MIRA
INFORM REPORT
|
Report Date : |
15.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
NINGBO LESLI IMPORT AND EXPORT CO., LTD. |
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Registered Office : |
No. 68 Dongwu Section Of Yinxian Avenue, Yinzhou District
Ningbo, Zhejiang Province 315113 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
17.06.2009 |
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Com. Reg. No.: |
330200400039964 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Selling Household Appliances |
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No. of Employees : |
46 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
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 2012 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 under 8% for 2012. An economic slowdown in Europe contributed to
China''s, and is expected to further drag Chinese growth in 2013. 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 LESLI IMPORT AND EXPORT CO., LTD.
NO. 68 DONGWU SECTION OF YINXIAN AVENUE, YINZHOU DISTRICT
NINGBO, ZHEJIANG PROVINCE 315113 PR CHINA
TEL: 86 (0) 574-88355406/88356476
FAX: 86 (0) 574-88359143
EXECUTIVE SUMMARY
Date of Registration : JUNE 17, 2009
REGISTRATION NO. : 330200400039964
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : CNY 5,000,000
staff :
46
BUSINESS CATEGORY : TRADING
Revenue :
CNY 156,476,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 4,570,000 (AS OF DEC. 31, 2012)
E-MAIL :
N/A
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : ordinary
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 6.13 = 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
***Note: SC’s current address should be the heading
one, while the (Wuduwang Village, Qiuai Town, Yinzhou District, Ningbo) is SC’s
registered one.
SC was established
as a limited liabilities company of PRC with State Administration of Industry
& Commerce (SAIC) under registration No.: 330200400039964 on June 17, 2009.
SC’s Organization Code Certificate No.:
68804069-1
SC’s Tax No.: 330227688040691
SC’s registered capital: CNY 5,000,000
SC’s paid-in capital: CNY 5,000,000
Registration Change Record:-
No significant changes of SC have been noted
in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Ningbo LESLI Group Co., Ltd. |
89.1024 |
|
Qiu Fuzhong |
10.8976 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and
General Manager |
Qiu Fuzhong |
|
Supervisor |
Wang Shizhong |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Ningbo LESLI Group Co., Ltd. 89.1024
Qiu Fuzhong 10.8976
Ningbo LESLI Group Co., Ltd.
-------------------------------------
Founded in 1993, Ningbo LESLI Group Co.,
Ltd. has developed into an integrated modern enterprise group, which involved
in electrical appliance products, electronic products, machinery and electronic
project and other relative areas. Five subsidiary corporations, Ningbo LESLI
Industry Co., Ltd., Ningbo LES Mold Co., Ltd., SC, Ningbo LESLI Visual Tech
Co., Ltd. and LESLI Canada CORP., are successively established under Ningbo
LESLI Group Co., Ltd. At the present, LESLI Group Corporation has over 200
thousand square meters of land, factory building 200,000 square meter, and more
than 1,000 employees.
Registration No.: 330212000193117
Registered Capital: CNY 30,000,000
Legal Representative: Le Jianrong
Website: www.lesligroup.com
Tel: 86-0574-88390605
Add: No .68, Dongwu Section of Yinxian
Avenue, Yinzhou District, Ningbo, Zhejiang Province
MANAGEMENT
Qiu Fuzhong , Legal Representative, Chairman and General
Manager
-----------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
ID# 33022719821102201X
Ø
Age: 31
Ø
Qualification:
University
Ø
Working
experience (s):
At
present, working in SC as legal representative, chairman and general manager
Wang Shizhong , Supervisor
-----------------------------------------------
Ø
Gender: M
Ø
ID# 330227197309091211
Ø
Age: 40
Ø
Qualification:
University
BUSINESS OPERATION
SC’s registered business scope includes importing and exporting goods and
technology, excluding the items limited or prohibited by the state; wholesaling
and retailing household appliances, mold, industrial equipment, testing
equipment, instrumentation, electrical accessories, electronic components,
metal products, plastic products, foam products, plastic raw materials, and
household items. (if the trade of the goods is governed by the quota or special
rule, relevant regulations shall be followed)
SC is mainly
engaged in selling household appliances.
SC’s products
mainly include: washing machine.
SC sources its
materials 100% from overseas market, mainly Korea and U.S.A. SC sells 20% of
its products in domestic market, and 80% to overseas market, mainly Middle East
and India.
The buying terms of SC include Check, 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.
Staff & Office:
--------------------------
SC is known
to have approx. 46 staff at
present.
SC rents an area
as its operating office, but the detailed information is unknown.
RELATED COMPANY
Ningbo LESLI Industry Co., Ltd.
Ningbo LES Mold Co., Ltd.
Etc.
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 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.
BANKING
Basic Bank:
Bank
of Ningbo Zhongxing Sub-branch
AC#:
33020122000066008
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
7,762 |
2,790 |
|
|
Notes receivable |
0 |
0 |
|
Accounts
receivable |
14,990 |
3,454 |
|
Advances to
suppliers |
2,242 |
10,784 |
|
Export drawback
receivable |
0 |
733 |
|
Subsidy
receivable |
4,634 |
0 |
|
Other receivable |
8 |
-9 |
|
Inventory |
4,443 |
9,849 |
|
Deferred
expenses |
0 |
0 |
|
Other current
assets |
542 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
34,621 |
27,601 |
|
Fixed assets |
80 |
397 |
|
Construction in
progress |
0 |
0 |
|
Intangible
assets |
0 |
0 |
|
Long-term prepaid
expenses |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
34,701 |
27,998 |
|
|
============= |
============= |
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Short-term loans |
7,605 |
19,808 |
|
Notes payable |
6,000 |
0 |
|
Accounts payable |
7,774 |
6,938 |
|
Wages payable |
0 |
0 |
|
Taxes payable |
-369 |
-3,324 |
|
Advances from
clients |
9,240 |
0 |
|
Other payable |
7 |
-10 |
|
Other current
liabilities |
19 |
16 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
30,276 |
23,428 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
30,276 |
23,428 |
|
Equities |
4,425 |
4,570 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
34,701 |
27,998 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Revenue |
90,911 |
156,476 |
|
Cost of sales |
85,887 |
150,395 |
|
Taxes and surcharges |
0 |
0 |
|
Sales expense |
2,350 |
2,363 |
|
Management expense |
298 |
429 |
|
Finance expense |
2,975 |
3,024 |
|
Subsidy income |
119 |
66 |
|
Non-operating expense |
91 |
157 |
|
Profit before
tax |
-570 |
173 |
|
Less: profit tax |
0 |
31 |
|
-570 |
142 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
1.14 |
1.18 |
|
*Quick ratio |
1.00 |
0.76 |
|
*Liabilities to
assets |
0.87 |
0.84 |
|
*Net profit
margin (%) |
-0.63 |
0.09 |
|
*Return on
total assets (%) |
-1.64 |
0.51 |
|
*Inventory /
Revenue ×365 |
18 days |
23 days |
|
*Accounts
receivable/ Revenue ×365 |
61 days |
9 days |
|
*
Revenue/Total assets |
2.62 |
5.59 |
|
* Cost of
sales / Revenue |
0.94 |
0.96 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears average, and it was
rising in 2012.
l
SC’s net profit margin is fair in 2011, average in
2012.
l
SC’s return on total assets is fair in 2011,
average in 2012.
l
SC’s cost of sales is fairly high, comparing with
its revenue.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in both years.
l
SC’s quick ratio is maintained in a normal level in
2011, fair in 2012.
l
The inventory of SC appears average in 2012.
l
The accounts receivable of SC is maintained in an
average level in 2012.
l
SC’s short-term loans appear large.
l
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered small-sized in its line with fairly stable financial
conditions. The large amount of short-term loans may be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.57.74 |
|
|
1 |
Rs.90.64 |
|
Euro |
1 |
Rs.77.02 |
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.