MIRA
INFORM REPORT
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Report Date : |
24.10.2011 |
IDENTIFICATION DETAILS
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Name : |
CHINA NATIONAL COTTON GROUP CORP. |
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Registered Office : |
11-12/F Section B, Global Finance News Center, No. 1a
Xuanwumenwai Street, Xicheng District, Beijing 100052 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
23.10.1993 |
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Com. Reg. No.: |
100000000015193 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Selling cotton and related products |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
|
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 2,000,000 |
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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) |
|
China |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
|
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
CHINA NATIONAL COTTON GROUP CORP.
11-12/F SECTION B, GLOBAL FINANCE NEWS CENTER, NO.
TEL: 86 (0) 10-59338189/59338131
FAX: 86 (0) 10-59338030
EXECUTIVE SUMMARY
Date of Registration : OCTOBER 23, 1993
REGISTRATION NO. : 100000000015193
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : CNY 130,000,000
staff :
300
BUSINESS CATEGORY : TRADING
Revenue :
CNY 4,144,028,000 (AS OF DEC. 31,
2010)
EQUITIES :
CNY 373,346,000 (AS OF DEC. 31, 2010)
WEBSITE : www.chncc.com
E-MAIL : master@chncc.com
PAYMENT :
AVERAGE
Recommended Credit Limit: UP TO USD 2,000,000
(PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : fairly
good
EXCHANGE RATE :
CNY 6.38 = USD 1
Adopted abbreviations (as follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL TREND & GENERAL
REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be determined
LEGAL STATUS & HISTORY
SC was established
as a limited liabilities company of PRC with State Administration of Industry
& Commerce (SAIC) under registration No.: 100000000015193
on October 23, 1993.
SC’s Organization Code Certificate No.:
10001519-7
SC’s registered capital: CNY 130,000,000
SC’s paid-in capital: CNY 130,000,000
Registration Change Record:
|
Date |
Change of Contents |
Before the change |
After the change |
|
|
Registered Capital |
CNY 40,000,000 |
CNY 129,740,000 |
|
|
Legal Representative |
Peng Fukuan |
Sun Zhixin |
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Registered Capital |
CNY 129,740,000 |
CNY 130,000,000 |
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|
Legal Representative |
Sun Zhixin |
Lv Guangbin |
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Company Name |
China National Cotton Corp. |
China National Cotton Group Corp. |
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|
Legal Representative |
Lv Guangbin |
Shi Jinkai |
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-- |
Registration No. |
1000001001519 |
100000000015193 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
China Co-Op Group Co., Ltd. |
95 |
|
China Cotton Industries, Ltd. |
5 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman and General
Manager |
Shi Jinkai |
|
Deputy General Manager |
Wang Wanxiang |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
China Co-Op Group Co., Ltd. 95.
China Cotton Industries, Ltd. 5
China Co-Op Group Co., Ltd.
=========================
Registration No.: 100000000042469
Legal Form: One-person Limited
Liability Company
Registered Capital: CNY 4,362,600,000
China Cotton Industries, Ltd.:
========================
Date of Registration: May 24, 1996
Registration No.: 100000000019759
Legal Form: Limited Liability
Company
Registered Capital: CNY 60,000,000
MANAGEMENT
Shi Jinkai , Legal
Representative, Chairman and General Manager
-------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 48
Ø
ID# 110108196311105416
Ø
Qualification:
University
Ø
Working
experience (s):
From 2000 to 2007, worked in SC as deputy general
manager
From 2008 to present, working in SC as legal
representative, chairman and general manager
Wang Wanxiang , Deputy
General Manager
--------------------------------------------------------------------
Ø
Gender: M
Ø
Age:
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as deputy general manager
BUSINESS OPERATION
SC’s registered
business scope includes processing and selling cotton, hemp, linter, by products
and cotton yarn; processing and selling grains and animal products; technology
developing, manufacturing and selling agricultural machinery, common machinery,
meters, electronic products; processing and selling garments and textile
products; selling metal materials, rubber, leather products, wood, steel, metal
products, auto parts, chemicals, chemical dangerous products (excluding
dangerous chemicals); real estate development; warehousing
service; exhibition for self-developed, produced, and processed
products; import and export business; information consultant service related to
the above business; real estate consulting service; technology development,
technology consulting, technology services, technology transferring, technology
training; engineering technology designing and construction consultation; house
rental and property management.
SC is mainly
engaged in selling cotton and related products.
SC’s products
mainly include: cotton, flax and related products, etc.
SC sources its materials 80% from domestic
market, and 20% from overseas market, mainly India. SC sells 75% of its
products in domestic market, and 25% 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.
*Major Customer:
=============
Libero Company
(Brazil)
Olam International
(Singapore)
Staff & Office:
--------------------------
SC is known
to have approx. 300 staff at
present.
SC owns an area as
its operating office of approx. 2,000 sq. meters at the heading address.
RELATED COMPANY
SC
is known to have 11 subsidiaries and 3 branches at present, and the following
are the major ones.
China
National Cotton Group Langfang Logistics Co., Ltd.
China
National Cotton Group Shanghai Cotton Co., Ltd.
China
National Cotton Group Hebei Cotton Co., Ltd.
China
National Cotton Group (Qingdao) Cotton Co., Ltd.
Beijing
China National Cotton Huatai International Trading Co., Ltd.
China
National Cotton Group Tianjin Branch
Etc.
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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 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 SC was placed to us for collection within the last 6 years.
BANKING
Basic Bank:
Agricultural Development Bank of China Head Office
AC#: 20399990010100000015391
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
|
919,967 |
|
|
Notes receivable |
244,631 |
|
Accounts
receivable |
95 |
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Advances to
suppliers |
1,320,468 |
|
Other receivable |
454,425 |
|
Inventory |
797,615 |
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Non-current
assets within one year |
0 |
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Other current
assets |
0 |
|
|
------------------ |
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Current assets |
3,737,201 |
|
Fixed assets |
187,266 |
|
Construction in
progress |
120 |
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Intangible
assets |
5,869 |
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Long-term
investment |
238,611 |
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Deferred income
tax assets |
0 |
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Other
non-current assets |
2,964 |
|
|
------------------ |
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Total assets |
4,172,031 |
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|
============= |
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Short-term loans |
1,755,900 |
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Notes payable |
0 |
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Accounts payable |
166,344 |
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Welfare payable |
35,238 |
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Tax payable |
-31,787 |
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Advances from
clients |
1,272,521 |
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Salaries payable |
0 |
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Other payable |
40,420 |
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Other current
liabilities |
15,396 |
|
|
------------------ |
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Current
liabilities |
3,254,032 |
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Non-current liabilities |
544,653 |
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|
------------------ |
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Total
liabilities |
3,798,685 |
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Equities |
373,346 |
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|
------------------ |
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Total
liabilities & equities |
4,172,031 |
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|
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
|
Revenue |
4,144,028 |
|
Cost of sales |
3,959,904 |
|
Taxes and surcharges |
1,183 |
|
Sales expense |
79,158 |
|
Management expense |
45,955 |
|
Finance expense |
18,560 |
|
Investment
income |
-13,918 |
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Non-operating
income |
27,114 |
|
Non-operating expense |
947 |
|
Profit before
tax |
48,521 |
|
Less: profit tax |
19,200 |
|
29,321 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
|
*Current ratio |
1.15 |
|
*Quick ratio |
0.90 |
|
*Liabilities
to assets |
0.91 |
|
*Net profit
margin (%) |
0.71 |
|
*Return on
total assets (%) |
0.70 |
|
*Inventory /
Revenue ×365 |
71 days |
|
*Accounts
receivable/ Revenue ×365 |
1 day |
|
*
Revenue/Total assets |
0.99 |
|
* Cost of sales
/ Revenue |
0.96 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears fairly good in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is fairly high, comparing with
its revenue.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC is maintained in an average
level.
l
The short-term loan of SC appears large.
l
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Stable.
CONCLUSIONS
SC is considered large-sized in its line with stable financial
conditions. The large amount of short-term loan may be a threat to SC’s
financial condition. A credit line up to USD 2,000,000 is recommended upon a
periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.50.06 |
|
|
1 |
Rs.79.15 |
|
Euro |
1 |
Rs.69.03 |
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 |
|
-- |
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.