MIRA INFORM REPORT
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Report Date : |
30.11.2012 |
IDENTIFICATION DETAILS
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Name : |
FOSHAN
EVERLASTING ENTERPRISE CO., LTD |
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Registered Office : |
31/f |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
22.10.1992 |
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Com. Reg. No.: |
440602000086299 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
International Trade |
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No. of Employees : |
150 Employees |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
China |
A2 |
A2 |
|
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
FOSHAN EVERLASTING ENTERPRISE CO.,
LTD.
31/f
jinghua building, no. 18 jihua wu road
CHANCHENG
DISTRICT, FOSHAN CITY
GUANGDONG
PROVINCE 528000 PR CHINA
TEL: 86
(0) 757-83036488/83036433/83288089
FAX: 86
(0) 757-83036468/83289050
EXECUTIVE SUMMARY
Date of Registration : OCTOBER 22, 1992
REGISTRATION NO. : 440602000086299
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : CNY 5,000,000
staff : 150
BUSINESS CATEGORY : trading
Revenue : CNY 2,525,131,000 (AS OF DEC. 31, 2011)
EQUITIES : CNY 58,357,000 (AS OF DEC. 31, 2011)
WEBSITE : www.fsel.cn
E-MAIL :
zhiwei@elpurchase.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.23 = USD 1
Adopted
abbreviations (as follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY –
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.: 440602000086299 on
October 22, 1992.
SC’s Organization Code Certificate
No.: 19353542-2
SC’s registered capital: CNY
5,000,000
SC’s paid-in capital: CNY
5,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Registration No. |
4406001002127 |
440602000086299 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Zhang Wenjun |
29.64 |
|
Liu Yongjun |
15.20 |
|
Li Minxian |
15.20 |
|
Chen Xianhua |
15.20 |
|
Huang Hengjing |
15.20 |
|
Feng Shaoqi |
9.56 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Zhang Wenjun |
|
Deputy General Manager |
Liu
Yongjun |
|
Director |
Li
Minxian |
|
Chen
Xianhua |
|
|
Huang
Hengjing |
|
|
Supervisor |
Feng
Shaoqi |
RECENT DEVELOPMENT
²
SC has passed quality management system of
ISO9001:2000 and acquired "UKAS" and "CNAB" certifications.
²
SC has been awarded “level a management company” by
China customs, “AA” credit rating by the banks, and “AAA” China national
business credit rating by China shippers’ association.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Zhang Wenjun 29.64
Liu Yongjun 15.20
Li Minxian 15.20
Chen Xianhua 15.20
Huang Hengjing 15.20
Feng Shaoqi 9.56
MANAGEMENT
Zhang Wenjun, Legal Representative, Chairman and General Manager
--------------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 61
Ø
Qualification:
University
Ø
Working
experience (s):
Before
1992, worked in Foshan Arts & Crafts Imp. & Exp. Company of Guangdong
as general manager
From 1992 to
present, working in SC as legal representative, chairman and general manager
Liu Yongjun, Deputy General Manager
---------------------------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
At present, working in SC as deputy general manager
Li Minxian, Director
---------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Chen Xianhua, Director
------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Huang Hengjing , Director
---------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Feng Shaoqi , Supervisor
------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
BUSINESS OPERATION
SC’s registered business scope includes importing and exporting commodities and technologies, excluding export commodities limited or prohibited by the state;
processing with imported materials, processing with imported samples,
assembling with imported parts, and compensation trade in agreement; counter trade & transit trade;
wholesaling and retailing coal.
SC is
mainly engaged in international trade.
SC’s
products mainly include: ceramic tile, bamboo flooring, sanitary, furniture,
Car DVD player, TV set, power tool, lamp, hard and stationery wares, horologe,
plastic and leather product, artificial hair, household wares, gift, toy, daily
arts and crafts.
SC sources its materials 80%
from domestic market, mainly Guangdong and Fujian, and 20% from overseas
market. SC sells 70% of its products to overseas market, mainly Europe and
Southeast Asian market, and 30% in domestic market.
The buying terms of SC include Check, T/T, L/C and Credit of
30-60 days. The payment terms of SC include T/T, L/C and Credit of 30-60 days.
Staff & Office:
--------------------------
SC is
known to have approx. 150
staff at present.
SC owns an area as
its operating office of approx. 2,700 sq. meters at the heading address.
RELATED COMPANY
SC is known to
have three subsidiaries at present,
l
Foshan Jialixun Import & Export Co., Ltd.
Registration No.: 440602000120764
Date of Registration: September 14, 2009
Legal Form: Limited Liabilities Company
Registered Capital: CNY 1,010,000
Legal Representative: Chen Zhiguang
l
Foshan Jiayuan Import & Export Co., Ltd.
Registration No.: 440602000120756
Date of Registration: September 14, 2009
Legal Form: Limited Liabilities Company
Registered Capital: CNY 1,010,000
Legal Representative: Liu Yongjun
l
Foshan Jiajietong Broker Co., Ltd.
Registration No.: 440602000133944
Date of Registration: January 18, 2010
Legal Form: Limited Liabilities Company
Registered Capital: CNY 2,000,000
Legal Representative: Chen Zhiguang
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:
China Construction Bank Foshan Branch
AC#: 44001669002053002183
Bank of China
Foshan Branch
AC#: N/a
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
53,930 |
95,080 |
110,513 |
|
|
Accounts
receivable |
30,700 |
37,110 |
43,443 |
|
Advances to
suppliers |
526,030 |
635,620 |
898,908 |
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Other receivable |
970 |
100,630 |
76,089 |
|
Inventory |
0 |
0 |
4,826 |
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Non-current
assets within one year |
0 |
0 |
0 |
|
Other current
assets |
48,670 |
10 |
0 |
|
|
------------------ |
------------------ |
------------------ |
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Current assets |
660,300 |
868,450 |
1,133,779 |
|
Fixed assets |
16,460 |
15,420 |
14,575 |
|
Construction in
progress |
0 |
0 |
0 |
|
Intangible
assets |
0 |
0 |
0 |
|
Long-term
prepaid expenses |
0 |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
0 |
|
Other
non-current assets |
0 |
1,380 |
926 |
|
|
------------------ |
------------------ |
------------------ |
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Total assets |
676,760 |
885,250 |
1,149,280 |
|
|
============= |
============= |
============= |
|
Short-term loans |
122,870 |
203,740 |
239,361 |
|
Notes payable |
7,180 |
0 |
0 |
|
Accounts payable |
-10,940 |
7,050 |
29,776 |
|
Advances from
clients |
509,900 |
623,160 |
820,972 |
|
Salaries payable |
0 |
4 |
4 |
|
Welfares payable |
0 |
257 |
0 |
|
Taxes payable |
0 |
2,565 |
143 |
|
Other payable |
1,100 |
0 |
0 |
|
Other current liabilities |
1,870 |
294 |
667 |
|
|
------------------ |
------------------ |
------------------ |
|
Current
liabilities |
631,980 |
837,070 |
1,090,923 |
|
Non-current
liabilities |
1,270 |
1,770 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Total
liabilities |
633,250 |
838,840 |
1,090,923 |
|
Equities |
43,510 |
46,410 |
58,357 |
|
|
------------------ |
------------------ |
------------------ |
|
Total
liabilities & equities |
676,760 |
885,250 |
1,149,280 |
|
|
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2009 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
|
Revenue |
1,951,700 |
2,574,230 |
2,525,131 |
|
Cost of sales |
1,905,230 |
2,525,910 |
2,474,628 |
|
Sales expense |
20,660 |
21,020 |
-- |
|
Management expense |
10,480 |
15,650 |
-- |
|
Finance expense |
4,840 |
1,090 |
-- |
|
Profit before
tax |
15,720 |
11,980 |
20,137 |
|
Less: profit tax |
3,570 |
3,000 |
5,039 |
|
12,150 |
8,980 |
15,098 |
Important Ratios
=============
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
1.04 |
1.04 |
1.04 |
|
*Quick ratio |
1.04 |
1.04 |
1.03 |
|
*Liabilities
to assets |
0.94 |
0.95 |
0.95 |
|
*Net profit
margin (%) |
0.62 |
0.35 |
0.06 |
|
*Return on
total assets (%) |
1.80 |
1.01 |
1.31 |
|
*Inventory /
Revenue ×365 |
-- |
-- |
1 day |
|
*Accounts
receivable/ Revenue ×365 |
6 days |
6 days |
1 day |
|
*
Revenue/Total assets |
2.88 |
2.91 |
2.20 |
|
* Total
business cost / Revenue |
0.98 |
0.98 |
0.98 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC
appears fairly good in three years.
l
SC’s net profit margin is average in three years.
l
SC’s return on total assets is average in three
years.
l
SC’s cost of goods sold is 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 fairly good
level.
l
The inventory of SC appears small
l
The accounts receivable of SC appears small.
l
The short-term loans of SC appear large.
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
FAIR
l
The debt ratio of SC is high
in three years.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with
fairly stable financial conditions. The large amount of short-term loans
may be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian
Rupees |
|
US Dollar |
1 |
Rs.55.20 |
|
UK Pound |
1 |
Rs.88.37 |
|
Euro |
1 |
Rs.71.47 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
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.