MIRA
INFORM REPORT
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Report Date : |
08.04.2013 |
IDENTIFICATION DETAILS
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Name : |
NINGBO RED LAND TRADE CO., LTD. |
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Registered Office : |
Room 807, 5th
Building, Fuliwan, Hushan Street, Cixi, Zhejiang Province 315300 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
18.08.2008 |
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Com. Reg. No.: |
330218000005585 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
selling metal materials and hardware parts |
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No. of Employees : |
12 |
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 : |
Small Company |
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Payment Behaviour : |
Slow but Correct |
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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
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
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 & address
NINGBO RED LAND TRADE
CO., LTD.
ROOM 807, 5TH BUILDING, FULIWAN, HUSHAN STREET
CIXI, ZHEJIANG PROVINCE 315300 PR CHINA
TEL: 86 (0) 574-63896168
FAX: 86 (0) 574-63817698
EXECUTIVE SUMMARY
Date of Registration : august 18, 2008
REGISTRATION NO. : 330218000005585
LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE : chen zhou (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL :
CNY 1,500,000
staff : 12
BUSINESS CATEGORY :
TRADING
Revenue : CNY 6,709,000 (AS OF DEC. 31, 2012)
EQUITIES : CNY 1,315,000 (AS OF DEC. 31, 2012)
WEBSITE : www.greatrade.net
E-MAIL :
pollydan@163.com
PAYMENT : AVERAGE
MARKET CONDITION : FAIR
FINANCIAL CONDITION : fair
OPERATIONAL TREND : FAIR
GENERAL REPUTATION : FAIR
EXCHANGE RATE : CNY 6.21 = 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
LEGAL
STATUS & HISTORY
SC was
established as a limited liabilities company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 330218000005585 on August 18,
2008.
SC’s Organization Code Certificate
No.: 67767313-5
SC’s Tax No.: 330282677673135
SC’s registered capital: CNY 1,500,000
SC’s paid-in capital: CNY 1,500,000
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 |
|
Shi Lidan |
50 |
|
Chen Junhua |
50 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Chen
Zhou |
|
Director/Supervisor |
Shi Lidan |
|
Chen Junhua |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name
%
of Shareholding
Shi Lidan 50
Chen Junhua 50
MANAGEMENT
Chen
Zhou, Legal
Representative, Chairman and General Manager
-----------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
ID# 330222197501121116,
Ø
Age: 38
Ø
Qualification:
University
Ø
Working
experience (s):
At present,
working in SC as legal representative, chairman and general manager
Director/Supervisor
--------------------------
Shi Lidan ID#
330282198205035003
Chen Junhua ID#
330107194909190032
BUSINESS
OPERATION
SC’s registered
business scope includes wholesaling and retailing chemical fiber, chemical raw
materials and chemicals (excluding the hazard chemicals), metal materials,
building materials, instruments, hardware parts and arts & crafts.
SC is mainly
engaged in selling metal materials and hardware parts.
SC’s products mainly include:
Freewheel
>>
Multi-Freewheel
>>
Single Freewheel
Chainwheel
& Crank
Hubs
B.B.Sets
Derailleur
Shift Lever
Brake
Lever
V-Brake
Caliper Brake Hold Brake Disk Brake
Shock
Absorber
Pedal
Horn
Grip
Tool
Brasket
Light
Lock
Pump
Peg/Qick
Release Valve
Kickstand./Seat
Post/Handlebar
Steel
Kickstand/Carrier/Stem
Handle
Bar
Motor
Parts Hid Light
Steer
Grip/Brake/Rim
Bike
SC sources its materials 100% from domestic market. SC sells 85% in domestic market and 15% to overseas market, mainly Southeast Asia, 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.
Staff & Office:
--------------------------
SC is
known to have approx. 12 staff
at present.
SC rents an area as
its operating office, but the detailed information is unknown.
RELATED
COMPANY
n
Xuzhou Greatwall Flywheel Co., Ltd.
---------------------------------
Tel.: 86 (0) 516-88365700
Fax: 86 (0) 516-88365266
Web:
www.greatwall-flywheel.com
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
Basic Bank:
Bank
of China Cixi Sub-branch
AC#:
817037402908091001
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
1,196 |
585 |
|
|
Notes receivable |
0 |
0 |
|
Accounts
receivable |
742 |
-50 |
|
Advances to
suppliers |
0 |
0 |
|
Other receivable |
374 |
0 |
|
Subsidy
receivable |
664 |
234 |
|
Inventory |
0 |
0 |
|
Deferred
expenses |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
2,976 |
769 |
|
Fixed assets |
452 |
304 |
|
Construction in
progress |
0 |
0 |
|
Intangible
assets |
0 |
0 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
3,428 |
1,073 |
|
|
============= |
============= |
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Short-term loans |
0 |
0 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
1,431 |
-673 |
|
Wages payable |
0 |
0 |
|
Taxes payable |
1 |
0 |
|
Advances from
clients |
0 |
0 |
|
Other payable |
498 |
0 |
|
Other current
liabilities |
0 |
431 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
1,930 |
-242 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
1,930 |
-242 |
|
Equities |
1,498 |
1,315 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
3,428 |
1,073 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Revenue |
10,852 |
6,709 |
|
Cost of sales |
10,054 |
6,228 |
|
Taxes and surcharges |
0 |
0 |
|
Sales expense |
449 |
339 |
|
Management expense |
313 |
266 |
|
Finance expense |
29 |
50 |
|
Profit before
tax |
7 |
-171 |
|
Less: profit tax |
2 |
0 |
|
5 |
-171 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
1.54 |
-3.18 |
|
*Quick ratio |
1.54 |
-3.18 |
|
*Liabilities
to assets |
0.56 |
-0.23 |
|
*Net profit
margin (%) |
0.05 |
-2.55 |
|
*Return on
total assets (%) |
0.15 |
-15.94 |
|
*Inventory /
Revenue ×365 |
-- |
-- |
|
*Accounts
receivable/ Revenue ×365 |
25 days |
-- |
|
*
Revenue/Total assets |
3.17 |
6.25 |
|
* Cost of
sales / Revenue |
0.93 |
0.93 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIR
l
The revenue of SC appears fair, and it decreased in
2012.
l
SC’s net profit margin is average in 2011, fair in
2012.
l
SC’s return on total assets is average in 2011,
poor in 2012.
l
SC’s cost of sales is fairly high, comparing with
its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a normal
level in 2011.
l
SC’s quick ratio is maintained in a fairly good
level in 2011.
l
SC has no inventory.
l
The accounts receivable of SC is maintained in an
average level in 2011.
l
SC has no short-term loans.
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 average in 2011.
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.54.88 |
|
UK Pound |
1 |
Rs.83.54 |
|
Euro |
1 |
Rs.70.90 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.