MIRA INFORM REPORT
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Report Date : |
03.05.2013 |
IDENTIFICATION DETAILS
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Name : |
XIAMEN
BESTWARES ENTERPRISE CORP., LTD. |
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Registered Office : |
Unit H 16/F, Lianfu Building,
No. 2 Lianqian West Road, Siming
District, Xiamen, Fujian Province 361004
PR |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
31.12.2001 |
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Com. Reg. No.: |
350206200035535 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in selling melamine tableware. |
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No. of Employees : |
8 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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With Financial |
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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 : |
Moderate |
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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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
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
XIAMEN BESTWARES ENTERPRISE CORP.,
LTD.
UNIT H
16/F, LIANFU BUILDING, NO. 2 LIANQIAN WEST ROAD
SIMING
DISTRICT, XIAMEN, FUJIAN PROVINCE 361004 PR CHINA
TEL: 86
(0) 592-5805381
FAX: 86
(0) 592-5803721
EXECUTIVE SUMMARY
Date of Registration : DECEMBER 31, 2001
REGISTRATION NO. : 350206200035535
LEGAL FORM :
Limited liabilities company
REGISTERED CAPITAL :
CNY 1,000,000
staff : 8
BUSINESS CATEGORY :
TRADING
Revenue : CNY 38,121,000 (AS OF DEC. 31, 2011)
EQUITIES : CNY 721,000 (AS OF DEC. 31, 2011)
WEBSITE : www.chinamelamine.com
E-MAIL : info@chinamelamine.com
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairLY STABLE
OPERATIONAL TREND : ORDINARY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.18 = USD
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.: 350206200035535 on
December 31, 2001.
SC’s Organization Code Certificate
No.: 70549214-8
SC’s Tax No.: 350204705492148
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 |
|
|
Registered capital |
CNY 500,000 |
CNY 1,000,000 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Li Zhaoguo |
97.5 |
|
Lin Ning |
2.5 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman,
and General Manager |
Li Zhaoguo |
|
Supervisor |
Lin Ning |
RECENT DEVELOPMENT
No recent development was found during our checks at
present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Li Zhaoguo
97.5
Lin Ning
2.5
MANAGEMENT
Li
Zhaoguo, Legal
Representative, Chairman and General Manager
---------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
ID# 350203196808254095
Ø
Age: 45
Ø Qualification:
University
Ø Working
experience (s):
At present, working in SC as legal representative, chairman and
general manager
Lin
Ning, Supervisor
------------------------------------
Ø
Gender: M
Ø Qualification:
University
BUSINESS OPERATION
SC’s registered business scope includes manufacturing
plastic & rubber products (limited to entrust other legitimate market
players for production); importing and exporting commodities and technologies (not additionally attaching import and
export commodity catalogue), excluding commodities and technologies prohibited
by the state.
SC is
mainly engaged in selling melamine tableware.
SC’s
products mainly include:
Melamine
Tableware
Melamine
Kitchenware
Melamine
Tray
Melamine
mugs and cups
Kid’s
Lines
Snoopy
Series
Festival
gifts Products
Pet
products
SC
sources its products 60% from domestic market and 40% from overseas market. SC
sells 70% of its products in domestic market and 30% to overseas market, mainly
U.S.A., 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.
*Major
Client*
-----------------
Associated
Premium Corporation
Staff & Office:
--------------------------
SC is
known to have approx. 8
staff at present.
SC
owns an area as its operating office of approx. 365 sq. meters at the heading
address.
RELATED COMPANY
SC is not known to have the 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
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
The
bank information of SC is not filed in local SAIC.
FINANCIALS
Balance Sheet
|
Unit:
CNY’000 |
As of Dec. 31, 2010 |
As of Dec. 31, 2011 |
|
787 |
2,919 |
|
|
Notes receivable |
0 |
0 |
|
Accounts
receivable |
12 |
302 |
|
Advances
to suppliers |
655 |
0 |
|
Other
receivable |
2,156 |
3,207 |
|
Subsidy
receivable |
655 |
1,143 |
|
Inventory |
1,942 |
1,228 |
|
Deferred
expenses |
3 |
208 |
|
Other
current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
assets |
6,210 |
9,007 |
|
Fixed
assets |
76 |
621 |
|
Construction
in progress |
0 |
0 |
|
Intangible
assets |
15 |
12 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred
income tax assets |
0 |
0 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
assets |
6,301 |
9,640 |
|
|
============= |
============= |
|
Short-term
loans |
0 |
0 |
|
Notes
payable |
610 |
481 |
|
Accounts
payable |
73 |
1,116 |
|
Wages
payable |
0 |
0 |
|
Welfares
payable |
28 |
28 |
|
Taxes
payable |
-308 |
-223 |
|
Advances
from clients |
5,237 |
7,506 |
|
Other
payable |
4 |
11 |
|
Other
current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
5,644 |
8,919 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
5,644 |
8,919 |
|
Equities |
657 |
721 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
6,301 |
9,640 |
|
|
============= |
============= |
Income Statement
|
Unit:
CNY’000 |
As
of Dec. 31, 2011 |
|
Revenue |
38,121 |
|
Cost of sales |
35,957 |
|
Taxes and surcharges |
0 |
|
Sales expense |
1,464 |
|
Management expense |
833 |
|
Finance expense |
-167 |
|
Non-operating
income |
31 |
|
Non-operating expense |
0 |
|
Profit
before tax |
83 |
|
Less:
profit tax |
19 |
|
64 |
Important
Ratios
=============
|
|
As of Dec. 31, 2010 |
As of Dec. 31, 2011 |
|
*Current
ratio |
1.10 |
1.01 |
|
*Quick
ratio |
0.76 |
0.87 |
|
*Liabilities
to assets |
0.90 |
0.93 |
|
*Net
profit margin (%) |
-- |
0.17 |
|
*Return
on total assets (%) |
-- |
0.66 |
|
*Inventory
/ Revenue ×365 |
-- |
12
days |
|
*Accounts
receivable / Revenue ×365 |
-- |
3
days |
|
*
Revenue / Total assets |
-- |
3.95 |
|
*
Cost of sales / Revenue |
-- |
0.94 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l The
revenue of SC appears average in 2011.
l SC’s
net profit margin is average in 2011.
l SC’s
return on total assets is average in 2011.
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 both years.
l
The inventory of SC appears average.
l
The accounts receivable of SC is
maintained in an average level.
l
SC has no short-term loans in both
years.
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 fairly high in
both years.
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.53.73 |
|
|
1 |
Rs.83.54 |
|
Euro |
1 |
Rs.70.71 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
RATING EXPLANATIONS
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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.