MIRA INFORM REPORT
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Report Date : |
17.09.2013 |
IDENTIFICATION DETAILS
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Name : |
KING TANG IMPORT & EXPORT CORPORATION |
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Registered Office : |
Suite No. 1104, Simafang Commercial Flat, Jintan Jiangsu Province 213200 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
25.07.2005 |
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Com. Reg. No.: |
320482000012072 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Importing and exporting various kinds of commodities and technology, excluding the goods forbidden by the government; selling chemical raw materials. |
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No. of Employees : |
14 |
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
KING TANG IMPORT
& EXPORT CORPORATION
SUITE NO. 1104,
SIMAFANG COMMERCIAL FLAT, JINTAN
JIANGSU PROVINCE
213200 PR CHINA
TEL: 86 (0)
519-82889716/82880718
FAX: 86 (0) 519-82829298
EXECUTIVE SUMMARY
Date of Registration : JULY 25, 2005
REGISTRATION NO. : 320482000012072
LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE : YAN QINGFANG
(LEGAL REPRESENTATIVE)
REGISTERED CAPITAL :
CNY 5,000,000
staff :
14
BUSINESS CATEGORY :
TRADING
Revenue :
CNY 31,000,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 4,580,000 (AS OF DEC.
31, 2012)
WEBSITE : N/A
E-MAIL : N/A
PAYMENT :
AVERAGE
MARKET CONDITION : average
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.: 320482000012072 on July 25, 2005.
SC’s Organization
Code Certificate No.: 77686322-5
SC’s registered
capital: CNY 5,000,000
SC’s paid-in capital:
CNY 5,000,000
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:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Li Jianjun |
25 |
|
Yan Qingfang |
75 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Yan Qingfang |
|
Supervisor |
Li Jianjun |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Li Jianjun 25
Yan Qingfang 75
MANAGEMENT
Yan Qingfang, Legal
Representative, Chairman and General Manager
------------------------------------------------------------------------------------------------------
Gender: M
Age: 41
ID# 320422197203250111
Qualification: University
Working experience (s):
From 2005 to present, working in SC as legal representative, chairman and general manager
Li Jianjun,
Supervisor
------------------------------------------
Gender: M
Age: 38
ID# 430111197504263717
BUSINESS OPERATION
SC’s registered business scope includes operating and acting as an agent of importing and exporting various kinds of commodities and technology, excluding the goods forbidden by the government; selling chemical raw materials.
SC is mainly engaged in international trade.
SC’s products mainly include: chemicals, pharmaceuticals,
active pharmaceutical ingredients, washing machine parts, automotive parts,
agro chemicals, insecticides, pesticides, fungicides, fertilizers, agrochemical
intermediates, etc.
SC sources its materials 80% from domestic market, and 20% from overseas market. SC sells 10% of its products in domestic market, and 90% to overseas market, mainly U.S.A., Europe, Southeast Asia, Mid East, Etc.
The buying terms of SC include T/T, L/C and Credit of 30-60 days. The payment terms of SC include T/T, L/C and Credit of 30-60 days.
Staff & Office:
--------------------------
SC is known to have approx. 14 staff at present.
SC rents an area as its operating office of approx. 100 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 China
AC#: N/a
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
1,410 |
1,040 |
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Accounts receivable |
2,130 |
1,990 |
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Advances to suppliers |
0 |
0 |
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Other receivable |
1,030 |
3,300 |
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Inventory |
0 |
1,510 |
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Subsidies receivable |
700 |
370 |
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Other current assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
5,270 |
8,210 |
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Fixed assets |
540 |
540 |
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Construction in progress |
0 |
0 |
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Long-term prepaid expenses |
0 |
0 |
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Deferred income tax assets |
0 |
0 |
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Other non-current assets |
-10 |
-10 |
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------------------ |
------------------ |
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Total assets |
5,800 |
8,740 |
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============= |
============= |
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Short-term loans |
500 |
1,600 |
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Notes payable |
0 |
0 |
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Accounts payable |
0 |
1,990 |
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Wages payable |
0 |
0 |
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Taxes payable |
0 |
0 |
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Advances from clients |
0 |
0 |
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Other payable |
600 |
670 |
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Other current liabilities |
-90 |
-100 |
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------------------ |
------------------ |
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Current liabilities |
1,010 |
4,160 |
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Non-current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total liabilities |
1,010 |
4,160 |
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Equities |
4,790 |
4,580 |
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------------------ |
------------------ |
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Total liabilities & equities |
5,800 |
8,740 |
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============= |
============= |
Income Statement
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Unit: CNY’000 |
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
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Revenue |
36,610 |
31,000 |
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Cost of sales |
33,110 |
28,970 |
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Sales expense |
1,560 |
1,360 |
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Management expense |
960 |
920 |
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Finance expense |
950 |
-15 |
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Profit before tax |
27 |
-100 |
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Less: profit tax |
16 |
0 |
|
11 |
-100 |
Important Ratios
=============
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As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
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*Current ratio |
5.22 |
1.97 |
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*Quick ratio |
5.22 |
1.61 |
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*Liabilities to assets |
0.17 |
0.48 |
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*Net profit margin (%) |
0.03 |
-0.32 |
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*Return on total assets (%) |
0.19 |
-1.14 |
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*Inventory / Revenue ×365 |
-- |
18 days |
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*Accounts receivable/ Revenue ×365 |
22 days |
24 days |
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* Revenue/Total assets |
6.31 |
3.55 |
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* Cost of sales / Revenue |
0.90 |
0.93 |
FINANCIAL COMMENTS
PROFITABILITY: FAIR
The revenue of SC appears average in its line in both years.
SC’s net profit margin is average in 2011, fair in 2012.
SC’s return on total assets is average in 2011, fair in 2012.
SC’s cost of sales is fairly high, comparing with its revenue.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a fairly good level.
SC’s quick ratio is maintained in a fairly good level.
The inventory of SC appears average in 2012.
The accounts receivable of SC is maintained in an average level.
SC’s short-term loans are in an average level.
SC’s revenue is in a fairly good level, comparing with the size of its total assets.
LEVERAGE: FAIR
The debt ratio of SC is average.
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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.48 |
|
|
1 |
Rs.99.66 |
|
Euro |
1 |
Rs.83.50 |
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 |
|
-- |
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.