MIRA
INFORM REPORT
|
Report Date : |
07.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
NINGBO SINOVA IE CORP. |
|
|
|
|
Registered Office : |
Room 507-509 Building 2 Hi-Tech Development Plaza, No. 1528 Jiangnan Road, Hi-Tech Zone, Ningbo, Zhejiang Province, 315103 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2010 |
|
|
|
|
Date of Incorporation : |
14.08.2006 |
|
|
|
|
Com. Reg. No.: |
330200000041292 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
Importing and selling pharmaceutical chemical materials. |
|
|
|
|
No. of Employees : |
13 |
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 : |
Small Company |
|
Payment Behaviour : |
Slow but correct |
|
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
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
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 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
Ningbo Sinova I/E Corp.
ROOM 507-509
BUILDING 2 HI-TECH DEVELOPMENT PLAZA, NO. 1528 JIANGNAN ROAD, HI-TECH ZONE,
NINGBO, ZHEJIANG PROVINCE, 315103 PR CHINA
TEL: 86 (0)
574-87302410/55001575 FAX: 86 (0)
574-55001588
EXECUTIVE SUMMARY
INCORPORATION DATE : AUG. 14, 2006
REGISTRATION NO. : 330200000041292
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
13
REGISTERED CAPITAL : CNY 1,500,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 1,030,000 (AS OF DEC. 31,
2010)
EQUITIES :
CNY 330,000 (AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : fairly 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 limited liabilities company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Aug. 14, 2006.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders
contribute its registered capital jointly. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to extent of its total assets. The characteristics of this form
of co. are as follows: Upon the establishment of the
co., an investment certificate is issued to the each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s registered
business scope includes importing and exporting various kinds of commodities and
technology; wholesaling and retailing building materials and chemical products.
SC is mainly
engaged in importing and selling pharmaceutical chemical materials.
Ms. Jin Ying has been chairman of SC since 2006.
SC is known to
have approx. 13 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the hi-tech zone of Ningbo. Our checks reveal that SC rents
the total premise about 100 square meters.
http://www.sinova.cn
The design is professional and the content is well organized. At present it is
in English version.
E-Mail: sinova.cn@gmail.com
No significant events or changes were found during our checks with local
AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Jin Ying
95
Wu Bin’er
5
l
Chairman and General Manager:
Ms. Jin Ying , in her
Working Experience(s):
From 2006 to present Working
in SC as chairman and general manager.
SC is mainly
engaged in importing and selling pharmaceutical chemical materials.
SC’s products
mainly include:
API
Antibiotic
Anti-fungal
Cardiovescular
Non-ion contrast media
Antihistaminic
Miscellaneous
Intermediate
For Penicillin & Cephalosporin
For Penem & Carbapenem
Formulation
Cephalosporin (EDMF available)
Non-Cephalosporin
Food Supplement
SC sources its materials 100% from the
overseas market, mainly Europe and India. SC sells 100% of its products in
domestic market.
The buying terms of SC include L/C, T/T and Credit of 30-60 days. The
payment terms of SC include T/T and Credit of 30-60 days.
Note: SC’s management declined to release its main clients and
suppliers.
SC
is not known to have any subsidiary at present.
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.
Bank of Ningbo
AC#：30040122000046179
Relationship:
Normal.
Balance Sheet
|
Unit: CNY’000 |
as
of Dec. 31, 2009 |
as
of Dec. 31, 2010 |
|
Cash & bank |
410 |
320 |
|
Inventory |
140 |
20 |
|
Accounts
receivable |
730 |
770 |
|
Other Accounts
receivable |
10 |
30 |
|
Advances to
suppliers |
30 |
320 |
|
Other current
assets |
50 |
20 |
|
|
------------------ |
------------------ |
|
Current assets |
1,370 |
1,480 |
|
Fixed assets net
value |
70 |
80 |
|
Projects under
construction |
0 |
0 |
|
Long term
investment |
0 |
0 |
|
Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
1,440 |
1,560 |
|
|
============= |
============= |
|
Short loans |
0 |
0 |
|
Accounts payable |
460 |
440 |
|
Other Accounts
payable |
200 |
100 |
|
Advances from
clients |
70 |
0 |
|
Tax payable |
0 |
0 |
|
Other current
liabilities |
450 |
690 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
1,180 |
1,230 |
|
Long term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
1,180 |
1,230 |
|
Equities |
260 |
330 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
1,440 |
1,560 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
as of Dec. 31,
2010 |
|
Turnover |
1,030 |
|
Cost of goods
sold |
980 |
|
Sales expense |
10 |
|
Management expense |
0 |
|
Finance expense |
10 |
|
Profit before
tax |
110 |
|
Less: profit tax |
30 |
|
Profits |
80 |
Important
Ratios
=============
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
*Current ratio |
1.16 |
1.20 |
|
*Quick ratio |
1.04 |
1.19 |
|
*Liabilities
to assets |
0.82 |
0.79 |
|
*Net profit
margin (%) |
/ |
7.77 |
|
*Return on
total assets (%) |
/ |
5.13 |
|
*Inventory
/Turnover ×365 |
/ |
7 days |
|
*Accounts
receivable/Turnover ×365 |
/ |
273 days |
|
*Turnover/Total
assets |
/ |
0.66 |
|
* Cost of
goods sold/Turnover |
/ |
0.95 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in 2010.
l
SC’s net profit margin is fairly good in 2010.
l
SC’s return on total assets is fairly good in 2010.
l
SC’s cost of goods sold is fairly high in 2010,
comparing with its turnover.
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 average in both years.
l
The accounts receivable of SC is fairly large in
both years.
l
SC has no short-term loan in both years.
l
SC’s turnover is in a fair level in 2010, 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 average.
Overall financial
condition of the SC: Fairly Stable.
SC is considered small-sized in its line with fairly stable financial conditions.
The large amount of accounts receivable could be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.84 |
|
|
1 |
Rs.88.16 |
|
Euro |
1 |
Rs.71.54 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.