MIRA
INFORM REPORT
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Report Date : |
26.10.2012 |
IDENTIFICATION DETAILS
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Name : |
CHINA NATIONAL TOWNSHIP ENTERPRISES CORPORATION |
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Registered Office : |
8/F, |
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Country : |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
07.09.1983 |
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Com. Reg. No.: |
100000000001324 |
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Legal Form : |
State Owned Enterprise |
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Line of Business : |
Engaged in importing and exporting trade, acting as an importing and exporting agent, bidding business, etc. |
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No. of Employees : |
100 |
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RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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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 (31.03.2011) |
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.
Source : CIA
Company name and address
CHINA NATIONAL TOWNSHIP ENTERPRISES CORPORATION
8/F, JINGCHAO BUILDING, NO. 5 SOUTH NONGZHAN ROAD
CHAOYANG DISTRICT, BEIJING 100026 PR CHINA
TEL: 86 (0) 10-59193823/59193804
FAX: 86 (0) 10-59193814/59193815/59193849
EXECUTIVE SUMMARY
Date of Registration : September 7, 1983
REGISTRATION NO. : 100000000001324
LEGAL FORM : STATE OWNED ENTERPRISE
REGISTERED CAPITAL : CNY 63,510,000
staff :
100
BUSINESS CATEGORY : trading
Revenue :
CNY 1,344,494,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 151,086,000 (AS OF DEC. 31, 2011)
WEBSITE : www.cntec.com.cn
E-MAIL :
info@cntec.com.cn
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.25 = USD 1
Adopted abbreviations (as follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
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 state owned enterprise of
PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 100000000001324 on
September 7, 1983.
SC’s Organization Code Certificate No.:
10000132-6
SC’s registered capital: CNY 63,510,000
SC’s paid-in capital: CNY 59,210,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
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2008 |
Legal Representative |
Wu Peilong |
Shi Mingshan |
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Registration No. |
1000001000132 |
100000000001324 |
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2011 |
Superior Department’s Name |
China National Agricultural Development
Group Corp. |
China National Agricultural Development
Group Co., Ltd. |
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Registered Capital |
CNY 59,210,000 |
CNY 63,510,000 |
Current Co search indicates SC’s superior department & chief
executives are as follows:-
|
Superior
Department |
|
China National Agricultural Development
Group Co., Ltd. |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and General Manager |
Shi Mingshan |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
SUPERIOR DEPARTMENT
Name
China National Agricultural Development Group
Co., Ltd.
China National Agricultural Development Group Co., Ltd. (referred to as
"CNADC") is a central agricultural enterprise under direct governance
of the State—owned Assets Supervision and Administration Commission of the
State Council (SASAC). The business of CNADC spreads over to every province
(autonomous region or municipality directly under the central government) of
China. CNADC has established branches or bases in more than 40 countries
(regions) around the world and keeps economic and trade ties with over 80
countries (regions).
Date of Registration: June 25, 1985
Registration No.: 100000000003053
Legal Form: Sole State-Owned
Enterprise
Registered Capital: CNY 1,593,230,000
Add: No. 31 Minfeng Lane, Xidan, Beijing
Tel: 86-10-88067008
Fax: 86-10-88067017
Website: www.cnadc.com.cn
MANAGEMENT
Shi Mingshan , Legal Representative and General Manager
----------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age:
Ø
Qualification:
University
Ø
Working
experience (s):
rom 2008 to present, working in SC as general manager and
legal representative
Also
working in China Fishery Tianjin Corp. as legal representative and general
manager
BUSINESS OPERATION
SC’s registered business scope includes wholesaling gasoline, kerosene,
diesel within marine fisheries system (valid until June 21, 2015); operating medical
devices (specific projects subject to the license, valid until June 16, 2015);
import and export of crop seeds (valid until April 30, 2013); operating grass
seed (valid until January 24, 2015); wholesaling (non-physical way)
pre-packaged foods, bulk food (water products) (valid until February 28, 2013);
operating steel, nonferrous metal, textile and chemical raw materials and
products (excluding dangerous chemicals), mineral products, building materials,
wood, electrical and mechanical equipment, instrumentation, hardware,
automobiles, motorcycles and spare parts, and agricultural and livestock feed ,
fertilizer; green project design and construction; mechanical and electrical
equipment tendering and bidding; import and export business; indoor and outdoor
decoration; organizing landscape design; providing consulting services,
information services related to the main business.
SC is mainly
engaged in importing and exporting trade, acting as an importing and exporting
agent, bidding business, etc.
International
Trade: SC has issued a system of marine fisheries of gasoline, kerosene, diesel
wholesale franchise license, import and export crop seeds license, grass seed
business license, food distribution license, operation of hazardous chemicals
license and medical equipment license by the Ministry of Commerce. The main
products categories: agricultural products, aquatic products, oil crops, wool,
seeds, agricultural plastics, agricultural machines and equipment, refined oil
for fishing and other core businesses.
Tendering Service:
SC was awarded the first Grade “A” Procurement Agency of Government in the
agricultural system by the Ministry of Finance. It issued the central
investment agency qualification for the tender by National Development and
Reform Commission. In recent years, there were 122 tender agent projects in our
company, which these projects cover agricultural systems research, teaching,
technical services and so on.
Storage Logistics:
SC has standard storage in Jinghai, Tianjin, which it has capacity of 2 million
square meters. As the basis of the modern international logistics center in
Tianjin and the port, the storage is the distribution base of agricultural
products, imports of agricultural production, wholesale, transport for SC.
SC sources its materials 30% from domestic
market, and 70% from overseas market. SC sells 80% of its products in domestic
market, and 20% 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.
*Major Customer:
==============
Triple F Inc.
*Major Supplier:
==============
Sociedad Nacional
De Galapagos C.A.
Staff & Office:
--------------------------
SC is known
to have approx. 100 staff at
present.
SC owns an area as
its operating office of approx. 5,000 sq. meters at the heading address.
RELATED COMPANY
SC is known to have 2
subsidiaries at present:
n
Beijing Jiu Jiu Jiu Goods & Materials Trade Corp.
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Date Of Registration: March 3, 1994
Registration No.: 110000005022526
Registered Capital: CNY 1,000,000
n
China Fishery Tianjin Corp.
----------------------------------------
Date Of Registration: August 1, 1978
Registration No.: 120000000004035
Registered Capital: CNY 19,132,000
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’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.
BANKING
Basic Bank:
Agricultural Bank of China
AC#:
042701040003025
FINANCIALS
Balance Sheet
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Unit: CNY’000 |
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
308,840 |
226,790 |
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Notes receivable |
0 |
0 |
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Accounts
receivable |
300 |
2,970 |
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Advances to
suppliers |
188,080 |
295,880 |
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Other receivable |
940 |
51,120 |
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Inventory |
287,100 |
352,300 |
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Non-current
assets within one year |
0 |
0 |
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Other current
assets |
10 |
20 |
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------------------ |
------------------ |
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Current assets |
785,270 |
929,080 |
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Fixed assets |
15,010 |
14,350 |
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Construction in
progress |
0 |
0 |
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Intangible
assets |
260 |
210 |
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Long-term
investment |
41,760 |
20,850 |
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Deferred income
tax assets |
0 |
0 |
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Other
non-current assets |
8,830 |
2,930 |
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------------------ |
------------------ |
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Total assets |
851,130 |
967,420 |
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============= |
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Short-term loans |
0 |
0 |
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Notes payable |
24,140 |
21,310 |
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Accounts payable |
193,310 |
120,110 |
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Salaries payable |
2,500 |
3,740 |
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Taxes payable |
-34,440 |
-46,290 |
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Advances from
clients |
392,270 |
567,360 |
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Other payable |
167,510 |
177,190 |
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Other current
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current
liabilities |
745,290 |
843,420 |
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Non-current
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
745,290 |
843,420 |
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Equities |
105,840 |
124,000 |
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------------------ |
------------------ |
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Total
liabilities & equities |
851,130 |
967,420 |
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============= |
============= |
Income Statement
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Unit: CNY’000 |
As of Dec. 31,
2009 |
As of Dec. 31,
2010 |
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Revenue |
693,400 |
1,097,810 |
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Cost of sales |
639,550 |
1,036,190 |
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Taxes and surcharges |
470 |
550 |
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Sales expense |
8,630 |
9,860 |
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Management expense |
14,820 |
18,550 |
|
Finance expense |
-2,520 |
-3,300 |
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Investment
income |
0 |
-2,380 |
|
Non-operating
income |
790 |
240 |
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Non-operating expense |
300 |
0 |
|
Profit before
tax |
32,940 |
36,700 |
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Less: profit tax |
8,230 |
9,780 |
|
24,710 |
26,920 |
Financial Summary
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
|
Long term investment |
20,875 |
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Total assets |
1,153,013 |
|
|
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Total
liabilities |
1,001,927 |
|
Equities |
151,086 |
|
|
------------- |
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Revenue |
1,344,494 |
|
Profit before
tax |
60,893 |
|
Less: profit tax |
15,897 |
|
Profits |
44,996 |
Note: The detailed financials for Y2011 are not available in SAIC.
Important Ratios
=============
|
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As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
1.05 |
1.10 |
-- |
|
*Quick ratio |
0.67 |
0.68 |
-- |
|
*Liabilities
to assets |
0.88 |
0.87 |
0.87 |
|
*Net profit
margin (%) |
3.56 |
2.45 |
3.35 |
|
*Return on
total assets (%) |
2.90 |
2.78 |
3.90 |
|
*Inventory /
Revenue ×365 |
152 days |
117 days |
-- |
|
*Accounts
receivable/ Revenue ×365 |
1 day |
1 day |
-- |
|
*
Revenue/Total assets |
0.81 |
1.13 |
1.17 |
|
* Cost of
sales / Revenue |
0.92 |
0.94 |
-- |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in its line,
and it increased in 2011.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of sales is fairly high in 2009 and 2010,
comparing with its revenue.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a normal
level in 2009 and 2010.
l
SC’s quick ratio is maintained in a fair level in
2009 and 2010.
l
The inventory of SC appears large in 2009 and 2010.
l
The accounts receivable of SC is maintained in an
average level in 2009 and 2010.
l
SC has no short-term loans in 2009 and 2010.
l
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
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.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of inventory may be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.63 |
|
|
1 |
Rs.86.17 |
|
Euro |
1 |
Rs.69.74 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
RATING EXPLANATIONS
|
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 |
|
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 |
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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 |
-- |
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.