MIRA INFORM REPORT
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Report Date : |
02.12.2014 |
IDENTIFICATION DETAILS
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Name : |
ZIBO FENGYI
PLASTICS CO., LTD. |
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Registered Office : |
No. 3846 Xinhua Road, Linzi District, Zibo Shandong Province 255438 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
26.04.2007 |
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Com. Reg. No.: |
370305228033611 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Manufacturing
and Selling of Package Printing Matter. |
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No. of Employees : |
47 |
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 – June 1, 2014
|
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.
|
Source
: CIA |
Company
Name and address
ZIBO FENGYI PLASTICS CO., LTD.
No. 3846 xinhua road,
linzi district, zibo
shandong PROVINCE
255438 PR CHINA
TEL: 86 (0)
533-7509668/7506667
FAX: 86 (0)
533-7500088
EXECUTIVE
SUMMARY
Date of Registration : april 26, 2007
REGISTRATION NO. : 370305228033611
LEGAL FORM : One-person Limited Liability Company
REGISTERED CAPITAL : CNY 5,000,000
staff : 47
BUSINESS CATEGORY : MANUFACTURING
& TRADING
Revenue : CNY 31,020,000 (AS OF DEC. 31, 2013)
EQUITIES : CNY 4,730,000 (AS OF DEC. 31, 2013)
WEBSITE : www.zibofengyi.com
E-MAIL : service@zibofengyi.com
PAYMENT : AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : Ordinary
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.14 = 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 on April 26, 2007. However, SC changed to present legal form, and was
registered as one-person limited liabilities company of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.: 370305228033611 on May 26, 2014.
SC’s Organization Code Certificate No.:
66139179-0
SC’s Tax No.: 370305661391790
SC’s registered capital: CNY 5,000,000
SC’s paid-in capital: CNY 5,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2014-5-26 |
Legal Form |
Limited
Liabilities Company |
One-Person Limited Liabilities Company |
|
Registered
Capital |
CNY 1,000,000 |
CNY 5,000,000 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Guan
Huaying |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal
Representative, Chairman, and General Manager |
Guan Huaying |
|
Supervisor |
Lu Tiezhi |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Guan Huaying 100
MANAGEMENT
Guan Huaying, Legal Representative, Chairman and General
Manager
-------------------------------------------------------------------------------------------------------
Ø
Gender: F
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal
representative, chairman and general manager
Lu
Tiezhi, Supervisor
---------------------------------------
Ø Gender: M
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing
package printing matter; processing and selling plastic products; selling
chlorinated polyethylene, rubber raw materials and products, chemical products,
road asphalt, plastic raw materials, machinery and electrical equipment,
electronic components, building materials, woven machinery; goods import and
export.
SC is mainly
engaged in manufacturing and selling package printing matter.
SC’s products
mainly include: block bottom valve bags, BOPP/PP woven bags, bulk bags,
multiwall kraft bags, PE heavy bags, Paper/PP woven bags, coated woven bags,
plain woven bags, etc.
SC sources its materials 100% from domestic market, mainly Shandong. SC sells 70% of its products in domestic market, and 30% to overseas market, mainly USA, Europe, Mid East, Southeast Asia, etc.
The buying terms
of SC include Check, T/T and Credit of 30-60 days. The payment terms of SC
include T/T, L/C and Credit of 30-60 days.
*Major Customer:
=============
Smith Seed
Services Bag Division (USA)
Staff & Office:
--------------------------
SC is known
to have approx. 47 staff at
present.
SC rents an area as
its operating office and factory, but the detailed information is unknown.
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
The bank
information of SC is not filed in SAIC.
FINANCIALS
Balance Sheet
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Unit: CNY’000 |
As of Dec. 31, 2013 |
|
2,360 |
|
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Notes receivable |
0 |
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Accounts receivable |
15,350 |
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Advances to suppliers |
7,830 |
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Other receivable |
2,970 |
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Inventory |
4,560 |
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Non-current assets within one year |
0 |
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Other current assets |
290 |
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------------------ |
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Current assets |
33,360 |
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Fixed assets |
1,550 |
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Long-term prepaid expenses |
0 |
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Deferred income tax assets |
0 |
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Other non-current assets |
0 |
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------------------ |
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Total assets |
34,910 |
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============= |
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Short-term loans |
8,000 |
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Notes payable |
0 |
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Accounts payable |
2,030 |
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Advances from clients |
0 |
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Other payable |
20,060 |
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Other current liabilities |
90 |
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------------------ |
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Current liabilities |
30,180 |
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Non-current liabilities |
0 |
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------------------ |
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Total liabilities |
30,180 |
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Equities |
4,730 |
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------------------ |
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Total liabilities & equities |
34,910 |
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|
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2013 |
|
Revenue |
31,020 |
|
Cost of sales |
29,190 |
|
Sales expense |
260 |
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Management expense |
830 |
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Finance expense |
680 |
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Profit before tax |
40 |
|
Less: profit tax |
10 |
|
30 |
Important Ratios
=============
|
|
As of Dec. 31, 2013 |
|
*Current ratio |
1.11 |
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*Quick ratio |
0.95 |
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*Liabilities to assets |
0.86 |
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*Net profit margin (%) |
0.10 |
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*Return on total assets (%) |
0.09 |
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*Inventory / Revenue ×365 |
54 days |
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*Accounts receivable/ Revenue ×365 |
181 days |
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*Revenue/Total assets |
0.89 |
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*Cost of sales / Revenue |
0.94 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC
appears average in its line.
l SC’s net profit
margin is average.
l SC’s return on
total assets is average.
l
SC’s cost of sales is fairly high, comparing with
its revenue.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC appears large.
l
SC’s short-term loans are in an average level.
l
SC’s revenue is in a fair level, comparing with the
size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered small-sized in its line with fairly stable financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.14 |
|
|
1 |
Rs.97.05 |
|
Euro |
1 |
Rs.77.37 |
INFORMATION DETAILS
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Analysis Done by
: |
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.