MIRA
INFORM REPORT
|
Report Date : |
31.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
LOUIS DREYFUS COMMODITIES (BEIJING) TRADING
CO., LTD. |
|
|
|
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Registered Office : |
Unit 01-04,
14/F East Tower Of World Financial Centre, No. 1 East 3rd Ring Middle Road,
Chaoyang District, Beijing 100020 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
15.08.2005 |
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Com. Reg. No.: |
110000410266247 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
engaged in International Trading of Oilseeds,
Grains, Rice, Freight, Finance, Juice, Cotton, Coffee, Sugar, Metals, Milk
& Fertilizers |
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|
|
No. of Employees : |
269 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
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 – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
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
LOUIS DREYFUS
COMMODITIES (BEIJING) TRADING CO., LTD.
unit 01-04, 14/f east tower of world FINANCIAL centre, no. 1 east 3rd
ring middle road, chaoyang district, beijing 100020 PR CHINA
TEL: 86 (0) 10-65182792/58693666
FAX: 86 (0)
10-58693665
EXECUTIVE SUMMARY
Date of Registration : august 15, 2005
REGISTRATION NO. : 110000410266247
LEGAL FORM : Wholly foreign-owned enterprise
CHIEF EXECUTIVE : chen tao (LEGAL
REPRESENTATIVE)
REGISTERED CAPITAL : usd 50,000,000
staff : 269
BUSINESS CATEGORY : TRADING
Revenue :
CNY 9,740,791,000 (AS OF DEC. 31,
2012)
EQUITIES :
CNY 772,923,000 (AS OF DEC. 31, 2012)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.07 = 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 wholly foreign-owned enterprise of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.: 110000410266247 on August 15, 2005.
SC’s Organization Code Certificate
No.: 71785725-5
%20TRADING%20CO%20,%20LTD%20%20-%20248224%2031-Dec-2013_files/image002.jpg)
SC’s Tax No.: 110105717857255
SC’s Customs Registration No.:
1105941043
SC’s registered capital: usd 50,000,000
SC’s paid-in capital: usd 50,000,000 (CNY 344,531,952.13)
Registration Change Record:-
|
Date |
Change
of Contents |
Before
the change |
After
the change |
|
2012-7-11 |
Paid-in Capital |
CNY 28,000,000 |
CNY 50,000,000 |
Current
Co search indicates SC’s shareholders & chief executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Singapore Louis Dreyfus
Commodities Asia Pte., Ltd. |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Chen
Tao |
|
Director |
Ao Lifu |
|
Ke Shen |
|
|
Zhou Dehan |
|
|
Ou Jiemin |
|
|
Supervisor |
Lu Heng |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name % of Shareholding
Singapore Louis Dreyfus
Commodities Asia Pte., Ltd. 100
--------------------------------------
MANAGEMENT
Chen
Tao, Legal
Representative, Chairman and General Manager
----------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Passport No.: 088952500
Ø
Qualification:
University
Ø
Working
experience (s):
From 2005 to present, working in SC as legal representative, chairman and general manager
Director
-----------
Ao Lifu
Ke Shen
Zhou Dehan
Ou Jiemin
Supervisor
--------------
Lu Heng
BUSINESS OPERATION
SC’s registered business scope includes importing and
exporting cereals, agricultural products, non-ferrous metals, polymers and
chemical products; importing and exporting copper, aluminum, rubber raw
materials and related products; providing agency commission business and
services; import and export agent of copper, aluminum, rubber raw materials and
related products; providing management and business consulting for parent and
affiliated companies.
SC is
mainly engaged in international trade.
SC’s
products mainly include: Oilseeds, Grains, Rice,
Freight, Finance, Juice, Cotton, Coffee, Sugar, Metals, Milk, Fertilizers
SC sources its materials 40% from domestic
market, and 60% from overseas market. SC sells 85% of its products in domestic
market, and 15% to overseas market, mainly U.S.A., 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 Customers:
-----------------------
Louis Dreyfus
Canada Ltd.
Global Natural
Foods Inc.
Staff & Office:
--------------------------
SC is
known to have approx. 269 staff
at present.
SC owns an area as
its operating office, but the detailed information is unknown.
RELATED
COMPANY
SC is known to have 4
subsidiaries and a branch at present,
· Shaanxi Sanchuan Juice Co., Ltd.
· Louis Dreyfus Trade Service Pte., Ltd. (Singapore)
· Qingdao Lufuhui Trade Co., Ltd.
· Qingdao Louis Dreyfus Trade Co., Ltd.
· Louis Dreyfus Commodities (Beijing) Trading Co., Ltd. Dalian Branch
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
The bank
information of SC is not filed in SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
723,339 |
258,913 |
|
|
Trading financial assets |
1,516,830 |
1,572,806 |
|
Notes receivable |
0 |
0 |
|
Accounts
receivable |
46,934 |
69,141 |
|
Advances to
suppliers |
583,191 |
96,606 |
|
Interest
receivable |
604 |
10,793 |
|
Dividends
receivable |
252,223 |
0 |
|
Other receivable |
234,779 |
78,185 |
|
Inventory |
42,695 |
95,938 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
3,400,595 |
2,182,382 |
|
Long-term
investment |
65,017 |
96,779 |
|
Fixed assets |
11,735 |
9,047 |
|
Construction in
progress |
0 |
0 |
|
Intangible
assets |
2,764 |
2,426 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
120,172 |
28,011 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
3,600,283 |
2,318,645 |
|
|
============= |
============= |
|
Short-term loans |
2,350,406 |
1,095,612 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
507,950 |
187,099 |
|
Wages payable |
7,028 |
11,630 |
|
Taxes payable |
-31,649 |
-108,291 |
|
Advances from
clients |
257,638 |
222,330 |
|
Other payable |
407,759 |
137,342 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
3,499,132 |
1,545,722 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
3,499,132 |
1,545,722 |
|
Equities |
101,151 |
772,923 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
3,600,283 |
2,318,645 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Revenue |
5,941,333 |
9,740,791 |
|
Cost of sales |
5,976,316 |
9,753,972 |
|
Taxes and surcharges |
6,852 |
5,550 |
|
Sales expense |
91,457 |
94,365 |
|
Management expense |
144,568 |
174,701 |
|
Finance expense |
18,380 |
125,663 |
|
Investment
income |
-76,982 |
1,098,706 |
|
Non-business
income |
153,421 |
6,714 |
|
Non-business expenditure |
31,081 |
43,313 |
|
Profit before
tax |
-183,069 |
662,575 |
|
Less: profit tax |
-94,735 |
130,911 |
|
-88,334 |
531,664 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
0.97 |
1.41 |
|
*Quick ratio |
0.96 |
1.35 |
|
*Liabilities
to assets |
0.97 |
0.67 |
|
*Net profit
margin (%) |
-1.49 |
5.46 |
|
*Return on
total assets (%) |
-2.45 |
22.93 |
|
*Inventory /
Revenue ×365 |
3 days |
4 days |
|
*Accounts
receivable/ Revenue ×365 |
3 days |
3 days |
|
*Revenue/Total
assets |
1.65 |
4.20 |
|
*Cost of sales
/ Revenue |
1.01 |
1.00 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears fairly good in its line,
and it increased in 2012.
l
SC’s net profit margin is fair in 2011 and fairly
good in 2012.
l
SC’s return on total assets is fair in 2011 and
good in 2012.
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 2012.
l
SC’s quick ratio is maintained in a fairly good
level in 2012.
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 in both
years.
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 low.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered large-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.62.00 |
|
UK Pound |
1 |
Rs.102.17 |
|
Euro |
1 |
Rs.85.19 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.