MIRA
INFORM REPORT
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Report Date : |
22.02.2013 |
IDENTIFICATION DETAILS
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Name : |
CHINA LIGHT GENERAL
MERCHANDISE IMP. & EXP. CORP. |
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Registered Office : |
8/F, No. 910, Jinsong 9th Section, Chaoyang District, Beijing 100021 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
24.12.1987 |
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Com. Reg. No.: |
110000005008096 |
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Legal Form : |
State-Owned Enterprise |
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Line of Business : |
International trade mainly include mineral products, dairy products, food additives, etc. |
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No. of Employees : |
40 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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 (31.03.2011) |
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 and address
CHINA
LIGHT GENERAL MERCHANDISE IMP. & EXP. CORP.
8/F, NO. 910,
JINSONG 9TH SECTION, CHAOYANG DISTRICT,
BEIJING 100021 PR CHINA
TEL: 86 (0)
10-87763920/87763909 FAX: 86 (0)
10-67747284
EXECUTIVE SUMMARY
INCORPORATION DATE : DEC. 24, 1987
REGISTRATION NO. : 110000005008096
REGISTERED LEGAL FORM : State-owned enterprise
STAFF STRENGTH :
40
REGISTERED CAPITAL : CNY 7,440,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 1,523,520,000 (CONSOLIDATED,
AS OF DEC. 31, 2011)
EQUITIES :
CNY 75,510,000 (CONSOLIDATED, AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION :
STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.24= 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 local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Dec. 24, 1987.
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 (non-kind) the pre-packaged
foods, dairy products (including infant formula milk powder); importing and
exporting general merchandise and other commodities approved by Ministry of
Economy and Commerce; agent for import and export business; undertaking Chinese foreign equity joint venture
enterprise and Chinese foreign contractual joint venture enterprise; compensation trade
in agreement; counter trade & transit
trade; selling textiles, daily necessaries, hardware, chemical, furniture,
gear, labour protection articles, machinery equipment, wood materials, plastic
products, building materials and communication equipment; technical
development, labour service, information advisory, labour dispatching.
SC is mainly
engaged in international trade.
Mr. Qiu Feng is legal representative and general manager
of SC at present.
SC is known to
have approx. 40 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the commercial zone of Beijing. Our checks
reveal that SC owns the total premise, but SC’s accountant refused to release
the gross area.
http://www.chinalight.com.cn/ The website belongs to SC’s parent company.
It includes the information on SC and SC’s related companies. The design is
professional and the content is well organized. At present the web site is in
Chinese and English versions.
SC has passed ISO9001:2000 Quality Management System Certification.
MAIN SHAREHOLDERS:
Name
% of Shareholding
China National Light Industrial Products
Import and Export Corporation 100
China National Light Industrial Products
Import and Export Corporation (Chinalight for short) is a state foreign trade
entity with abundant financial resources, good business reputation and bright
prospects. Chinalight is involved in four major business areas in relation to
pulp and paper, natural resources, international trade (such as import &
export), and financial services (such as investment, financing and capital
operation). In 2008, Chinalight was incorporated into China General Technology
(Group) Holding Limited with a view to reinforcing mutual strengths,
rationalizing & optimizing allocation of resources, constantly opening up
new fields and stepping up operational efficiency.
Legal representative: Pan Wang
Registration No.: 100000000001148
Incorporation date: June 9, 1983
Registered capital: CNY 553,330,000
Web: http://www.chinalight.com.cn/
Add: No. 910, Jinsong 9th
Section, Chaoyang District, Beijing, China
Phone: 010-87763388
Email: info@chinalight.com.cn
l
Legal representative and general manager:
Mr. Qiu Feng , ID# 110101560613409, born in 1956. He is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as legal representative and general manager.
SC is mainly
engaged in international trade.
SC’s products mainly
include mineral products, dairy products, food additives, etc.
SC sources its
merchandise 80% from domestic market and 20% from overseas market. SC sells 30%
of its products in domestic market and 70% 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 main clients and suppliers.
According
to http://www.chinalight.com.cn/:
Chinalight
Footwear & Headgear I/E Corp.
China
Household Electrical Appliances Import and Export Corp.
Chinalight
Shenzhen Import & Export Co., Ltd.
Chinalight
Ningbo Import & Export Co., Ltd.
Kunlun
International Trading Co., Ltd.
China
Light Resources Imp. & Exp. Corp.
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.
SC’s accountant
refused to release the banking details.
Financial Summary (Consolidated)
Unit: CNY’000
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as of Dec. 31,
2010 |
as of Dec. 31,
2011 |
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Current assets |
246,720 |
355,490 |
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Current liabilities |
184,290 |
285,790 |
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Total Liabilities |
184,290 |
285,790 |
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Shareholders equities |
67,040 |
75,510 |
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Total Assets |
251,330 |
361,300 |
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Turnover |
1,157,280 |
1,523,520 |
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Cost of goods
sold |
1,127,830 |
1,500,850 |
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Profit before
tax |
31,770 |
16,320 |
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Less: profit tax |
7,380 |
1,490 |
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Net profit |
24,390 |
14,830 |
Note: we did not find SC’s detailed
financial reports for Yr2010 & 2011.
Important
Ratios
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as of Dec. 31,
2010 |
as of Dec. 31,
2011 |
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*Current ratio |
1.34 |
1.24 |
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*Liabilities
to assets |
0.73 |
0.79 |
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*Net profit
margin (%) |
2.11 |
0.97 |
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*Return on
total assets (%) |
9.70 |
4.10 |
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*Turnover/Total
assets |
4.60 |
4.22 |
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* Cost of
goods sold/Turnover |
0.97 |
0.99 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears 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 fairly good in both
years.
l
SC’s cost of goods sold is high in both years,
comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in both years.
l
SC’s turnover is in a fairly good level in both
years, comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average in 2010, and fairly
high in 2011.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
SC is considered medium-sized in its line with stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.48 |
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|
1 |
Rs.82.71 |
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Euro |
1 |
Rs.72.23 |
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 |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
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.