MIRA INFORM REPORT
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Report Date : |
29.04.2013 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG BANGDA INDUSTRY AND TRADE CO., LTD. |
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Registered Office : |
No. 18
Beihu Road, Economic Development Zone, Yongkang, Zhejiang Province 321300 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
09.01.2003 |
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Com. Reg. No.: |
330784000046853 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
manufacturing and selling stainless steel
products |
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No. of Employees : |
160 |
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 – MARCH 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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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
Zhejiang Bangda
Industry and Trade Co., Ltd.
no. 18
beihu road, economic development zone, yongkang
zhejiang
PROVINCE 321300 PR CHINA
TEL: 86
(0) 579-87066999/87065991
FAX: 86
(0) 579-87066886
EXECUTIVE SUMMARY
Date of Registration : january 9, 2003
REGISTRATION NO. : 330784000046853
LEGAL FORM : Limited Liability Company
CHIEF EXECUTIVE :
lou xinde (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL :
CNY 50,000,000
staff : 160
BUSINESS CATEGORY :
MANUFACTURING
Revenue :
CNY 61,078,000 (AS OF DEC. 31,
2012)
EQUITIES :
CNY 59,688,000 (AS OF DEC. 31, 2012)
WEBSITE : www.chinabangda.com
E-MAIL :
bangda@chinabangda.com
PAYMENT : AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND :
fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.22 = 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.: 330784000046853 on January 9, 2003.
SC’s Organization Code Certificate No.:
74632825-6
SC’s Tax No.: 330784746328256
SC’s registered capital: cny 50,000,000
SC’s paid-in capital: cny 50,000,000
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 |
|
Lou Xinde |
30 |
|
Hu Jianfang |
70 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Lou Xinde |
|
Supervisor |
Hu
Jianfang |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name
%
of Shareholding
Lou Xinde 30
Hu Jianfang 70
MANAGEMENT
Lou Xinde, Legal
Representative, Chairman and General Manager
-------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 48
Ø
ID# 330722196506203818
Ø Qualification:
University
Ø Working experience
(s):
From 2003 to present, working in SC as legal representative, chairman and general manager
Also working in Zhejiang Bangda Technology Co., Ltd. and Zhejiang Chuangxin Cup Industry Co., Ltd. as legal representative
Hu Jianfang , Supervisor
--------------------------------------------
Ø
Gender: F
Ø
Age: 47
Ø
ID# 330722196601123824
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and
processing stainless steel products, glass products, household metal products,
hardware tools, household appliances, travel and leisure products, fitness
equipment, kitchen equipment, electric tools, electronic products, craft gifts,
selling daily necessities, plastic products, importing and exporting goods and
technology.
SC is
mainly engaged in manufacturing and selling stainless steel products.
Brand: BANGDA
SC’s
products mainly include: double wall stainless
steel flask, travel pot, air pot, coffee pot, coffee mug, auto mug, sport
bottle, vacuum food jug, cola bottle, etc.
SC sources its materials 100% from domestic market, mainly Zhejiang. SC sells 15% of its products in domestic market, and 85% to overseas market, mainly USA, Europe, Mid East, Southeast Asia, etc.
The
buying terms of SC include Check, T/T and Credit of 30-60 days. The payment
terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Customer:
=============
Greenland Sales
Corp.
Staff & Office:
--------------------------
SC is
known to have approx. 160 staff
at present.
SC rents an area
as its operating office & factory of approx. 30,000 sq. meters at the
heading address.
RELATED COMPANY
SC is known to have a
branch at present,
n
Zhejiang Bangda Industry and Trade Co., Ltd. Huku Branch
---------------------------------------------
Date of Registration: May 16, 2007
Registration No.: 330784000053016
Legal Form: Branch Company
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
Bohai Bank Xihu Sub-branch
AC#:
2000384645000136
China Minsheng
Bank Hangzhou Jiefang Sub-branch
AC#:
0714014160000865
Zhejiang Yongkang Rural Cooperative Bank
AC#:
201000081413849
Bank of Communications Jinhua Yongkang Sub-branch
AC#:
716006707018010066612
China Merchants Bank Jinhua Branch
AC#:
579900448610406
China CITIC Bank Yongkang Sub-branch
AC#:
7338310182100006378
China CITIC Bank Yiwu Branch
AC#:
7338010182100031539
Ping’an Bank Jinhua Yongkang Sub-branch
AC#:
11010357897902
Agricultural Bank of China Yongkang Changcheng
Sub-branch
AC#:
19-6268010400001757
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
15,971 |
16,889 |
|
|
Notes receivable |
15,000 |
17,000 |
|
Accounts
receivable |
9,367 |
9,049 |
|
Advances to
suppliers |
6,250 |
5,125 |
|
Other receivable |
0 |
0 |
|
Inventory |
7,102 |
11,796 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
0 |
1,056 |
|
|
------------------ |
------------------ |
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Current assets |
53,690 |
60,915 |
|
Fixed assets |
29,167 |
29,049 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
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Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
82,857 |
89,964 |
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|
============= |
============= |
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Short-term loans |
23,386 |
27,339 |
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Notes payable |
0 |
0 |
|
Accounts payable |
451 |
3,458 |
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Wages payable |
1,215 |
0 |
|
Welfare payable |
176 |
41 |
|
Taxes payable |
-497 |
-468 |
|
Advances from
clients |
0 |
0 |
|
Other payable |
117 |
-139 |
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Other current
liabilities |
37 |
45 |
|
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------------------ |
------------------ |
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Current
liabilities |
24,885 |
30,276 |
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Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Total
liabilities |
24,885 |
30,276 |
|
Equities |
57,972 |
59,688 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
82,857 |
89,964 |
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|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Revenue |
70,083 |
61,078 |
|
Cost of sales |
59,591 |
52,378 |
|
Taxes and surcharges |
279 |
243 |
|
Sales expense |
1,224 |
1,081 |
|
Management expense |
1,864 |
1,704 |
|
Finance expense |
4,564 |
3,361 |
|
Non-business
income |
0 |
0 |
|
Non-business expenditure |
73 |
42 |
|
Profit before
tax |
2,488 |
2,268 |
|
Less: profit tax |
622 |
552 |
|
1,866 |
1,716 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
2.16 |
2.01 |
|
*Quick ratio |
1.87 |
1.62 |
|
*Liabilities to
assets |
0.30 |
0.34 |
|
*Net profit
margin (%) |
2.66 |
2.81 |
|
*Return on
total assets (%) |
2.25 |
1.91 |
|
*Inventory /
Revenue ×365 |
37 days |
71 days |
|
*Accounts
receivable/ Revenue ×365 |
49 days |
55 days |
|
*
Revenue/Total assets |
0.85 |
0.68 |
|
* Cost of
sales / Revenue |
0.85 |
0.86 |
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 sales is average, comparing with its revenue.
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 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 large.
l
SC’s revenue is in a
fair 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. The large amount of short-term loans may 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.70.68 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIT |
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 |
|
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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.