MIRA INFORM REPORT
|
Report Date : |
28.03.2011 |
IDENTIFICATION DETAILS
|
Name : |
NINGBO CANNAR IMP&EXP CO LTD |
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Registered Office : |
Room 1103, Building 4, Shidaihuadu, Hushan Sreet, Cixi City, Zhejiang Province Zip Code: 315300 |
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Country : |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
19.09.2003 |
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Com. Reg. No.: |
330282000046492 |
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Legal Form : |
Limited
Liabilities Company |
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Line of Business : |
Import and export of bearings and small Home Appliances |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
200,000 Chinese Yuan |
|
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 – December 31, 2010
|
Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
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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 |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name & address
NINGBO CANNAR IMP&EXP CO
LTD
Room 1103, Building 4, Shi Dai Hua Du, NO. 178, Ciyong Road, Cixi City,
Ningbo, Zhejiang Province
315300
Tel : 86
574 23712298
Fax 86 574 23712222
Website ----
Currency in this report is Chinese Yuan unless otherwise stated.
Exchange Rate: 1 USD=6.56 Chinese Yuan
"--"in this report indicates "unavailable" due to
insufficient information or "no comments"
EXECUTIVE
SUMMARY
DATE OF establishment : Sep 19th, 2003
Aic Registration No. : 330282000046492
REGISTERED LEGAL FORM : Limited liabilities co.（sole individual proprietorship）
REGISTERED CAPITAL : 1,500,000.00
main BUSINESS : Import and
export of bearings and small HOME appliances
TURNOVER : 33,365,000.00 (As
of 2009)
net profit : 250,000.00 (As of Dec.31th, 2009)
total assets : 29,074,000.00 (As of Dec.31th, 2009)
net worth :
2,280,000.00 (As of Dec.31th, 2009)
employees : 8
import and export permits : yes
credit rating : CR4
base CREDIT limit
: 200,000 Chinese Yuan
EXCHANGE RATE : 1 Usd=6.56 CNY (mar 25th, 2011)
Registered Address: Room 1103, Building 4, Shidaihuadu, Hushan Sreet, Cixi
City, Zhejiang
Province Zip
Code: 315300
Business Address: Room 1103, Building 4, Shidaihuadu, Hushan Street, Cixi City, Zhejiang
Province Zip
Code: 315300
Telephone: 86 574 23712298
Fax:
86 574 23712222
SIC Code (China): 6379, wholesale of
other machinery and electronic products
REGISTRATION
|
Date of Establishment |
Sep 19th, 2003 |
|
Registry |
Ningbo Administration Bureau of Industry and Commerce-Cixi Branch |
|
Legal Representative |
Yang Junliang |
|
AIC Registration Number |
330282000046492 |
|
Registered Legal Form |
Limited
liabilities co.（sole individual
proprietorship） |
|
Registered Capital |
1,500,000.00 |
|
Operating Period |
From Sep 19th, 2003 to sep
18th, 2023 |
|
Business Scope |
Wholesale and retail of arts and
crafts, textiles, garments, hardware, machinery, industrial chemicals,
electronic products, toys, home appliances, electromechanical device,
construction materials, metal materials, etc.
Import and export goods and technologies, excluding what are forbidden
operating and trading by the government. |
|
Changes in Registration |
1.
Aug 23rd, 2005 Subject’s moved its address from Shengxi Industrial Zone, Shengshan Town To Gutangchunxiao Sanbei Avenue, Hushan Street, Cixi City. 2.
Aug 23rd, 2005 SC’s business scope was changed to its present scope from: Wholesale and retail of arts and crafts(excluding jewellery),
knitgoods, garments, hardware fittings, standard machinery, industrial
chemicals(excluding dangerous goods), electric products, toys, home
appliances, electromechanical device(excluding automobiles), construction
materials, metal materials(excluding dangerous goods), etc.; Import and
export business according to YONG WAI JING MAO FA ZHAN HE ZI (2003) NO. 66
documents. 3.
Apr 24th, 2008 Subject changed its legal form from LIMITED LIABILITY COMPANY(INVESTED OR HELD BY INDIVIDUAL PERSON) To ONE-PERSON LIMITED LIABILITY COMPANY 4.
Apr 24th, 2008 SC’s shareholders were changed from He Guoqing, Lu Yibo and Yang
Junliang to Yang Junliang. 5.
Apr 30th, 2008 Subject’s registration number was changed from 3302822006466
to 330282000046492. 6.
Feb.4th, 2010 SC changed its address from Gutangchunxiao Sanbei Avenue, Hushan
Street, Cixi City to its present address. |
Limited liabilities co.（sole
individual proprietorship） (one type of one-member Company limited)
This kind of company
is solely invested by one natural person with the minimum capital of RMB100,
000.00. The registered capital should be wholly paid up when registering. It should
be noted that the company is invested by one natural person in the certificate.
The shareholder of
this company mustn’t invest other one-member company limited.
When debt happens, if the shareholder cannot prove that his/her personal property is independent from the company’s property, he/she should undertake joint libility of the company’s debts
FIELD
INVESTIGATION
1. After subject extended its business scope in
Aug 23rd, 2005, it didn’t take further measures to promote its
business. So far, SC’s marketing business of bearings and small home appliances
is average.
2. SC’s main business turnover is from bearings
(70%), small appliances (25%) and toys (5%). SC’s sales business is mainly done
through flexible marketing ways. The industry of bearings and small home
appliances is a fiercely competitive industry. Subject has a large number of
competitors who also deal with the same products. But due to its long history
and large scale, SC has formed its reputation and a certain amount of clients
in the local place. So generally speaking, SC’s competitiveness in the local
industry is OK.
3. Ningbo, where Subject is located, is a big
city of China and one of China’s financial centers. The city’s advancement
provides SC with certain development opportunities as well as challenges. As a
domestic enterprise mainly deals with the marketing business of ordinary
bearings, the local government doesn’t provide related supporting policy to
subject.
SHAREHOLDERS
AND SHARES
As indicated in the following table:
|
Shareholder |
Capital Subscribed |
Percentage |
|
Yang Junliang |
1,500,000.00 |
100% |
|
Total |
1,500,000.00 |
100% |
|
Shareholder |
Way of investment |
Paid-up Percentage |
|
JIANGSU NANZI TONGHUA
ELECTRICAL GROUP CO., LTD. |
Capital |
100% |
Background of major
shareholder
|
Name |
Yang
Junliang |
|
ID No. |
330222740116181 |
AFFILIATE(S)
After checking with the
industry and commerce channels by Gladtrust, no affiliates of SC is found.
HISTORY
|
Sep 19th, 2003 |
SC was
established. |
|
Apr 24th, 2008 |
SC’s legal form was changed from LIMITED LIABILITY COMPANY (INVESTED OR
HELD BY NATURAL PERSON) to Limited liabilities co.（sole
individual proprietorship） |
|
Dec 31st, 2007 |
SC’s main business turnover and net profit were respectively 33,540,000
Chinese yuan and 111,000 Chinese Yuan. |
|
Dec 31st, 2008 |
SC’s main business turnover and net profit were respectively 24,542,000
Chinese Yuan and 138,000 Chinese Yuan. |
|
Dec 31st, 2009 |
SC’S main business turnover and net profit were respectively 33,365,000
Chinese Yuan and 250,000 Chinese Yuan. |
MANAGEMENT
|
Name |
Yang Junliang |
|
Title |
Executive Director and General Manager |
|
Gender |
Male |
|
ID No. |
30222740116181 |
|
Nationality |
China |
|
Date of birth |
Jan 16th, 1974 |
NUMBER OF EMPLOYEES
Employees: 8
Recent Recruitment：Yes
Recruitment Post: Salesman, Vouching Clerk
BANKERS INFORMATION
|
Bank Name |
Bank of China-Cixi Branch |
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Account No. for Chinese Yuan |
817063597508091001 |
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Telephone of the person investigated |
0086 574 63810196 |
|
Comment |
SC was confirmed to have opened an account in this bank by the person
investigated. The daily settlement of it is normal. |
OFFICE FACILITIES
Geographic Location: SC
is located in Room 1103, Building 4, Shi Dai Hua Du, NO. 178, Ciyong Road, Cixi
City, Ningbo, Zhejiang. The traffic is convenient and the environment is
satisfactory.
Property Ownership:
rented
TRADEMARKS &
Patents
|
Registration No. |
3328324 |
|
Image |
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Registration Date |
October 8th, 2002 |
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Registration No. |
4448219 |
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Image |
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Registration Date |
Jan 4th, 2005 |
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Registration No. |
4478471 |
|
Image |
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Registration Date |
Jan 24th, 2005 |
MAIN
PRODUCTS & SERVICES
|
Main business |
sales of bearings, small home appliances, toys etc. |
|
Products and services |
SC mainly deals with the import and export business of bearings, small
appliances, toys etc. Its products are widely used in the sectors of automobiles,
motorbikes, home appliances, electrical tools, machine equipment etc. SC can
process products according to the special requirements from its clients. |
SALES
INFORMATION
|
Percentage of domestic sales |
5% |
|
Regions |
Shanghai, Jiangsu, etc. |
|
Major domestic clients |
Distributors |
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Sales Terms: |
Prompt payment; on credit |
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Percentage of overseas sales |
95% |
|
Regions |
Europe and America, Southeast Asia and Middle East |
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Sales Terms: |
L/C T/T |
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|
Subject’s products are mostly sold overseas. It has wide marketing
channels. Its clients include the distributors and manufacturers in Shanghai,
Jiangsu, etc. So far, SC has established steady cooperation relationship with
some of its clients. |
|
|
The above information was confirmed by SC’s employee in March, 2011. |
|
PURCHASE
INFORMATION
|
Main Commodities Purchased |
Gearings, Sandwich maker, water dispenser, hair drier etc. |
|
Number of Major Suppliers |
About 3 |
|
Major Suppliers |
CIXI KE XIN BEARINGS CO. LTD |
|
Main Terms of Payment |
Prompt payment, on credit |
|
SC mainly purchases its commodities from Ningbo. With a long history,
SC has established steady cooperation relationship with its suppliers and it
has enough sources of goods. |
|
|
The
above information was confirmed by SC’s employee in March, 2011. |
|
CREDIT
|
Name of supplier |
CIXI KE XIN BEARINGS CO. LTD |
|
Main commodities supplied |
Bearings |
|
Post of interviewee |
Salesman |
|
Tel |
86-574-63540488 |
|
Remarks of interviewee |
Subject is said to be one of this company’s clients. Subject’s credit
condition is good. |
LITIGATION RECORDS
After checking with China court website, local court website and other major searching websites by Gladtrust, no litigation records related to subject in the recent 3 years was found.
FINANCE
Balance Sheet (Unit: 1,000 Chinese
Yuan):
|
Current assets |
|
|
|
|
Money capital |
119 |
547 |
969 |
|
Short-term
investment |
|
|
|
|
Notes receivable |
|
|
|
|
Net ball of
Account Receivable |
1,381 |
137 |
10,034 |
|
Payment in advance |
7,055 |
16,509 |
7,569 |
|
Subsidy Receivable |
|
|
|
|
Other Account
Receivable |
1,504 |
414 |
8,364 |
|
Inventory |
|
103 |
1,497 |
|
|
|
|
|
|
Prepaid expenses |
35 |
41 |
110 |
|
Unsettled G/L on current
assets |
|
|
|
|
Other current assets |
|
|
|
|
Export rebates receivable |
|
|
|
|
Total current Assets |
10,094 |
17,751 |
28,543 |
|
Long-term investment |
|
|
|
|
Long-term investment |
|
|
|
|
Original value of fixed assets |
856 |
870 |
870 |
|
Accumulated depreciation |
164 |
253 |
339 |
|
Net fixed assets |
692 |
617 |
531 |
|
Fixed assets depreciation reserve |
|
|
|
|
Net Value of Fixed Assets |
692 |
617 |
531 |
|
Fixed assets in
liquidation |
|
|
|
|
Projects being constructed |
|
|
|
|
Fixed assets losses in
suspense |
|
|
|
|
Total fixed assets |
692 |
617 |
531 |
|
Intangible assets and
deferred assets |
|
|
|
|
Intangible assets |
|
|
|
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Deferred assets |
|
|
|
|
Total intangible and
deferred assets |
- |
- |
|
|
Other long-term assets |
|
|
|
|
Other long-term assets |
|
|
|
|
Total assets |
10,786 |
18,368 |
29,074 |
|
Current liabilities |
|
|
|
|
Short-term loans |
7,815 |
5,243 |
13,187 |
|
Notes payable |
|
500 |
724 |
|
Account payable |
477 |
8,709 |
12,316 |
|
Deposit received |
520 |
1,331 |
|
|
Other accounts payable |
|
540 |
733 |
|
Wages payable |
|
|
|
|
Welfare payable |
|
|
|
|
Tax unpaid |
37 |
|
-195 |
|
Other accounts Unpaid |
10 |
6 |
29 |
|
Unpaid profit |
|
|
|
|
Accrued expenses |
|
|
|
|
L/T debt due in 1 year |
|
|
|
|
Other current liabilities |
|
|
|
|
Total current liabilities |
8,859 |
16,329 |
26,794 |
|
L/T liabilities |
|
|
|
|
L/T loans |
|
|
|
|
Bonds payable |
|
|
|
|
L/T account payable |
|
|
|
|
Total L/T liabilities |
0 |
0 |
0 |
|
Deferred tax |
|
|
|
|
Deferred tax |
|
|
|
|
Total liabilities |
8,859 |
16,329 |
26,794 |
|
Owner’s interest |
|
|
|
|
Paid-up capital |
1,500 |
1,500 |
1,500 |
|
Contributed surplus |
107 |
107 |
107 |
|
Surplus reserves |
63 |
83 |
121 |
|
Unconfirmed investment loss |
|
|
|
|
Undistributed profits |
257 |
349 |
552 |
|
Minority interest |
|
|
|
|
Total owner’s interest |
1,927 |
2,039 |
2,280 |
|
Liabilities and owner’s interest |
10,786 |
18,368 |
29,074 |
|
Income Statement (Unit: 1000 Chinese Yuan) |
|||
|
|
2007 |
2008 |
2009 |
|
Main business income |
33,540 |
24,542 |
33,365 |
|
Main business cost |
31,802 |
23,046 |
31,733 |
|
Tax and associate charge |
|
|
|
|
Main business profit |
1,738 |
1,496 |
1,632 |
|
Other business profit |
|
|
|
|
Operation expenses |
280 |
269 |
118 |
|
- management expenses |
524 |
646 |
730 |
|
Financial expenses |
728 |
377 |
437 |
|
Operation profit |
206 |
204 |
347 |
|
Investment profit |
|
|
|
|
Subsidy income |
|
|
|
|
Non business income |
|
10 |
23 |
|
- non business expenses |
39 |
30 |
33 |
|
Prior year income adjustment |
|
|
|
|
Total profit |
167 |
184 |
337 |
|
- income tax |
56 |
46 |
87 |
|
Minority stock holder’s interest |
|
|
|
|
Net profit |
111 |
138 |
250 |
Important
ratios:
|
|
2007 |
2008 |
2009 |
|
Return on net assets (%) |
5.76 |
6.77 |
10.96 |
|
Return on total assets (%) |
1.03 |
0.75 |
0.86 |
|
Net profit margin (%) |
0.33 |
0.56 |
0.75 |
|
Turnover of total assets |
3.11 |
1.34 |
1.15 |
|
Turnover of current assets |
3.32 |
1.38 |
1.17 |
|
Turnover of accounts receivable |
24.29 |
179.14 |
3.33 |
|
Inventory turnover |
|
223.75 |
21.20 |
|
Asset liability ratio (%) |
82.13 |
88.90 |
92.16 |
|
Current ratio |
1.14 |
1.09 |
1.07 |
|
Quick ratio |
1.14 |
1.08 |
1.01 |
Notes to finance
Subject’s Tax Unpaid in 2009 is negative. It is
because SC’s advanced tax payment exceeded the amount it should pay.
INDUSTRIAL COMPARISON
SIC Code (China): 6379 Wholesale of other machinery and electronic
products
|
Indicators(2009) |
Subject |
Industry average |
|
Return on net assets (%) |
10.96 |
33.24 |
|
Return on total assets (%) |
0.86 |
13.80 |
|
Net profit margin (%) |
0.75 |
11.35 |
|
Turnover of total assets |
1.15 |
1.24 |
|
Turnover of current assets |
1.17 |
1.71 |
|
Turnover of accounts receivable |
3.33 |
5.45 |
|
Asset liability ratio (%) |
92.16 |
58.53 |
|
Current ratio |
1.07 |
1.28 |
|
Quick ratio |
1.01 |
1.04 |
ANALYSIS
This report mainly provides analysis
of subject’s indicators in 2009. SC’s profitability indicators in 2009 are
below industry average, indicating that its profitability is poor. SC’s turnover of total assets and
turnover of current assets show that its assets operation ability is poor. SC’s
Turnover of account receivable is below average, indicating that its debt
recovery speed is low. SC’s asset liability ratio is above industry average
which indicates that its long-term solvency is weak. In addition, its current
ratio and quick ratio indicates that its short-term solvency is a little weak.
INDUSTRY
PROFILE
Industry
SIC Code (China): 6379 wholesale of other machinery and electric products
Industry Definition: It refers to wholesale, import and export activities
of metalware, special equipment, general equipment, electrical machinery,
electronic products, transport equipment, instrument and meter, etc. This
industry includes the wholesale of bearings, gears, valves, compressors,
ventilators etc.
Status Quo & Trend
In the first half of 2010, there were a large
number of investment projects coming into operation. In addition, many new
projects’ operation scales were improved in 2009. These all help the
engineering machinery industry keep prosperous. The data released by Customs
Bureau shows, from January to April in 2010, the export amounts of machinery
products reached USD 260,280,000,000, increasing by 31.3%. In addition, the
export demand of bearings in our country is strong. These all indicate a
hopeful outlook of this industry. The close international economic cooperation
provides our economy with satisfactory development opportunities. So with the
steady increase of GDP and the rapid development of equipment manufacturing
industry, our country’s demand of bearings will continue increasing steadily.
GENERAL
COMMENTS
Subject Company was established in September,
2003 with a registration capital of 1,500,000 Chinese Yuan. SC mainly deals
with the wholesale of bearings, small home appliances and toys. SC’s business
scale is not large despite its long history. Its fame and influence power in
the industry still needs to be promoted.
SC’s existing financial data show that its main
business income in 2009 increased a lot compare with that of 2008. That
indicates that SC’s business development in 2009 is good. But its profitability
condition is poor. SC’s accounts receivable in 2009 is large, indicating that
its clients held some of its capitals which would on one hand help promote its
marketing business to some degree but on the other hand increase the bad debt
risks. SC has had many advanced payment in the recent 3 years which indicates
that its suppliers required strict payment methods from it. This is unfavorable
to SC’s capital turnover and its capital operation. High accounts payable in
2009 indicates that SC and its suppliers always use long credit terms in
transactions. This means SC and its suppliers have good relationship and they
believe each other in business activity.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.65 |
|
UK Pound |
1 |
Rs.71.91 |
|
Euro |
1 |
Rs.63.28 |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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 and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.