MIRA
INFORM REPORT
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Report Date : |
13.10.2012 |
IDENTIFICATION DETAILS
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Name : |
GUANGZHOU BAIYUN DARONG FINE CHEMICAL
INDUSTRY CO., LTD. |
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Registered Office : |
A01, 2/F, Jianfa Square, No. 111 Jichang Road, Baiyun
District, Guangzhou, Guangdong Province, 510403 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
28.10.1997 |
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Com. Reg. No.: |
440111000001247 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
processing, manufacturing, selling hair & skin care products |
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No. of Employees : |
12 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 : |
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) |
|
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.
|
Source
: CIA |
Company name & address
GUANGZHOU BAIYUN DARONG FINE CHEMICAL INDUSTRY Co., Ltd.
a01, 2/F, JIANFA
SQUARE, no. 111 jichang road, baiyun district, Guangzhou, guangdong PROVINCE,
510403 PR CHINA
TEL: 86 (0) 20-36369999/36369999-313/86349835 FAX: 86 (0) 20-36369999/86349266
EXECUTIVE SUMMARY
INCORPORATION DATE : oct. 28, 1997
REGISTRATION NO. : 440111000001247
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
12
REGISTERED CAPITAL : CNY 500,000
BUSINESS LINE :
PROCESSING, Manufacturing & SELLING
TURNOVER :
CNY 14,155,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 1,071,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.28 = 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: SC’s correct address should be the heading one, while SC’s staff had never heard of the.
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 Oct. 28, 1997.
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 processing, manufacturing, wholesaling: hair class,
skin care, bath gel, cosmetics (health certificate valid period as of May 30,
2013); import and export goods and technology (excluding those refined and
prohibited by the state); the ordinary freight transport (road transport
operators permit valid period as of October 31, 2015).
SC is mainly
engaged in processing, manufacturing, selling hair & skin care products.
Mr. Chen
Jimin is legal representative, chairman
and general manager of SC at present.
SC is known
to have approx. 12 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Guangzhou. Our checks reveal that SC
rents the total premise, but the detailed information of the premise is
unspecified.
SC’s
factory is located in (No. 30, Round Road 1#) Walitian, Wushe, Longgui North
Village, Baiyun District, Guangzhou. Our checks reveal that SC rents the total
premise about 3,950 square meters.
http://www.zeal68.com/ The design
is professional and the content is well organized. At present it is only in
English version.
E-mail: maria@zeal68.com
Certificate
========
ISO 9001:2000
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
Unspecified |
Registration No. |
4401111100200 |
Present one |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Chen Jimin 10
Hu Xuejiao 30
Hu Zhimin 60
Legal
Representative, Chairman and General Manager:
Mr. Chen Jimin , in his
Working
Experience(s):
At present Working in SC as legal representative, chairman and general manager.
Notes: The given contact persons are all working in SC:
Shalley Xiong (The given mob no.- +86-13543464399 is not in use at present.)
Marianne Ma (Foreign Sales Manager) Mob- +86 13246487911
Eva, Mob - +86 18200744894
SC is mainly engaged
in processing, manufacturing, selling hair & skin care products.
SC’s products mainly include: hair dressing, skin care, cleaning, baby
care and men's use, including hair color cream, hair straight cream, hair
shampoo, hair conditioner, hair treatment, hair styling gel, hair cream, hair
mice, body shampoo, whitening cream, men's cream after shaving, Anti-Acne and
Sighs Removing Series and other related products.
SC sources its materials 100% from domestic
market. SC sells 2% of its products in domestic market, and 98% to overseas
market, mainly to India.
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.
According
to SC’s website:
Guangzhou
Zeal Fun Cosmetic Co., Ltd.
=============================
Registration No.: 440111000202304
Incorporation Date:
Chairman: Hu Zhibiao
Tazol (Hong Kong) Biological Technology Co.,
Limited
=======================================
CR No.: 1227550
Date of
Incorporation:
Company Status:
Private
Active Status:
Live
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.
Guangzhou Rural
Commercial Bank Longgui Sub-branch
AC#: 01621850000000061
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31, 2011 |
|
Cash & bank |
1,305 |
|
Inventory |
3,057 |
|
Accounts
receivable |
74 |
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Advances to
suppliers |
0 |
|
Other
receivables |
8,128 |
|
Dividends
receivable |
0 |
|
Other current
assets |
0 |
|
|
------------------ |
|
Current assets |
12,564 |
|
Fixed assets net
value |
498 |
|
Projects under
construction |
0 |
|
Long term
investment |
0 |
|
Intangible
assets |
0 |
|
Other assets |
0 |
|
|
------------------ |
|
Total assets |
13,062 |
|
|
============= |
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Short loans |
0 |
|
Accounts payable |
1,476 |
|
Other accounts
payable |
2,473 |
|
Notes payable |
0 |
|
Taxes payable |
0 |
|
Advances from
clients |
8,042 |
|
Accrued payroll |
0 |
|
Dividends
payable |
0 |
|
Other payable |
0 |
|
Other current
liabilities |
0 |
|
|
------------------ |
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Current
liabilities |
11,991 |
|
Long term
liabilities |
0 |
|
|
------------------ |
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Total
liabilities |
11,991 |
|
Equities |
1,071 |
|
|
------------------ |
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Total
liabilities & equities |
13,062 |
|
|
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2011 |
|
Turnover |
14,155 |
|
Cost of goods
sold |
12,062 |
|
Taxes and
additional of main operation |
11 |
|
Sales expense |
578 |
|
Management expense |
972 |
|
Finance expense |
58 |
|
Non-operating
income |
12 |
|
Non-operating expense |
68 |
|
Profit before
tax |
418 |
|
Less: profit tax |
150 |
|
Profits |
268 |
Important Ratios
=============
|
|
as
of Dec. 31, 2011 |
|
*Current ratio |
1.05 |
|
*Quick ratio |
0.79 |
|
*Liabilities
to assets |
0.92 |
|
*Net profit
margin (%) |
1.89 |
|
*Return on
total assets (%) |
2.05 |
|
*Inventory
/Turnover ×365 |
79 days |
|
*Accounts
receivable/Turnover ×365 |
2 days |
|
*Turnover/Total
assets |
1.08 |
|
* Cost of
goods sold/Turnover |
0.85 |
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 average, comparing with
its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is normal.
l
SC’s quick ratio is maintained in a fair level.
l
SC’s inventory is average in 2011.
l
The accounts receivable of SC appears small 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 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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.52.70 |
|
UK Pound |
1 |
Rs.84.51 |
|
Euro |
1 |
Rs.68.16 |
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.