MIRA INFORM REPORT
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Report Date : |
01.10.2013 |
IDENTIFICATION DETAILS
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Name : |
changsha
xiangwei chemical trade co., ltd. |
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Registered Office : |
Room 523, Bldg. B, Jian Hong Da
Modern Space, No. 558 3rd Sec. Furong (M) Road, Tianxin District,
Changsha, Hunan Province 410011 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
05.08.2010 |
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Com. Reg. No.: |
430103000066752 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject
engaged in selling of chemical raw materials |
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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 company |
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Payment Behaviour : |
Slow but 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 – March 31st,
2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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 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 & address
changsha
xiangwei chemical trade co., ltd.
room 523,
bldg. b, jian hong da modern space
no. 558 3rd
sec. furong (m) road, tianxin district
changsha,
hunan province 410011 PR CHINA
TEL: 86
(0) 731-83843028
FAX: 86
(0) 731-85783067
EXECUTIVE SUMMARY
Date of Registration : august 5, 2010
REGISTRATION NO. : 430103000066752
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL :
cny 300,000
staff : 6
BUSINESS CATEGORY :
trading
Revenue :
CNY
9,817,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY
1,034,000 (AS OF DEC. 31, 2012)
WEBSITE : www.csxwce.com
E-MAIL :
xiangweice@gmail.com & tracy0026@gmail.com
PAYMENT : AVERAGE
MARKET CONDITION : FAIR
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND :
ORDINARY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.12 = 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.: 430103000066752 on August 5,
2010.
SC’s Organization Code Certificate
No.: 55953345-7
SC’s Tax No.: 430103559533457
SC’s registered capital: cny 300,000
SC’s paid-in capital: cny 300,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
|
Registered capital |
CNY 300,000 |
CNY 1,000,000 |
|
Shareholder (s) (% of
Shareholding) |
Guo Jianlin 83.33% Guo Fei 16.67% |
Guo Jianlin 95% Chen Xi 5% |
Current Co search indicates SC’s shareholders & chief executives
are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Guo Jianlin |
95 |
|
Chen Xi |
5 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Guo Jianlin |
|
Supervisor |
Chen Xi |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Guo Jianlin 95
Chen Xi 5
MANAGEMENT
Guo Jianlin, Legal Representative, Chairman and General Manager
---------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 31
Ø
ID# 431027198202233118
Ø Qualification:
University
Ø Working experience
(s):
From 2010 to present, working in SC as legal
representative, chairman and general manager
Chen Xi, Supervisor
----------------------------------
Ø
Gender: M
Ø
Age: 29
Ø
ID# 431027198402150026
BUSINESS OPERATION
***Note:
SC started its normal operation in 2011.
SC’s registered business scope includes
wholesale of potassium perchlorate, sodium perchlorate, ammonium perchlorate,
potassium chlorate, sodium chlorate, sodium chlorite, and potassium nitrate,
wholesale of chemical raw materials, operating and acting as an agent of
importing and exporting various kinds of commodities and technology, excluding
the goods forbidden by the government.
SC is
mainly engaged in selling chemical raw materials
SC’s
products mainly include:
1.
Chlorates, sodium chlorates, potassium chlorates, etc.
2.
Perchlorate, sodium perchlorate, ammonium perchlorate, potassium perchlorate,
etc.
3.
Other chemical products such as sodium chlorites and potassium nitrates.
SC sources its materials 100% from domestic
market, mainly Hubei. SC sells 10% of its products in domestic market, and 90%
to overseas market, mainly Thailand, India, and 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.
Staff & Office:
--------------------------
SC is
known to have approx. 6 staff at present.
SC rents an area as
its operating office of approx. 50 sq. meters at the heading address.
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 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 Changsha
Huirong Sub-branch
AC#:
800094463408019
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
|
154 |
|
|
Accounts
receivable |
67 |
|
Advances to
suppliers |
1,864 |
|
Other receivable |
892 |
|
Inventory |
3,880 |
|
Non-current
assets within one year |
0 |
|
Other current
assets |
1 |
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|
------------------ |
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Current assets |
6,858 |
|
Fixed assets |
22 |
|
Long-term
prepaid expenses |
0 |
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Deferred income
tax assets |
0 |
|
Other
non-current assets |
0 |
|
|
------------------ |
|
Total assets |
6,880 |
|
|
============= |
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Short-term loans |
0 |
|
Accounts payable |
2,686 |
|
Taxes payable |
26 |
|
Advances from
clients |
3,134 |
|
Other payable |
0 |
|
Other current
liabilities |
0 |
|
|
------------------ |
|
Current
liabilities |
5,846 |
|
Non-current
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
5,846 |
|
Equities |
1,034 |
|
|
------------------ |
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Total
liabilities & equities |
6,880 |
|
|
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
|
Revenue |
9,817 |
|
Cost of sales |
8,799 |
|
Taxes and surcharges |
12 |
|
Sales expense |
964 |
|
Management expense |
1,065 |
|
Finance expense |
45 |
|
Non-business
income |
9 |
|
Non-business expenditure |
0 |
|
Profit before
tax |
-1,055 |
|
Less: profit tax |
15 |
|
-1,070 |
Important Ratios
=============
|
|
As
of Dec. 31, 2012 |
|
*Current ratio |
1.17 |
|
*Quick ratio |
0.51 |
|
*Liabilities
to assets |
0.85 |
|
*Net profit
margin (%) |
-10.90 |
|
*Return on
total assets (%) |
-15.55 |
|
*Inventory /
Revenue ×365 |
144 days |
|
*Accounts
receivable/ Revenue ×365 |
2 days |
|
*
Revenue/Total assets |
1.43 |
|
* Cost of
sales / Revenue |
0.90 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
l The revenue of SC appears average in its line.
l SC’s net profit
margin is poor.
l SC’s return on
total assets is poor.
l
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears large.
l
The accounts receivable of SC is maintained in an
average level.
l
SC has no short-term loans.
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
FAIR
l
The debt ratio of SC is fairly high.
l
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 inventory may be a threat to
SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian
Rupees |
|
US Dollar |
1 |
Rs.62.35 |
|
UK Pound |
1 |
Rs.101.20 |
|
Euro |
1 |
Rs.84.53 |
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.