MIRA
INFORM REPORT
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Report Date : |
30.08.2014 |
IDENTIFICATION DETAILS
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Name : |
QINGDAO MINGZHIDE
INTERNATIONAL TRADE CO., Ltd. |
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Registered Office : |
Room 2712, Business Building A, Wanda Plaza, No. 37,
Lianyungang Road, Shibei District, Qingdao, Shandong Province, 266034 PR |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
13.05.2013 |
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Com. Reg. No.: |
370203230105842 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Subject includes general business items: importing and
exporting goods and technologies (excluding products prohibited by legal,
administrative rules and regulations, and operating the limited products with
permit if needed); wholesaling and retailing clothing and footwear,
furniture, electronics, office supplies, crafts, agricultural vehicles and
parts, machinery products, daily necessities, machinery and electronic
products (excluding nine and nine or less passenger cars), chemical products |
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No. of Employees |
07 |
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 |
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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 – June 1, 2014
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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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, growth of the private sector, development of stock markets and a modern banking system, 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 considered important to "economic security," explicitly looking to foster globally competitive industries. After keeping its currency tightly linked to the US dollar for years, in July 2005 China 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 and expanded the daily trading band within which the RMB is permitted to fluctuate. 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 2013 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 consumption; (b) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and increasing numbers of college graduates; (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. Several factors are converging to slow China's growth, including debt overhang from its credit-fueled stimulus program, industrial overcapacity, inefficient allocation of capital by state-owned banks, and the slow recovery of China's trading partners. The government's 12th Five-Year Plan, adopted in March 2011 and reiterated at the Communist Party's "Third Plenum" meeting in November 2013, emphasizes continued economic reforms and the need to increase domestic consumption in order to make the economy less dependent in the future on fixed investments, exports, and heavy industry. However, China has made only marginal progress toward these rebalancing goals. The new government of President XI Jinping has signaled a greater willingness to undertake reforms that focus on China's long-term economic health, including giving the market a more decisive role in allocating resources.
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Source
: CIA |
Company name and address
QINGDAO MINGZHIDE INTERNATIONAL TRADE CO.,
Ltd.
ROOM 2712, BUSINESS
BUILDING A, WANDA PLAZA, NO. 37, LIANYUNGANG ROAD, SHIBEI DISTRICT, QINGDAO,
SHANDONG PROVINCE, 266034 PR China
TEL: 86 (0)
532-55662468
FAX: 86 (0)
532-55662481
EXECUTIVE SUMMARY
INCORPORATION DATE : MAY 13, 2013
REGISTRATION NO. : 370203230105842
REGISTERED LEGAL FORM
: Limited liabilities co.
CHIEF EXECUTIVE : Ms. zhang huan (chairman)
STAFF STRENGTH : 7
REGISTERED CAPITAL : CNY 1,000,000
BUSINESS LINE : trading
Turnover : CNY 310,000 (As
of Dec. 31, 2013)
Equities : CNY 950,000
(As of Dec. 31, 2013)
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.1515 = 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 is operating in the heading address.
SC was registered as a Limited liabilities co. at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on May 13, 2013.
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 general business items: importing and exporting goods and technologies (excluding products prohibited by legal, administrative rules and regulations, and operating the limited products with permit if needed); wholesaling and retailing clothing and footwear, furniture, electronics, office supplies, crafts, agricultural vehicles and parts, machinery products, daily necessities, machinery and electronic products (excluding nine and nine or less passenger cars), chemical products (excluding dangerous goods). (with permit if needed).
SC is mainly engaged in exporting machinery and agricultural products.
Ms. Zhang Huan has been legal representative, chairman and general manager of SC since May of 2013.
SC is known to have approx. 7 employees at present.
SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Qingdao. Our checks reveal that SC rents the total premise, but the gross area of the premise is unspecific.
SC is not known to host website of its own at present.
No significant changes were found during our checks with the local Administration for Industry and Commerce.
SC was taken into operation in December of 2013.
Organization Code: 069053493
There is no record of litigation till now.
MAIN SHAREHOLDERS:
Name % of Shareholding
Gu Xiuling
40
Zhang Huan
60
Legal Representative,
Chairman and General Manager:
Ms. Zhang Huan is currently responsible for the overall management of SC.
Working Experience(s):
From May of 2013 to present Working in SC as legal representative, chairman and general manager.
Supervisor:
Gu Xiuling
SC is mainly engaged in exporting machinery and agricultural products.
SC’s products mainly include: machinery and agricultural products.
SC was taken into operation in December of 2013.
SC sources its materials 70% from domestic market, and 30% from overseas market. SC sells 100% of its products 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, L/C and Credit of 30-60 days.
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TRADEMARKS & PATENTS |
No record
Note: SC’s management declined to release its main clients and suppliers.
SC is not known to have any subsidiary at present.
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 Qingdao Shandong Road Sub-branch
AC#：N/A
Relationship: Normal
Balance Sheet
Unit: CNY’000
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as of Dec. 31, 2013 |
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Cash & bank |
580 |
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Inventory |
0 |
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Accounts receivable |
0 |
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Advances to suppliers |
660 |
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Prepaid expense |
10 |
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Short-term investments |
700 |
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Other receivables |
70 |
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Other current assets |
0 |
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------------------ |
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Current assets |
2,020 |
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Long-term investments |
0 |
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Fixed assets net value |
0 |
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Projects under construction |
0 |
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Intangible assets |
0 |
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Other assets |
0 |
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Total assets |
2,020 |
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Short loans |
0 |
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Accounts payable |
0 |
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Advances from customers |
1,130 |
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Accrued payroll |
0 |
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Taxes payable |
-60 |
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Other accounts payable |
0 |
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Other current liabilities |
0 |
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Current liabilities |
1,070 |
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Long term liabilities |
0 |
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Total liabilities |
1,070 |
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Shareholders equities |
950 |
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Total liabilities & equities |
2,020 |
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Income Statement
Unit: CNY’000
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as of Dec. 31, 2013 |
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Turnover |
310 |
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Cost of goods sold |
310 |
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Taxes and additional of main operation |
0 |
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Sales expense |
0 |
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Management expense |
60 |
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Finance expense |
-10 |
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Non-operating income |
0 |
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Non-operating expense |
0 |
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Profit before tax |
-50 |
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Less: profit tax |
0 |
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Net profit |
-50 |
Important Ratios
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as of Dec. 31, 2013 |
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*Current ratio |
1.89 |
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*Quick ratio |
1.89 |
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*Liabilities to assets |
0.53 |
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*Net profit margin (%) |
-16.13 |
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*Return on total assets (%) |
-2.48 |
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*Inventory /Turnover ×365 |
/ |
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*Accounts receivable/Turnover ×365 |
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*Turnover/Total assets |
0.15 |
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* Cost of goods sold/Turnover |
1.00 |
PROFITABILITY: FAIR
The turnover of SC appears fair in its line.
SC’s net profit margin appears poor.
SC’s return on total assets appears fair.
SC’s cost of goods sold is high, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a normal level.
SC has no inventory in 2013.
SC has no accounts receivable in 2013.
SC has no short-term loan in 2013.
SC’s turnover is in a poor level, comparing with the size of its total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fairly stable.
SC is considered small-sized in its line with fairly stable financial conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.60.48 |
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1 |
Rs.100.35 |
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Euro |
1 |
Rs.79.86 |
INFORMATION DETAILS
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Analysis Done by
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SUM |
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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 |
-- |
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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.