MIRA INFORM REPORT
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Report Date : |
29.03.2013 |
IDENTIFICATION DETAILS
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Name : |
TONGXIANG
JUNCHENG IMPORT & EXPORT CO., LTD |
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Registered Office : |
Room 839 Foront International Business
Center, No. 398 Zhenxing East Road, Tongxiang, Zhejiang Province 314500 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
20.05.2005 |
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Com. Reg. No.: |
330483000003487 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject engaged
in international trade. |
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No. of Employees : |
6 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Small |
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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) |
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China |
A2 |
A2 |
|
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.
|
Source : CIA |
COMPANY NAME & ADDRESS
TONGXIANG
JUNCHENG IMPORT & EXPORT CO., LTD.
ROOM 839 FORONT
INTERNATIONAL BUSINESS CENTER
NO. 398
ZHENXING EAST ROAD, TONGXIANG
ZHEJIANG
PROVINCE 314500 PR CHINA
TEL: 86
(0) 573-88199098/88192098
FAX: 86
(0) 573-88199398
EXECUTIVE SUMMARY
Date of Registration : may 20, 2005
REGISTRATION NO. : 330483000003487
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL :
CNY 1,000,000
staff : 6
BUSINESS CATEGORY :
trading
Revenue : CNY 38,746,000 (AS OF DEC. 31, 2012)
EQUITIES : CNY 1,898,000 (AS OF DEC. 31, 2012)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT : AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : ORDINARY
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 limited liabilities company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 330483000003487 on May 20, 2005.
SC’s Organization Code Certificate
No.: 77570518-8
SC’s Tax No.: 330483775705188
SC’s registered capital: cny 1,000,000
SC’s paid-in capital: cny 1,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2007-10 |
Registration No. |
3304832209824 |
330483000003487 |
|
Shareholder (s) (% of Shareholding) |
Zhang Maojun 60% Hu Chengyu 20% Lu Yin 20% |
Zhang Maojun 80% Lu Yin 20% |
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|
Address |
4/F Fengming
Mansion, Zhenxing East Road, Tongxiang,Zhejiang Province |
Room 839 Foront International
Business Center, No.398 Zhenxing East Road, Tongxiang City, Zhejiang Province |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Zhang Maojun |
80 |
|
Lu Yin |
20 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman
and General Manager |
Zhang Maojun |
|
Supervisor |
Lu Yin |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Zhang Maojun 80
Lu Yin 20
MANAGEMENT
Zhang Maojun, Legal Representative, Chairman and General Manager
-------------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
ID# 513029770911647
Ø
Age: 36
Ø Working experience
(s):
At present, working in SC as legal
representative, chairman and general manager
Lu Yin, Supervisor
---------------------------------
Ø
Gender: F
Ø
ID# 330425800803002
Ø
Age: 33
BUSINESS OPERATION
SC’s registered
business scope includes importing and exporting various kinds of commodities
and technology, selling textile raw materials, textiles, clothing and
supplementary materials, metal materials, electromechanical products, textile
machinery and parts, hardware, household and personal care chemicals, plastic
raw materials & products, and fresh & dry flower.
SC is mainly
engaged in international trade.
SC’s products
mainly include: textile raw materials, yarn.
SC sources its materials 100% from domestic
market, mainly Zhejiang. SC sells 100% of its products to overseas market,
mainly Pakistan.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include L/C and Credit of 30-60 days.
*Major Customer:
----------------------
Apparel Merchandisindg Ustries (Pakistan)
*Major Supplier:
--------------------
Tongxiang Fuluola Co., Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 6 staff
at present.
SC rents an area
as its operating office, but the detailed information is unknown.
RELATED COMPANY
SC
is not known to have any subsidiary at present.
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 supplier
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
Agricultural
Bank of China Tongxiang Wutong Sub-branch
AC#:
370401040013478
Bank
of China Tongxiang Sub-branch
AC#:
362358337950
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
291 |
410 |
|
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Notes receivable |
0 |
0 |
|
Accounts
receivable |
2,021 |
2,492 |
|
Advances to
suppliers |
2,664 |
1,047 |
|
Export drawback
receivable |
1,565 |
1,529 |
|
Other receivable |
0 |
1,573 |
|
Inventory |
1,188 |
1,164 |
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Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
7,729 |
8,215 |
|
Fixed assets |
751 |
631 |
|
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 |
8,480 |
8,846 |
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|
============= |
============= |
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Short-term loans |
792 |
0 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
1,191 |
3,142 |
|
Wages payable |
0 |
0 |
|
Taxes payable |
-32 |
13 |
|
Advances from
clients |
0 |
1,038 |
|
Other payable |
4,431 |
2,890 |
|
Accrued expenses |
171 |
1 |
|
Other current
liabilities |
0 |
-136 |
|
|
------------------ |
------------------ |
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Current
liabilities |
6,553 |
6,948 |
|
Non-current
liabilities |
0 |
0 |
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|
------------------ |
------------------ |
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Total
liabilities |
6,553 |
6,948 |
|
Equities |
1,927 |
1,898 |
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|
------------------ |
------------------ |
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Total
liabilities & equities |
8,480 |
8,846 |
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|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Revenue |
39,479 |
38,746 |
|
Cost of sales |
37,429 |
37,557 |
|
Taxes and surcharges |
0 |
4 |
|
Sales expense |
857 |
381 |
|
Management expense |
280 |
247 |
|
Finance expense |
177 |
202 |
|
Investment
income |
-692 |
-376 |
|
Profit before
tax |
65 |
-22 |
|
Less: profit tax |
16 |
41 |
|
49 |
-63 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
1.18 |
1.18 |
|
*Quick ratio |
1.00 |
1.01 |
|
*Liabilities
to assets |
0.77 |
0.79 |
|
*Net profit margin
(%) |
0.12 |
-0.16 |
|
*Return on
total assets (%) |
0.58 |
-0.71 |
|
*Inventory /
Revenue ×365 |
11 days |
11 days |
|
*Accounts
receivable/ Revenue ×365 |
19 days |
24 days |
|
*
Revenue/Total assets |
4.66 |
4.38 |
|
* Cost of
sales / Revenue |
0.95 |
0.97 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
l The revenue of SC appears average in its line in both years.
l SC’s net profit
margin is average in 2011 and fair in 2012.
l SC’s return on
total assets is average in 2011 and fair 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.
l
SC’s quick ratio is maintained in a fairly good
level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
SC has no short-term loans in 2012.
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC is average.
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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian
Rupees |
|
US Dollar |
1 |
Rs.54.38 |
|
UK Pound |
1 |
Rs.82.32 |
|
Euro |
1 |
Rs.69.54 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.