MIRA INFORM REPORT
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Report Date : |
16.09.2013 |
IDENTIFICATION DETAILS
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Name : |
LAIZHOU FOREIGN TRADE STONE MATERIALS CO., LTD. |
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Registered Office : |
East of Xingyuan Road, Wenfeng Street, Laizhou, Shandong Province, 261400 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
09.02.1998 |
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Com. Reg. No.: |
370683018003884 |
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Legal Form : |
Limited
Liabilities Company |
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Line of Business : |
Subject is engaged in Processing and selling marble, granite
and other stone products. |
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No. of Employees : |
60 |
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 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
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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
Source
: CIA
Company name and address
LAIZHOU FOREIGN TRADE
STONE MATERIALS co., ltd.
East of Xingyuan
ROAD, Wenfeng Street, Laizhou,
Shandong PROVINCE,
261400 PR CHINA
TEL: 86 (0)
535-2421789/2425983
FAX: 86 (0)
535-2425456
EXECUTIVE SUMMARY
INCORPORATION DATE : feb. 9, 1998
REGISTRATION NO. : 370683018003884
REGISTERED LEGAL FORM
: Limited liabilities company
CHIEF EXECUTIVE : MR. li xigao (CHAIRMAN)
STAFF STRENGTH : 60
REGISTERED CAPITAL :
CNY 5,100,000
BUSINESS LINE : processing
AND trading
TURNOVER : CNY
53,230,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 2,490,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fair
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.1199 = 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
Renminbi
Note: SC’s correct name should be the heading one.
The was SC’s former address, while SC has moved to the heading one.
SC was registered as a limited liabilities company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Feb. 9, 1998.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders
contribute its registered capital jointly. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to extent of its total assets. The characteristics of this form
of co. are as follows: Upon the establishment of the
co., an investment certificate is issued to the each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s registered business scope includes processing and selling marble, granite and other stone products; exporting self-produced stone, stone products; importing raw materials, machinery and equipment, instruments and spare parts needed for production and research.
SC is mainly engaged in processing and selling marble, granite and other stone products.
Mr. Li Xigao is legal representative, chairman and general manager of SC at present.
SC is known to have approx. 60 employees at present.
SC is currently operating at the above stated address, and this address houses its operating office and factory in Laizhou. Our checks reveal that SC owns the total premise about 10,000 square meters.
http://www.chinastonetrading.cn The design is professional and the content is well organized. At present it is in Chinese and English versions.
E-mail: wmstonenew@126.com
No significant changes were found
during our checks with the local Administration for Industry and Commerce.
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Li Xigao 98.589
Zhan Jian’e 0.392
Qiu Guangzhong 0.137
Liu Wei 0.098
Cheng Mojie 0.098
Dong Guangting 0.098
Han Zhenson 0.098
Hou Chunba 0.098
Zhan Yizhao 0.098
Zhang Zhenjiang 0.098
Chen Yula 0.098
Lv Panmin 0.098
Legal representative, Chairman and General manager:
Mr. Li Xigao is currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal representative, chairman
and general manager.
Also working in Laizhou Feiyu Artificial Stone Co., Ltd. as legal representative.
Directors:
Shi Xintao
Liu Wei
Supervisors:
Qu Shuqin
Dong Guangting
Zhang Zhenjiang
SC is mainly engaged in processing and selling marble,
granite and other stone products.
SC’s products mainly include: natural marble, natural granite, etc.
SC sources its materials 70% from domestic market, and 30% from overseas market. SC sells 95% of its products in domestic market, and 5% 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’s management
refused to release its main suppliers and clients.
According to SC’s website:
Laizhou Feiyu Artificial Stone Co., Ltd.
==============================
Incorporation date:
Registration no.: 370683200005778
Registered capital: CNY 30,000,000
Legal rep.: Li Xigao
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.
Agricultural Bank of China Laizhou Sub-branch
AC#: 15-370101040007930
Relationship: Normal.
Balance Sheet
Unit: CNY’000
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as of Dec. 31, 2011 |
as of Dec. 31, 2012 |
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Cash & bank |
780 |
5,870 |
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Inventory |
23,190 |
21,300 |
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Accounts receivable |
-3,500 |
7,470 |
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Advances to suppliers |
20 |
50 |
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Other receivables |
0 |
0 |
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Other current assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
20,490 |
34,690 |
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Long-term investments |
0 |
0 |
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Fixed assets net value |
3,680 |
3,680 |
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Projects under construction |
400 |
400 |
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Intangible assets |
5,380 |
5,470 |
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Other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
29,950 |
44,240 |
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============= |
============= |
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Short loans |
37,150 |
37,150 |
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Accounts payable |
-17,310 |
-2,720 |
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Advances from customers |
0 |
0 |
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Accrued payroll |
290 |
250 |
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Accrued expenses |
130 |
20 |
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Taxes payable |
340 |
160 |
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Other payable |
130 |
0 |
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Other accounts payable |
3,790 |
6,890 |
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Other current liabilities |
0 |
0 |
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----------------- |
----------------- |
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Current liabilities |
24,520 |
41,750 |
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Long term liabilities |
0 |
0 |
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------------------ |
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Total liabilities |
24,520 |
41,750 |
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Shareholders equities |
5,430 |
2,490 |
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Total liabilities & equities |
29,950 |
44,240 |
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Income Statement
Unit: CNY’000
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as of Dec. 31, 2012 |
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Turnover |
53,230 |
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Cost of goods sold |
50,860 |
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Taxes and additional of main operation |
440 |
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Sales expense |
0 |
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Management expense |
1,000 |
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Finance expense |
3,760 |
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Non-operating income |
370 |
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Non-operating expense |
360 |
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Profit before tax |
-2,820 |
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Less: profit tax |
120 |
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Net profit |
-2,940 |
Important Ratios
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as of Dec. 31, 2011 |
as of Dec. 31, 2012 |
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*Current ratio |
0.84 |
0.83 |
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*Quick ratio |
/ |
0.32 |
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*Liabilities to assets |
0.82 |
0.94 |
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*Net profit margin (%) |
/ |
-5.52 |
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*Return on total assets (%) |
/ |
-6.65 |
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*Inventory /Turnover ×365 |
/ |
147 days |
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*Accounts receivable/Turnover ×365 |
/ |
52 days |
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*Turnover/Total assets |
/ |
1.20 |
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* Cost of goods sold/Turnover |
/ |
0.96 |
PROFITABILITY: FAIR
The turnover of SC appears average in its line in 2012.
SC’s net profit margin is fair in 2012.
SC’s return on total assets is fair in 2012.
SC’s cost of goods sold is high in 2012, 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 poor level in 2012.
The accounts receivable of SC appears average in 2012.
The inventory of SC appears large in both years.
The short-term loan of SC appears large in both years.
SC’s turnover is in an average level in 2012, comparing with the size of its total assets.
LEVERAGE: FAIR
The debt ratio of SC is fairly high in 2011, but high in 2012.
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fair.
SC is considered small-sized in its line with fair financial conditions. The large amount of inventory and short loans could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.79 |
|
|
1 |
Rs.100.70 |
|
Euro |
1 |
Rs.84.67 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
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.