MIRA INFORM REPORT
|
Report Date : |
28.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
FUJIAN QUANZHOU
JUSTSUN SUPPLY CHAIN CO., LTD. |
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Registered Office : |
6/F, Ccb
Building, No. 432, Pulian Road, Nan’an, Fujian Province, 362300 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
11.11.2010 |
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Com. Reg. No.: |
350583100073207 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Subject
include textiles, clothing, footwear, machinery and electronic equipment,
etc. |
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No. of Employees : |
10 |
RATING & COMMENTS
|
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 : |
Small company |
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Payment Behaviour : |
Usually 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
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
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
FUJIAN QUANZHOU JUSTSUN SUPPLY CHAIN CO.,
LTD.
6/F, CCB BUILDING, NO. 432, PULIAN
ROAD,
NAN’AN, FUJIAN PROVINCE, 362300 PR
CHINA
TEL: 86 (0) 595-26688100 FAX: 86 (0) 595-26688089
EXECUTIVE SUMMARY
INCORPORATION DATE : NOV. 11, 2010
REGISTRATION NO. : 350583100073207
REGISTERED LEGAL FORM :
Limited liabilities co.
STAFF STRENGTH : 10
REGISTERED CAPITAL :
cny 10,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 843,970,000 (UNaudited, AS OF DEC. 31, 2012)
EQUITIES :
CNY 16,030,000 (UNaudited, AS OF DEC.
31, 2012)
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND :
steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.2176= 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 Nov. 11,
2010.
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 1. procurement of goods, wholesaling
and retailing: chemical products (excluding dangerous chemicals), textiles,
clothing, shoes, hats, hardware, daily necessities, machinery and electronic
equipment, arts and crafts (excluding gold and silver jewelry), construction
materials, paper products, metal materials (excluding the pre-approval items);
2. importing and exporting goods and technologies (import and export directory
is not attached), excluding the items limited by the state; 3. international
freight forwarders (excluding international shipping agency), warehousing
(excluding hazardous chemicals and monitoring of chemicals), logistics
(excluding transport); 4. business information consulting and related supply
chain management services. (with permit if needed)
SC is
mainly engaged in international trade.
Mr.
Dong Yan has been legal representative and chairman of SC since 2010.
SC is
known to have approx. 10 employees at present.
SC is currently operating at the above stated address, and
this address houses its operating office in the commercial zone of Nan’an. Our
checks reveal that SC rents the total premise about 200 square meters.
http://www.xmjsjt.com/
The website belongs to Xiamen Justsun Supply Chain Co., Ltd. The design is
professional and the content is well organized. At present it is in Chinese and
English versions.
No significant events or changes were found during our checks
with the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name % of Shareholding
Ye Weidong
10
Xiamen Jiasheng Foreign Trade
Co., Ltd.
90
==============================
Incorporation Date :
Jul. 16, 2002
Registration No. :
350203200018426
Registered Legal Form : Limited
Liabilities Company
Chief Executive :
Mr. Wu Yaqiang (General Manager)
Registered Capital :
CNY 60,000,000
Add: 18/F, Building 8,
Guanyinshan Business Operation Center, Siming District, Xiamen City, Fujian
Province, 361009 PR China
Tel: 86 (0)
592-5563165/3757888/3757851
Fax: 86 (0) 592-3757800
l Legal
Representative and Chairman:
Mr. Dong Yan, born in 1976, with
junior college education. He is currently responsible for the overall
management of SC.
Working Experience(s):
From 2010 to present Working in SC as legal
representative and chairman.
l General
Manager:
Mr. Chen Yonghuo is currently
responsible for the daily management of SC.
Working Experience(s):
At present Working in SC as general
manager.
l Supervisor:
Pan Xiaofeng
SC is mainly
engaged in international trade.
SC’s
products mainly include textiles, clothing, footwear, machinery and electronic
equipment, etc.
SC
sources its materials 100% from domestic market. SC sells 10% of its products
in domestic market, and 90% to overseas market, mainly America, Europe, South
Asia, etc.
The buying terms of SC include Check, 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 declined to release its major suppliers and clients.
According to the website: http://www.xmjsjt.com/
Shenzhen Justsun Supply Chain Co., Ltd.
=============================
Incorporation Date :
Apr. 8, 2009
Registration No. :
440301103935922
Registered Legal Form :
Shares Limited Co.
Chief Executive :
Mr. Wu Yaqiang (Legal Representative)
Registered Capital :
CNY 10,000,000
Add:
Xiamen Justsun Supply Chain Co., Ltd.
============================
Incorporation Date :
Oct. 13, 2009
Registration No. :
350200200052385
Registered Legal Form :
Shares Limited Co.
Chief Executive :
Mr. Wu Yaqiang (Legal Representative)
Registered Capital :
CNY 60,000,000
Add: 18/F, Building 8,
Guanyinshan Business Operation Center, Siming District, Xiamen City, Fujian
Province, 361009 PR China
Tel: 86 (0) 592-3757888/
3757898
Fax: 86 (0) 592-3757800
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.
China
Construction Bank Nan’an Sub-branch
AC#:
N/A
Relationship:
Normal
Balance
Sheet
Unit:
CNY’000
|
|
as of Dec. 31, 2011 |
as of Dec. 31, 2012 |
|
Cash
& bank |
12,410 |
55,540 |
|
Inventory |
1,030 |
20 |
|
Accounts
receivable |
132,180 |
149,670 |
|
Advances
to suppliers |
30,090 |
92,800 |
|
Other
receivables |
-30 |
116,240 |
|
Other
current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
assets |
175,680 |
414,270 |
|
Long-term
investments |
0 |
0 |
|
Fixed
assets net value |
130 |
80 |
|
Projects
under construction |
0 |
0 |
|
Long-term
deferred expenses |
210 |
110 |
|
Intangible
assets |
0 |
0 |
|
Other
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
assets |
176,020 |
414,460 |
|
|
============= |
============= |
|
Short
loans |
19,910 |
78,970 |
|
Accounts
payable |
87,860 |
271,580 |
|
Advances
from customers |
7,780 |
33,400 |
|
Employee
pay payable |
50 |
60 |
|
Taxes
payable |
0 |
310 |
|
Other
accounts payable |
49,190 |
14,110 |
|
Other
current liabilities |
0 |
0 |
|
|
----------------- |
----------------- |
|
Current
liabilities |
164,790 |
398,430 |
|
Long
term liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
164,790 |
398,430 |
|
Shareholders
equities |
11,230 |
16,030 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
176,020 |
414,460 |
|
|
============= |
============= |
Income
Statement
Unit:
CNY’000
|
|
as of Dec. 31, 2012 |
|
Turnover |
843,970 |
|
Cost
of goods sold |
816,250 |
|
Taxes
and additional of main operation |
0 |
|
Sales expense |
18,500 |
|
Management expense |
1,520 |
|
Finance expense |
5,250 |
|
Non-operating
income |
4,140 |
|
Non-operating expense |
30 |
|
Profit
before tax |
6,560 |
|
Less:
profit tax |
1,640 |
|
Net
profit |
4,920 |
Note: The Financial Report for Year 2012 hasn’t been audited.
Important Ratios
=============
|
|
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
*Current
ratio |
1.07 |
1.04 |
|
*Quick
ratio |
1.06 |
1.04 |
|
*Liabilities
to assets |
0.94 |
0.96 |
|
*Net
profit margin (%) |
/ |
0.58 |
|
*Return
on total assets (%) |
/ |
1.19 |
|
*Inventory
/Turnover ×365 |
/ |
1 day |
|
*Accounts
receivable/Turnover ×365 |
/ |
65 days
|
|
*Turnover/Total
assets |
/ |
2.04 |
|
*
Cost of goods sold/Turnover |
/ |
0.97 |
PROFITABILITY:
AVERAGE
l The
turnover of SC appears fairly good in its line in 2012.
l SC’s
net profit margin is average in 2012.
l SC’s
return on total assets is average in 2012.
l
SC’s cost of goods sold is high in
2012, comparing with its turnover.
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 both years.
l
The inventory of SC appears average in
2011 and small in 2012.
l
The accounts receivable of SC appears
large in both years.
l
The short-term loan of SC appears large
in both years.
l
SC’s turnover is in an average level in
2012, comparing with the size of its total assets.
LEVERAGE:
FAIR
l
The debt ratio of SC is high.
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. The large amount of accounts receivable and short-term
loan could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.27 |
|
|
1 |
Rs.82.49 |
|
Euro |
1 |
Rs.69.88 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.