MIRA
INFORM REPORT
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Report Date : |
03.12.2013 |
IDENTIFICATION DETAILS
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Name : |
CHINA NATIONAL TOWNSHIP ENTERPRISES
CORPORATION |
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Registered Office : |
8/F, Jingchao Building, No. 5 South Nongzhan Road, Chaoyang District,
Beijing, 100026 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
07.09.1983 |
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Com. Reg. No.: |
100000000001324 |
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Legal Form : |
State Owned Enterprise |
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Line of Business : |
Subject is engaged in importing and exporting trade, acting as an
importing and exporting agent, bidding business |
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No. of Employees : |
72 |
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 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.
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Source
: CIA |
Company name & address
CHINA NATIONAL TOWNSHIP ENTERPRISES CORPORATION
8/F, JINGCHAO BUILDING, NO. 5 SOUTH NONGZHAN ROAD, CHAOYANG DISTRICT,
BEIJING, 100026 PR CHINA
TEL: 86 (0) 10-59193823/59193804
FAX: 86 (0) 10-59193814/59193815/59193849
EXECUTIVE SUMMARY
INCORPORATION DATE : Sep. 7, 1983
REGISTRATION NO. : 100000000001324
REGISTERED LEGAL FORM : STATE OWNED
ENTERPRISE
CHIEF EXECUTIVE :
MR. shi mingshan (general manager)
STAFF STRENGTH :
72
REGISTERED CAPITAL : CNY
63,510,000
BUSINESS LINE :
trading
TURNOVER :
CNY 1,753,180,000 (AS OF DEC.
31, 2012)
EQUITIES :
CNY 179,910,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : WELL-KNOWN
EXCHANGE RATE :
CNY
6.0938 = 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
SC was registered as a state
owned enterprise at state Administration for Industry & Commerce
(AIC - The official body of issuing and renewing business license) on Sep. 7,
1983.
Company Status: State-owned enterprise This form of business in PR
China is defined as a commodity production or operational units of a
socialist character which in accordance with the law, has autonomy in
management, takes full responsibility for its profits and losses and
practices independent business accounting. It is a legal person established
directly by central / local government or enterprise owned by central or
local government. In theory, the liabilities of this form of enterprise are
ultimately borne by the government, since the adoption of company law in
mid-1994, the Chinese government has planned to separate the ownership from
management and liabilities bearing.
SC’s registered business scope includes wholesaling gasoline, kerosene,
diesel within marine fisheries system (valid until June 21, 2015); operating
medical equipment ((specific projects subject to the license, valid until June
16, 2015); crop seed business (operating crop range: Flower valid until October
14, 2018); grass wholesale, retail, import and export (valid until January 24,
2015); wholesaling pre-packaged foods, bulk foods (water products) (valid until
Feb. 28, 2016). Steel, non-ferrous metals, textile and chemical raw materials
and products (excluding hazardous chemicals), mineral products, building
materials, lumber, electrical and mechanical equipment, instruments, hardware,
automobiles, motorcycles and spare parts, and agricultural and livestock feed,
fertilizer business; greening project design, construction; mechanical and
electrical equipment tendering and bidding agent; import and export business;
indoor and outdoor decoration; organizational landscape design; greening
project design, construction; providing consulting services, information
services which related to main business.
SC is mainly engaged in importing and exporting trade, acting as an
importing and exporting agent, bidding business
Mr. Shi Mingshan has been legal representative and general manager of SC
since 2008.
SC is known to have approx. 72 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and head office in the commercial zone of Beijing.
Our checks reveal that SC owns the total premise about 5,000 square meters.
http://www.cntec.com.cn
The design is professional and the content is well organized. At present it is in
both Chinese and English versions.
E-mail: info@cntec.com.cn
Changes of its
registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2008 |
Legal Representative |
Wu Peilong |
Shi Mingshan |
|
Registration No. |
1000001000132 |
100000000001324 |
|
|
2011 |
Superior department’s name |
China National Agricultural Development Group Corp. |
China National Agricultural Development Group Co., Ltd. |
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Registered capital |
CNY 59,210,000 |
CNY 63,510,000 |
SC acquired the license to engage in foreign trade in 1995 and it was
listed as class “AA” Import & Export Company by Beijing Customs in 2002. It
was granted as the third batch of national agricultural industrialization
leading enterprises by Ministry of Agriculture, Ministry of Finance, and other
eight ministries in 2004. SC was awarded class “AAA” Credit Enterprise by
Beijing Branch of China Agriculture Bank in 2008. SC’s import &export
trade, tenders and services has passed the ISO9001 certification.
For the past two years there is no record of litigation.
SUPERIOR DEPARTMENT:
Name
China National Agricultural Development Group Co., Ltd.
China National Agricultural Development Group Co., Ltd. (referred to as
"CNADC") is a central agricultural enterprise under direct governance
of the State—owned Assets Supervision and Administration Commission of the
State Council (SASAC). The business of CNADC spreads over to every province
(autonomous region or municipality directly under the central government) of
China. CNADC has established branches or bases in more than 40 countries
(regions) around the world and keeps economic and trade ties with over 80
countries (regions).
Legal representative: Liu
Shenli
Registration No.: 100000000003053
Registered capital: CNY
2,799,470,000
Add: No.
31 Minfeng Lane, Xidan, Beijing
Tel: 86-10-88067008
Fax: 86-10-88067017
Website: http://www.cnadc.com.cn/
Legal representative and general manager:
Mr. Shi Mingshan, about 54 years old, with university education, he is
currently responsible for the overall management of SC.
Working
Experience(s):
From 2008 to present Working
in SC as general manager and legal representative.
SC is mainly engaged in importing and exporting trade, acting as an
importing and exporting agent, bidding business
Main business:
International Trade: SC has issued a system of marine fisheries of gasoline,
kerosene, diesel wholesale franchise license, import and export crop seeds
license, grass seed business license, food distribution license, operation of
hazardous chemicals license and medical equipment license by the Ministry of
Commerce. The main products categories: agricultural products, aquatic
products, oil crops, wool, seeds, agricultural plastics, agricultural machines
and equipment, refined oil for fishing and other core businesses.
Tendering Service: SC was awarded the first Grade “A” Procurement Agency
of Government in the agricultural system by the Ministry of Finance. It issued
the central investment agency qualification for the tender by National
Development and Reform Commission. In recent years, there were 122 tender agent
projects in our company, which these projects cover agricultural systems
research, teaching, technical services and so on.
Storage Logistics: SC has standard storage in Jinghai, Tianjin, which it
has capacity of 2 million square meters. As the basis of the modern
international logistics center in Tianjin and the port, the storage is the
distribution base of agricultural products, imports of agricultural production,
wholesale, transport for CNADC.
SC sources its materials 30% from domestic market, and 70% from overseas
market. SC sells 95% of its products in domestic market, and 5% 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 suppliers and clients.
SC is known to have the following subsidiaries:
Beijing Jiu Jiu
Jiu Goods & Materials Trade Corp.
Registration no.: 110000005022526
Registered capital: CNY
1,000,000
Legal representative: Mao Bin
Tel: 86-10-64193802/42
Fax: 86-10-64193842
China Fishery
Tianjin Corp.
Registration no.: 120000000004035
Registered capital: CNY
19,132,000
Legal representative: Yan
Dingbin
Tel: 86-22-27367678
Fax: 86-22-27367678
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.
Agricultural Bank of China
AC#： 042701040003025
China Minsheng Bank
AC#： N/A
Relationship: Normal.
Balance Sheet
Unit: CNY’000
|
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As
of Dec. 31, 2012 |
|
Cash & bank |
327,500 |
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Inventory |
352,620 |
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Accounts receivable |
420 |
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Advances to suppliers |
374,470 |
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Bills receivable |
7,900 |
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Other receivables |
80,490 |
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Other current assets |
10 |
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------------------ |
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Current assets |
1,143,410 |
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Fixed assets net value |
13,150 |
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Projects under construction |
0 |
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Long term investment |
20,880 |
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Intangible assets |
130 |
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Other assets |
2,930 |
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------------------ |
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Total assets |
1,180,500 |
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============= |
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Short loans |
0 |
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Notes payable |
0 |
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Accounts payable |
107,920 |
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Advances from clients |
661,440 |
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Taxes payable |
-77,460 |
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Salaries payable |
2,640 |
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Other payable |
306,050 |
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Other current liabilities |
0 |
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Current liabilities |
1,000,590 |
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Long term liabilities |
0 |
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Total liabilities |
1,000,590 |
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Equities |
179,910 |
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------------------ |
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Total liabilities & equities |
1,180,500 |
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============= |
Income Statement
Unit: CNY’000
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As
of Dec. 31, 2012 |
|
Turnover |
1,753,180 |
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Cost of goods sold |
1,652,630 |
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Taxes and additional of main operation |
560 |
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Sales expense |
11,610 |
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Management expense |
21,480 |
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Finance expense |
-3,580 |
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Non-operating income |
40 |
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Non-operating expense |
10 |
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Profit before tax |
70,520 |
|
Less: profit tax |
18,060 |
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Profits |
52,460 |
Important Ratios
|
|
As
of Dec. 31, 2012 |
|
*Current ratio |
1.14 |
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*Quick ratio |
0.79 |
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*Liabilities to assets |
0.85 |
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*Net profit margin (%) |
2.99 |
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*Return on total assets (%) |
4.44 |
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*Inventory /Turnover ×365 |
74 days |
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*Accounts receivable/Turnover ×365 |
1 day |
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*Turnover/Total assets |
1.49 |
|
* Cost of goods sold/Turnover |
0.94 |
PROFITABILITY:
AVERAGE
·
The turnover of SC appears good in its line.
·
SC’s net profit margin is average.
·
SC’s return on total assets is average.
·
SC’s cost of goods sold is fairly high, comparing
with its turnover.
LIQUIDITY: FAIR
·
The current ratio of SC is maintained in a normal
level.
·
SC’s quick ratio is maintained in a fair level.
·
The inventory of SC appears fairly large.
·
The accounts receivable of SC appears small.
·
There is no short-term loan of SC in 2012.
·
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIR
·
The debt ratio of SC is high.
·
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 inventory could be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.23 |
|
|
1 |
Rs.102.14 |
|
Euro |
1 |
Rs.84.64 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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.