MIRA INFORM REPORT
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Report Date : |
23.10.2013 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
8/F No. 910, Jinsong 9th
Section, Chaoyang District |
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Country : |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
24.12.1987 |
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Com. Reg. No.: |
110000005008096 |
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Legal Form : |
State-Owned |
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Line of Business : |
Subject is
mainly engaged in international trade include: mineral products, dairy
products, food additives, textile, chemicals, stationery, electrical and
mechanical products, etc. |
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No. of Employees : |
51 |
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
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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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 |
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
CHINA LIGHT GENERAL MERCHANDISE IMP. & EXP.
CORP.
8/F NO. 910, JINSONG 9TH SECTION, CHAOYANG
DISTRICT
BEIJING 100021 PR CHINA
TEL: 86 (0) 10-87763920/87763957/87763909
FAX: 86 (0) 10-67747284
EXECUTIVE SUMMARY
Date of Registration : DECember 24, 1987
REGISTRATION NO. : 110000005008096
LEGAL FORM : State-owned enterprise
CHIEF EXECUTIVE : QIU FENG (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY
7,440,000
staff :
51
BUSINESS CATEGORY : TRADING
Revenue :
CNY 1,652,004,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 80,126,000 (AS OF DEC. 31, 2012)
WEBSITE : www.chinalight.com.cn
E-MAIL :
info@chinalight.com.cn
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : 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 state-owned enterprise of PRC with State Administration of Industry & Commerce
(SAIC) under registration No.: 110000005008096
on December 24, 1987.
SC’s Organization Code Certificate No.:
10113202-9
SC’s registered capital: CNY 7,440,000
SC’s paid-in capital: CNY 7,440,000
Registration Change Record:-
No significant changes of SC have been noted
in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
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Name of Shareholder (s) |
% of Shareholding |
|
China National Light Industrial Products
Import and Export Corporation |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and
General Manager |
Qiu Feng |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
China National Light Industrial Products
Import and Export Corporation 100
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China National Light Industrial Products
Import and Export Corporation (Chinalight for short) is a state foreign trade
entity with abundant financial resources, good business reputation and bright
prospects. Chinalight is involved in four major business areas in relation to
pulp and paper, natural resources, international trade (such as import &
export), and financial services (such as investment, financing and capital
operation). In 2008, Chinalight was incorporated into China General Technology
(Group) Holding Limited with a view to reinforcing mutual strengths,
rationalizing & optimizing allocation of resources, constantly opening up
new fields and stepping up operational efficiency.
Date of Registration: June 9, 1983
Registration No.: 100000000001148
Registered Capital: CNY 553,330,000
Address: No. 910, Jinsong 9th
Section, Chaoyang District,
Tel: 010-87763388
Email: info@chinalight.com.cn
MANAGEMENT
Qiu Feng, Legal Representative, Chairman and General
Manager
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Ø
Gender: M
Ø
Age: 57
Ø
ID# 110101195606134098
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal
representative, chairman and general manager
Also working in Beijing Dalike Garment
Co., Ltd. as legal representative
BUSINESS OPERATION
SC’s registered business scope includes wholesaling (non-kind) the
pre-packaged foods, dairy products (including infant formula milk powder);
importing and exporting general merchandise and other commodities approved by
Ministry of Economy and Commerce; agent for import and export business; undertaking Chinese foreign equity joint venture
enterprise and Chinese foreign contractual joint venture enterprise; compensation trade
in agreement; counter trade & transit
trade; selling textiles, daily necessaries, hardware, chemical, furniture,
gear, labour protection articles, machinery equipment, wood materials, plastic
products, building materials and communication equipment; technical
development, labour service, information advisory, labour dispatching.
SC is mainly
engaged in international trade.
SC’s products
mainly include: mineral products, dairy products, food additives, textile, chemicals,
stationery, electrical and mechanical products, etc.
SC sources its merchandise 80% from domestic market and 20% from overseas market. SC sells 30% of its products in domestic market and 70% to overseas market.
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. 51 staff at
present.
SC owns an area as
its operating office, but the detailed information is unknown.
RELATED COMPANY
n
Chinalight Footwear & Headgear I/E Corp.
n
n
Chinalight Shenzhen Import & Export Co., Ltd.
n
Chinalight Ningbo Import & Export Co., Ltd.
n
n
Etc.
SC is known to have a
subsidiary at present,
n
Beijing Dalike Garment Co., Ltd.
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Date of Registration: December 18, 1996
Registration No.: 110112006673489
Legal Form: Limited
Liabilities Company
Chief Executive: Qiu Feng
Registered Capital: CNY 7,264,900
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:
China
Construction Bank Beijing Guangming Sub-branch
AC#:
11001071200056000523
***Note:
SC’s management declined to release whether it has an account in Bank of
Communication Beijing.
FINANCIALS
Financial Summary
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Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
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Total assets |
251,330 |
361,300 |
347,649 |
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Total
liabilities |
184,290 |
285,790 |
267,523 |
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Equities |
67,040 |
75,510 |
80,126 |
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Revenue |
1,157,280 |
1,523,520 |
1,652,004 |
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Profit before
tax |
31,770 |
16,320 |
13,601 |
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Less: profit tax |
7,380 |
1,490 |
4,544 |
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Profits |
24,390 |
14,830 |
9,057 |
Important Ratios
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As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
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*Liabilities
to assets |
0.73 |
0.79 |
0.77 |
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*Net profit
margin (%) |
2.11 |
0.97 |
0.55 |
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*Return on
total assets (%) |
9.70 |
4.10 |
2.61 |
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*Revenue /
Total assets |
4.60 |
4.22 |
4.75 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l The revenue of SC
appears fairly good in its line.
l SC’s net profit
margin is average in three years.
l SC’s return on
total assets is fairly good in 2010 and average in 2011 & 2012.
LIQUIDITY: AVERAGE
l
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered medium-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.78 |
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|
1 |
Rs.99.66 |
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Euro |
1 |
Rs.84.49 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIT |
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 |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
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.