MIRA
INFORM REPORT
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Report Date : |
13.12.2012 |
IDENTIFICATION DETAILS
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Name : |
CHANGSHU HONGLI IMPORT & EXPORT CO., LTD.
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Registered Office : |
Room 201, Building 2, Lane 1588, Youyi Road, Baoshan District, Shanghai, 201900 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
21.03.2011 |
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Com. Reg. No.: |
320581000254469 |
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Legal Form : |
Limited Liabilities
Company |
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Line of Business : |
trading of steel products and
non-ferrous metal |
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No. of Employees : |
05 employees |
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 : |
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 – June 30th, 2012
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Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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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.
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Source : CIA |
Company name & address
CHANGSHU HONGLI IMPORT & EXPORT Co., Ltd.
room 201, Building 2, LANE 1588, YOUYI ROAD,
BAOSHAN DISTRICT, SHANGHAI, 201900 PR CHINA
TEL: 86 (0) 21-51837043/51683380 FAX: 86 (0) 21-51683335
EXECUTIVE SUMMARY
INCORPORATION DATE : mar. 21, 2011
REGISTRATION NO. : 320581000254469
REGISTERED LEGAL FORM : LIMITED
LIABILITIES COMPANY
STAFF STRENGTH : 5
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE : tradING
TURNOVER : CNY 29,530,000 (AS OF DEC. 31, 2011)
EQUITIES : CNY 5,060,000 (AS OF DEC. 31, 2011)
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.25 = 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
Note: The “Suite 301, International Logistics Zone, No. 15, Fuhua Road, Changshu Economic & Technological Development Zone, Changshu” is SC’s registered address, while its main operating office should be the heading one.
SC was registered as a limited liabilities company at Changshu Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Mar. 21, 2011.
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 of steel products and
non-ferrous metal; import and export goods and technology, excluding those limited
and prohibited by the State.
SC is mainly
engaged in trading of steel products and non-ferrous
metal.
Mr.
Xie Lianying is legal representative, chairman and general manager of SC at present.
SC is
known to have approx. 5 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Shanghai.
SC’s accountant Ms. Li refused to release the detailed information of the
premise.
SC also houses its office in Room 809, Zhongkai International
Building, No. 58 Haiyu North Road, Changshu
SC is not known to have any websites at present.
E-mail: xuedisen@honglicssteel.com
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Huang Chengtao 12
Xu Chao 12
Huang Feiyin 38
Xie Lianying 38
Legal
Representative, Chairman and General Manager:
Mr. Xie Lianying, born in 1981, he is currently responsible for the overall management of SC.
Working
Experience(s):
At present Working in SC as legal representative, chairman and general manager.
Supervisor:
Mr. Huang Feiyin, born in 1986
SC is mainly
engaged in trading of steel products and non-ferrous
metal.
SC’s products mainly include: Galvalume coil
and galvanized coil, etc.
SC sources its materials 100% from domestic
market. SC sells 30% of its products in domestic market, and 70% to overseas
market.
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 major clients and suppliers.
SC is not known to have any subsidiary at present.
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.
SC declined to
release its bank details.
Balance Sheet
Unit: CNY’000
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as of Dec. 31, 2011 |
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Cash & bank |
350 |
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Inventory |
140 |
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Accounts
receivable |
20,660 |
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Advances to
suppliers |
1,510 |
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Other receivables |
4,780 |
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Dividends
receivable |
0 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
27,440 |
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Fixed assets net
value |
0 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Intangible assets |
0 |
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Other assets |
0 |
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------------------ |
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Total assets |
27,440 |
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============= |
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Short loans |
0 |
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Accounts payable |
470 |
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Other accounts
payable |
0 |
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Notes payable |
0 |
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Taxes payable |
10 |
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Advances from clients |
21,900 |
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Accrued payroll |
0 |
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Dividends
payable |
0 |
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Other payable |
0 |
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Other current
liabilities |
0 |
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------------------ |
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Current
liabilities |
22,380 |
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Long term
liabilities |
0 |
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------------------ |
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Total liabilities |
22,380 |
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Equities |
5,060 |
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------------------ |
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Total
liabilities & equities |
27,440 |
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============= |
Income Statement
Unit: CNY’000
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as of Dec. 31,
2011 |
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Turnover |
29,530 |
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Cost of goods sold |
29,200 |
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Sales expense |
0 |
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Management expense |
210 |
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Finance expense |
0 |
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Non-operating
income |
0 |
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Non-operating expense |
20 |
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Profit before
tax |
100 |
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Less: profit tax |
20 |
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Profits |
80 |
Important Ratios
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as
of Dec. 31, 2011 |
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*Current ratio |
1.23 |
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*Quick ratio |
1.22 |
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*Liabilities
to assets |
0.82 |
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*Net profit
margin (%) |
0.27 |
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*Return on
total assets (%) |
0.29 |
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*Inventory
/Turnover ×365 |
2 days |
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*Accounts
receivable/Turnover ×365 |
256 days |
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*Turnover/Total
assets |
1.08 |
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* Cost of
goods sold/Turnover |
0.99 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average 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 high, comparing with its
turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is normal.
l
SC’s quick ratio is maintained in a normal level.
l
SC’s inventory is small in 2011.
l
The accounts receivable of SC appears
large in 2011.
l
SC has no short-term loan in 2011.
l
SC’s turnover is average, comparing with the size
of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered small-sized in its line with fairly stable
financial conditions. The large amount of accounts receivable could be a threat
to SC’s financial condition.
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.27 |
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UK Pound |
1 |
Rs.87.43 |
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Euro |
1 |
Rs.70.55 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
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<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.