MIRA
INFORM REPORT
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Report Date : |
11.09.2012 |
IDENTIFICATION DETAILS
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Name : |
SHANDONG KAIYUAN WOOD INDUSTRY CO., LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
23.08.2002 |
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Com. Reg. No.: |
371300228059922 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Importing and exporting goods and technology; wood technology development. |
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No. of Employees : |
36 |
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RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 – 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
SHANDONG KAIYUAN WOOD INDUSTRY CO., LTD.
GETUAN INDUSTIRAL PARK, ZHUBAO TOWN, LANSHAN DISTRICT, LINYI
SHANDONG PROVINCE 276039 PR CHINA
TEL: 86 (0) 539-8550388/8550365
FAX: 86 (0) 539-8543266
EXECUTIVE SUMMARY
Date of Registration : August 23, 2002
REGISTRATION NO. : 371300228059922
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : cny 20,000,000
staff :
36
BUSINESS CATEGORY : trading
Revenue :
CNY 45,105,000 (AS OF DEC. 31,
2011)
EQUITIES :
CNY 18,229,000 (AS OF DEC. 31, 2011)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.35 = 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 limited liabilities company of PRC with State Administration of Industry
& Commerce (SAIC) under registration No.: 371300228059922 on August 23, 2002.
SC’s Organization Code Certificate No.:
74242621-1
SC’s Tax No.: 371302742426211
SC’s registered capital: cny 20,000,000
SC’s paid-in capital: cny 20,000,000
Registration Change Record:-
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Date |
Change of Contents |
Before the change |
After the change |
|
2010-12 |
Registered Capital |
CNY 10,000,000 |
CNY 20,000,000 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
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Name of Shareholder (s) |
% of Shareholding |
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Meng Xiangxiao and Other Individuals |
100 |
SC’s Chief Executives:-
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Position |
Name |
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Legal Representative, Chairman, and
General Manager |
Meng Xiangxiao |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Meng Xiangxiao and Other Individuals 100
MANAGEMENT
Meng Xiangxiao , Legal Representative, Chairman and General
Manager
---------------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
From 2002 to present, working in SC as legal
representative, chairman and general manager
Meng Xiaowu , Sales
Manager
---------------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Mobile:
86 (0) 13668690699
BUSINESS OPERATION
SC’s registered business scope includes importing and
exporting goods and technology; wood technology development.
SC is mainly
engaged in international trade.
SC’s products
mainly include: engineered veneer, engineered wood block, spliced veneer,
engineered lvl plywood, dyed veneer, reconstututed veneer, recomposed veneer,
natural wood veneer, bamboo veneer, face veneer, door skin, moulding,
engineered block, sawn timber, edge-banding roll veneer, etc.
SC sources its materials 100% from domestic market, mainly Shandong. SC sells 70% of its products in domestic market, and 30% to overseas market, mainly USA, Mid East, Southeast Asia, etc.
The buying terms of
SC include Check, T/T 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. 36 staff at
present.
SC owns an area as
its operating office, but the detailed information is unknown.
RELATED COMPANY
SC
is not known to have any subsidiary at present.
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 Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
1,755 |
852 |
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Notes receivable |
0 |
0 |
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Accounts
receivable |
-368 |
3,770 |
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Advances to
suppliers |
4,247 |
3,637 |
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Other receivable |
449 |
3 |
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Inventory |
14,919 |
14,646 |
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Non-current
assets within one year |
0 |
0 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
21,002 |
22,908 |
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Fixed assets |
11,157 |
16,334 |
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Construction in
progress |
0 |
0 |
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Intangible
assets |
0 |
0 |
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Long-term
prepaid expenses |
0 |
0 |
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Deferred income
tax assets |
0 |
0 |
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Other
non-current assets |
0 |
0 |
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------------------ |
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Total assets |
32,159 |
39,242 |
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============= |
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Short-term loans |
8,400 |
5,400 |
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Notes payable |
0 |
0 |
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Accounts payable |
41 |
8,421 |
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Wages payable |
0 |
0 |
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Taxes payable |
24 |
19 |
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Advances from
clients |
0 |
0 |
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Other payable |
4,465 |
7,173 |
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Other current
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current
liabilities |
12,930 |
21,013 |
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Non-current liabilities |
0 |
0 |
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------------------ |
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Total
liabilities |
12,930 |
21,013 |
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Equities |
19,229 |
18,229 |
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Total
liabilities & equities |
32,159 |
39,242 |
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Income Statement
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Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
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Revenue |
34,813 |
45,105 |
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Cost of sales |
33,147 |
42,877 |
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Taxes and surcharges |
661 |
723 |
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Sales expense |
355 |
754 |
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Management expense |
724 |
808 |
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Finance expense |
736 |
925 |
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Non-business
income |
1,119 |
224 |
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Non-business expenditure |
11 |
27 |
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Profit before
tax |
-464 |
-785 |
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Less: profit tax |
174 |
226 |
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-638 |
-1,011 |
Important Ratios
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As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
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*Current ratio |
1.62 |
1.09 |
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*Quick ratio |
0.47 |
0.39 |
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*Liabilities
to assets |
0.40 |
0.54 |
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*Net profit
margin (%) |
-1.83 |
-2.24 |
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*Return on
total assets (%) |
-1.98 |
-2.58 |
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*Inventory /
Revenue ×365 |
157 days |
119 days |
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*Accounts
receivable/ Revenue ×365 |
-- |
31 days |
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*
Revenue/Total assets |
1.08 |
1.15 |
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* Cost of
sales / Revenue |
0.95 |
0.95 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
l
The revenue of SC appears average in its line.
l
SC’s net profit margin is fair in both years.
l
SC’s return on total assets is fair in both years.
l
SC’s cost of sales is fairly high, comparing with
its revenue.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a poor level.
l
The inventory of SC appears large.
l
The accounts receivable of SC is maintained in an
average level in 2011.
l
SC’s short-term loans are in an average level.
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 average.
l
The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Fair.
CONCLUSIONS
SC is considered small-sized in its line with fair financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.34 |
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|
1 |
Rs.88.50 |
|
Euro |
1 |
Rs.70.74 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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 |
-- |
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.