MIRA
INFORM REPORT
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Report Date : |
13.10.2012 |
IDENTIFICATION DETAILS
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Name : |
QINGDAO JIECHENG FOODSTUFF CO., LTD. |
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Registered Office : |
No. 368, Taishan Road, Jiaonan, Qingdao, Shandong Province 266499 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
27.12.1999 |
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Com. Reg. No.: |
370284400000898 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Subject is
engaged in cultivating, packaging and selling vegetables and fruit |
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No. of Employees : |
27 employees |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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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
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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
QINGDAO
JIECHENG FOODSTUFF CO., LTD.
NO. 368, TAISHAN
ROAD, JIAONAN, QINGDAO,
SHANDONG PROVINCE
266499 PR CHINA
TEL: 86 (0)
532-88196853 FAX: 86 (0)
532-88196852
EXECUTIVE SUMMARY
INCORPORATION DATE : DEC. 27, 1999
REGISTRATION NO. : 370284400000898
REGISTERED LEGAL FORM : Wholly foreign-owned
enterprise
STAFF STRENGTH :
27
REGISTERED CAPITAL : USD 748,000
BUSINESS LINE :
CULTIVATING & TRADING
TURNOVER :
CNY 9,360,000 (AS OF DEC. 31,
2011)
EQUITIES :
CNY -1,370,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION :
FAIR
OPERATIONAL TREND : FAIR
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 is also known as Qingdao Jiecheng Food Co., Ltd.
SC was registered as a wholly foreign-owned enterprise at
local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on Dec. 27, 1999.
Company Status: Wholly foreign-owned enterprise This form of business in PR
China is defined as a legal person. It is a limited co. established within the
territories of PR China with capital provided totally by the foreign
investors. More than one foreign investor may jointly invest in a wholly
foreign-owned enterprise. The investing party/parties solely exercise
management, reap profit and bear risks and liabilities by themselves. This
form of companies usually have a limited duration is extendible upon
approval of Examination and Approval Authorities.
SC’s
registered business scope includes wholesaling prepackaged food; cultivation,
preservation, packaging and storage of vegetables and fruit; cultivation,
packaging and storage of blueberry. (with permit if needed)
SC is mainly
engaged in cultivating, packaging and selling vegetables and fruit.
Mr. Tong Lijie is legal
representative and chairman of SC at present.
SC is known to
have approx. 27 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and warehouse in Jiaonan. Our
checks reveal that SC owns the total premise about 1,360 square meters.
SC
is not known to host web site of its own at present.
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
MAIN SHAREHOLDER:
Name
% of Shareholding
Japan Chengcheng Trading Co., Ltd. (in
Chinese Pinyin) 100
Legal
representative and Chairman:
Mr. Tong Lijie is currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal representative and
chairman.
General manager:
Liu Yuenian is currently responsible for the daily management of SC.
Working Experience(s):
At present Working in SC as general manager.
Directors:
Tong Licheng
Mao Yunhai
SC is mainly engaged
in cultivating, packaging and selling vegetables and fruit.
SC’s products mainly include blueberry, etc.
SC sources its
materials 80% from domestic market and 20% from overseas market. SC sells 90%
of its products in domestic market and 10% to overseas market.
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.
Note:
SC declined to release its major suppliers and clients.
SC is not known to have the 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’s accountant
refused to release the bank details.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
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Cash & bank |
1,040 |
1,590 |
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Inventory |
140 |
280 |
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Accounts
receivable |
330 |
740 |
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Other
receivables |
220 |
230 |
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Other current
assets |
0 |
180 |
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------------------ |
------------------ |
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Current assets |
1,730 |
3,020 |
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Fixed assets net
value |
1,660 |
1,980 |
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Long term
investment |
0 |
0 |
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Projects under
construction |
0 |
0 |
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Intangible and
other assets |
250 |
240 |
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------------------ |
------------------ |
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Total assets |
3,640 |
5,240 |
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=========== |
=========== |
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Short loan |
0 |
0 |
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Accounts payable |
0 |
0 |
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Taxes payable |
-60 |
-30 |
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Other Accounts
payable |
5,550 |
6,600 |
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Other current
liabilities |
20 |
40 |
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------------------ |
------------------ |
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Current
liabilities |
5,510 |
6,610 |
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Long term
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
5,510 |
6,610 |
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Equities |
-1,870 |
-1,370 |
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------------------ |
------------------ |
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Total
liabilities & equities |
3,640 |
5,240 |
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=========== |
=========== |
Income Statement
Unit: CNY’000
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As
of Dec. 31, 2011 |
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Turnover |
9,360 |
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Cost of goods sold |
7,950 |
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Sales expense |
270 |
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Management expense |
1,000 |
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Finance expense |
20 |
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Profit before tax |
190 |
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Less: profit tax |
0 |
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Profits |
190 |
Important
Ratios
=============
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As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
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*Current ratio |
0.31 |
0.46 |
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*Quick ratio |
0.29 |
0.41 |
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*Liabilities
to assets |
1.51 |
1.26 |
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*Net profit
margin (%) |
/ |
2.03 |
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*Return on
total assets (%) |
/ |
3.63 |
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*Inventory
/Turnover ×365 |
/ |
11 days |
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*Accounts
receivable/Turnover ×365 |
/ |
29 days |
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*Turnover/Total
assets |
/ |
1.79 |
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* Cost of goods
sold/Turnover |
/ |
0.85 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in 2011.
l
SC’s net profit margin is average in 2011.
l
SC’s return on total assets is average in 2011.
l
SC’s cost of goods sold is average, comparing with
its turnover in 2011.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears average.
l
SC has no short-term loan in both years.
l
SC’s turnover is in an average level, comparing
with the size of its total assets in 2011.
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: Fair.
SC is considered small-sized in its line with fair financial
conditions..
Note: An interview was conducted with SC's financial manager Ms. Guan on
Oct. 12, 2012.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.52.70 |
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UK Pound |
1 |
Rs.84.51 |
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Euro |
1 |
Rs.68.16 |
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.