MIRA
INFORM REPORT
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Report Date : |
13.03.2013 |
IDENTIFICATION DETAILS
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Name : |
NANTONG COMMERCIAL FOREIGN TRADE CORPORATION |
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Registered Office : |
Sutong Industrial Park, Zhangzhishan Town,
Nnantong City, Jiangsu Province, 226311 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
01.09.1992 |
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Com. Reg. No.: |
320600000002917 |
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Legal Form : |
Collective-Owned Enterprise (Shares Jointly
Owned Enterprise) |
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Line of Business : |
selling textile products |
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No. of Employees : |
15 |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Small Company |
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Payment Behaviour : |
Slow |
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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 & address
Nantong Commercial Foreign Trade Corporation
SUTONG INDUSTRIAL PARK, ZHANGZHISHAN TOWN,
NANTONG CITY, JIANGSU PROVINCE, 226311 PR CHINA
TEL: 86 (0)
513-85539365/13773650201 FAX: 86 (0)
513-86318090
EXECUTIVE SUMMARY
INCORPORATION DATE : sep. 1, 1992
REGISTRATION NO. : 320600000002917
REGISTERED LEGAL FORM : Collective-owned
enterprise (Shares jointly owned
enterprise)
CHIEF EXECUTIVE : Ms. he yue (GENERAL MANAGER)
STAFF STRENGTH :
15
REGISTERED CAPITAL : cny 5,300,000
BUSINESS LINE :
trading
TURNOVER :
CNY 1,420,000 (UNaudited, AS OF DEC. 31, 2012)
EQUITIES :
CNY 3,730,000 (UNaudited, AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY stable
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.226 = 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
Note: the (A-4th Floor, Jia Long
Building 611 Gong Nong Road, Nantong Jiangsu China) was SC’s former address.
SC was registered as a Collective-owned enterprise (Shares jointly owned enterprise) at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Sep. 1, 1992.
Company Status: Shares
jointly owned enterprise This form of business in PR
China is defined as a legal person whose registered capital is mostly or
wholly raised by the staff members of the enterprise. Its shareholders
consist of at least 8 staff members, and the staff members that are not
shareholders should be less than 10% of the total staff members.
It operates as a cooperative, under democratic management, paying
salaries according to the achievements of staff members and distributing
its profit according the shares owned.
SC’s registered
business scope includes selling hardware, metal materials, building materials,
general machinery, electrical machinery and equipment, electronic products,
wood, needle textiles and raw materials (excluding cotton), general
merchandise, clothing and shoes, sports goods; importing and exporting goods
and technologies, excluding the items limited or prohibited by the state.
SC is mainly
engaged in selling textile products.
Ms. He
Yue is
legal representative and general manager of SC at
present.
SC is known to have approx. 15 employees at present.
SC is currently operating at the above stated address, and this
address houses its operating office in the industrial zone of Nantong. SC’s management declined to
release detailed information of the premise.
SC is not known to host website of its own at present.
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Shareholders and shareholding |
He Yue 55% Yang Ni 35% He Rong 10% |
Present ones |
MAIN SHAREHOLDERS:
Name
%
of Shareholding
He Yue
ID# 320602580505204 60
Yang Ni
ID# 320602510912251 40
l
Legal Representative and General Manager:
Ms. He Yue, ID # 320602580505204, born in 1958. She is
currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal representative and general manager.
Also working in Nantong Anqier Household Textile Products Co., Ltd. as legal representative.
SC is mainly
engaged in selling textile products.
Main Products:
textile products.
SC sources its materials 95%
from domestic market, and 5% from overseas market, mainly South Asia, India,
etc. SC sells 20% of its products in domestic market, and 80% to overseas
market, mainly Europe, America, etc.
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 customer and supplier details.
SC is known to invest in the following company:
Nantong
Anqier Household Textile Products Co., Ltd.
=======================================
Legal
rep.: He Yue
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.
SPD Bank Nantong
Sub-branch
AC#：88010154720002442
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
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as of Dec. 31, 2011 |
as of Dec. 31, 2012 |
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Cash & bank |
120 |
1,370 |
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Inventory |
40 |
440 |
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Accounts
receivable |
280 |
20 |
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Advances to
suppliers |
660 |
360 |
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Other
receivables |
0 |
0 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
1,100 |
2,190 |
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Long-term
investments |
520 |
520 |
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Fixed assets net
value |
3,960 |
3,610 |
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Projects under
construction |
0 |
0 |
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Intangible
assets |
350 |
350 |
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Other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
5,930 |
6,670 |
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============= |
============= |
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Short loans |
0 |
0 |
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Accounts payable |
410 |
340 |
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Advances from customers |
0 |
380 |
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Accrued
Payroll |
0 |
0 |
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Taxes payable |
0 |
-110 |
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Other accounts
payable |
1,380 |
2,330 |
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Other
current liabilities |
0 |
0 |
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----------------- |
----------------- |
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Current
liabilities |
1,790 |
2,940 |
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Long term
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
1,790 |
2,940 |
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Shareholders
equities |
4,140 |
3,730 |
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------------------ |
------------------ |
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Total
liabilities & equities |
5,930 |
6,670 |
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============= |
============= |
Income Statement
Unit: CNY’000
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as of Dec. 31, 2011 |
as of Dec. 31, 2012 |
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Turnover |
2,290 |
1,420 |
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Cost of goods
sold |
2,050 |
1,220 |
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Taxes
and additional of main operation |
0 |
0 |
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Income
from other operation |
40 |
0 |
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Sales expense |
10 |
60 |
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Management expense |
740 |
550 |
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Finance expense |
40 |
10 |
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Non-operating
income |
20 |
10 |
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Non-operating expense |
0 |
0 |
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Profit before
tax |
-490 |
-410 |
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Less: profit tax |
0 |
0 |
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Net profit |
-490 |
-410 |
Note: The Financial Report for Year 2012 hasn’t been audited.
Important Ratios
=============
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as of Dec. 31,
2011 |
as of Dec. 31,
2012 |
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*Current ratio |
0.61 |
0.74 |
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*Quick ratio |
0.59 |
0.60 |
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*Liabilities
to assets |
0.30 |
0.44 |
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*Net profit
margin (%) |
-21.40 |
-28.87 |
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*Return on
total assets (%) |
-8.26 |
-6.15 |
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*Inventory
/Turnover ×365 |
7 days |
114 days |
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*Accounts
receivable/Turnover ×365 |
45 days |
6 days |
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*Turnover/Total
assets |
0.39 |
0.21 |
|
* Cost of
goods sold/Turnover |
0.90 |
0.86 |
PROFITABILITY:
FAIR
l
The turnover of SC appears average in its line in
both years, but it declined in 2012.
l
SC’s net profit margin is poor in both years.
l
SC’s return on total assets is fair in both years.
l
SC’s cost of goods sold is average in both years,
comparing with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level in both years.
l
SC’s quick ratio is maintained in a fair level in
both years.
l
The inventory of SC appears small in 2011 but
average in 2012.
l
The accounts receivable of SC is maintained in an
average level in 2011 and small in 2012.
l
SC has no short-term loan in both years.
l
SC’s turnover is in a poor level in both years,
comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is low 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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.34 |
|
UK Pound |
1 |
Rs.80.89 |
|
Euro |
1 |
Rs.70.73 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
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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.