MIRA INFORM REPORT
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Report Date : |
05.09.2012 |
IDENTIFICATION DETAILS
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Name : |
CHINA TEA CO., LTD. |
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Registered Office : |
Cofco Fortune Plaza, No. 8 Chaoyangmen South Street
Chaoyang District, Beijing 100020 Pr |
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Country : |
CHINA |
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Financials (as on) : |
30.06.2012 |
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Date of Incorporation : |
24.04.1985 |
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Com. Reg. No.: |
110000009818741 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Selling tea, packaged foods, and investment in subsidiaries. |
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No. of Employees : |
75 |
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 – March 31st, 2012
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Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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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 TEA CO., LTD.
COFCO FORTUNE PLAZA, NO. 8 CHAOYANGMEN SOUTH STREET
CHAOYANG DISTRICT, BEIJING 100020 PR CHINA
TEL: 86 (0) 10-85018170/85627622/85018119
FAX: 86 (0) 10-85635033
EXECUTIVE SUMMARY
Date of Registration : APRIL 24, 1985
REGISTRATION NO. : 110000009818741
LEGAL FORM : Shares limited company
REGISTERED CAPITAL : cny 180,000,000
staff :
75
BUSINESS CATEGORY : trading and
investment
REVENUE :
CNY 92,340,000 (JAN. 1 2012 TO
JUN. 30, 2012)
EQUITIES :
CNY 210,110,000 (AS OF JUN. 30, 2012)
WEBSITE : http://www.teachina.com
E-MAIL :
N/A
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.36 = 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 shares limited company of PRC with State Administration of Industry &
Commerce (SAIC) under registration No.: 110000009818741.
SC’s Organization Code Certificate No.:
10110418-3
SC’s registered capital: cny 180,000,000
SC’s paid-in capital: cny 180,000,000
Registration Change Record:-
No significant changes of SC have been noted
in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Tea Research Institute Chinese Academy of
Agricultural Sciences |
0.56 |
|
China National Complete Plant Import &
Export Corporation (Group) |
1.66 |
|
Jiangxi Ning Hong Group Corporation |
0.56 |
|
China National Native Produce & Animal
By-Products Import & Export Corporation |
97.22 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Wang Zhen |
|
General Manager |
Jia Peng |
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Director |
Xu Shangfeng |
|
Meng Hui |
|
|
Hu Changping |
|
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Supervisor |
Zhao Dachuan |
|
Fu Naijun |
|
|
Sun Qingyu |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Tea Research Institute Chinese Academy of
Agricultural Sciences 0.56
China National Complete Plant Import &
Export Corporation (Group) 1.66
Jiangxi Ning Hong Group Corporation 0.56
China National Native Produce & Animal
By-Products Import & Export Corporation 97.22
Tea Research
Institute Chinese Academy of Agricultural Sciences
-------------------------------------------------------------------------------------
Address: No. 9 Meiling South Road, Hangzhou,
Zhejiang Province
Web: www.tricaas.com
E-mail: support@mail.tricaas.com
China National
Complete Plant Import & Export Corporation (Group)
------------------------------------------------------------------------------------------
Date of Registration: January 12, 1983
Registration No.: 100000000000975
Legal Form: State-Owned
Enterprise
Registered Capital: CNY 400,000,000
Jiangxi Ning Hong
Group Corporation
----------------------------------------------------
Date of Registration: June 10, 1994
Registration No.: 360424010000146
Legal Form: State-Owned
Enterprise
Registered Capital: CNY 13,000,000
China National
Native Produce & Animal By-Products Import & Export Corporation
------------------------------------------------------------------------------------------------------------
Date of Registration: November 10, 1983
Registration No.: 100000000001453
Legal Form: State-Owned
Enterprise
Registered Capital: CNY 637,570,000
Address: Cofco Fortune Plaza, No. 8
Chaoyangmen South Street, Chaoyang District, Beijing
Tel: 86 (0) 10-85018181
Fax: 86 (0) 10-85615151
E-mail: tuhsu@cofco.com
MANAGEMENT
Wang Zhen , Legal
Representative and Chairman
-----------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 52
Ø
ID# 110103196008091574
Ø Qualification:
University
Ø Working experience
(s):
At
present, working in SC as legal representative and chairman, also working in
China National Native Produce & Animal By-Products Import & Export
Corporation as legal representative
Jia Peng , General
Manager
--------------------------------------------
Ø
Gender: M
Ø
Age: 52
Ø
ID# 340103196012171019
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as general manager
Xu Shangfeng ,
Director
------------------------------------------
Ø
Gender: M
Ø
Age: 56
Ø
ID# 110101195610094076
Meng Hui ,
Director
----------------------------------
Ø
Gender: M
Ø
Age: 47
Ø
ID# 110105196510137737
Hu Changping ,
Director
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Ø
Gender: M
Ø
Age: 42
Ø
ID# 420106197010020819
Zhao Dachuan ,
Supervisor
----------------------------------------------
Ø
Gender: M
Ø
Age: 42
Ø
ID# 610102197006162734
Fu Naijun ,
Supervisor
----------------------------------------
Ø
Gender: F
Ø
Age: 44
Ø
ID# 110105681115778
Sun Qingyu ,
Supervisor
-------------------------------------------
Ø
Gender: M
Ø
Age: 50
Ø
ID# 110101620611101
BUSINESS OPERATION
SC’s registered business scope includes selling tea,
packaged foods, cooking oil, selling stereotypes packaged food, wine, processing
with imported materials, processing with imported samples, assembling with
imported parts, and compensation trade in agreement; counter trade & transit trade, selling local & animal products,
textiles, clothing, department stores, cultural and sports goods, hardware,
machinery and electronic equipment, chemical materials, electronic products,
building materials, ferrous metal materials, packaging materials, and wood, the
organization of domestic exhibitions, cultural exchange activities of tea, economic
information consultation service.
SC is mainly
engaged in selling tea, packaged foods, and investment in subsidiaries.
Brands: Monkey
King, Butterfly, Lucky, and etc.
SC’s products
mainly include: tea, packaged foods.
SC sources its materials 80% from domestic market,
mainly Yunnan and Fujian, and 20% from overseas market. SC sells 40% of its
products in domestic market, and 60% to overseas market, mainly U.S.A., Europe
and Southeast Asian market.
The buying terms
of SC include 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. 75 staff at
present.
SC rents an area
as its operating office, but the detailed information is unknown.
RELATED COMPANY
SC is known to have 12
subsidiaries at present, and the following are the major ones:
n
Xiamen Tea Imp. & Exp. Co., Ltd.
n
China Tea (Yunnan) Co., Ltd.
n
Fujian Tea I/E Co., Ltd.
n
China Tea (Hunan) Co., Ltd.
Etc.
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
The bank
information of SC is not filed in SAIC.
FINANCIALS
Balance Sheet
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Unit: CNY’000 |
As
of Jun. 30, 2012 |
|
23,140 |
|
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Accounts
receivable |
44,950 |
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Advances to
suppliers |
21,890 |
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Other receivable |
39,160 |
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Inventory |
73,930 |
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Non-current
assets within one year |
0 |
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Other current assets |
0 |
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------------------ |
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Current assets |
203,070 |
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Fixed assets |
1,050 |
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Construction in
progress |
0 |
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Intangible
assets |
0 |
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Long-term
investment |
242,440 |
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Deferred income
tax assets |
0 |
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Other
non-current assets |
14,760 |
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------------------ |
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Total assets |
461,320 |
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============= |
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Short-term loans |
68,530 |
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Notes payable |
0 |
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Accounts payable |
16,480 |
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Wages payable |
0 |
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Advances from
clients |
11,020 |
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Other payable |
152,050 |
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Other current
liabilities |
2,640 |
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------------------ |
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Current
liabilities |
250,720 |
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Non-current
liabilities |
490 |
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------------------ |
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Total
liabilities |
251,210 |
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Equities |
210,110 |
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------------------ |
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Total
liabilities & equities |
461,320 |
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Income Statement
|
Unit: CNY’000 |
Jan.
1 2012 to Jun. 30, 2012 |
|
Revenue |
92,340 |
|
Cost of sales |
69,870 |
|
Sales expense |
6,330 |
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Management expense |
9,900 |
|
Finance expense |
3,830 |
|
Profit before
tax |
2,410 |
|
Less: profit tax |
720 |
|
1,690 |
Important Ratios
=============
|
|
As
of Jun. 30, 2012 |
|
*Current ratio |
0.81 |
|
*Quick ratio |
0.52 |
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*Liabilities
to assets |
0.54 |
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*Net profit
margin (%) |
1.83 |
|
*Return on
total assets (%) |
0.37 |
|
*Inventory /
Revenue ×365/180 |
145 days |
|
*Accounts
receivable/ Revenue ×365/180 |
88 days |
|
*
Revenue/Total assets |
0.20 |
|
* Cost of
sales / Revenue |
0.76 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC
appears fairly good 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 revenue.
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 slightly large.
l
The accounts receivable of SC appears slightly
large.
l
The short-term loan of SC appears slightly large.
l
SC’s revenue is in a fair level, comparing with the
size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Stable.
CONCLUSIONS
SC is considered medium-sized in its line with stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.54 |
|
|
1 |
Rs.88.23 |
|
Euro |
1 |
Rs.70.02 |
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 |
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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 |
-- |
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.