MIRA
INFORM REPORT
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Report Date : |
01.12.2014 |
IDENTIFICATION DETAILS
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Name : |
foton international trade co., ltd. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
30.08.2007 |
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Com. Reg. No.: |
110000010458755 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Subject is engaged in selling of Automobile and Parts. |
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No. of Employees : |
650 |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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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
foton international trade co., ltd.
shayang road, shahe
town, changping district,
beijing, 102200 PR
CHINA
TEL: 86 (0)
10-59912000/59912287 FAX: 86 (0)
10-59912055
EXECUTIVE SUMMARY
INCORPORATION DATE : august 30, 2007
REGISTRATION NO. : 110000010458755
REGISTERED LEGAL
FORM : One-person
Limited Liability Company
STAFF STRENGTH : 650
REGISTERED CAPITAL :
CNY 50,000,000
BUSINESS LINE : trading
TURNOVER : CNY 3,318,300,000
(AS OF DEC. 31, 2013)
EQUITIES : CNY -116,410,000
(AS OF DEC. 31, 2013)
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION
: fair
OPERATIONAL TREND :
FAIR
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.13 = 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
SC was registered as a one-person limited liability
company at local Administration for Industry & Commerce (AIC - The official
body of issuing and renewing business license) on August 30, 2007.
Company Status: One-person Limited Liability Company Single person LLC refers to a
limited liability company set up by only one natural person or legal person
as the single shareholder of it. The minimum registered capital
of Single person LLC is CNY100,000. The shareholder’s capital contributes,
as set out by the articles of associations should be a lump-sum payment in
full. One natural person can only
invest in and set up one limited liability company, which is not permitted
to invest in and set up a new Single person LLC. As to any one-person limited
liability company, the sole-investor nature of the natural person or legal
person shall be indicated in the registration documents of the company and
shall be indicated in the business license thereof as well. The regulation of Single person
LLC should be set up by the shareholder The regulation of Single person
LLC has no shareholder meeting.
SC’s registered business scope includes importing and exporting goods and technology, import and export agent.
SC is mainly engaged in selling automobile and parts.
Mr. Wang Xiangyin has been chairman of SC since 2010.
SC is known to have approx. 650 employees at present.
SC is currently operating at the above stated address, and this address houses its operating office in the industrial zone of Beijing. Our checks reveal that SC owns the total premise about 2,000 square meters.
SC is not known to host web site of its own
at present.
Changes
of its registered information are as follows:
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Date
of change |
Item |
Before
the change |
After
the change |
|
2010-9-3 |
Chairman |
Zhao
Weichun |
Wang
Xiangyin |
Subject passed the annual inspection of 2012
with Administration for Industry & Commerce.
Tax Registration Certificate No.:
110114666252108
Organization Code: 666252108
There is no record of litigation till
now.
MAIN SHAREHOLDERS:
Name % of
Shareholding
Beiqi Foton Motor
Co., Ltd. 100
Incorporation Date : August 28, 1996
Registration No . : 110000005082498
Registered Legal Form :
Shares Limited Company
Beiqi Foton Motor Co., Ltd. listed in
Shanghai Stock Exchange Market in 1998 with the stock code 600166.
Address: North of
Laoniuwan Village, Shayang Road, Shahe, Changping District, Beijing
Tel: 86
010-80720171/80716459
Fax: 86
010-80728970/80716459
Email: 600166@foton.com.cn
l
Chairman:
Mr. Wang Xiangyin, senior engineer, born in
1959 with master’s degree. He is currently responsible for the overall
management of SC.
Working Experience(s):
From 2010 to present Working in SC as chairman.
Also working in Beiqi Foton Motor Co., Ltd. as vice
general manager, and in Japan Foton Motor Co., Ltd. and Beijing
Foton Cummins Engine Co., Ltd. as director.
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Directors:
Yang Gongshe
Zhao Weichun
Jing Shimin
Zhang Zhiliang
Li Xiaofan
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Supervisor:
Yang Guotao
SC is mainly engaged in selling automobile and parts.
Brand: FOTON
SC’s products mainly include: automobile and parts.
SC sources its
materials 100% from domestic market, mainly Beijing. SC sells 1% of its
products in domestic market, and 99% to overseas market, mainly USA, Europe and
Southeast Asian market.
The buying terms of SC include Check, T/T
and Credit of 30-60 days. The payment terms of SC include L/C and Credit of
30-60 days.
Note: SC declined to release its major
suppliers and clients.
Beijing Foton Cummins
Engine Co., Ltd.
===============================
Registration no.:
110000450029190
Legal representative: Wang
Jinyu
Incorporation date:
Japan Foton Motor Co., Ltd.
SC is known to invest in the following companies:
Qingdao Foton Qingte Ouhui
Bus Sales Co., Ltd. (in Chinese pinyin)
=================================
Registration no.:
370214020002064
Legal representative: Li
Hongjun
Incorporation date:
Yichang Foton Ouhui Bus
Sales Co., Ltd. (in Chinese pinyin)
==========================================
Registration no.:
420500000156852
Legal representative: Li
Hongjun
Incorporation date:
2012-11-30
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 Beijing Branch
AC#：337656018047
Relationship: Normal.
Financial Summary
===============
Unit: CNY’000
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As
of Dec. 31, 2013 |
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Total assets |
2,359,340 |
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========= |
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Total
liabilities |
2,475,750 |
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Equities |
-116,410 |
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-------------- |
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Total
liabilities & equities |
2,359,340 |
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========= |
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Turnover |
3,318,300 |
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Cost of goods
sold |
2,996,320 |
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Profits |
-55,870 |
Note: we did not find SC’s detailed
financial reports.
Important Ratios
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As of Dec. 31, 2013 |
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*Liabilities to assets |
1.05 |
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*Net profit margin (%) |
-1.68 |
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*Return on total assets (%) |
-2.37 |
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*Turnover/Total assets |
1.41 |
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* Cost of goods sold/Turnover |
0.90 |
PROFITABILITY:
FAIR
l
The turnover of SC appears good in its line.
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SC’s net profit margin is fair.
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SC’s return on total assets is fair.
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SC’s cost of goods sold is average, comparing with
its turnover.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE:
FAIR
l
The debt ratio of SC is too high.
l
The risk for SC to go bankrupt is above average.
Overall
financial condition of the SC: Fair.
SC is considered large-sized in its line
with fair 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.61.97 |
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1 |
Rs.97.37 |
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Euro |
1 |
Rs.77.16 |
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
NIT |
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.