MIRA
INFORM REPORT
|
Report Date : |
26.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
FUJIAN LEIYI STONE CO., LTD. |
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Registered Office : |
No. 8 Chaoyang Road, Dongling Town, Huian County Quanzhou,
Fujian Province 362133 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
18.01.1993 |
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Legal Form : |
Chinese Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Manufacturing and selling stone products |
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No. of Employees : |
350 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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
FUJIAN LEIYI STONE CO., LTD.
NO. 8 CHAOYANG ROAD, DONGLING TOWN, HUIAN COUNTY
QUANZHOU, FUJIAN PROVINCE 362133 PR CHINA
TEL: 86 (0) 595-87889870/87238949
FAX: 86 (0) 595-87889916
EXECUTIVE SUMMARY
Date of Registration : JANuary 18, 1993
REGISTRATION NO. : 350500400003495
LEGAL FORM : CHINESE FOREIGN EQUITY JOINT VENTURE
ENTERPRISE
REGISTERED CAPITAL : CNY 30,000,000
staff :
350
BUSINESS CATEGORY : manufacturing
Revenue :
CNY 71,440,000 (AS OF DEC. 31,
2012)
EQUITIES :
CNY 38,710,000 (AS OF DEC. 31, 2012)
WEBSITE : www.fujianleiyi.com
E-MAIL : info@fujianleiyi.com
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.18 = 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 Chinese foreign equity joint venture enterprise of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.: 350500400003495 on January 18, 1993.
SC’s Organization Code Certificate No.:
61154161-5
SC’s Tax No.: 350521611541615
SC’s Customs Registration No.: 3505932036
SC’s registered capital: CNY 30,000,000
SC’s paid-in capital: CNY 30,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
|
Shareholder (s) |
Macao Jinrongcheng Enterprise Co., Ltd. Huian Leiyi Stone Products Factory |
Wang Lingling (Canada) Huian Leiyi Stone
Products Factory |
|
|
Shareholder (s) |
Wang Lingling (Canada) Huian Leiyi Stone Products Factory |
Wang Lingling (Canada) Fujian Qidali Group Co., Ltd. |
|
|
Registered Capital |
CNY 2,800,000 |
CNY 10,800,000 |
|
|
Registered Capital |
CNY 10,800,000 |
CNY 30,000,000 |
|
|
Company Name |
Fujian Huian Leiyi Stone Products Co., Ltd. |
Fujian Leiyi Stone Co., Ltd. |
|
-- |
Registration No. |
002987 |
350500400003495 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Wang Lingling
(Canada) |
76.9 |
|
Fujian Qidali Group Co., Ltd. |
23.1 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and
General Manager |
Zhang Qicong |
|
Vice Chairman |
Wang Lingling |
|
Director |
Zhang Zhencong |
RECENT DEVELOPMENT
SC obtained the certificate of ISO 9001:2000.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Wang Lingling (Canada) 76.9
Fujian Qidali Group Co., Ltd. 23.1
n
Fujian Qidali Group Co., Ltd.
----------------------------------------
Fujian Qidali Group Co., Ltd. was
established with the head office located in Hui'an County, Fujian Province-the
hometown of stone carving. SC, Hui'An Qidali Stones, Hui'An Qideli Stones,
Qiteyi Crafts Ware Co., Ltd Quanzhou, Hui'An QiSheng Real Estate Development
Co., Ltd, Xiamen Leiyi Import & Export Trading Co., Ltd, Shanghai QiXing
Crafts Ware Trading Co., Ltd, Quanzhou Leijin Stones, Hui'An Wang'An Cemetery
Co., Ltd were established. And Hui'An Wang'An Cemetery Co., Ltd is a permanent
cemetery cooperated with Hui'An County Government. Qidali Group invested to
establish SC’s Show Center in 2003 and become Fujian Province travel industry
site in 2004.
Website: www.qidali.com
E-mail: info@qidali.com
Address: No. 8, Chaoyang Road, Dongling
Town, Huian County, Fujian Province
Tel.: 86 (0) 595-87881666
Fax: 86 (0) 595-87889916
Registration No.: 350500100011421
Legal Representative: Zhang Qicong
MANAGEMENT
Zhang Qicong , Legal
Representative, Chairman, and General Manager
--------------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 54
Ø
ID# 350521195904085011
Ø
Qualification:
University
Ø
Working
experience (s):
From 1993 to present, working in SC as legal representative,
chairman, and general manager
Working
in Fujian Qidali Group Co., Ltd., Quanzhou Leijin Stone Co., Ltd., Fujian Leiyi
Landscape Decoration Engineering Co., Ltd., Hui'an Qisheng Real Estate
Development Co., Ltd., Quanzhou Qiteyi Crafts Co., Ltd., Hui'an Wan'an Cemetery
Co., Ltd. as legal representative
Also
working in SC’s Xiamen Office as principal
Wang Lingling ,
Vice Chairman
----------------------------------------------------
Ø
Gender: F
Ø
Nationality: Canada
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as vice chairman
Director
------------
Zhang Zhencong
(Working in Hui’an Kelida
Technology Co., Ltd. as legal representative)
BUSINESS OPERATION
SC’s registered
business scope includes manufacturing Japanese-style tombstone, European and American-style
tombstone, stone slab, building stone, various stone carvings of gardening
landscape and matching products.
SC is mainly
engaged in manufacturing and selling stone products.
SC’s products mainly
include: Japanese-style tombstone, bailey and matching products, European and
American-style tombstone and matching products, stone artistic graving, Buddha
stone carvings, white marble statue, all kinds of jade articles, washbasin,
fireplace, modern art lantern, Japanese-styled lantern, building materials,
shakedown, etc.
Brand: “Leiyi 磊艺”.
SC sources its
materials 10% from domestic market, and 90% from the overseas market, mainly
India. SC sells 8% of its products in domestic market, and 92% to the overseas
market, mainly Japan.
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.
Staff & Office:
--------------------------
SC is known
to have approx. 350 staff at
present.
SC owns an area as
its operating office & factory of approx. 30,403 sq. meters at the heading
address.
RELATED COMPANY
Quanzhou
Leijin Stone Co., Ltd.
Fujian
Leiyi Landscape Decoration Engineering Co., Ltd.
Hui'an
Qisheng Real Estate Development Co., Ltd.
Quanzhou
Qiteyi Crafts Co., Ltd.
Hui’an
Wan’an Cemetery Co., Ltd.
Hui’an Kelida Technology Co., Ltd.
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:
China
Construction Bank Hui’an Sub-branch
AC#:
35001656107050004674
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
|
Cash |
12,390 |
|
Notes receivable |
0 |
|
Accounts
receivable |
22,450 |
|
Advances to
suppliers |
0 |
|
Other receivable |
3,430 |
|
Inventory |
19,090 |
|
Non-current
assets within one year |
0 |
|
Other current
assets |
470 |
|
|
------------------ |
|
Current assets |
57,830 |
|
Fixed assets |
5,330 |
|
Construction in
progress |
0 |
|
Intangible
assets |
0 |
|
Long-term
investment |
0 |
|
Deferred income
tax assets |
0 |
|
Other
non-current assets |
1,990 |
|
|
------------------ |
|
Total assets |
65,150 |
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|
============= |
|
Short-term loans |
12,000 |
|
Notes payable |
0 |
|
Accounts payable |
15,330 |
|
Welfares payable |
0 |
|
Taxes payable |
0 |
|
Advances from
clients |
0 |
|
Other payable |
-19,450 |
|
Other current
liabilities |
|
|
|
------------------ |
|
Current
liabilities |
26,440 |
|
Non-current
liabilities |
|
|
|
------------------ |
|
Total
liabilities |
26,440 |
|
Equities |
38,710 |
|
|
------------------ |
|
Total
liabilities & equities |
65,150 |
|
|
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
|
Revenue |
71,440 |
|
Cost of sales |
63,340 |
|
Sales expense |
4,380 |
|
Management expense |
1,850 |
|
Finance expense |
750 |
|
Profit before
tax |
1,150 |
|
Less: profit tax |
1,080 |
|
Profits |
70 |
Important Ratios
=============
|
|
As of Dec. 31, 2012 |
|
*Current ratio |
2.19 |
|
*Quick ratio |
1.47 |
|
*Liabilities
to assets |
0.41 |
|
*Net profit
margin (%) |
0.10 |
|
*Return on
total assets (%) |
0.11 |
|
*Inventory /
Revenue ×365 |
98 days |
|
*Accounts
receivable / Revenue ×365 |
115 days |
|
*Revenue /
Total assets |
1.10 |
|
*Cost of sales
/ Revenue |
0.89 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears average 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 average, comparing with
its revenue.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a fairly good
level.
l
SC’s quick ratio is maintained in a fairly good
level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
The short-term loans of SC appear average.
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.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.17 |
|
|
1 |
Rs.82.98 |
|
Euro |
1 |
Rs.70.62 |
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.