MIRA INFORM REPORT
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Report Date : |
25.09.2013 |
IDENTIFICATION DETAILS
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Name : |
NINGBO FUTURE IMPORT AND EXPORT CO., LTD. |
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Registered Office : |
Block C, Future Plaza, No. 39, Jiangnan Road, Ningbo Zhejiang Province 315040 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
28.11.2003 |
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Com. Reg. No.: |
330216000000613 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Importing and exporting commodities and technology. |
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No. of Employees : |
110 |
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 : |
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
|
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
NINGBO FUTURE IMPORT
AND EXPORT CO., LTD.
BLOCK C, FUTURE
PLAZA, NO. 39, JIANGNAN ROAD, NINGBO
ZHEJIANG PROVINCE
315040 PR CHINA
TEL: 86 (0)
574-87780225/87791374/87795720
FAX: 86 (0)
574-87050928
EXECUTIVE SUMMARY
Date of Registration : NOVEMBER 28, 2003
REGISTRATION NO. : 330216000000613
LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE : SHEN ZHIHONG
(LEGAL REPRESENTATIVE)
REGISTERED CAPITAL :
CNY 100,000,000
staff :
110
BUSINESS CATEGORY :
TRADING
Revenue :
CNY 3,979,770,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY -59,710,000 (AS OF
DEC. 31, 2012)
WEBSITE : www.futureie.com
E-MAIL : future@future-trade.com.cn
PAYMENT :
AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND :
fairly steady
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 determine
LEGAL STATUS & HISTORY
SC was established as a limited liabilities company of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 330216000000613 on November 28, 2003.
SC’s Organization
Code Certificate No.: 75626465-5
SC’s Tax No.:
330207756264655
SC’s registered
capital: CNY 100,000,000
SC’s paid-in
capital: CNY 100,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2009 |
Registered Capital |
CNY 40,000,000 |
CNY 100,000,000 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Zhejiang Future Investment Co., Ltd. |
99.9 |
|
Zhejiang Jiaye Investment Group Co., Ltd. |
0.1 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Shen Zhihong |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Zhejiang Future Investment Co., Ltd.
99.9
Zhejiang Jiaye Investment Group Co., Ltd. 0.1
Zhejiang Future Investment Co., Ltd.
-------------------------------------------------
Date of Registration: November 25, 2003
Registration No.: 330200000013886
Legal Form: Shares
limited Company
Chief Executive: Shen Zhihong
Registered Capital: CNY 251,000,000
Zhejiang Jiaye Investment Group Co., Ltd.
--------------------------------------------------
Date of Registration: December 16, 2005
Registration No.: 330400000000057
Legal Form: One-person Limited Liability Company
Chief Executive: Luo Rongqiang
Registered Capital: CNY 50,000,000
MANAGEMENT
Shen Zhihong , Legal
Representative and Chairman
------------------------------------------------------------------------------
Gender: M
Age: 49
Qualification: University
Working experience (s):
From 2003 to present, working in SC as legal representative and chairman
Also working in Zhejiang Future Investment Co., Ltd. as legal representative
BUSINESS OPERATION
SC’s registered business scope includes importing and exporting commodities and technology, excluding the items limited or prohibited by state; importing steel products; wholesaling and retailing metal materials, wood, steel products, minerals, building materials, cultural and sports facilities and equipments, clothing, daily necessities, agricultural and livestock products, mechanical equipments, hardware, electronic products; selling, processing and manufacturing nonferrous metal; industrial investment; commodity information consulting service.
SC is mainly engaged in international trade.
SC’s products mainly include: metal materials, wood, steel products, minerals, hardware, nonferrous metal, etc.
SC sources its materials 60% from domestic market, and 40% from overseas market. SC sells 50% of its products in domestic market, and 50% 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 T/T, L/C and Credit of 30-60 days.
*Major Customers:
==============
Myco International Inc.
Love Love Fashion Inc.
Ppc Trading LLC.
Wintersun Chemical
Avon Cosmetics S.A. De C.V.
Staff & Office:
--------------------------
SC is known to have approx. 110 staff at present.
SC rents an area as its operating office, but the detailed information is unknown.
RELATED COMPANY
SC is known to have
the following subsidiaries and branch,
Ningbo Cimei International Trade Co., Ltd.
------------------------------------
Registration No.: 330214000023533
Date of Registration: January 20, 2010
Legal Form: One-person Limited Liabilities Company
Registered Capital: CNY 20,000,000
Legal Representative: Zhou Lijun
Ningbo Future Import and Export Co., Ltd. Hemei Branch
------------------------------------------------
Registration No.: 330204000073951
Date of Registration: June 24, 2010
Legal Form: Branch
Principal: Zhou Lijun
Etc.
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
Industrial & Commercial Bank of China Ningbo Branch
AC#: 3901020009000103756
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2010 |
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
330,700 |
193,720 |
204,320 |
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Accounts receivable |
91,750 |
194,130 |
184,560 |
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Advances to suppliers |
0 |
0 |
0 |
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Other receivable |
102,870 |
515,490 |
139,210 |
|
Inventory |
118,140 |
316,610 |
232,160 |
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Prepaid expenses |
0 |
0 |
0 |
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Non-current assets within one year |
0 |
0 |
0 |
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Other current assets |
152,050 |
139,180 |
90,980 |
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------------------ |
------------------ |
------------------ |
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Current assets |
795,510 |
1,359,130 |
851,230 |
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Long-term investment |
114,050 |
161,960 |
171,940 |
|
Fixed assets |
10,610 |
25,890 |
16,850 |
|
Construction in progress |
0 |
0 |
0 |
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Intangible asset |
0 |
0 |
0 |
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Deferred income tax assets |
0 |
0 |
0 |
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Other non-current assets |
530 |
400 |
10,540 |
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------------------ |
------------------ |
------------------ |
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Total assets |
920,700 |
1,547,380 |
1,050,560 |
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============= |
============= |
============= |
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Short-term loans |
197,950 |
488,490 |
432,670 |
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Notes payable |
0 |
0 |
0 |
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Accounts payable |
233,380 |
529,620 |
328,940 |
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Wages payable |
0 |
0 |
0 |
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Taxes payable |
0 |
0 |
0 |
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Advances from clients |
0 |
0 |
0 |
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Other payable |
200 |
61,380 |
65,790 |
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Other current liabilities |
296,510 |
121,760 |
282,870 |
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------------------ |
------------------ |
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Current liabilities |
728,040 |
1,201,250 |
1,110,270 |
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Non-current liabilities |
0 |
0 |
0 |
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------------------ |
------------------ |
------------------ |
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Total liabilities |
728,040 |
1,201,250 |
1,110,270 |
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Equities |
192,660 |
346,130 |
-59,710 |
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------------------ |
------------------ |
------------------ |
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Total liabilities & equities |
920,700 |
1,547,380 |
1,050,560 |
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============= |
============= |
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Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
Revenue |
3,789,450 |
3,979,770 |
|
Cost of sales |
3,423,950 |
3,641,995 |
|
Sales expense |
173,060 |
-- |
|
Management expense |
14,260 |
-- |
|
Finance expense |
8,670 |
-- |
|
Profit before tax |
208,410 |
-411,850 |
|
Less: profit tax |
52,950 |
0 |
|
155,460 |
-411,850 |
Important Ratios
=============
|
|
As of Dec. 31, 2010 |
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
*Current ratio |
1.09 |
1.13 |
0.77 |
|
*Quick ratio |
0.93 |
0.87 |
0.56 |
|
*Liabilities to assets |
0.79 |
0.78 |
1.06 |
|
*Net profit margin (%) |
-- |
4.10 |
-10.35 |
|
*Return on total assets (%) |
-- |
10.05 |
-39.20 |
|
*Inventory / Revenue ×365 |
-- |
31 days |
22 days |
|
*Accounts receivable/ Revenue ×365 |
-- |
19 days |
17 days |
|
* Revenue/Total assets |
-- |
2.45 |
3.79 |
|
* Cost of sales / Revenue |
-- |
0.90 |
0.92 |
FINANCIAL COMMENTS
PROFITABILITY: POOR
The revenue of SC appears fairly good in its line, and it increased in 2012.
SC’s net profit margin is average in 2011, poor in 2012.
SC’s return on total assets is fairly good in 2011, poor in 2012.
SC’s cost of goods sold is average, comparing with its revenue.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a normal level in 2010 and 2011, fair in 2012.
SC’s quick ratio is maintained in a normal level in 2010 and 2011, fair in 2012.
The inventory of SC is maintained in an average level.
The accounts receivable of SC appears average.
The short-term loans of SC appear large in 2011 and 2012.
SC’s revenue is in an average level, comparing with the size of its total assets.
LEVERAGE: FAIR
The debt ratio of SC is high in 2012.
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fair.
CONCLUSIONS
SC is considered medium-sized in its line with fair financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.66 |
|
|
1 |
Rs.100.46 |
|
Euro |
1 |
Rs.84.60 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
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 |
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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.