MIRA
INFORM REPORT
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Report Date : |
13.12.2012 |
IDENTIFICATION DETAILS
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Correct Name : |
TIANJIN TIANGAO INTERNATIONAL ECONOMIC
DEVELOPMENT CORP. |
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Registered Office : |
A-462 Torch Innovation Park, No. 2 Wuhua Road, Huayuan, Nankai
District, Tianjin City, 300191 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
06.12.1993 |
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Com. Reg. No.: |
120104000081569 |
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Legal Form : |
State-Owned Enterprise |
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Line of Business : |
International Trade |
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No. of Employees : |
03 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 : |
Slow |
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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
|
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
TIANJIN TIANGAO INTERNATIONAL ECONOMIC DEVELOPMENT CORP.
a-462 torch
innovation park, no. 2 wuhua road, huayuan, NANKAI DISTRICT, TIANJIN city,
300191 PR CHINA
TEL: 86 (0)
22-23364181 FAX: 86 (0) 22-23364181
EXECUTIVE SUMMARY
INCORPORATION DATE : DECEMBER 6, 1993
REGISTRATION NO. :
120104000081569
REGISTERED LEGAL FORM : STATE-OWNED ENTERPRISE
STAFF STRENGTH :
3
REGISTERED CAPITAL :
CNY 1,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 1,534,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY -1,055,000 (AS OF DEC. 31,
2011)
PAYMENT :
AVERAGE
MARKET CONDITION :
FAIR
FINANCIAL CONDITION :
POOR
OPERATIONAL TREND :
FAIR
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 given name HongKong Tiangao International Economic Development Corporate Limited belongs to SC’s related company registered in Hong Kong.
SC is operating in the heading address, while the given one (Hi-Tech Building A, Rm507-511, Huatian Road, Huayuan Industry Park, Tianjin 300384 China) belongs to SC’s technology department.
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 December 6, 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 import and export of various
goods and technology, excluding the goods and technology prohibited or limited
by the country; managing the processing with imported
materials, processing with imported samples, assembling with imported parts,
and compensation trade in agreement; managing entrepot trade and counter
trade; wholesale of various goods and materials; manufacturing drinking-water
purifier, mechanical products and electronic products; manufacturing and
installing purify refrigeration plant; development of computer software;
economic information consulting services. (with permit if needed)
SC is mainly
engaged in international trade.
Mr. An Shimin is
the legal representative and chairman of SC at present.
SC is
known to have approx. 3 employees at present.
SC
is currently operating at the above stated address,
and this address houses its operating office in Tianjin. Our checks
reveal that SC rents the total premise about 100
square meters.
SC is not known to host website of its own at present.
According to SC’s accountant Mr. Liu, SC hardly has business at present.
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
Unspecified |
Registration No. |
1201041010529 |
Present one |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Guard Group Co., Ltd.
100
Guard Group Co. Ltd. (Guard
Group) was formally established in 2000, whose predecessor is Tianjin Guard
Anti-counterfeit Identification Co., Ltd. founded in 1995. Registered in the
Tianjin Economic-Technological Development Area, Guard Group is a high-tech
enterprise relying on multi-disciplinary technical background and R&D
superiority of Nankai University and specializing in technology, information
and security. In March 2008, Guard Group changed its name into “Guard Group
Co., Ltd.” from “Tianjin Nankai Guard Group Co., Ltd.”, so that it becomes a
national enterprise with the qualitative change in assets. After that, Guard
Group prioritizes the development of established competitive industries, seizes
market opportunities to run business bigger and stronger, and promotes the
development and upgrading of all industries. At present, the group is pressing
onward into the depth fields of information security and resources, etc.
Legal rep.: Li Mingzhi
Registration No.:
120000000003593
Web: http://www.guard-group.com
Tel: 022- 23788053
Fax: 022- 23787863
Address: No. 6 Haitai Fazhan Third
Road, Hi-Tech Industrial Park, Tianjin
Legal representative and chairman:
Mr. An Shimin, about 63 years old, he is currently responsible for the overall management of SC.
Working
Experience(s):
At present Working in SC as legal representative and chairman.
General manager:
Mr. Lv Dongzhi, about 39 years old, he is currently responsible for the daily management of SC.
Working
Experience(s):
At present Working in SC as general manager.
According to SC’s accountant Mr. Liu, SC hardly has business at present.
SC is mainly
engaged in international trade.
SC’s products
mainly include vending machine, air purifier, etc.
SC sources its materials 95%
from domestic market, and 5% from overseas market. SC sells 20% of its products
in domestic market, and 80% to overseas market, mainly Europe, America and
Korea.
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 Supplier:
==============
Guard Group Co., Ltd.
*Major Clients:
==============
BBQ (Korea)
HongKong Tiangao International Economic Development Corporate
Limited
CR No. : 0825011
Date of Incorporation:
Registered Legal Form: Private
Active Status: Live
According to Mr. Liu, SC is known to invest in one company:
Tianjin Foreign
Economic Relations & Trade Service Center
============================
Website: http://www.traderservice.com
E-mail: contact@traderservice.com
Tel:
022-58366585/58366570
Fax:
022-58366550/23035213
Address:
No.51 Chifeng Road, Heping District, Tianjin
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.
Agricultural
Bank of China Tianjin Yangguang Sub-branch
AC#:
020501040001961
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
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As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
|
Cash & bank |
97 |
5 |
|
Notes receivable
|
0 |
0 |
|
Inventory |
9 |
0 |
|
Accounts
receivable |
0 |
0 |
|
Advances to
suppliers |
1,037 |
0 |
|
Other accounts
receivable |
15 |
0 |
|
Other current
assets |
186 |
0 |
|
|
------------------ |
----------------- |
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Current assets |
1,344 |
5 |
|
Fixed assets net
value |
1 |
1 |
|
Project under
construction |
0 |
0 |
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Long term
investment |
200 |
200 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Project
materials |
0 |
0 |
|
Intangible and
other assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
1,545 |
206 |
|
|
============= |
============= |
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Short loans |
0 |
0 |
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Notes payable |
0 |
0 |
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Accounts payable
|
19 |
0 |
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Advances from
clients |
1,081 |
0 |
|
Accrued payroll |
22 |
22 |
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Welfare payable |
51 |
51 |
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Taxes payable |
1 |
0 |
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Surcharge payable |
0 |
0 |
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Other accounts
payable |
1,280 |
1,188 |
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Other current
liabilities |
0 |
0 |
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Interest payable |
0 |
0 |
|
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------------------ |
------------------ |
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Current
liabilities |
2,454 |
1,261 |
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Long-term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Total
liabilities |
2,454 |
1,261 |
|
Equities |
-909 |
-1,055 |
|
|
------------------ |
------------------ |
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Total liabilities
& equities |
1,545 |
206 |
|
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============= |
============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
|
Turnover |
3,449 |
1,534 |
|
Cost of goods sold |
2,860 |
1,409 |
|
Taxes and
additional of main operations |
0 |
1 |
|
Sales expense |
419 |
111 |
|
Management expense |
150 |
152 |
|
Finance expense |
3 |
6 |
|
Non-operating
income |
0 |
5 |
|
Non-operating expense |
0 |
6 |
|
Profit before
tax |
17 |
-146 |
|
2 |
0.4 |
|
|
Profits |
15 |
-146.4 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
As of Dec. 31, 2011 |
|
*Current ratio |
0.55 |
0.004 |
|
*Quick ratio |
0.54 |
0.004 |
|
*Liabilities to
assets |
1.59 |
6.12 |
|
*Net profit
margin (%) |
0.43 |
-9.54 |
|
*Return on
total assets (%) |
0.97 |
-71.07 |
|
*Inventory
/Turnover ×365 |
1 day |
/ |
|
*Accounts
receivable/Turnover ×365 |
/ |
/ |
|
*Turnover/Total
assets |
2.23 |
7.45 |
|
* Cost of
goods sold/Turnover |
0.83 |
0.92 |
PROFITABILITY:
FAIR
l The
turnover of SC appears average, but appears a declining trend.
l SC’s
net profit margin is average in 2010, but fair in 2011.
l SC’s return
on total assets is average in 2010, but poor in 2011.
l
SC’s cost of goods sold is average in
2010 but fairly high in 2011, comparing with its turnover.
LIQUIDITY:
POOR
l
The current ratio of SC is fair in
2010, but poor in 2011.
l
SC’s quick ratio is fair in 2010, but
poor in 2011.
l
SC has no accounts receivable in both
years.
l
The inventory of SC appears small in
2010, and SC has no inventory in 2011.
l
There is no short loan of SC in both
years.
l
SC’s turnover is average in 2010 and
fairly good in 2011, comparing with the size of its total assets.
LEVERAGE:
POOR
l
The debt ratio of SC is too high.
l
The risk for SC to go bankrupt is high.
Overall
financial condition of the SC: Poor.
SC is considered small-sized in its line with poor financial
conditions. According to SC’s accountant Mr. Liu, SC hardly has business at present.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.27 |
|
UK Pound |
1 |
Rs.87.43 |
|
Euro |
1 |
Rs.70.55 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.