MIRA
INFORM REPORT
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Report Date : |
17.09.2012 |
IDENTIFICATION DETAILS
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Name : |
LINYI DONGYUE IMPORT & EXPORT CO., LTD. |
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Registered Office : |
Zhuanbu Industry Zone, Yi’nan County, |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
26.01.2010 |
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Com. Reg. No.: |
371321200002891 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Selling brick
machine and clothing |
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No. of Employees : |
25 employees |
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
|
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.
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Source : CIA |
Company name & address
LINYI DONGYUE IMPORT & EXPORT CO., LTD.
ZHUANBU INDUSTRY ZONE, YI’NAN COUNTY, LINYI CITY,
SHANDONG PROVINCE, 276308 PR CHINA
TEL: 86 (0) 539-8036228/3800066 FAX: 86 (0) 539-8025589
EXECUTIVE SUMMARY
INCORPORATION DATE :
JAN. 26, 2010
REGISTRATION NO. :
371321200002891
REGISTERED LEGAL FORM : LIMITED
LIABILITIES CO.
CHIEF EXECUTIVE :
MS. SUN JINGHUI (CHAIRMAN)
STAFF STRENGTH :
25
REGISTERED CAPITAL : CNY 2,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 1,290,000 (AS OF DEC. 31,
2011)
EQUITIES :
CNY 3,210,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE : CNY 6.3239=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
SC was registered as a One-person Limited
Liability Company at local Administration for Industry & Commerce (AIC -
The official body of issuing and renewing business license) on Jan. 26, 2010, and
has been under the present legal form since Aug. 1, 2012.
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 manufacturing, processing and
selling clothing, bags, ribbon, toys, crafts; importing and exporting goods. (excluding
the items limited by the state)
SC is mainly
engaged in selling brick machine and clothing.
Ms. Sun Jinghui
has been legal representative, chairman and general manager of SC since 2010.
SC is known
to have approximately 25 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the industrial zone of Yi’nan County. The detailed
information of the premise is unspecific.
SC
also has another address located in 8/F, Changlong International Business
Building, No. 8, Tongda Road, Lanshan District, Linyi, Shandong Province
http://www.dongyuejixie.com.cn
The website belongs to SC’s parent company Dongyue Machinery Group Co., Ltd.
The design is professional and the content is well organized. At present it is
in Chinese and English versions.
E-mail: sddy028@126.com
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Shareholder’s name |
Shandong Dongyue Building Machine Co., Ltd. |
Dongyue Machinery Group Co., Ltd. |
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Shareholders and shareholding |
Sun Jinghui 100% |
Present ones |
|
Legal form |
One-person Limited Liability Company |
Present one |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Dongyue Machinery Group Co., Ltd. 60
Sun Jinghui 40
Dongyue
Machinery Group Co., Ltd.
========================
It is a company specialized in producing
various kinds of Block Making Machine and Aerated (light weight) Concrete Block
Machine.
Registration no.: 371321228008507
Tel: 86- 0539-3628888 / 0539-3628999
Fax: 86- 0539-3803888
Web: http://www.dongyuejixie.com.cn
Legal
Representative, Chairman
and General Manager:
Ms. Sun Jinghui is currently
responsible for the overall management of SC.
Working Experience(s):
From 2010 to present Working in SC as legal representative, chairman and general manager
Also working in Linyi Dongyue Import & Export Co., Ltd. Tongda Road Branch as principal.
Supervisor:
Zhang Yuanxi
SC is mainly
engaged in selling brick machine and clothing.
SC’s products mainly include: brick machine and clothing.
SC sources its materials 100% from domestic market. SC sells 1% of its
products in domestic market, and 99% to overseas market, mainly India,
Indonesia, etc.
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 main clients and
suppliers.
According to the website: http://www.dongyuejixie.com.cn
Shandong Qingda New Energy Co., Ltd. (in Chinese Pinyin)
Linyi Dongyue New Building Materials Co., Ltd.
Linyi Dongyue Shengda Machinery Manufacturer Co., Ltd.
Linyi Dongyue Pressure Vessel Equipment Manufacturing Co., Ltd.
SC is not known
have the following branch:
Linyi
Dongyue Import & Export Co., Ltd. Tongda Road Branch
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.
Bank of China
Linyi Yi’nan Sub-branch
Add: No. 79,
Lishan Road, Yi’nan County, Linyi, Shandong Province
AC#：N/A
Agricultural Bank
of China Linyi Yi’nan County Sub-branch
AC#：N/A
Relationship:
Normal.
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 |
2,800 |
1,040 |
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Inventory |
10 |
10 |
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Accounts
receivable |
-50 |
-50 |
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Advances to
suppliers |
0 |
0 |
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Other
receivables |
0 |
0 |
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Other current
assets |
0 |
0 |
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|
------------------ |
------------------ |
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Current assets |
2,760 |
1,000 |
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Long-term investments |
0 |
0 |
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Fixed assets net
value |
360 |
360 |
|
Projects under
construction |
0 |
0 |
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Intangible
assets |
0 |
0 |
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Other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
3,120 |
1,360 |
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============= |
============= |
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Short loans |
0 |
0 |
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Accounts payable |
-7,900 |
-11,770 |
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Advances from
customers |
8,780 |
10,450 |
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Accrued
Payroll |
10 |
10 |
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Taxes payable |
-660 |
-740 |
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Other accounts
payable |
200 |
200 |
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Other
current liabilities |
0 |
0 |
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----------------- |
----------------- |
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Current
liabilities |
430 |
-1,850 |
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Long term
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
430 |
-1,850 |
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Shareholders
equities |
2,690 |
3,210 |
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------------------ |
------------------ |
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Total
liabilities & equities |
3,120 |
1,360 |
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============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31, 2011 |
|
Turnover |
1,290 |
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Cost of goods
sold |
740 |
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Taxes
and additional of main operation |
0 |
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Sales expense |
10 |
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Management expense |
20 |
|
Finance expense |
0 |
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Non-operating
income |
0 |
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Non-operating expense |
0 |
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Profit before
tax |
520 |
|
Less: profit tax |
0 |
|
Net profit |
520 |
Important
Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
6.42 |
-0.54 |
|
*Quick ratio |
6.40 |
-0.54 |
|
*Liabilities
to assets |
0.14 |
-1.36 |
|
*Net profit
margin (%) |
/ |
40.31 |
|
*Return on total
assets (%) |
/ |
38.24 |
|
*Inventory
/Turnover ×365 |
/ |
3 days |
|
*Accounts
receivable/Turnover ×365 |
/ |
/ |
|
*Turnover/Total
assets |
/ |
0.95 |
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* Cost of goods
sold/Turnover |
/ |
0.57 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in its line in 2011.
l
SC’s net profit margin is good in 2011.
l
SC’s return on total assets is good in 2011.
l
SC’s cost of goods sold is average in 2011,
comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in 2010.
l
SC’s quick ratio is maintained in a normal level in
2010.
l
The inventory of SC appears small in both years.
l
SC has no short-term loan in both years.
l
SC’s turnover is in a fair level in 2011, comparing
with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is low in 2010.
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.54.73 |
|
UK Pound |
1 |
Rs.88.61 |
|
Euro |
1 |
Rs.71.34 |
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 |
|
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 |
|
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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.