MIRA INFORM REPORT
|
Report Date : |
02.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
HANGZHOU CONCORD INTERNATIONAL TRADE CO.,
LTD. |
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|
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Registered Office : |
Hongshan Road, Xiaoshan District, Hangzhou, Zhejiang Province 311234
PR |
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|
Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
07.05.2010 |
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Com. Reg. No.: |
330181000189795 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Importing and Exporting commodities and technology. |
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No. of Employees : |
55 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
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 – March, 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
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High |
B2 |
|
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 & ADDRESS
HANGZHOU CONCORD INTERNATIONAL TRADE CO., LTD.
hongshan road, xiaoshan district, hangzhou
ZHEJIANG PROVINCE 311234 PR CHINA
TEL: 86 (0) 571-82622802/82699888
FAX: 86 (0) 571-82699888
EXECUTIVE SUMMARY
Date of Registration : may 7, 2010
REGISTRATION NO. : 330181000189795
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : CNY
10,000,000
staff :
55
BUSINESS CATEGORY : TRADING
Revenue :
CNY 1,851,069,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 5,172,000 (AS OF DEC. 31, 2012)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fair
OPERATIONAL TREND : ORDINARY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.13 = USD 1 AS OF 2013-8-2
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 limited liabilities company of PRC with State Administration of Industry
& Commerce (SAIC) under registration No.: 330181000189795
on May 7, 2010.
SC’s Organization Code Certificate No.:
55515916-2
SC’s registered capital: CNY 10,000,000
SC’s paid-in capital: CNY 10,000,000
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 |
|
Zhejiang Concord Group Co., Ltd. |
51 |
|
Shao Yihua |
49 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and
General Manager |
Shao Yihua |
|
Supervisor |
Shao Bohu |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Zhejiang Concord Group Co., Ltd. 51
Shao Yihua 49
l Zhejiang Concord
Group Co., Ltd.
----------------------------------------------
Registration No.: 330181000154962
Date of Registration: November 5, 2011
Legal Form: One-person Limited Liabilities
Company
Registered Capital: CNY 50,000,000
Legal Representative: Shao Bohu
Web: www.zjxh.com
MANAGEMENT
Shao Yihua, Legal Representative, Chairman and General
Manager
---------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
ID# 339005198307080053
Ø
Age: 30
Ø Qualification:
University
Ø Working experience
(s):
At
present, working in SC as legal representative, chairman and general manager
Shao Bohu,
Supervisor
-----------------------------------------
Ø
Gender: M
Ø
ID# 33012119570103231X
Ø
Age: 56
Ø Qualification:
University
Ø Working experience
(s):
Also working in Zhejiang Concord Group Co.,
Ltd. as legal representative
BUSINESS OPERATION
SC’s
registered business scope includes importing and exporting commodities and
technology; and selling metal materials & products, building materials,
sanitary ware, ceramic products, chemical products and materials.
SC is mainly
engaged in international trade.
SC’s products
mainly include: hard cold rolled, annealed cold rolled, galvanized, galvalume,
prepainted, silicon steel and others.
SC sources its materials
100% from domestic market. SC sells 90% in domestic market and 10% to overseas
market, mainly Southeast Asia.
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. 55 staff at
present.
SC rents an area
as its operating office, but the detailed information is unknown.
RELATED COMPANY
Zhejiang Concord Sheet Steel Science and Technology Co., Ltd.
Zhejiang Concord Ceramics Co., Ltd.
Zhejiang Concord ShouXin Steel Industry Co., Ltd.
Hangzhou Concord Huifeng Real Estate Development Co., Ltd.
Zhejiang Concord Harbor 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:
Agricultural
Bank of China Hangzhou Hongshan Sub-branch
AC#: 19083101040012094
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
6,877 |
25,093 |
|
|
Notes receivable |
300 |
8,397 |
|
Accounts
receivable |
34,436 |
2,065 |
|
Advances to
suppliers |
55,786 |
90,848 |
|
Other receivable |
18,000 |
43,750 |
|
Inventory |
0 |
1,159 |
|
Deferred
expenses |
0 |
0 |
|
Other current
assets |
0 |
1,015 |
|
|
------------------ |
------------------ |
|
Current assets |
115,399 |
172,327 |
|
Fixed assets |
0 |
0 |
|
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 |
115,399 |
172,327 |
|
|
============= |
============= |
|
Short-term loans |
0 |
0 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
164 |
55,062 |
|
Wages payable |
0 |
0 |
|
Taxes payable |
0 |
-174 |
|
Advances from
clients |
108,061 |
96,960 |
|
Other payable |
0 |
15,307 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
108,225 |
167,155 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
108,225 |
167,155 |
|
Equities |
7,174 |
5,172 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
115,399 |
172,327 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Revenue |
2,551,749 |
1,851,069 |
|
Cost of sales |
2,551,749 |
1,850,885 |
|
Taxes and surcharges |
0 |
0 |
|
Sales expense |
0 |
5 |
|
Management expense |
597 |
337 |
|
Finance expense |
-99 |
17 |
|
Profit before
tax |
-2,754 |
-2,002 |
|
Less: profit tax |
0 |
0 |
|
-2,754 |
-2,002 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
1.07 |
1.03 |
|
*Quick ratio |
1.07 |
1.02 |
|
*Liabilities
to assets |
0.94 |
0.97 |
|
*Net profit
margin (%) |
-0.11 |
-0.11 |
|
*Return on
total assets (%) |
-2.39 |
-1.16 |
|
*Inventory /
Revenue ×365 |
- |
1 day |
|
*Accounts
receivable/ Revenue ×365 |
5 days |
1 day |
|
*
Revenue/Total assets |
22.11 |
10.74 |
|
* Cost of
sales / Revenue |
1.00 |
1.00 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
l The revenue of SC
appears fairly good, and it decreased in 2012.
l SC’s net profit
margin is fair.
l SC’s return on
total assets is fair.
l
SC’s cost of sales is high, comparing with its
revenue.
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 2012.
l
The accounts receivable of SC appears small in
2012.
l
SC has no short-term loans in both years.
l
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high in both years.
l
The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Fair.
CONCLUSIONS
SC is considered medium-sized in its line with fair financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.74 |
|
|
1 |
Rs.92.05 |
|
Euro |
1 |
Rs.80.60 |
INFORMATION DETAILS
|
Report Prepared
by : |
SMN |
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.