MIRA
INFORM REPORT
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Report Date : |
11.11.2011 |
IDENTIFICATION DETAILS
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Name : |
CNSC FORTUNE WAY COMPANY |
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Registered Office : |
No. 4, Huixin Dongjie, Chaoyang District, Beijing 100029 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
16.08.1993 |
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Com. Reg. No.: |
110105005017129 |
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Legal Form : |
State-Owned Enterprise |
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Line of Business : |
International Trade |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 200,000 |
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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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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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 and address
CNSC FORTUNE WAY COMPANY
NO. 4, HUIXIN DONGJIE, CHAOYANG DISTRICT,
BEIJING 100029 PR CHINA
TEL: 86 (0) 10-
84663822 FAX: 86 (0) 10-84639160
EXECUTIVE SUMMARY
INCORPORATION DATE :
AUG. 16, 1993
REGISTRATION NO. :
110105005017129
REGISTERED LEGAL FORM : STATE-OWNED ENTERPRISE
STAFF STRENGTH :
35
REGISTERED CAPITAL : CNY 20,000,000
BUSINESS LINE :
INTERNATIONAL TRADE
TURNOVER :
CNY 424,538,000 (AS OF DEC. 31,
2010)
EQUITIES :
CNY 28,527,000 (AS OF DEC. 31, 2010)
RECOMM. CREDIT RANGE : UP TO
USD 200,000 (PERIODICAL REVIEW)
MARKET CONDITION : competitive
FINANCIAL CONDITION : FAIRLY stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.35 = USD 1
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Ren Min Bi
SC was registered as a state-owned enterprise at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Aug. 16, 1993.
Company Status: State-owned enterprise This form of business in PR
China is defined as a commodity production or operational units of a
socialist character which in accordance with the law, has autonomy in
management, takes full responsibility for its profits and losses and
practices independent business accounting. It is a legal person established
directly by central / local government or enterprise owned by central or
local government. In theory, the liabilities of this form of enterprise are
ultimately borne by the government, since the adoption of company law in
mid-1994, the Chinese government has planned to separate the ownership from
management and liabilities bearing.
SC’s registered
business scope includes wholesaling prepackaging food, unpacked food;
wholesaling toluene, compressed gas and liquefied gas, flammable liquids,
flammable solid, combustible goods, antioxidants and organic peroxide, drugs,
corrosive; supplying various goods to China oversea institutions; purchasing
and selling tax-free goods; purchasing and selling general merchandise,
foodstuff, native goods, chemically products, furniture, arts and crafts,
textiles, machinery & equipment, hardware, building materials, decoration
materials, spare parts of cars, groceries, and labor protection products; photo
services; retailing tobaccos; import and export of goods and technology,
excluding the products prohibited by the country; processing with supplied
samples, imported materials, and imported parts, compensation trades; transit
trade and counter trade; economic information consulting; selling mineral
products.
SC is mainly
engaged in international trade.
Mr. Li Can has been legal representative and chairman of
SC since 2001.
SC is known
to have approx. 35 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Beijing. Our checks reveal that SC
owns the total premise about 300 square meters.
http://www.fortune-way.com
The website can’t be landed at present.
E-mail: Medicine department: pharma@fortune-way.com
Textile
department: tex@fortune-way.com
Changes of SC’s
registered information:
|
Date |
Item |
Before changed |
After changed |
|
Nov., 2000 |
Registered capital |
CNY 3,000,000 |
CNY 7,000,000 |
|
Mar., 2001 |
Registered capital |
CNY 7,000,000 |
Present amount |
|
Legal rep. |
Gao Xianmin |
Present one |
|
|
Oct., 2009 |
Registered number |
1101051501712 |
Present one |
|
Aug., 2011 |
Company name |
中服嘉远国际贸易公司 |
Present one |
Note: SC changed its Chinese name in 2011, while its English name
remains the same.
MAIN SHAREHOLDERS:
Name
% of Shareholding
China National Service Corporation
for Chinese Personnel Working AbroadCNSC 100
EXECUTIVE SUMMARY
INCORPORATION DATE :
SEP. 28, 1983
REGISTRATION NO. :
100000000001308
REGISTERED LEGAL FORM :
STATE-OWNED ENTERPRISE
CHIEF EXECUTIVE :
MR. ZHOU YUXIANG (CHAIRMAN)
CNSC was established in 1983 with the
approval of the State Council, once subordinate to the Ministry of Foreign
Trade and Economic Cooperation (re-named as the Ministry of Commerce), CNSC is
now under the direct leadership of the State-Owned Assets Supervision and
Administration Commission of the State Council of China.
Address: Fortune Tower, No. 4,
Huixindongjie, Chaoyang District, Beijing 100029, PR China
Tel: 86-10-84618811
Fax: 86-10-84648245
E-mail: bgs@cnsc.com.cn
l
Legal Representative and Chairman:
Mr. Li Can , ID# 370923721121061, born in 1972 with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2001 to present
Working in SC as legal representative and chairman.
SC is mainly
engaged in international trade.
SC’s textile
products include: chemical fiber cloth material & inner cloth material,
blend cloth material & crossing textile cloth material, medical, medical
medium agent.
Chemical products:
PTA, QTA, PET lumps, PP powder, SAN, 1,5-Pentanediol , Bisphenol-A,MEA, Ethyl
Acetate.
Stone Products:
Galala Beige, Aman Beige, Marron Emperador, Wooden Travertine , Rosso Lavento,
Sahara Beige, India Green, MocaCream, Bianco Perlino, Ariston White.
From Oct. 2004 SC
began to supply Pakistan heckling yarn and regular yarn, mainly including 16S,
20S, and 26S. At present, it sets warehouses in Guangzhou, Beijing and Tianjin.
Its annual importing can reach 15,000 tons.
SC imports marble
and its board materials from Turkey and Egypt; PET and its materials, PTA from
Europe; chromium ore and stone materials from Turkey and Pakistan.
SC sources its
materials 40% from domestic market, and 60% from international market mainly
Korea, Asia and Europe. SC sells 60% of its products in domestic market, and
40% to international market, mainly Asian countries, Middle East and Europe.
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.
Major Suppliers
============
Korea Samnam Petrochem Co., Ltd.
Korea Polymirae Co., Ltd.
Korea LG Chemical Co., Ltd.
Note:
SC declined to release its major clients.
SC is known to have one subsidiary as
following:
Fortune Magnesium Industrial Co., Ltd.
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 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.
Bank of Communications Huixin Sub-branch
AC#664012015014063
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
Cash & bank |
14,822 |
15,123 |
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Inventory |
32,841 |
191,122 |
|
Bills receivable
|
0 |
0 |
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Accounts
receivable |
0 |
0 |
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Advances to
suppliers |
5,417 |
80,529 |
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Other
receivables |
18,321 |
73,908 |
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Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
71,401 |
360,682 |
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Fixed assets net
value |
118 |
69 |
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Long term
investment |
910 |
910 |
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Other assets |
18 |
0 |
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------------------ |
------------------ |
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Total assets |
72,447 |
361,661 |
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============= |
============= |
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Short loans |
0 |
0 |
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Bills payable |
0 |
0 |
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Accounts payable |
14,341 |
22,158 |
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Advances from
clients |
32,108 |
239,572 |
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Taxes payable |
-7,427 |
-4,426 |
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Other payable |
2,018 |
67,323 |
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Other current
liabilities |
4,734 |
8,507 |
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------------------ |
------------------ |
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Current
liabilities |
45,774 |
333,134 |
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Long term
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
45,774 |
333,134 |
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Equities |
26,673 |
28,527 |
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------------------ |
------------------ |
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Total
liabilities & equities |
72,447 |
361,661 |
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============= |
============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31,
2009 |
As of Dec. 31,
2010 |
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Turnover |
271,593 |
424,538 |
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Cost of goods
sold |
253,984 |
399,138 |
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Sales expense |
10,498 |
14,076 |
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Management expense |
1,182 |
890 |
|
Finance expense |
1,688 |
-999 |
|
Investment
income |
11 |
0 |
|
Profit before
tax |
6,334 |
12,469 |
|
Less: profit tax |
1,633 |
3,200 |
|
Profits |
4,701 |
9,269 |
Important Ratios
=============
|
|
2009 |
2010 |
|
*Current ratio |
1.56 |
1.08 |
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*Quick ratio |
0.84 |
0.51 |
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*Liabilities
to assets |
0.63 |
0.92 |
|
*Net profit
margin (%) |
1.73 |
2.18 |
|
*Return on
total assets (%) |
6.49 |
2.56 |
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*Inventory
/Turnover ×365 |
44 days |
164 days |
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*Accounts
receivable/Turnover ×365 |
/ |
/ |
|
*Turnover/Total
assets |
3.75 |
1.17 |
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* Cost of
goods sold/Turnover |
0.94 |
0.94 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good and it
increased in 2010.
l
SC’s net profit margin is average.
l
SC’s return on total assets is fairly good in 2009
and average in 2010.
l
SC’s cost of goods sold is fairly high, comparing
with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level in
2009 but in a fair level in 2010.
l
SC has no accounts receivable in both years.
l
The inventory of SC is average in 2009 but fairly
large in 2010.
l
SC has no short loan in both years.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is average in 2009 but high in
2010.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly stable.
SC is considered medium-sized in its line with favorable background and
fairly stable financial conditions. The large amount of inventory could be a
threat to SC’s financial condition. A credit line up to USD 200,000 would
appear to be within SC’s capacities upon a periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.78 |
|
|
1 |
Rs.80.10 |
|
Euro |
1 |
Rs.68.82 |
RATING EXPLANATIONS
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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 |
|
-- |
NB |
New Business |
-- |
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.