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MIRA INFORM REPORT
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Report No. : |
506843 |
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Report Date : |
03.05.2018 |
IDENTIFICATION DETAILS
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Name : |
TENGXUAN TECHNOLOGY CO., LTD |
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Registered Office : |
No. 6 Xindu Road, Meicun Industrial Zone, New District, Wuxi City, Jiangsu Province, Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
28.04.2004 |
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Credibility Code : |
91320200761032170Y |
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Legal Form : |
Shares Limited Co. |
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Line of Business : |
The subject’s registered business scope includes researching,
developing, manufacturing, processing and selling rotary joint of cold and
hot exchange equipment; road general cargo transportation; R & D,
manufacture, processing, sales of mechanical seals, metal hoses, general
mechanical equipment, aircraft parts, hydraulic power machinery; technical
service of paper machine; selling graphite products and chemical products;
importing and exporting goods and technologies, excluding goods and
technologies prohibited by the state. (with permit if needed) |
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No. of Employees : |
255 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 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.
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Source
: CIA |
Company name & address
Company Name : TENGXUAN TECHNOLOGY CO., LTD
Address : NO. 6 XINDU ROAD,
MEICUN INDUSTRIAL ZONE, NEW DISTRICT, WUXI
CITY, JIANGSU
PROVINCE, PR CHINA
Telephone : 0086-510-88159440
Facsimile : 0086-510-88159405
Website : http://www.tengxuan.net/
Email : chenghj@tengxuan.net
REGISTRATION INFORMATION
Established Date : 2004-04-28
Credibility Code : 91320200761032170Y
Legal Form : Shares
Limited Co.
Registration Authority: Administration for Industry & Commerce (AIC) – Wuxi
Status : Active
Registered Capital : RMB 32,576,800
Paid Up Capital : RMB 32,576,800
Turnover : RMB 57,392,000 (Consolidated as of Dec. 31, 2017)
Equities : RMB 53,373,000
(Consolidated as of Dec. 31, 2017)
Chief Executive : Li Jisuo
Business Line : Manufacturer
Manpower : 255
Tax Registration
Certificate No. : 91320200761032170Y
Organization Code : 76103217-0
HS code : 3202362063
Import &
Export code: 3200761032170
Financial Condition : Fairly
Stable
Business Size : Medium Enterprise
Payment : No Complaints
Registered Address
NO. 6 XINDU ROAD, MEICUN INDUSTRIAL ZONE, NEW DISTRICT, WUXI CITY,
JIANGSU PROVINCE, 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
The subject operates from premises located at
the heading address, and this address houses its operating office and factory
in Wuxi. Our checks reveal that the subject rents the total premise, but the
square meters are unknown.
MANAGEMENT
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Position |
Name |
Nationality |
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Legal representative, Chairman |
Li Jisuo |
Chinese |
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Directors |
Chen Yichang Bao Yulong Fang Jian Yan Hong Wang Dong Chen Quping |
Chinese |
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Supervisors |
Dong Qiuping Pan Ning Jin Xiaoban |
Chinese |
MAJOR SHAREHOLDERS
Name (As of 2018-04-18) % Shareholding
Li Jisuo 44.31
Wuxi Guolian Houze Venture
Investment Enterprise (Limited Partnership) 18.42
Suzhou Jinmao Emerging
Industries Venture Investment Enterprise (Limited Partnership) 12.28
Chen Quping 5.8
Zhao Yingying 4.87
Other Shareholders 14.32
KEY EVENTS
No Significant Changes.
BUSINESS OPERATIONS
The subject’s registered business scope includes researching, developing,
manufacturing, processing and selling rotary joint of cold and hot exchange
equipment; road general cargo transportation; R & D, manufacture,
processing, sales of mechanical seals, metal hoses, general mechanical
equipment, aircraft parts, hydraulic power machinery; technical service of
paper machine; selling graphite products and chemical products; importing and
exporting goods and technologies, excluding goods and technologies prohibited
by the state. (with permit if needed)
The subject is mainly engaged in
manufacturing and selling rotary joint of cold and hot exchange equipment.
Products:
Water rotary joints
Hot oil rotary unions
Steam rotary joints
Compressed air and coolant rotary joints
Molten salt rotary joints
Hydraulic oil rotary joints
Etc.
The
subject sources its materials 70% from domestic market, and 30% from overseas
market. the subject sells 30% of its products in domestic market, and 70% to
overseas market.
The
buying terms of the subject include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of the subject include Check, T/T, L/C and Credit of 30-60
days.
SUPPLIER
& CUSTOMER
*Major Supplier:
Wuxi Qianshanghui
Complete Set of Machine Tools Co., Ltd.
Foshan Taichen
Trade Co., Ltd.
*Major customer:
Sany Heavy Machinery Limited
Zhejiang Changfeng Special Paper Co.,Ltd.
RELATED COMPANIES
Subsidiary
Langxi Tengxuan Technology Co., Ltd.
========================
Credibility Code:
91341821MA2NHPH78X
Legal
representative: Li Jisuo
Registered Capital:
RMB 10,000,000
Established Date:
2017-04-14
NEGATIVE INFORMATION
Lawsuit Record:
|
Date |
Case No. |
Petitioner |
Defendant |
Executive court |
Status |
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|
2016-0783 |
The subject company. |
Inner Mongolia Greater Khingan Range Pulp and Paper Co., Ltd. |
People's Court of
Zhalantun, the Inner Mongolia Autonomous Region |
Concluded |
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2013-01-08 |
2011-0233 |
The subject company. |
Changzhou Bao Xuan Machinery Technology Co., Ltd. |
Wuxi intermediate
people's court in Jiangsu |
Concluded |
Etc.
Trade payment experience: None in our database.
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.
Customs
administrative penalty: No record.
Equity freeze
information: No record.
Administrative Penalty: No record.
MORTGAGE
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Registered No. |
Registered Date |
Registration Authority |
Amount (RMB) |
|
B9-0-2016-0085 |
2016-11-18 |
Administration for Industry & Commerce
(AIC) – New Dist. Wuxi |
4,677,500 |
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B9-0-2015-0105 |
2015-12-16 |
Administration for Industry & Commerce
(AIC) – New Dist. Wuxi |
2,710,000 |
Etc.
TRADEMARK
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Registration Date |
Trademark Design |
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10140455 |
2011-11-02 |
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10140470 |
2011-11-02 |
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Etc.
PATENT
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Patent name |
Published Application Number |
Application number |
Date of publication |
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A rotary joint |
CN206112333U |
CN201620768695.2 |
2017-04-19 |
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A pull off valve |
CN206112177U |
CN201620767791.5 |
2017-04-19 |
Etc.
BANKING
Bank of Jiangsu Wuxi Meicun Sub-Branch
Account No.: 807100188800018007
ABBREVIATED
FINANCIAL STATEMENT
Consolidated
Balance Sheet
Unit: RMB’000
|
|
as of Dec. 31, 2016 |
as of Dec. 31, 2017 |
|
Cash & bank |
3,366 |
4,205 |
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Notes receivable |
4,746 |
4,090 |
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Inventory |
25,514 |
39,039 |
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Accounts
receivable |
22,466 |
23,213 |
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Advances to
suppliers |
1,392 |
473 |
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Other
receivables |
2,820 |
2,469 |
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Other current
assets |
45 |
57 |
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|
------------------ |
------------------ |
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Current assets |
60,349 |
73,546 |
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Fixed assets net
value |
23,581 |
27,788 |
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Projects under construction |
2,925 |
2,847 |
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Intangible
assets |
3,537 |
3,426 |
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Long-term prepaid expenses |
819 |
620 |
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Deferred tax assets |
1,733 |
1,554 |
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Other assets |
272 |
966 |
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------------------ |
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Total assets |
93,216 |
110,747 |
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============= |
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Short loans |
19,000 |
29,000 |
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Notes payable |
588 |
1,536 |
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Accounts payable |
11,930 |
19,368 |
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Advances from
customers |
2,735 |
2,778 |
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Taxes payable |
768 |
1,037 |
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Interest payable |
0 |
60 |
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Other accounts
payable |
172 |
148 |
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Non-current liabilities due within one year |
3,431 |
2,542 |
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Other current
liabilities |
2 |
3 |
|
|
----------------- |
----------------- |
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Current
liabilities |
38,626 |
56,472 |
|
Non- current
liabilities |
2,981 |
902 |
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|
------------------ |
------------------ |
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Total
liabilities |
41,607 |
57,374 |
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Shareholders
equities |
51,609 |
53,373 |
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|
------------------ |
------------------ |
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Total
liabilities & equities |
93,216 |
110,747 |
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============= |
Consolidated
Income Statement
Unit: RMB’000
|
|
as of Dec. 31, 2016 |
as of Dec. 31, 2017 |
|
Turnover |
47,480 |
57,392 |
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Cost of goods
sold |
29,931 |
36,334 |
|
Sales expense |
5,491 |
4,834 |
|
Management expense |
8,822 |
10,708 |
|
Finance expense |
1,523 |
1,736 |
|
Impairment of assets |
1,347 |
1,503 |
|
Profit before
tax |
105 |
2,135 |
|
Less: profit tax |
-15 |
371 |
|
Net profit |
120 |
1,764 |
Important Ratios
=============
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as
of Dec. 31, 2016 |
as of Dec. 31, 2017 |
|
*Current ratio |
1.56 |
1.30 |
|
*Quick ratio |
0.90 |
0.61 |
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*Liabilities to assets |
0.45 |
0.52 |
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*Net profit margin (%) |
0.25 |
3.07 |
|
*Return on total assets (%) |
0.13 |
1.59 |
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*Inventory /Turnover ×365 |
197 days |
249 days |
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*Accounts receivable/Turnover ×365 |
173 days |
148 days |
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*Turnover/Total assets |
0.51 |
0.52 |
|
* Cost of goods sold/Turnover |
0.63 |
0.63 |
PROFITABILITY:
AVERAGE
l The turnover of
the subject is average.
l The subject’s net profit
margin is average.
l The subject’s
return on total assets is average.
l
The subject’s cost of goods sold is average,
comparing with its turnover.
LIQUIDITY: FAIR
l
The current ratio of the subject is maintained in a
normal level.
l
The subject’s quick ratio is maintained in a normal
level in 2016 but fair in 2017.
l
The inventory of the subject is fairly large.
l
The accounts receivable of the subject is fairly
large.
l
The short-term loan of the subject is average.
l
The subject’s turnover is in a fair level,
comparing with the size of its total assets.
LEVERAGE: FAIRLY GOOD
l
The debt ratio of the subject is low.
l
The risk for the subject to go bankrupt is average.
TREND ANALYSIS
===========
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2015 |
2016 |
2017 |
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Sales Trend |
-- |
-- |
Ç |
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Profit margin |
-- |
-- |
Ç |
|
Debt to assets ratio |
-- |
-- |
Ç |
|
Overall Financial Condition |
□Good □Fairly Good □Stable ■Fairly Stable □Fair □Poor |
||
COMMENT
The subject was registered as a Shares limited co. at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license). The subject is
considered medium-sized in its line with fairly stable financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 66.66 |
|
|
1 |
INR 90.66 |
|
Euro |
1 |
INR 80.00 |
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CNY |
1 |
INR 10.47 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
NIS |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
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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 |
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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)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.