MIRA INFORM REPORT
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Report Date : |
11.09.2013 |
IDENTIFICATION DETAILS
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Name : |
China light
Resources ImpORT & ExpORT CorpORATION |
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Registered Office : |
Room 601, Floor 3, No. 910 Jinsong 9th
Section, Chaoyang District, Beijing, 100021 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
24.12.1987 |
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Com. Reg. No.: |
110000005009419 |
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Legal Form : |
State-Owned Enterprise |
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Line of Business : |
Subject is engaged in trading of building materials, minerals, timber and stones. |
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No. of Employees : |
116 |
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 : |
Unknown |
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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 and address
China light Resources ImpORT & ExpORT CorpORATION
ROOM 601, FLOOR 3, NO. 910 JINSONG 9TH
SECTION, CHAOYANG DISTRICT, BEIJING, 100021 PR CHINA
TEL: 86 (0) 10-67791254/87763271 FAX: 86 (0) 10-67747287
EXECUTIVE SUMMARY
INCORPORATION DATE :
DEC. 24, 1987
REGISTRATION NO. :
110000005009419
REGISTERED LEGAL FORM : STATE-OWNED ENTERPRISE
CHIEF EXECUTIVE :
MR. SU DONG (LEGAL REPRESENTATIVE)
STAFF STRENGTH : 116
REGISTERED CAPITAL : CNY 50,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 2,463,147,000 (AS OF DEC. 31, 2010)
EQUITIES :
CNY 105,476,000 (AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE :
MODERATE AMOUNT
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE (AS OF DEC. 31, 2010)
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.12=USD 1
Adopted
abbreviations:
ANS - amount not stated NS
- not stated SC - subject company (the
company inquired by you)
NA - not available CNY
– China Yuan Ren Min Bi
SC was registered as a state-owned
enterprise at local Administration for Industry & Commerce (AIC-The
official body of issuing and renewing business license) on Dec. 24, 1987.
Company Status: State-owned
enterprise This form of business in PR
China is defined as a commodity production or operational units of a
socialist character which in accordance with the law, has autonomy in
management, takes full responsibility for its profits and losses and
practices independent business accounting. It is a legal person established
directly by central / local government or enterprise owned by central or
local government. In theory, the liabilities of this form of enterprise are
ultimately borne by the government, since the adoption of company law in
mid-1994, the Chinese government has planned to separate the ownership from
management and liabilities bearing.
SC’s registered business scope includes wholesaling pre-packaged foods,
dairy products (including infant formula milk powder) (food distribution
license is valid until December 30, 2015). Importing and exporting commodities and technologies, import and export
agent; selling textiles, general merchandise, building materials, automobiles
(excluding cars), minerals, timber and stones.
SC is mainly engaged in trading of building materials, minerals, timber and stones.
Mr. Su Dong has been general manager & legal representative of SC
since 2007.
SC is known to have approx. 91 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and head office in the commercial zone of Beijing.
SC’s accountant refused to release the detailed information of the total
premise.
http://www.chinalight.com.cn/
It is the website of its parent. The design is professional and the content is
well organized. At present it is in both Chinese and English versions.
Changes of its
registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2002-06 |
Registered capital |
CNY 30,000,000 |
CNY 12,971,000 |
|
2007-12 |
Legal representative |
Lian Ziliang |
Su Dong |
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Registration No. |
1100001500941 |
Present one |
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|
2008-01 |
Company Name |
China Light Building Materials Import & Export Corporation |
Present one |
|
2009-03 |
Registered capital |
CNY 12,971,000 |
CNY 30,000,000 |
|
2010-8 |
Registered capital |
CNY 30,000,000 |
Present amount |
MAIN SHAREHOLDERS:
Name % of shareholdings
China National Light Industrial Products Import & Export Corporation 100
Founded in 1952, China National Light Industrial Products Import and
Export Corporation (ChinaLight) is a well-established state-owned corporation
featuring great financial strength, good business reputation and bright
prospect with principal businesses covering four major areas--pulp and paper
business, natural resources business, international trade (such as imports
& exports), and financial services (such as investment, financing and
capital operation). In 2008, ChinaLight was incorporated into China General
Technology (Group) Holding Limited in an effort to leverage mutual strengths, rationalize
& optimize the allocation of resources, continuously explore new fields and
create new strengths.
Add: No. 910, 9th Section, Jinsong Chaoyang District, Beijing, China
Phone: 010-87763388
E-mail: info@chinalight.com.cn
General Manager & Legal Representative:
Mr. Su Dong, ID# 110108670921631, born in 1967, with university education.
He is currently responsible for the overall management of SC
Working Experience(s):
From 2007 to present
Working in SC as general manager & legal representative
Also working in Shanghai Chinalight Wood Co., Ltd.; Quanzhou Chinalight
Stone Co., Ltd. and Zhongji Shenzhen Mineral Resources Co., Ltd. as legal
representative.
SC is mainly engaged in trading of building materials, minerals, timber and stones.
SC focuses its import business on the following fields: metal mineral
products (chromium, manganese, nickel), natural stone (marble), wood/timber
(log/square log/floor timber), and chemical ore products (sulfur, borax). In addition to the above four categories, SC
has also successfully developed fish and cotton yarn import operations and
established a wide range of domestic distribution network.
SC sources its materials 20% from domestic market, and 80% from overseas
market. SC sells 70% of its products in domestic market, and 30% 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.
Note: SC refused
to release its main customers and suppliers
SC is known to have the following subsidiaries:
Quanzhou Chinalight Stone Co., Ltd.
Shanghai Chinalight Wood Co., Ltd.
==========================
Registration No.: 310104000139032
Chief Executive: Mr. Su Dong
Registered Capital: CNY 5,000,000
Zhongji Shenzhen Mineral Resources Co., ltd.
==================================
Registration No.: 440301103094760
Chief Executive: Mr. Su Dong
Registered Capital: CNY 20,000,000
Etc.
Overall payment appraisal:
( ) Excellent (
) Good (X) Average (
) Fair ( ) Poor
( ) Not yet 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.
Bank of China General Office
AC#：N/A
Relationship: Normal.
Balance Sheet
Unit: CNY’000
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As of Dec. 31,
2010 |
As of Dec. 31,
2009 |
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Cash & bank |
99,004 |
58,174 |
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Short-term investments |
0 |
0 |
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Inventory |
861,251 |
398,640 |
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Accounts receivable |
103,395 |
57,753 |
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Notes receivable |
103,006 |
0 |
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Advances to suppliers |
24,550 |
98,297 |
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Other accounts receivable |
10,591 |
63,766 |
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Other current assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
1,201,797 |
676,630 |
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Fixed assets net value |
3,437 |
1,910 |
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Project under construction |
0 |
0 |
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Long term investment |
65,500 |
16,500 |
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Deferred income tax assets |
436 |
0 |
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Intangible and other assets |
66 |
74 |
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------------------ |
------------------ |
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Total assets |
1,271,236 |
695,114 |
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============= |
============= |
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Short loans |
377,388 |
180,758 |
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Notes payable |
0 |
0 |
|
200,824 |
145,815 |
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Advances from clients |
547,116 |
397,119 |
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Accrued payroll |
4,295 |
4,111 |
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Taxes payable |
-69,303 |
-82,757 |
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Surcharge payable |
0 |
0 |
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Other accounts payable |
105,440 |
1,703 |
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Other current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current liabilities |
1,165,760 |
646,749 |
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Long-term liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total liabilities |
1,165,760 |
646,749 |
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Equities |
105,476 |
48,365 |
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|
------------------ |
------------------ |
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Total liabilities & equities |
1,271,236 |
695,114 |
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Income Statement
Unit: CNY’000
|
|
As of Dec. 31,
2010 |
As of Dec. 31,
2009 |
|
Turnover |
2,463,147 |
891,710 |
|
Cost of goods sold |
2,380,165 |
853,566 |
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Taxes and additional of main operations |
31 |
0 |
|
Sales expense |
22,159 |
10,608 |
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Management expense |
15,240 |
10,830 |
|
Finance expense |
9,811 |
8,124 |
|
Loss of asset impairment |
1,741 |
0 |
|
Income from other operations |
0 |
0 |
|
Investment income |
71 |
0 |
|
Non-operating income |
1,896 |
140 |
|
Non-operating expense |
21 |
87 |
|
Profit before tax |
35,946 |
8,635 |
|
8,836 |
2,423 |
|
|
Profits |
27,110 |
6,212 |
Note: SC’s management declined to release the latest financial
information.
Important Ratios
=============
|
|
As of Dec. 31,
2010 |
As of Dec. 31,
2009 |
|
*Current ratio |
1.03 |
1.05 |
|
*Quick ratio |
0.29 |
0.43 |
|
*Liabilities to assets |
0.92 |
0.93 |
|
*Net profit margin (%) |
1.10 |
0.70 |
|
*Return on total assets (%) |
2.13 |
0.89 |
|
*Inventory /Turnover ×365 |
128 days |
163 days |
|
*Accounts receivable/Turnover ×365 |
15 days |
24 days |
|
*Turnover/Total assets |
1.94 |
1.28 |
|
* Cost of goods sold/Turnover |
0.97 |
0.96 |
PROFITABILITY: AVERAGE
The turnover of SC appears fairly good in 2009, and good in 2010.
SC’s net profit margin appears average in both years.
SC’s return on total assets appears average in both years.
SC’s cost of goods sold is high in both years, comparing with its
turnover.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level in both years.
SC’s quick ratio is maintained in a fair level in 2009, but poor in
2010.
The inventory of SC appears large in both years.
The accounts receivable of SC appears average in both years.
SC’s short-term loan appears large in both years.
SC’s turnover is in an average level in both years, comparing with the
size of its total assets.
LEVERAGE: FAIR
The debt ratio of SC is high.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable
SC is considered medium-sized in its line with favorable background and
fairly stable financial conditions. The
large amount of inventory & short-term loan could be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.21 |
|
|
1 |
Rs.100.82 |
|
Euro |
1 |
Rs.85.21 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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 |
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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.