MIRA
INFORM REPORT
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Report Date : |
22.11.2013 |
IDENTIFICATION DETAILS
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Name : |
NEW EAST GRACE
INTERNATIONAL CORPORATION |
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Registered Office : |
No. 395
Zhongshan Road, Wuxi, Jiangsu Province 214001 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
30.11.1998 |
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Com. Reg. No.: |
320200000102879 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in international trade products mainly include:
textile goods, chemical & medical products, knitwear and hair knitwear, cereals
& oils, garments, hardware mineral, machinery & electrical products,
craft/ the light work products. |
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No. of Employees : |
45 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 |
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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.
|
Source
: CIA |
company name and address
NEW EAST GRACE
INTERNATIONAL CORPORATION
(TRADE NAME:
EAST GRACE CORPORATION)
NO. 395
ZHONGSHAN ROAD, WUXI, JIANGSU PROVINCE 214001 PR CHINA
TEL: 86 (0)
510-82728125/82708858
FAX: 86 (0)
510-82701279/82718372
***Note: According
to SC’s employee, SC also uses the given name (East Grace Corporation) as its
trade name.
EXECUTIVE SUMMARY
Date of Registration : november 30, 1998
REGISTRATION NO. : 320200000102879
LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE :
Jiang Yafeng (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 131,080,000
staff :
45
BUSINESS CATEGORY : trading
Revenue :
CNY 11,010,000 (AS OF DEC. 31,
2012)
EQUITIES :
CNY 97,340,000 (AS OF DEC. 31, 2012)
WEBSITE : www.eastgrace.com.cnhttp://www.xazhongwei.com/http://www.xjsada.net/
E-MAIL :
wxegco@eastgrace.commailto:xjsada@vip.sina.com
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 6.10 = 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.: 320200000102879 on November 30, 1998.
SC’s Organization Code Certificate No.:
25054087-8
SC’s Tax No.: 320200250540878
SC’s registered capital: CNY 131,080,000
SC’s paid-in capital: CNY 131,080,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2009 |
Registration No. |
3202002112302 |
320200000102879 |
|
Legal Representative |
Li Ding |
Jiang Yafeng |
|
|
Shareholder (s) (% of Shareholding) |
Cai Jianxin 2.47% Cao Xing 4.50% Fu Dongming 4.00% Huang Jiexun 3.68% Jiang Yafeng 2.00% Jiang Xiongbing 3.30% Li Ding 10.00% Su Jian 4.20% Wang Yao 5.00% Wen Hanliang 5.00% Employee Shareholders Association of SC
47.35% Xue Hua 2.00% Yuan Xueping 3.00% Zhu Yijun 3.50% |
Cai Jianxin 2.47% Cao Xing 4.50% Fu Dongming 4.00% Huang Jiexun 3.68% Jiang Yafeng 2.00% Jiang Xiongbing 3.30% Li Ding 10.00% Su Jian 4.20% Wang Yao 5.00% Wen Hanliang 5.00% Employee Shareholders Association of SC 49.35% Yuan Xueping 3.00% Zhu Yijun 3.50% |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Cai Jianxin |
2.47 |
|
Cao Xing |
4.50 |
|
Fu Dongming |
4.00 |
|
Huang Jiexun |
3.68 |
|
Jiang Yafeng |
2.00 |
|
Jiang Xiongbing |
3.30 |
|
Li Ding |
10.00 |
|
Su Jian |
4.20 |
|
Wang Yao |
5.00 |
|
Wen Hanliang |
5.00 |
|
Employee Shareholders Association of SC |
49.35 |
|
Yuan Xueping |
3.00 |
|
Zhu Yijun |
3.50 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman and General Manager |
Jiang Yafeng |
|
Deputy General Manager |
Yuan Xudong |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Cai Jianxin 2.47
Cao Xing 4.50
Fu Dongming 4.00
Huang Jiexun 3.68
Jiang Yafeng 2.00
Jiang Xiongbing 3.30
Li Ding 10.00
Su Jian 4.20
Wang Yao 5.00
Wen Hanliang 5.00
Employee Shareholders Association of SC 49.35
Yuan Xueping 3.00
Zhu Yijun 3.50
MANAGEMENT
Jiang Yafeng, Legal Representative, Chairman and General
Manager
-----------------------------------------------------------------------------------------------------
Gender: M
ID# 320204195809202314
Age: 55
Working experience
(s):
At present, working in SC as legal representative, chairman and general
manager
Yuan Xudong, Deputy General Manager
----------------------------------------------------------------
Gender: M
ID# 320211196501213410
Age: 48
Working experience
(s):
At present, working in SC as deputy general manager
BUSINESS
OPERATION
SC’s registered business scope includes importing and
exporting commodities and technology; processing with imported materials,
processing with imported samples, assemblying with imported parts, and
compensation trade in agreement; counter trade &
transit trade; domestic trade; economic information consulting, intermediary
services, storage service; indoor and outdoor decoration; investment and
leasing business; and dispatching labours.
SC is mainly engaged in international trade.
SC’s products mainly include: textile goods, chemical & medical
products, knitwear and hair knitwear, cereals & oils, garments, hardware
mineral, machinery & electrical products, craft/ the light work products.
SC sources its materials 80% from domestic market, and 20% 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.
Staff &
Office:
--------------------------
SC is known to have approx. 45
staff at present.
SC rents an area as its operating office, but the detailed information
is unknown.
RELATED
COMPANY
Wuxi East Grace Investment & Consulting Co., Ltd.
New East Grace International Corporation
Zhongrun Co., Ltd.
Shanghai East Grace Imp. & Exp. Co., Ltd.
Wuxi Runjie Customs Declaration Ltd.
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
Bank of China Wuxi Branch
AC#: 02663908096001
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
|
5,680 |
|
|
Notes receivable |
0 |
|
Accounts receivable |
39,280 |
|
Advances to suppliers |
0 |
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Other receivable |
49,400 |
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Inventory |
28,270 |
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Non-current assets within one year |
0 |
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Other current assets |
3,610 |
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------------------ |
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Current assets |
126,240 |
|
Fixed assets |
23,950 |
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Other non-current assets |
74,800 |
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|
------------------ |
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Total assets |
224,990 |
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|
============= |
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------------------ |
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Total liabilities |
127,650 |
|
Equities |
97,340 |
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------------------ |
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Total liabilities & equities |
224,990 |
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|
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
|
Revenue |
11,010 |
|
Cost of sales |
-8,790 |
|
Sales expense |
1,390 |
|
Management expense |
12,500 |
|
Finance expense |
30 |
|
Investment income |
4,750 |
|
Profit before tax |
10,810 |
|
Less: profit tax |
60 |
|
10,750 |
Note: SC’s profits are mainly from investment income.
Important Ratios
=============
|
|
As of Dec. 31, 2012 |
|
*Liabilities to assets |
0.57 |
|
*Net profit margin (%) |
97.64 |
|
*Return on total assets (%) |
4.78 |
|
*Inventory / Revenue ×365 |
938 days |
|
*Accounts receivable / Revenue ×365 |
1303 days |
|
*Revenue / Total assets |
0.05 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears fair in its line, and the profits are mainly from
investment income.
SC’s net profit margin is fairly good.
SC’s return on total assets is average.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.89 |
|
|
1 |
Rs.101.14 |
|
Euro |
1 |
Rs.84.42 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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 |
|
---- |
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.