MIRA INFORM REPORT
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Report Date : |
23.01.2013 |
IDENTIFICATION DETAILS
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Name : |
BLACK
PEONY GROUP IMPORT & EXPORT co., ltd. |
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Registered Office : |
No. 47 Qingyang North Road, Tianning District, Changzhou
City, Jiangsu Province, 213000 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
02.12.1997 |
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Com. Reg. No.: |
320400000001688 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Subjects engaged in importing and exporting business. |
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No. of Employees : |
50 |
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 – June 30th,
2012
|
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 & ADDRESS
BLACK PEONY GROUP IMPORT &
EXPORT co., ltd.
no. 47 qingyang north road,
tianning district,
changzhou city, jiangsu PROVINCE, 213000
PR CHINA
TEL: 86 (0) 519-68866900/68866300 FAX: 86 (0) 519-68866110
EXECUTIVE SUMMARY
INCORPORATION DATE :
DEC. 2, 1997
REGISTRATION NO. :
320400000001688
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
STAFF STRENGTH :
50
REGISTERED CAPITAL : CNY 10,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 25,179,378 (AS OF DEC. 31,
2011)
EQUITIES :
CNY 18,409,213 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGEECOMM. CREDIT RANGE : UP TO USD
100,000
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.2185= 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 co. at local Administration
for Industry & Commerce (AIC - The official body of issuing and renewing business
license) on Dec. 2, 1997.
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 goods
& technologies (excluding goods or technologies limited or forbidden by
state), selling industrial producing materials (excluding special ones),
textiles, labor protection appliances, groceries, articles of daily use,
hardware, electric materials, building materials, decorative materials.
SC is mainly engaged in importing and exporting business.
Mr. Ji Zhongliang
is legal representative, chairman and general manager of SC at present.
SC is known
to have approx. 50 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Changzhou.
Our checks reveal that SC rents the premise, but the gross area is unspecified.
www.blackpeony.com The web belongs
to Black Peony (Group) Co., Ltd. The design is professional and the content is
well organized. At present it is in Chinese and English versions.
No significant changes were found during our checks with the local
Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Changzhou Xinfazhan Industry Co. 5
Black Peony (Group) Co., Ltd. 95
------------------------------------------
Black Peony (Group) Co., Ltd. is a large public
enterprise group with textile and construction as its core business.
Black Peony (Group) Co., Ltd. was listed in Shanghai Stock Exchange
Market with the stock code
Registration No.: 320400000003727
Legal Representative: Ge Yafang
Date of Incorporation: May 28, 1993
Registered Capital: CNY 795,523,000
Tel: 86 (0) 519-68866958
Fax: 86 (0) 519-68866908
Address: No. 47 Qingyang North Road,
Tianning District, Changzhou City, Jiangsu, 213000, PR China
Website: www.blackpeony.com
l Legal
Representative, Chairman and General Manager:
Mr. Ji Zhongliang , ID#320402196306070412, born
in 1963, engineer, with technical secondary school education. He is
currently responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as legal representative, chairman and general manager.
Also working in Black Peony International Fashion Garments Changzhou Co., Ltd., Black Peony (Liyang) Garments Co., Ltd.,
Changzhou Rong Yuan Garments Co., Ltd., Changzhou Dade Textile Co., Ltd. as
legal representative; in Black Peony (Group) Co., Ltd. Textile
Branch as principal; and in Black Peony (Group) Co., Ltd. as vice president
l Directors:
Ms. Xu Xiaochun, ID# 320402196302211441, born in 1963
Mr. Qin Jianye, ID# 320402197701251031, born in 1977
l Supervisor:
Mr. Chen Qiang, ID# 362129197011270019, born
in 1970
SC is mainly
engaged in importing and exporting business.
SC’s products mainly include: garments, textile products, etc.
SC sources its materials 90% from domestic
market, and 10% from overseas market. SC sells 10% of
its products in domestic market, and 90% 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 clients and suppliers.
Black Peony International Fashion Garments Changzhou Co., Ltd.
(literal translation)
==========================================================
Legal
representative: Mr. Ji Zhongliang
Black Peony (Liyang) Garments Co., Ltd.
===============================
Legal
representative: Mr. Ji Zhongliang
Changzhou Rong Yuan Garments Co., Ltd.
===============================
Legal
representative: Mr. Ji Zhongliang
Changzhou Dade Textile Co., Ltd.
=========================
Legal
representative: Mr. Ji Zhongliang
Black
Peony (Group) Co., Ltd. Textile Branch
==================================
Principal:
Mr. Ji Zhongliang
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
Account No.:
518358200835
Relationship:
Normal
Balance Sheet
Unit: CNY
|
|
as of Dec. 31, 2011 |
|
Cash & bank |
2,699,630 |
|
Inventory |
4,526,294 |
|
Accounts
receivable |
1,473,202 |
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Advances to
suppliers |
14,629,385 |
|
Notes receivable |
100,000 |
|
Other
receivables |
3,511,258 |
|
Other current
assets |
798,995 |
|
|
------------------ |
|
Current assets |
27,738,764 |
|
Fixed assets net
value |
5,869 |
|
Long term
investment |
0 |
|
Projects under
construction |
0 |
|
Intangible
assets |
0 |
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Long-term
deferred expenses |
0 |
|
Deferred tax |
344,789 |
|
|
------------------ |
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Total assets |
28,089,422 |
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|
============= |
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Short loans |
0 |
|
Accounts payable |
8,874,448 |
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Advances from
clients |
1,124,033 |
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Dividends
payable |
56,530 |
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Taxes payable |
-374,802 |
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Other accounts
payable |
0 |
|
Accrued expenses |
0 |
|
|
------------------ |
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Current
liabilities |
9,680,209 |
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Long term
liabilities |
0 |
|
|
------------------ |
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Total
liabilities |
9,680,209 |
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Equities |
18,409,213 |
|
|
------------------ |
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Total liabilities
& equities |
28,089,422 |
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|
============= |
Income Statement
Unit: CNY
|
|
as of Dec. 31,
2011 |
|
Turnover |
25,179,378 |
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Cost of goods
sold |
23,404,012 |
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Taxes
and additional of main operation |
3,583 |
|
Sales expense |
71,479 |
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Management expense |
805,536 |
|
Finance expense |
120,105 |
|
Assets
impairment loss |
407,362 |
|
Non-operating
income |
0 |
|
Non-operating expense |
0 |
|
Profit before
tax |
367,301 |
|
Less: profit tax |
94,465 |
|
Profits |
272,836 |
Important Ratios
=============
|
|
as
of Dec. 31, 2011 |
|
*Current ratio |
2.87 |
|
*Quick ratio |
2.40 |
|
*Liabilities
to assets |
0.34 |
|
*Net profit
margin (%) |
1.08 |
|
*Return on
total assets (%) |
0.97 |
|
*Inventory
/Turnover ×365 |
66 days |
|
*Accounts
receivable/Turnover ×365 |
21 days |
|
*Turnover/Total
assets |
0.90 |
|
* Cost of
goods sold/Turnover |
0.93 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is fairly high, comparing
with its turnover.
LIQUIDITY: FAIRLY
GOOD
l
The current ratio of SC is fairly good.
l
SC’s quick ratio is fairly good.
l
SC’s inventory is average in 2011.
l
SC’s account receivable is average in
2011.
l
SC has no short loan in 2011.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is low.
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. Taking into consideration of SC's operation size and development
history, we would rate SC as an average credit risk company.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian
Rupees |
|
US Dollar |
1 |
Rs.53.51 |
|
UK Pound |
1 |
Rs.84.84 |
|
Euro |
1 |
Rs.71.42 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
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%)