MIRA INFORM REPORT
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Report Date : |
05.12.2014 |
IDENTIFICATION DETAILS
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Name : |
CHANGZHOU DAYA IMPORT AND EXPORT CORP., LTD. |
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Registered Office : |
6-8/F, Sanjing Building, No. 8 Tongjiang Middle Road, Xinbei District,
Changzhou, Jiangsu Province, 213022 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
05.02.1997 |
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Com. Reg. No.: |
320400000016072 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in trading of
Mechanical and Electrical Products, Textiles, Clothing, General Merchandise,
Shoes, Hats & Chemicals. |
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No of Employees : |
95 (Approximately) |
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
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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 & address
CHANGZHOU DAYA IMPORT AND EXPORT CORP., Ltd.
6-8/F, Sanjing Building, No. 8 Tongjiang Middle
Road,
XINBEI
DISTRICT, Changzhou, Jiangsu PROVINCE, 213022 PR CHINA
TEL: 86 (0) 519-88107052/88100641 FAX: 86 (0) 519-88100769
EXECUTIVE
SUMMARY
INCORPORATION DATE : FEB. 5, 1997
REGISTRATION NO. :
320400000016072
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
CHIEF EXECUTIVE : mr. Li jun (CHAIRMAN)
STAFF STRENGTH : 95
REGISTERED CAPITAL :
cny 10,000,000
BUSINESS LINE : trading
TURNOVER : CNY 1,245,950,000 (AS OF DECEMBER 31,
2012)
EQUITIES : CNY 19,480,000 (AS OF DECEMBER 31,
2012)
PAYMENT : Slow but Correct
MARKET CONDITION : competitive
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.15 = 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 Limited liabilities co. at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Feb. 5, 1997.
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
wholesale pre-packaged food. importing and exporting
commodities and technology, excluding export commodities under state-unified operation and import commodities operated by the
state-designated companies; processing with imported materials, processing
with imported samples, assembling with imported parts, and compensation trade
in agreement; Acquisition, organization of export
supply allocation; warehousing of domestic trade business, economic and
technological exchanges and consulting services; selling of industrial
production materials (excluding of special provisions).
SC is mainly
engaged in international trade.
Mr. Li
Jun is legal
representative and chairman of SC at present.
SC is
known to have approx. 95 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Changzhou.
Our checks reveal that SC owns the total premise but the detailed information
of the premise is unspecified.
\
www.dayaexport.com The design
is professional and the content is well organized. At present it is in both
Chinese and English versions.
E-mail: daya@dayaexport.com
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
Certificate
========
In the past two years there is no record of litigation
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Zhou Huiping 10.5
Li Jun 8
Hu Hongbo 8
Li Yibo 5.5
Pan Li 5.5
Shi Rongyan 5
Fang Yong 3.5
Xiang Nanping 3.5
Xue Zilong 3.5
Zang Jianhua 3.5
Ge Dongyun 2.5
Chen Wu 2.5
Other 30 individual shareholders 38.5
Legal
Representative and Chairman:
Mr. Li Jun, ID # 32040219691208xxxx, born in 1969, he is currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal representative and chairman.
*Officials:
=======
Name Title
Hu Hongbo Director
Zhou Huiping Director
Huang Haodong Supervisor
SC is mainly
engaged in international trade.
SC’s products mainly include: mechanical and electrical products,
textiles, clothing, general merchandise, shoes, hats & chemicals.
TRADEMARKS
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Registration No. |
8708423 |
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Registration
Date |
Oct.
28, 2012 |
Mar.
7, 2012 |
Oct.
14, 2011 |
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Trademark Design |
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SC sources its materials 80% from domestic
market, and 20% from overseas market. SC sells 20% of its products in domestic
market, and 80% 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, T/T, L/C and Credit of 30-60
days.
Note:
SC’s management declined to release its major 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.
SC declined to
release its bank details.
Balance Sheet
Unit: CNY’000
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as of Dec. 31, 2012 |
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Current assets |
155,820 |
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Total assets |
173,440 |
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Current
liabilities |
153,960 |
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Total
liabilities |
153,960 |
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Equities |
19,480 |
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Total
liabilities & equities |
173,440 |
Note: SC’s accountant refused to release the detailed
Balance Sheet for Yr2012.
Income Statement
Unit: CNY’000
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as of Dec. 31,
2012 |
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Turnover |
1,245,950 |
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Cost of goods
sold |
1,206,990 |
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Taxes and
additional of main operation |
20 |
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Income from
commission on buying and selling |
980 |
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Income from
other operation |
270 |
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Sales expense |
26,630 |
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Management expense |
11,700 |
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Finance expense |
-3,720 |
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Non-operating
income |
510 |
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40 |
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Profit before
tax |
6,050 |
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Less: profit tax |
1,660 |
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Profits |
4,390 |
Important Ratios
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as
of Dec. 31, 2012 |
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*Current ratio |
1.01 |
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*Quick ratio |
/ |
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*Liabilities
to assets |
0.89 |
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*Net profit
margin (%) |
0.35 |
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*Return on
total assets (%) |
2.53 |
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*Inventory
/Turnover ×365 |
/ |
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*Accounts
receivable/Turnover ×365 |
/ |
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*Turnover/Total
assets |
7.18 |
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* Cost of
goods sold/Turnover |
0.97 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears good 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 goods sold is high, comparing with its
turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is normal.
l
SC’s turnover is in a good level, comparing with
the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable
SC is considered medium-sized in its line with fairly stable financial
conditions. Taking into consideration of SC’s general performance and development
history, we would rate SC as an average credit risk company.
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.88 |
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UK Pound |
1 |
Rs.97.02 |
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Euro |
1 |
Rs.76.13 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
MNL |
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 |
-- |
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.