MIRA INFORM REPORT
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Report Date : |
29.04.2013 |
IDENTIFICATION DETAILS
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Correct Name : |
HUBEI SANONDA INTERNATIONAL TRADE CO., LTD. |
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Registered Office : |
No. 93, Beijing East Road, Shashi District, Jingzhou City, Hubei Province, 434001
Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
29.07.1998 |
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Com. Reg. No.: |
421000000097024 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Exporting
chemical products |
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No. of Employees : |
14 employees |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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
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Country Name |
Previous Rating (31.03.2012) |
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 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
HUBEI
SANONDA INTERNATIONAL TRADE CO., LTD.
NO. 93, BEIJING EAST
ROAD, SHASHI DISTRICT,
JINGZHOU CITY,
HUBEI PROVINCE, 434001 PR CHINA
TEL: 86 (0)
716-8316975/8311746/8320920 FAX:
86 (0) 716-8315265
EXECUTIVE
SUMMARY
INCORPORATION DATE : JULY 29, 1998
REGISTRATION NO. : 421000000097024
REGISTERED LEGAL
FORM : Limited liabilities company
STAFF STRENGTH : 14
REGISTERED CAPITAL :
CNY 10,000,000
BUSINESS LINE :
trading
TURNOVER :
CNY 343,380,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 23,580,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.30 = 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 complete name should be the heading one and SC is also known as Hubei Sanonda Foreign Trading Co., Ltd.
SC’s present address “No. 93, Beijing East Road” was formerly named as “No. 1, East Beijing Road”.
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 July 29, 1998.
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 import and export of various
goods and technologies (excluding the items prohibited or limited by the country);
processing with imported materials, processing with imported samples,
assembling with imported parts and compensation trade in agreement; counter trade & transit trade.
SC is mainly
engaged in exporting chemical products.
Mr. Li Zuorong is
legal representative and chairman of SC at present.
SC is known to
have approx. 14 employees at present.
SC is currently operating at the above stated address, and this
address houses its operating office in the development zone of Jingzhou. Our
checks reveal that SC shares the premise with its parent companies, and the total premise is about
300 square meters.
http://www.sanonda.cn It belongs to Hubei Sanonda
Co., Ltd. and Sanonda Group Corp., which are SC’s shareholders and have the
same address to SC. The design is professional and the content is well
organized. At present the web is both in Chinese and English versions.
Email: sanonda@sanonda.com
Changes
of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2011-4 |
Registration no. |
4210001000694 |
Present one |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Hubei Sanonda Co., Ltd.
90
Sanonda Group Corp.
10
Hubei Sanonda Co., Ltd.
==================
Hubei Sanonda Co., Ltd. manufactures pesticides
and chemical products, and was listed in Shenzhen Stock Exchange with
the stock numbers 000553 (Sanonda A) and 200553 (Sanonda B).
Registration No : 420000400004491
Registered Legal Form : Shares Limited Company
Registered Capital : CNY 593,923,200
Address: No. 93, East Beijing Road,
Jingzhou, Hubei
Tel: 0716-8314802/8208232
Fax: 0716-8321099
* Sanonda Group Corp.
=================
Registration No.: 421000000096917
Registered Capital: CNY 240,661,000
Address: No. 93, East Beijing Road,
Jingzhou, Hubei
Tel: 0716-8314802
Fax: 0716-8321099
Legal
representative and chairman:
Mr. Li Zuorong , senior engineer, born in
1950 with university education, he is currently responsible for the overall
management of SC.
Working
Experience(s):
At present Working
in SC as chairman and legal representative;
Also working in Sanonda Group Corp., Hubei Sanonda
Co., Ltd., Jingzhou Sanonda-IFC Chemicals Co., Ltd., etc. as legal
representative
SC is mainly
engaged in exporting chemical products.
SC’s products
mainly include: insecticide, herbicides and other chemical products.
SC sources its merchandise 100% from
domestic market. SC sells 95% of its products to overseas market, mainly
Southeast Asia, and 5% in domestic market.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include Check, L/C, T/T and Credit of 30-60 days.
Note:
SC refused to release its major clients and suppliers.
· Jingzhou Sanonda-IFC Chemicals Co., Ltd.
· Hubei Sanonda Tianmen Agrochemical Co., Ltd.
· Sanonda (Jingzhou) Pesticide Chemical Co., Ltd.
Etc.
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
AC#1813021109026009290
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 |
35,560 |
30,570 |
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Inventory |
2,370 |
290 |
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Accounts
receivable |
61,530 |
85,610 |
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Other Accounts
receivable |
12,090 |
23,180 |
|
Advances to
suppliers |
590 |
470 |
|
To be
apportioned expense |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
112,140 |
140,120 |
|
Fixed assets net
value |
110 |
70 |
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Projects under
construction |
0 |
0 |
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Long term
investment |
7,300 |
2,700 |
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Deferred tax
assets |
3,200 |
3,460 |
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Intangible and
other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
122,750 |
146,350 |
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============= |
============= |
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Short loans |
21,190 |
14,140 |
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Accounts payable |
73,140 |
99,400 |
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Advances from
clients |
5,640 |
7,840 |
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Accrued payroll |
1,000 |
1,800 |
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Other Accounts
payable |
1,410 |
1,630 |
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Tax payable |
-350 |
-2,040 |
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Other current
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current
liabilities |
102,030 |
122,770 |
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Long term
liabilities |
0 |
0 |
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Other
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
102,030 |
122,770 |
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Equities |
20,720 |
23,580 |
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------------------ |
------------------ |
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Total
liabilities & equities |
122,750 |
146,350 |
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============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2010 |
as of Dec. 31,
2011 |
|
Turnover |
254,960 |
343,380 |
|
Cost of goods sold |
238,630 |
320,020 |
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Taxes and additional of main
operation |
180 |
240 |
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Sales expense |
5,980 |
11,190 |
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Management expense |
4,180 |
5,460 |
|
Finance expense |
2,940 |
3,100 |
|
Asset impairment loss |
720 |
1,060 |
|
Investment
income |
1,190 |
1,830 |
|
Non-operating
income |
270 |
0 |
|
Non-operating expense |
670 |
730 |
|
Profit before
tax |
3,120 |
3,410 |
|
Less: profit tax |
-150 |
430 |
|
Profits |
3,270 |
2,980 |
Important Ratios
=============
|
|
as of Dec. 31,
2010 |
as of Dec. 31,
2011 |
|
*Current ratio |
1.10 |
1.14 |
|
*Quick ratio |
1.08 |
1.14 |
|
*Liabilities
to assets |
0.83 |
0.84 |
|
*Net profit
margin (%) |
1.28 |
0.87 |
|
*Return on total
assets (%) |
2.66 |
2.04 |
|
*Inventory
/Turnover ×365 |
4 days |
1 day |
|
*Accounts
receivable/Turnover ×365 |
89 days |
91 days |
|
*Turnover/Total
assets |
2.08 |
2.35 |
|
* Cost of
goods sold/Turnover |
0.94 |
0.93 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in its line,
and it increased in 2011.
l
SC’s net profit margin is average in both years.
l
SC’s return on total assets is average in both
years.
l
SC’s cost of goods sold is fairly high, comparing
with its turnover in both years.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in both years.
l
SC’s quick ratio is maintained in a normal level in
both years.
l
The inventory of SC appears small in both years.
l
The accounts receivable of SC appears large in both
years.
l
The short-term loan of SC appears fairly large in
2010 and average in 2011.
l
SC’s turnover is in an average level, comparing
with the size of its total assets in both years.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high in both years.
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 could be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.29 |
|
UK Pound |
1 |
Rs.83.88 |
|
Euro |
1 |
Rs.70.67 |
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 |
|
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 |
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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.