MIRA
INFORM REPORT
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Report Date : |
31.08.2012 |
IDENTIFICATION DETAILS
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Name : |
Foshan Newpearl Trade Co., Ltd. |
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Registered Office : |
2/F, Newpearl Ceramics Group Mansion, Huaxia Ceramics Plaza, Nanzhuang Town, Chancheng District, Foshan, Guangdong Province, 528061 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
19.12.2002 |
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Com. Reg. No.: |
440602000163163 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Selling Ceramics Products |
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No. of Employees : |
50 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Unknown |
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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, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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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 |
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 - in 2010 China became the world's largest
exporter. Reforms began with the phasing out of collectivized agriculture, and
expanded to include the gradual liberalization of prices, fiscal
decentralization, increased autonomy for state enterprises, creation of a
diversified banking system, development of stock markets, rapid growth of the
private sector, and opening to foreign trade and investment. China has
implemented reforms in a gradualist fashion. In recent years, China has renewed
its support for state-owned enterprises in sectors it considers important to
"economic security," explicitly looking to foster globally
competitive national champions. After keeping its currency tightly linked to
the US dollar for years, in July 2005 China revalued its currency by 2.1%
against the US dollar and moved to an exchange rate system that references a basket
of currencies. From mid 2005 to late 2008 cumulative appreciation of the
renminbi against the US dollar was more than 20%, but the exchange rate
remained virtually pegged to the dollar from the onset of the global financial
crisis until June 2010, when Beijing allowed resumption of a gradual
appreciation. The restructuring of the economy and resulting efficiency gains
have contributed to a more than tenfold increase in GDP since 1978. Measured on
a purchasing power parity (PPP) basis that adjusts for price differences, China
in 2010 stood as the second-largest economy in the world after the US, having
surpassed Japan in 2001. The dollar values of China's agricultural and
industrial output each exceed those of the US; China is second to the US in the
value of services it produces. Still, per capita income is below the world
average. The Chinese government faces numerous economic challenges, including:
(a) reducing its high domestic savings rate and correspondingly low domestic
demand; (b) sustaining adequate job growth for tens of millions of migrants and
new entrants to the work force; (c) reducing corruption and other economic
crimes; and (d) containing environmental damage and social strife related to
the economy's rapid transformation. Economic development has progressed further
in coastal provinces than in the interior, and by 2011 more than 250 million
migrant workers and their dependents had relocated to urban areas to find work.
One consequence of population control policy 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 economic development. The Chinese government
is seeking to add energy production capacity from sources other than coal and
oil, focusing on nuclear and alternative energy development. In 2010-11, China
faced high inflation resulting largely from its credit-fueled stimulus program.
Some tightening measures appear to have controlled inflation, but GDP growth
consequently slowed to near 9% for 2011. An economic slowdown in Europe is
expected to further drag Chinese growth in 2012. Debt overhang from the
stimulus program, particularly among local governments, and a property price
bubble challenge policy makers currently. The government's 12th Five-Year Plan,
adopted in March 2011, emphasizes continued economic reforms and the need to
increase domestic consumption in order to make the economy less dependent on
exports in the future. However, China has made only marginal progress toward
these rebalancing goals.
|
Source
: CIA |
Company name and address
Foshan Newpearl Trade Co., Ltd.
2/F, Newpearl
Ceramics Group MANSION, HUAXIA CERAMICS plaza, NANZHUANG TOWN, CHANCHENG
DISTRICT, FOSHAN,
GUANGDONG PROVINCE,
528061 PR CHINA
TEL: 86 (0)
757-85399920/82018776 FAX: 86 (0)
757-85399932/85399958
EXECUTIVE SUMMARY
INCORPORATION DATE : DECEMBER 19, 2002
REGISTRATION NO. : 440602000163163
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
50
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 192,170,000 (AS OF DEC. 31, 2009)
EQUITIES :
CNY 10,920,000 (AS OF DEC. 31, 2009)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.3528 = 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 limited liabilities company at local Administration
for Industry & Commerce (AIC - The official body of issuing and renewing
business license) on December 19, 2002.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders
contribute its registered capital jointly. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to extent of its total assets. The characteristics of this form
of co. are as follows: Upon
the establishment of the co., an investment certificate is issued to the
each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s registered business
scope includes selling ceramics products; importing and exporting commodities
and technology, excluding the items limited of prohibited by the state.
SC is mainly
engaged in selling ceramics products.
Mr. Ye Delin has been legal representative, chairman and
general manager of SC since 2011.
SC is known to have approx. 50 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Foshan. Our checks reveal that SC
rents the total premise, but SC’s accountant refused to release the gross area.
http://www.newpearl.com/
The website belongs to Newpearl Ceramics Group and it includes the information
on SC and its related companies. The design is professional and the content is
well organized. At present it is both in Chinese and English versions.
Certificate:
========
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Registered No. |
4406041000881 |
440602000163163 |
|
Shareholders and % of Shareholdings |
Li Wei10% Ye Delin90% |
Li Wei10% Guangdong Newpearl Ceramics Group Co., Ltd. 90% |
|
|
2011 |
Legal Rep. |
Li Wei |
Present one |
|
Shareholders and % of Shareholdings |
Li Wei10% Guangdong Newpearl Ceramics Group Co., Ltd. 90% |
Present ones |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Ye Delin 10
Guangdong Newpearl Ceramics Group Co., Ltd. 90
Guangdong Newpearl Ceramics Group Co., Ltd.
===================================
Newpearl Ceramics Group is a modernized, big
enterprise specialized in manufacturing ceramic wall & floor tiles and
sanitary ware. It has become a group company comprised of 3 ceramics groups of
Guangdong Newpearl, Guangdong Summit and Jiangxi Newpearl with more than 18,000
employees. With an annual output production of more than 100 million square
meters of ceramic tiles and 500 thousand pcs sanitary wares, Newpearl contributes
full scope of ceramics products such as wall tile, floor tile, rustic tile,
polished tile, ceramic tile and porcelain tile of size from 23X
Registration no.: 440602000007668
Incorporation date: Jan. 15, 1999
Legal rep.: Ye Delin
Registered capital: CNY 200,000,000
Add: Newpearl Ceramics Group Mansion, Huaxia
Ceramics Plaza, Nanzhuang Town, Chancheng District, Foshan, Guangdong Province
Tel: 86-757-85385922/85339803
Fax: 86-757-85395816
Website: http://www.newpearl.com/
Email: info@newpearl.com
l
Legal representative, chairman and general
manager:
Mr. Ye Delin is currently
responsible for the overall management of SC.
Working Experience(s):
From 2011 to present Working in SC as legal representative,
chairman and general manager.
Also working in Guangdong Newpearl Ceramics Group
Co., Ltd. and Foshan Sanshui Newpearl Building Ceramics Industrial Co., Ltd. as
legal representative.
SC is mainly
engaged in selling ceramics products.
SC’s products mainly
include: ceramics products, etc.
SC sources its materials 100% from domestic
market. SC sells 100% to overseas market, mainly Southeast Asia market.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include Check, L/C and Credit of 30-60 days.
Note: SC’s
management declined to release its major clients and suppliers.
According to the above website:
Guangdong
Summit Ceramics Co., Ltd.
Foshan
Chancheng Gelaisi Ceramics Co., Ltd.
Foshan
Sanshui Newpearl Building Ceramics Industrial Co., Ltd.
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.
Bank of China Foshan Nanzhuang Sub-branch
AC#：884028730608093001
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31,
2008 |
as of Dec. 31,
2009 |
|
Cash & bank |
19,790 |
33,500 |
|
Inventory |
0 |
0 |
|
Accounts
receivable |
38,620 |
0 |
|
Advances to
supplies |
2,860 |
300 |
|
Other
receivables |
14,000 |
16,480 |
|
Subsidies
receivable |
8,720 |
0 |
|
Prepaid expenses |
210 |
0 |
|
Other current
assets |
0 |
20 |
|
|
------------------ |
------------------ |
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Current assets |
84,200 |
50,300 |
|
Fixed assets net
value |
2,170 |
1,610 |
|
Projects under
construction |
0 |
0 |
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Long-term
investments |
0 |
0 |
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Intangible and
other assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
86,370 |
51,910 |
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|
============= |
============= |
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Short loans |
6,280 |
2,290 |
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Notes payable |
0 |
0 |
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Accounts payable |
68,340 |
28,070 |
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Advances from
customers |
0 |
9,710 |
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Accrued payroll |
30 |
30 |
|
Taxes payable |
270 |
290 |
|
Other Accounts
payable |
1,770 |
600 |
|
Other current
liabilities |
10 |
0 |
|
|
----------------- |
------------------ |
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Current
liabilities |
76,700 |
40,990 |
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Long term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Total
liabilities |
76,700 |
40,990 |
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Shareholders
equities |
9,670 |
10,920 |
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|
------------------ |
------------------ |
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Total liabilities
& equities |
86,370 |
51,910 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31,
2008 |
As of Dec. 31,
2009 |
|
Turnover |
411,550 |
192,170 |
|
Cost of goods sold |
398,240 |
190,240 |
|
Sales expense |
26,220 |
9,980 |
|
Management expense |
1,260 |
920 |
|
Finance expense |
1,680 |
270 |
|
Subsidy income |
18,540 |
0 |
|
Non-operating
income |
0 |
11,770 |
|
Non-operating expense |
0 |
10 |
|
Profit before
tax |
2,700 |
2,520 |
|
820 |
630 |
|
|
Profits |
1,880 |
1,890 |
Note: SC’s latest
financial reports can not be found in local AIC.
Important Ratios
=============
|
|
as of Dec. 31,
2008 |
as of Dec. 31,
2009 |
|
*Current ratio |
1.10 |
1.23 |
|
*Quick ratio |
1.10 |
1.23 |
|
*Liabilities
to assets |
0.89 |
0.79 |
|
*Net profit
margin (%) |
0.46 |
0.98 |
|
*Return on
total assets (%) |
2.18 |
3.64 |
|
*Inventory
/Turnover ×365 |
/ |
/ |
|
*Accounts
receivable/Turnover ×365 |
35 days |
/ |
|
*Turnover/Total
assets |
4.76 |
3.70 |
|
* Cost of
goods sold/Turnover |
0.97 |
0.99 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in its line,
but it decreased in 2009.
l
SC’s net profit margin is average in both 2 years.
l
SC’s return on total assets is average in both 2
years.
l
SC’s cost of goods sold is high in both 2 years,
comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal level
in both 2 years.
l
SC’s quick ratio is maintained in a normal level in
both 2 years.
l
SC has no inventory in both 2 years.
l
The accounts receivable of SC is maintained in a
fairly large level in 2008.
l
SC’s short-term loan is in an average level in both
2 years.
l
SC’s turnover is in a fairly good level in both 2
years, comparing with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high in 2008 and fairly
high in 2009.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered medium-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.65 |
|
|
1 |
Rs.88.10 |
|
Euro |
1 |
Rs.69.83 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.