover	0.96	0.97

PROFITABILITY: AVERAGE

The turnover of SC appears good 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 fairly high, 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 normal level.

The inventory of SC appears average.

The accounts receivable of SC is average.

SC’s short-term loan appears fairly large.

SC’s turnover is in a fairly good 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 average.

Overall financial condition of the SC: Fairly Stable.

SC is considered large-sized in its line with fairly stable financial conditions. The fairly large amount of short-term loan could be a threat to SC’s financial condition.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 64.80
UK Pound	1	INR 92.25
Euro	1	INR 80.76
CNY	1	INR 10.34

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

INFORMATION DETAILS

Analysis Done by :	NIS
Report Prepared by :	TPT

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.