MIRA
INFORM REPORT
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Report Date : |
13.11.2013 |
IDENTIFICATION DETAILS
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Name : |
LONGCOM ENTERPRISE LTD. ( |
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Registered Office : |
Information Industrial Base, No. 11, Tianzhu
Road, High-Tech Zone, Hefei, Anhui Province 230088 PR China |
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Country : |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
10.04.2002 |
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Com. Reg. No.: |
340106000007788 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in selling chemical products |
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No. of Employees : |
30 |
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 : |
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) |
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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 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.
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Source
: CIA |
Company name & address
LONGCOM ENTERPRISE
LTD. (CHINA)
INFORMATION INDUSTRIAL BASE, NO. 11, TIANZHU ROAD,
HIGH-TECH ZONE, HEFEI, ANHUI PROVINCE 230088 PR CHINA
TEL : 86
(0) 551-65336819/65319555/65319599/65336826
FAX : 86
(0) 551-65319566
EXECUTIVE SUMMARY
Date of Registration : april 10, 2002
REGISTRATION NO. : 340106000007788
LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE :
xu zhenyu (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 10,000,000
staff :
30
BUSINESS CATEGORY : trading
Revenue :
CNY 65,560,000 (AS OF DEC. 31,
2012)
EQUITIES :
CNY 8,512,000 (AS OF DEC. 31, 2012)
WEBSITE : www.elongcom.com
E-MAIL :
sales@elongcom.com
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fair
OPERATIONAL TREND : ordinary
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.11 = 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.: 340106000007788 on April 10, 2002.
SC’s Organization Code Certificate No. : 73732478-X
%20-%20242836%2013-Nov-2013_files/image002.jpg)
SC’s Tax No. :
34010473732478X
SC’s registered capital : CNY 10,000,000
SC’s paid-in capita : CNY 10,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Registered Capital |
CNY 5,310,000 |
CNY 10,000,000 |
|
Registration No. |
3401002007492 |
340106000007788 |
|
|
Shareholder (s) (% of Shareholding) |
Xu Zhenyu 90% Xu Jun 5% Zhou Ru 5% |
Xu Zhenyu 95% Zhou Ru 5% |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Xu Zhenyu |
95 |
|
Zhou Ru |
5 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Xu Zhenyu |
|
Supervisor |
Zhou Ru |
RECENT DEVELOPMENT
SC’s quality system meets the international standard of ISO9001.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Xu Zhenyu 95
Zhou Ru 5
MANAGEMENT
Xu Zhenyu, Legal
Representative, Chairman, and General Manager
%20-%20242836%2013-Nov-2013_files/image004.jpg)
Gender : M
Age :
45
Working experience (s) :
At present, working in SC as legal representative, chairman, and general
manager
Zhou Ru,
Supervisor
Gender : F
BUSINESS
OPERATION
SC’s registered business scope includes developing, manufacturing and
selling computer software and hardware, telecommunication technology and
products, technology services; multimedia production; E-business; website construction,
system integration, generic cabling, building intelligent engineering;
processing and selling chemical materials and mechanical equipment; developing,
manufacturing and selling hardware, electrical tools & materials, building
materials, decoration materials, general merchandise, environmental protection
products and furniture; designing and constructing environmental protection
projects; environmental protection technology consultation; import and export
of various goods and technologies (excluding the items prohibited or limited by
the country); leasing services.
SC is mainly engaged in selling chemical products.
SC’s products mainly include Caffeine, Aspartame, Sorbic Acid, Potassium
Sorbate, Maltodextrin, Vitamin D3, and so on.
%20-%20242836%2013-Nov-2013_files/image006.jpg)
SC sources its products 99% from domestic market, and 1% from overseas
market, mainly
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*
Fuller Enterprise USA Inc.
Staff &
Office:
SC is known to have approx. 30
staff at present.
SC rents an area as its operating office, but the detailed information
is unknown.
RELATED
COMPANY
Longcom Enterprise Limited (
Date of Registration : June
14, 2000
Registration No. :
0720284
Legal Form: Private
Status :
Live
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
Huishang Bank Hefei Hi-tech Zone Sub-branch
AC#: 2081012060019583
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
5,450 |
6,397 |
|
|
Held for trading
financial assets |
0 |
3,000 |
|
Notes receivable |
0 |
0 |
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Accounts receivable |
22,800 |
19,459 |
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Advances to suppliers |
9,390 |
7,734 |
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Other receivable |
14,790 |
28,365 |
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Inventory |
2,010 |
656 |
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Non-current assets within one year |
0 |
0 |
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Other current assets |
6,020 |
1,061 |
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|
------------------ |
------------------ |
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Current assets |
60,460 |
66,672 |
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Fixed assets |
8,080 |
7,034 |
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Long-term investment |
16,046 |
16,046 |
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Construction in progress |
0 |
0 |
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Intangible assets |
364 |
316 |
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Long-term investment |
0 |
0 |
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Deferred income tax assets |
0 |
0 |
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Other non-current assets |
0 |
0 |
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|
------------------ |
------------------ |
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Total assets |
84,950 |
90,068 |
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|
============= |
============= |
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Short-term loans |
40,000 |
40,000 |
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Notes payable |
0 |
2,541 |
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Accounts payable |
3,810 |
3,953 |
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Welfares payable |
0 |
0 |
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Taxes payable |
0 |
-80 |
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Advances from clients |
28,580 |
31,612 |
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Other payable |
480 |
3,026 |
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Other current liabilities |
1,960 |
504 |
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------------------ |
------------------ |
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Current liabilities |
74,830 |
81,556 |
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Non-current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total liabilities |
74,830 |
81,556 |
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Equities |
10,120 |
8,512 |
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------------------ |
------------------ |
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Total liabilities & equities |
84,950 |
90,068 |
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============= |
============= |
Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
Revenue |
95,570 |
65,560 |
|
Cost of sales |
89,020 |
60,940 |
|
Sales expense |
3,820 |
2,650 |
|
Management expense |
5,400 |
2,430 |
|
Finance expense |
1,650 |
2,530 |
|
Profit before tax |
-1,740 |
-1,610 |
|
Less: profit tax |
40 |
0 |
|
-1,780 |
-1,610 |
Important Ratios
|
|
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
*Current ratio |
0.81 |
0.82 |
|
*Quick ratio |
0.78 |
0.81 |
|
*Liabilities to assets |
0.88 |
0.91 |
|
*Net profit margin (%) |
-1.86 |
-2.46 |
|
*Return on total assets (%) |
-2.10 |
-1.79 |
|
*Inventory / Revenue ×365 |
8 days |
4 days |
|
*Accounts receivable / Revenue ×365 |
88 days |
109 days |
|
*Revenue / Total assets |
1.13 |
0.73 |
|
*Cost of sales / Revenue |
0.93 |
0.93 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
·
The revenue of SC appears fairly good in its line,
and it decreased in 2012.
·
SC’s net profit margin is fair in both years.
·
SC’s return on total assets is fair in both years.
·
SC’s cost of sales is high, comparing with its
revenue.
LIQUIDITY: AVERAGE
·
The current ratio of SC is maintained in a fair
level in both years.
·
SC’s quick ratio is maintained in a normal level in
both years.
·
The inventory of SC appears average.
·
The accounts receivable of SC appears large.
·
The short-term loans of SC appear large.
·
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: FAIR
·
The debt ratio of SC is fairly high in both years.
·
The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Fair.
CONCLUSIONS
SC is considered small-sized in its line with fair financial conditions.
The large amount of accounts receivable and short-term loans may be a threat to
SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.59 |
|
|
1 |
Rs.101.56 |
|
Euro |
1 |
Rs.85.15 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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 |
|
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 |
|
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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.