MIRA INFORM REPORT
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Report Date : |
23.01.2013 |
IDENTIFICATION DETAILS
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Name : |
CNSC FORTUNE WAY COMPANY |
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Registered Office : |
No.4, Huixin Dongjie, Chaoyang District Beijing 100029 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
16.08.1993 |
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Com. Reg. No.: |
110105005017129 |
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Legal Form : |
State-Owned Enterprise |
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Line of Business : |
Subject is engaged in international trade |
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No. of Employees : |
25 |
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
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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
CNSC FORTUNE WAY COMPANY
NO.4, HUIXIN DONGJIE, CHAOYANG
DISTRICT BEIJING 100029 PR CHINA
TEL: 86 (0) 10-84663108/84663822
FAX: 86 (0) 10-84663106/84639160
EXECUTIVE SUMMARY
Date of Registration : august 16, 1993
REGISTRATION NO. : 110105005017129
LEGAL FORM : STATE-OWNED ENTERPRISE
CHIEF EXECUTIVE :
li can (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : cny 20,000,000
staff :
25
BUSINESS CATEGORY : trading
Revenue :
CNY 1,148,102,000 (AS OF DEC. 31,
2011)
EQUITIES :
CNY 31,083,000 (AS OF DEC. 31, 2011)
WEBSITE : N/A
E-MAIL :
pharma@fortune-way.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 6.22 = 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
Not yet be determined
LEGAL STATUS & HISTORY
SC was established as a state-owned enterprise of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.:
110105005017129 on August 16, 1993.
SC’s Organization Code Certificate No.:
10169330-1
SC’s registered capital: cny 20,000,000
SC’s paid-in capital: cny 20,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2000-11 |
Registered Capital |
CNY 3,000,000 |
CNY 7,000,000 |
|
2001-03 |
Registered Capital |
CNY 7,000,000 |
cny 20,000,000 |
|
Legal Representative |
Gao Xianmin |
Li Can |
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|
-- |
Registration No. |
1101051501712 |
110105005017129 |
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-- |
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Shareholder (s) |
China National Service Corporation for Chinese Personnel Working Abroad 100% |
China National Pharmaceutical Group Corp. 100% |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
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Name of Shareholder (s) |
% of Shareholding |
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China National Pharmaceutical Group Corp. |
100 |
SC’s Chief Executives:-
|
Position |
Name |
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Legal Representative, Chairman and General Manager |
Li Can |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
China National Pharmaceutical Group Corp. 100
--------------------------
Registration No.: 100000000005882
Date of Registration: March 26, 1987
Legal Form: State-Owned Enterprise
Registered Capital: CNY 8,971,480,000
Legal Representative: She Lulin 佘鲁林
Web: www.sinopharm.com
MANAGEMENT
Li Can, Legal Representative, Chairman and General
Manager
------------------------------------------------------------------------------------------
Gender: M
ID# 370923721121061
Age: 41
Working experience (s):
At present, working in SC as legal representative, chairman and general
manager
BUSINESS OPERATION
SC’s registered business scope includes supplying various goods to China
oversea institutions; purchasing and selling tax-free goods; purchasing and
selling general merchandise, foodstuff, native goods, chemically products,
furniture, arts and crafts, textiles, machinery & equipment, hardware,
building materials, decoration materials, spare parts of cars, groceries, and
labor protection products; photo services; retailing tobaccos; import and
export of goods and technology, excluding the products prohibited by the
country; processing with supplied samples, imported materials, and imported
parts, compensation trades; transit trade and counter trade; economic
information consulting (excluding agency services and specially regulated
items).
SC is mainly engaged in international trade.
SC’s textile products include: chemical fiber cloth material & inner
cloth material, blend cloth material & crossing textile cloth material,
medical, medical medium agent.
Chemical products: PTA, QTA, PET lumps, PP powder, SAN, 1,5-Pentanediol
, Bisphenol-A,MEA, Ethyl Acetate.
Stone Products: Galala Beige, Aman Beige, Marron Emperador, Wooden
Travertine , Rosso Lavento, Sahara Beige, India Green, MocaCream, Bianco
Perlino, Ariston White.
From Oct. 2004 SC began to supply Pakistan heckling yarn and regular
yarn, mainly including 16S, 20S, and 26S. At present, it sets warehouses in
Guangzhou, Beijing and Tianjin. Its annual importing can reach 15,000 tons.
SC imports marble and its board materials from Turkey and Egypt; PET and
its materials, PTA from Europe; chromium ore and stone materials from Turkey
and Pakistan.
SC sources its materials 40% from domestic market, and 60% from
international market mainly Korea, Asia and Europe. SC sells 60% of its
products in domestic market, and 40% to international market, mainly Asian
countries, Middle East and Europe.
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.
*Major Suppliers*
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Korea Samnam Petrochem Co., Ltd.
Korea Polymirae Co., Ltd.
Korea LG Chemical Co., Ltd.
Staff &
Office:
--------------------------
SC is known to have approx. 25
staff at present.
SC rents an area as its operating office, but the detailed information
is unknown.
RELATED COMPANY
SC is known to have a subsidiary at present,
Chengde Shuangluan Meiruikang Chemical Co., Ltd.
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’s suppliers refused to make any
comments.
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
Basic Bank
Bank of Communications Huixin Branch
AC#: 664012015014063
FINANCIALS
Balance Sheet
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Unit: CNY’000 |
As
of Dec. 31, 2011 |
|
85,467 |
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Notes receivable |
0 |
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Accounts receivable |
98,245 |
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Advances to suppliers |
0 |
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Other receivable |
184,520 |
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Inventory |
102,341 |
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Non-current assets within one year |
0 |
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Other current assets |
53,243 |
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------------------ |
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Current assets |
523,816 |
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Fixed assets |
102 |
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Construction in progress |
0 |
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Intangible assets |
0 |
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Long-term investment |
910 |
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Deferred income tax assets |
0 |
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Other non-current assets |
23,890 |
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------------------ |
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Total assets |
548,718 |
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============= |
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Short-term loans |
0 |
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Notes payable |
0 |
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Accounts payable |
162,541 |
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Welfares payable |
0 |
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Taxes payable |
0 |
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Advances from clients |
0 |
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Other payable |
264,574 |
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Other current liabilities |
90,520 |
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Current liabilities |
517,635 |
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Non-current liabilities |
0 |
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Total liabilities |
517,635 |
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Equities |
31,083 |
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Total liabilities & equities |
548,718 |
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Income Statement
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Unit: CNY’000 |
As
of Dec. 31, 2011 |
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Revenue |
1,148,102 |
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Profit before tax |
34,146 |
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Less: profit tax |
8,596 |
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25,550 |
Important Ratios
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As of Dec. 31, 2011 |
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*Current ratio |
1.01 |
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*Quick ratio |
0.81 |
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*Liabilities to assets |
0.94 |
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*Net profit margin (%) |
2.23 |
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*Return on total assets (%) |
4.66 |
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*Inventory / Revenue ×365 |
33 days |
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*Accounts receivable/ Revenue ×365 |
32 days |
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* Revenue/Total assets |
2.09 |
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* Cost of sales / Revenue |
-- |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears fairly good in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a normal level.
The inventory of SC appears average.
The accounts receivable of SC appears average.
SC has no short-term loans.
SC’s revenue is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIR
The debt ratio of SC is fairly high.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.51 |
|
|
1 |
Rs.84.85 |
|
Euro |
1 |
Rs.71.43 |
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 |
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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 |
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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.