MIRA
INFORM REPORT
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Report Date : |
22.04.2013 |
IDENTIFICATION DETAILS
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Name : |
JIANGMEN ZHONG AN IMPORT & EXPORT CO., LTD. |
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Registered Office : |
First Floor, No. 2 Gaosha 6th Area, Pengjiang District, Jiangmen, Guangdong Province, 529000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
06.04.2005 |
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Com. Reg. No.: |
440700000005193 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Importing and exporting various goods and technologies; processing with imported & supplied materials; counter trade & transit trade; domestic trade; wholesaling and retailing: pre-package food. |
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No. of Employees : |
30 |
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 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 (31.03.2011) |
Current Rating (30.06.2012) |
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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 2012 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 under 8% for 2012. An economic slowdown in Europe contributed to
China's, and is expected to further drag Chinese growth in 2013. 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
JIANGMEN ZHONG AN IMPORT & EXPORT Co., Ltd.
First floor, no. 2
gaosha 6TH area, pengjiang district, jiangmen,
guangdong PROVINCE,
529000 PR CHINA
TEL: 86 (0) 750-3829331/3829336/3829299 FAX: 86 (0) 750-3829333/3829309
EXECUTIVE SUMMARY
INCORPORATION DATE :
APRIL 6, 2005
REGISTRATION NO. :
440700000005193
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
30
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE :
TRADE AGENT
TURNOVER :
CNY 107,020,000 (UNAUDITED, AS OF DECEMBER 31, 2012)
EQUITIES :
CNY 7,200,000 (UNAUDITED, AS OF DECEMBER 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.1828= 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
Note: SC’s major operation address is the heading one, and the
(91-2, Long Wan Li Jiaobei, Jiang Hai District Jiangmen Guangdong China) is
SC’s another operation address.
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 April 6, 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 various goods and technologies;
processing with imported & supplied materials; counter trade & transit trade; domestic trade; wholesaling and
retailing: pre-package food.（
SC is mainly engaged in acting as an import and export trade agent.
Mr. Chen
Weiguang is the legal representative,
chairman and general manager of SC at present.
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 Jiangmen. Detailed premise information is not available at
present.
www.zhongan-group.com
The web belongs to Zhong An Group. The design is professional and the content
is well organized. At present it is in English & Chinese versions.
Email: linshan@zhongan-group.com
No significant changes were found during our checks with the local
Administration for Industry and Commerce.
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Jiangmen Jianghai District Foreign
Processing & Assembling Service Co., Ltd. 6
Jiangmen Jianghai District Foreign Economic
Enterprise Co., Ltd. 94
Jiangmen Jianghai District Foreign
Processing & Assembling Service Co., Ltd.
--------------------------------------------------------------------------------------------------
Reg. No.: 440704000007022
Legal representative: Lin Shan
Incorporation date: Nov. 13, 2000
Registered capital: CNY 7,500,000
Jiangmen Jianghai District Foreign Economic
Enterprise Co., Ltd.
--------------------------------------------------------------------------------
Reg. No.: 440704000000045
Legal representative: Liu Jianyong
Incorporation date: Aug. 2, 2001
Registered capital: CNY 17,000,000
l
Legal Representative, Chairman and General Manager:
Mr. Chen Weiguang is currently responsible
for the overall management of SC.
Working Experience(s):
At
present Working in SC as legal representative,
chairman and general manager
SC is mainly
engaged in acting as an import and export trade agent.
SC’s products
mainly include various products needed by clients.
SC sources its materials 80% from domestic market and 20% from overseas market. SC sells 20% of its products in domestic market and 80% 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’s management declined to release its major clients and suppliers.
Jiangmen Zhong An Customs & Inspection
Broker Co., Ltd.
================================================
Reg. No.: 440704000002376
Legal representative: Ruan Fushu
Incorporation date: May 13, 2004
Registered capital: CNY 3,000,000
Jiangmen Zhong An Bonded Warehouse Co., Ltd.
===================================
Reg. No.: 440704000002456
Legal representative: Li Chengguang
Incorporation date: March 18, 2005
Registered capital: CNY 6,000,000
Jiangmen
Zhong An International Cargo Transport Agency Co., Ltd.
===================================================
Reg. No.: 440704000006923
Legal representative: Ruan Fushu
Incorporation date: Dec. 8, 2008
Registered capital: CNY 5,000,000
Jiangmen
Zhong An Logistics Co., Ltd.
==========================
Reg. No.: 440700400023015
Legal representative: Huang Jieping
Incorporation date: Nov. 26, 2004
Registered capital: CNY 1,000,000
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.
Account #: N/A
Relationship:
Normal
Balance Sheet
(unaudited)
Unit: CNY’000
|
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as of Dec. 31, 2012 |
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Cash & bank |
5,270 |
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Inventory |
930 |
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Accounts
receivable |
19,460 |
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Short-term
investment |
0 |
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Advances to
suppliers |
5,380 |
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Notes receivable |
0 |
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Other receivables |
3,360 |
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Prepaid expenses |
0 |
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------------------ |
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Current assets |
34,400 |
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Fixed assets net
value |
400 |
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Long term
investment |
3,030 |
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Projects under
construction |
0 |
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Long-term
deferred expenses |
10 |
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Intangible
assets |
0 |
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Deferred assets |
0 |
|
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------------------ |
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Total assets |
37,840 |
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============= |
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Short loans |
10,740 |
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Notes payable |
0 |
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Accounts payable |
13,110 |
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Advances from
clients |
6,470 |
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Accrued payroll |
70 |
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Welfares payable |
0 |
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Taxes payable |
50 |
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Other accounts
payable |
0 |
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Other current
liabilities |
0 |
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------------------ |
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Current
liabilities |
30,440 |
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Long term
liabilities |
200 |
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------------------ |
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Total liabilities |
30,640 |
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Equities |
7,200 |
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------------------ |
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Total
liabilities & equities |
37,840 |
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============= |
Income Statement (unaudited)
Unit: CNY’000
|
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as of Dec. 31,
2012 |
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Turnover |
107,020 |
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Cost of goods
sold |
102,920 |
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Taxes and
additional of main operation |
120 |
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Sales expense |
1,160 |
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Management expense |
1,810 |
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Finance expense |
1,040 |
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Investment
income |
570 |
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Non-operating expense |
30 |
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Profit before
tax |
510 |
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Less: profit tax |
50 |
|
Profits |
460 |
Important Ratios
=============
|
|
as
of Dec. 31, 2012 |
|
*Current ratio |
1.13 |
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*Quick ratio |
1.10 |
|
*Liabilities
to assets |
0.81 |
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*Net profit
margin (%) |
0.43 |
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*Return on
total assets (%) |
1.22 |
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*Inventory
/Turnover ×365 |
3 days |
|
*Accounts
receivable/Turnover ×365 |
66 days |
|
*Turnover/Total
assets |
2.83 |
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* Cost of
goods sold/Turnover |
0.96 |
PROFITABILITY:
AVERAGE
l
The turnover 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 high, comparing with its
turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is normal.
l
SC’s quick ratio is normal.
l
SC’s inventory is small in 2012.
l
SC’s account receivable is large in 2012.
l
SC’s short loan is large in 2012.
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 medium-sized in its line with fairly stable financial
conditions. The large amount of account receivable and short loan could be a
threat to SC’s financial conditions. Taking into consideration of SC’s general
performance and development history, we would rate SC as an above average
credit risk company.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.03 |
|
|
1 |
Rs.82.43 |
|
Euro |
1 |
Rs.70.49 |
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 |
|
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.