MIRA
INFORM REPORT
|
Report Date : |
02.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
QUANZHOU ZHONGTAI IMP. & EXP. CO., LTD. |
|
|
|
|
Registered Office : |
Znongtai 2/F, Xiadian Intersection, Chongwu Town, Huian County,
Quanzhou, Fujian Province, 362131 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
17.06.2005 |
|
|
|
|
Com. Reg. No.: |
350521100010091 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
Selling Stone Materials |
|
|
|
|
No. of Employees : |
30 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
Payment Behaviour : |
Slow but correct |
|
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
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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
QUANZHOU ZHONGTAI IMP. & EXP. CO., LTD.
ZNONGTAI 2/F,
XIADIAN intersection, CHONGWU TOWN, HUIAN COUNTY,
QUANZHOU, FUJIAN
PROVINCE, 362131 PR CHINA
TEL: 86 (0)
595-87690088 FAX: 86 (0)
595-87697503
EXECUTIVE SUMMARY
INCORPORATION DATE : JUNE 17, 2005
REGISTRATION NO. : 350521100010091
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
30
REGISTERED CAPITAL : CNY 10,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 98,330,000 (UNAUDITED, AS OF
DEC. 31, 2012)
EQUITIES :
CNY 10,890,000 (UNAUDITED, AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.20 = 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 limited liabilities company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on June 17, 2005.
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 importing and exporting commodities and technology, excluding
the items prohibited by the state; electronic commerce; developing network
engineering and software (with permits if needed).
SC is mainly
engaged in selling stone materials.
Mr. Wu Taiyu has been legal representative and chairman of
SC since 2005.
SC is known to have approx. 30 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in Quanzhou. Our checks reveal that SC rents the total
premise, but SC’s accountant refused to release the gross area.
http://www.qzztcn.com/
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
E-mail: zt@qzztcn.com
Changes
of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2009 |
Registered capital |
CNY 1,000,000 |
CNY 5,000,000 |
|
Unknown |
Registered capital |
CNY 5,000,000 |
Present amount |
|
Shareholdings |
Wu Taiyu 98% Wu Fujin 2% |
Present ones |
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Wu Taiyu 99
Wu Fujin 1
l
Legal representative and Chairman:
Mr. Wu Taiyu is currently
responsible for the overall management of SC.
Working Experience(s):
From 2005 to present Working
in SC as chairman and legal representative.
Also working in Huian Huiru Info-Tech. Co.,
Ltd. as legal representative.
SC is mainly engaged
in selling stone materials.
Main Products:
stone materials, stone carving, etc.
SC sources its materials 95% from domestic
market and 5% from overseas market. SC sells 30% of its products in domestic
market and 70% 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.
Huian Huiru Info-Tech. Co., Ltd.
Registered no.: 350521100010083
Legal representative: Wu Taiyu
According to SC’s website:
Xiamen Office
Add: 604#, 2-1 Xinglong Road Huli Xiamen Fujian
Tel: 86-592-5652921
Fax: 86-592-5652920
Nan’an Office
Add: No. 1102, A2 (2) Bldg. Liunan Community, Nanan
Tel: 86-595-86359579
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.
Industrial and Commercial Bank of China Huian County Sub-branch
AC#：1408011109008083020
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2012 |
|
Cash & bank |
11,270 |
|
Inventory |
2,940 |
|
Accounts
receivable |
40,890 |
|
Other
receivables |
530 |
|
Other current
assets |
10 |
|
|
------------------ |
|
Current assets |
55,640 |
|
Fixed assets net
value |
410 |
|
Long term
investment |
0 |
|
Projects under
construction |
0 |
|
Intangible and
other assets |
5,760 |
|
|
------------------ |
|
Total assets |
61,810 |
|
|
=========== |
|
Short loan |
21,520 |
|
Accounts payable |
29,000 |
|
Advances from
clients |
0 |
|
Other Accounts
payable |
40 |
|
Other current
liabilities |
360 |
|
|
------------------ |
|
Current
liabilities |
50,920 |
|
Long term
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
50,920 |
|
Equities |
10,890 |
|
|
------------------ |
|
Total
liabilities & equities |
61,810 |
|
|
=========== |
Income Statement
Unit: CNY’000
|
|
As
of Dec. 31, 2012 |
|
Turnover |
98,330 |
|
Cost of goods sold |
93,480 |
|
Sales expense |
0 |
|
Management expense |
4,570 |
|
Finance expense |
610 |
|
Profit before tax |
/ |
|
Less: profit tax |
/ |
|
Profits |
/ |
Note: The financial reports for Yr2012 have not been audited; SC’s management refused
to release the completed income statement.
Important
Ratios
=============
|
|
As of Dec. 31, 2012 |
|
*Current ratio |
1.09 |
|
*Quick ratio |
1.03 |
|
*Liabilities
to assets |
0.82 |
|
*Net profit
margin (%) |
/ |
|
*Return on
total assets (%) |
/ |
|
*Inventory
/Turnover ×365 |
11 days |
|
*Accounts
receivable/Turnover ×365 |
152 days |
|
*Turnover/Total
assets |
1.59 |
|
* Cost of
goods sold/Turnover |
0.95 |
l
The turnover of SC appears average.
l
SC’s cost of goods sold is high, comparing with its
turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears large.
l
The short-term loan of SC appears fairly large.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIR
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.
SC is considered small-sized in its line with fairly stable financial
conditions. The large amount of accounts receivable and short-term loan could
be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.39 |
|
|
1 |
Rs.82.32 |
|
Euro |
1 |
Rs.69.54 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>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 |
|
-- |
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.