MIRA INFORM REPORT
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Report Date : |
09.09.2011 |
IDENTIFICATION DETAILS
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Name : |
CHINA ARTEX CORP. FUJIAN COMPANY |
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Registered Office : |
9/F, Fortune Building, No. 168, Hudong Road, Fuzhou, Fujian Province, 350003 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
21.05.1981 |
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Com. Reg. No.: |
350000100028644 |
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Legal Form : |
State-Owned Enterprise |
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Line of Business : |
importing and exporting
different sorts of commodities including shoes and luggage. |
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 150,000 |
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Status : |
Satisfactory |
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Payment
Behaviour : |
Usually Correct |
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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 – March 31st, 2011
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
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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 & address
CHINA ARTEX CORP. FUJIAN COMPANY
9/f, FORTUNE
BUILDING, NO. 168, HUDONG ROAD,
FUZHOU, FUJIAN
PROVINCE, 350003 PR CHINA
TEL: 86 (0)
591-87822338 FAX: 86 (0)
591-87822966
EXECUTIVE SUMMARY
INCORPORATION DATE : may 21, 1981
REGISTRATION NO. :
350000100028644
REGISTERED LEGAL FORM : STATE-OWNED ENTERPRISE
STAFF STRENGTH : 25
REGISTERED CAPITAL : CNY 26,443,080
BUSINESS LINE : TRADING
TURNOVER CNY 1,003,750,000 (AS OF DEC. 31, 2010)
EQUITIES : CNY 27,330,000 (AS OF DEC. 31,
2010)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 150,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : well-known
EXCHANGE RATE : CNY
6.40 = 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
Renminbi
SC was registered as a State-owned enterprise at Fujian
Provincial Administration for industry & commerce (AIC - the official body
of issuing and renewing business license) on May 21, 1981.
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, have autonomy in management, take 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 iporting and exporting
various kinds of commodities and technology, excluding the goods forbidden by
the government; processing with imported materials, processing with imported
samples, assembling with imported parts, and compensation trade in agreement; management
of barter trade and carrying trade.
SC is mainly
engaged in importing and exporting different sorts of commodities.
Mr. Chi Chen is legal representative and general manager of SC at
present.
SC is
known to have approx. 25 employees at present.
SC is
currently operating at the above stated address, and
this address houses its operating office in the commercial zone of Fuzhou. Our
checks reveal that SC owns the total premise about 600 square meters.
SC is not known to host website of its own at present.
Changes of SC’s
registered information:
|
Date |
Item |
Before changed |
After changed |
|
Unknown |
Registered capital |
CNY 10,890,000 |
Present amount |
Superior
Department
China National Arts & Crafts
(Group) Corp.
Under the background of Chinese
central government to strongly facilitate the structural adjustment of central
government-owned companies, China National Arts & Crafts (Group) Corporation
is incorporated by two former central government-owned companies as China
National Arts & Crafts Imp. & Exp. Corp. and China National Arts &
Crafts (Group) Corporation. This is a significant historical event in the
development of merger in China’s art and craft industry.
The main businesses of China
National Arts & Crafts (Group) Corporation include R&D and design of
art and craft products, raw materials purchase, production, and sales of raw
materials (domestic trade and international trade), storage and transportation,
exhibition, and cultural businesses.
Website: http://www.cnacgc.com
Address: China National Arts & Crafts
Building, No. 103, Jixiangli, Chaoyangmenwai, Beijing
Tel: 010-85698810 85698808
Fax: 010-85698866
l
Legal Representative & General
Manager:
Mr. Chi Chen, in his
Working Experience(s):
At present Working in SC as legal representative and general manager.
SC is mainly
engaged in importing and exporting different sorts of commodities.
SC’s products
mainly include shoes and luggage.
SC sources its materials 100% from
domestic market. SC sells 100% of its products to overseas market, mainly
Europe and South America.
The buying terms of SC include Check, T/T and Credit of
30-60 days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60
days.
Note: SC’s management declined to release its main clients and
suppliers.
SC is known to have the following subsidiaries:
China
Artex Corp. Fujian Company Quanzhou Drawnwork Factory
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 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.
China Merchants
Bank Fuzhou Branch
AC# 20834196100061
Relationship:
Normal
Balance Sheet
Unit: CNY’000
|
|
as
of Dec. 31, 2009 |
as
of Dec. 31, 2010 |
|
Cash & bank |
51,360 |
205,730 |
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Inventory |
103,710 |
253,990 |
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Accounts receivable |
59,270 |
150,980 |
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Advances to
suppliers |
87,140 |
100,330 |
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Other
receivables |
18,780 |
83,540 |
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Other current
assets |
0 |
0 |
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|
------------------ |
------------------ |
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Current assets |
320,260 |
794,570 |
|
Fixed assets net
value |
5,030 |
6,960 |
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Projects under
construction |
0 |
0 |
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Long term
investment |
16,770 |
16,370 |
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Other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
342,060 |
817,900 |
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============= |
============= |
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Short loans |
83,200 |
157,460 |
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Accounts payable |
9,840 |
186,000 |
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Other payable |
125,920 |
141,030 |
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Taxes payable |
-26,400 |
-41,860 |
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Advances from
clients |
127,210 |
347,140 |
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Other current
liabilities |
90 |
800 |
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------------------ |
------------------ |
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Current
liabilities |
319,860 |
790,570 |
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Long term
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
319,860 |
790,570 |
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Equities |
22,200 |
27,330 |
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------------------ |
------------------ |
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Total
liabilities & equities |
342,060 |
817,900 |
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============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2010 |
|
Turnover |
1,003,750 |
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Cost of goods
sold |
914,320 |
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Sales expense |
71,650 |
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Management expense |
5,950 |
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Finance expense |
4,500 |
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Investment
income |
240 |
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Profit before
tax |
5,940 |
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Less: profit tax |
810 |
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Profits |
5,130 |
Important Ratios
=============
|
|
as
of Dec. 31, 2009 |
as
of Dec. 31, 2010 |
|
*Current ratio |
1.00 |
1.01 |
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*Quick ratio |
0.68 |
0.68 |
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*Liabilities
to assets |
0.94 |
0.97 |
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*Net profit
margin (%) |
/ |
0.51 |
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*Return on
total assets (%) |
/ |
0.63 |
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*Inventory
/Turnover ×365 |
/ |
92 days |
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*Accounts
receivable/Turnover ×365 |
/ |
55 days |
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*Turnover/Total
assets |
/ |
1.23 |
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* Cost of
goods sold/Turnover |
/ |
0.91 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in 2010.
l
SC’s net profit margin is average in 2010.
l
SC’s return on total assets is average in 2010.
l
SC’s cost of goods sold is fairly high in 2010,
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 fair level.
l
The inventory of SC appears fairly large in both
years.
l
The accounts receivable of SC appears average in
both years.
l
The short-term loan appears fairly large in both
years.
l
SC’s turnover is in an average level in 2010,
comparing with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high in both years.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered an old-established business with fairly
stable financial conditions. The large amount of inventory and short-term loan
could be a threat to SC’s financial condition. A credit
line of the above stated amount appears to be within SC’s capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.46.18 |
|
UK Pound |
1 |
Rs.73.65 |
|
Euro |
1 |
Rs.64.95 |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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NB |
New Business |
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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.