MIRA
INFORM REPORT
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Report Date : |
17.01.2013 |
IDENTIFICATION DETAILS
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Name : |
FOSHAN YI LONG ECONOMIC & TRADE CO., LTD. |
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Registered Office : |
3-4/F, No. 28, Office Building Of Former Haixing Factory, Haikou Avenue,
Zhangcha Street, Chancheng District, Foshan City, Guangdong Province, 528000
Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
13.01.2006 |
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Com. Reg. No.: |
440602000000971 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in selling ceramic & chemical materials. |
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No. of Employees : |
20 |
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 : |
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 – June 30th, 2012
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Country Name |
Previous Rating (31.03.2012) |
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.
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Source : CIA |
Company name and address
FOSHAN YI LONG ECONOMIC & TRADE CO., LTD.
3-4/F, NO. 28, OFFICE BUILDING OF FORMER HAIXING FACTORY, HAIKOU AVENUE,
ZHANGCHA STREET, CHANCHENG DISTRICT, FOSHAN CITY, GUANGDONG PROVINCE, 528000 PR
CHINA
TEL: 86
(0) 757-83872738/83872706
FAX: 86 (0) 757-83872700/83839935
EXECUTIVE SUMMARY
INCORPORATION DATE :
JAN. 13, 2006
REGISTRATION NO. :
440602000000971
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE :
MR. HUANG GUOQIANG (LEGAL REPRESENTATIVE)
STAFF STRENGTH : 20
REGISTERED CAPITAL : CNY 1,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 65,800,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 1,600,000 (AS OF DEC. 31, 2011)
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 Ren Min Bi
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 Jan. 13,
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 selling machinery &
components, hardware, steel products, metal materials, rubber & plastic
products, ceramic products, building materials, furniture, sanitary ware,
insulation materials, textiles, groceries, electric appliances & components,
ceramic & chemical materials (excluding hazardous chemicals ),
diamond products, grinding aid and materials; importing and exporting
commodities & technology (excluding the projects prohibited by laws
and administrative regulations, the projects restricted by laws, administrative
laws and regulations have to obtain permits before operating.
SC is mainly engaged in selling ceramic & chemical materials.
Mr. Huang Guoqiang has been the legal representative, chairman and
general manager of SC since 2006.
SC is known to have approx. 20
employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in Foshan. SC’s accountant refused to release the
gross area of the premise.
SC is not known to host website of its own at present.
Changes of its
registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2007-07-25 |
Registration No. |
4406042202005 |
Present one |
|
2008-06-04 |
Registered capital |
CNY 520,000 |
Present amount |
|
2010-5 |
Company name |
Foshan Kexinda Yilong Economic & Trade
Co., Ltd. 佛山科信达溢隆经贸有限公司 |
Present one |
MAIN SHAREHOLDERS:
Name % of shareholdings
Wu Huifen 8
ID# 440602197511082167
He Yongbiao 5
ID# 440001601022341
Li Xianggang 18
ID# 440601196101243414
Chen Shuling 2
ID# 440601195807293427
Huo Rongbiao 2
ID# 440601194702103434
Su Jianling 4
ID# 440602197404030927
Li Rushen 5
ID# 440601195703260612
Huang Guoquan 10
ID# 440601196204173439
Huang Guoqiang 26
ID# 440601195707283416
Luo Xiaomu 20
ID# 522525680810821
Chairman, Legal Representative & General
Manager:
Mr. Huang Guoqiang, ID# 440601195707283416, born in 1957. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 2006 to present Working
in SC as chairman, legal representative & general manager.
Also working in Foshan Aosibo Ceramic Technology Co., Ltd. as legal
representative.
Directors:
========
Li Xianggang
ID# 440601196101243414
Luo Xiaomu
ID# 522525680810821
Supervisor:
========
Huang Guoquan
ID# 440601196204173439
Also working in Guangdong
Kexinda Technology Co., Ltd., Foshan Kexinda Robot Technology and
Equipment Co., Ltd. (literal translation) as legal representative.
SC is mainly engaged in selling ceramic & chemical materials.
SC’s products mainly include: ceramic tiles, porcelain tiles, modulation
pigment, etc.
SC sources its materials 80% from domestic market, and 20% from overseas
market, mainly European and Southeast Asian countries; SC sells its products
60% to overseas market, mainly Europe, and 40% in domestic market.
The buying terms of SC include Check, L/C, 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.
Note: SC’s
management declined to release its major clients and suppliers.
Guangdong Kexinda Technology Co., Ltd.
================================
Registration No.: 440600000013525
Incorporation Date:
Chairman: Huang Guoquan
Registered Capital: CNY 10,680,000
E-mail: fskxda@kexinda.com
Tel.: 0086-757-82518820
Fax: 0086-757-83829735
Foshan Aosibo Ceramic Technology Co., Ltd.
=================================
Registration No.: 440602000131674
Incorporation Date:
Chairman: Huang Guoqiang
Registered Capital: CNY 500,000
Web: http://www.foshanaosibo.com/
E-mail: sales@foshanaosibo.com
Tel.: 0086-757-83816088
Fax: 0086-757-83826524
Foshan Kexinda Robot Technology and Equipment Co., Ltd. (literal
translation)
====================================================
Registration No.: 440602000116843
Incorporation Date:
Chairman: Huang Guoquan
Registered Capital: CNY 1,030,000
E-mail: kxd100@kexinda.com
Tel.: 0086-757-82518818
Fax: 0086-757-83823670
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.
Bank of China Foshan Lanpu Sub-branch
AC#: 649657748463
Relationship: Normal
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2011 |
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Cash & bank |
1,980 |
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Notes receivable |
0 |
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Inventory |
0 |
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Accounts receivable |
4,120 |
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Advances to suppliers |
6,920 |
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Other accounts receivable |
8,730 |
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Other current assets |
0 |
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----------------- |
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Current assets |
21,750 |
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Fixed assets net value |
130 |
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Project under construction |
0 |
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Long term investment |
0 |
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Long-term prepaid expenses |
0 |
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Project materials |
0 |
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Intangible and other assets |
0 |
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Total assets |
21,880 |
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============= |
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Short loans |
0 |
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Notes payable |
0 |
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Accounts payable |
9,700 |
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Advances from clients |
8,860 |
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Accrued payroll |
0 |
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Welfare payable |
0 |
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Taxes payable |
-10 |
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Surcharge payable |
0 |
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Other accounts payable |
1,730 |
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Other current liabilities |
0 |
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Interest payable |
0 |
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Current liabilities |
20,280 |
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Long-term liabilities |
0 |
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Total liabilities |
20,280 |
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Equities |
1,600 |
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Total liabilities & equities |
21,880 |
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Income Statement
Unit: CNY’000
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As
of Dec. 31, 2011 |
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Turnover |
65,800 |
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Cost of goods sold |
63,100 |
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Taxes and additional of main operations |
30 |
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Sales expense |
1,850 |
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Management expense |
60 |
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Finance expense |
-30 |
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Other expense |
760 |
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Profit before tax |
30
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/ |
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Profits |
/ |
Important Ratios
=============
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As
of Dec. 31, 2011 |
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*Current ratio |
1.07 |
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*Quick ratio |
1.07 |
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*Liabilities to assets |
0.93 |
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*Net profit margin (%) |
/ |
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*Return on total assets (%) |
/ |
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*Inventory /Turnover ×365 |
/ |
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*Accounts receivable/Turnover ×365 |
23 days |
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*Turnover/Total assets |
3.01 |
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* Cost of goods sold/Turnover |
0.96 |
The turnover of SC appears average.
SC’s cost of goods sold is high, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a normal level.
SC has no inventory in 2011.
The accounts receivable of SC appears average in 2011.
SC has no short-loans in 2011.
SC’s turnover is in a fairly good level, comparing with the size of its
total assets.
LEVERAGE: FAIR
The debt ratio of SC is high in 2011.
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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.82 |
|
|
1 |
Rs.87.9 |
|
Euro |
1 |
Rs.72.83 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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 |
|
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 |
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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 |
|
<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.