MIRA
INFORM REPORT
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Report Date : |
01.02.2014 |
IDENTIFICATION DETAILS
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Name : |
SANFU IMPORTS AND EXPORTS COMMERCE CO., LTD.
JINJIANG |
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Registered Office : |
Chendian
Industrial District, Longhu
Town, Jinjiang, Fujian Province 362241 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
01.11.2002 |
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Com. Reg. No.: |
350582100000630 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
importer and exporter of Rubber, EVA & SB products |
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No. of Employees : |
30 |
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 – december 01, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
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 & address
Sanfu Imports And
Exports Commerce Co., Ltd. Jinjiang
chendian industrial district
longhu town, jinjiang, fujian province 362241 PR CHINA
TEL: 86 (0) 595-85288288/85292036/85292004
FAX: 86 (0) 595-85281865
EXECUTIVE SUMMARY
Date of Registration : november 1, 2002
REGISTRATION NO. : 350582100000630
LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE : ke honghua (LEGAL
REPRESENTATIVE)
REGISTERED CAPITAL :
cny 32,000,000
staff : 30
BUSINESS CATEGORY :
trading
Revenue : CNY 603,510,000 (AS OF DEC. 31, 2012)
EQUITIES : CNY 25,140,000 (AS OF DEC. 31, 2012)
WEBSITE : www.sffz.cn
E-MAIL :
N/A
PAYMENT : AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fair
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.05 = 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
LEGAL
STATUS & HISTORY
SC was
established as a limited liabilities company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 350582100000630 on November 1,
2002.
SC’s Organization Code Certificate
No.: 74381173-6
SC’s Tax No.: 350582743811736
SC’s registered capital: cny 32,000,000
SC’s paid-in capital: cny 32,000,000
Registration Change Record:-
No significant changes of SC have
been noted in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Ke Honghua |
55 |
|
Hong
Qingshuang |
45 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman
and General Manager |
Ke Honghua |
|
Supervisor |
Hong
Qingshuang |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name
%
of Shareholding
Ke Honghua 55
Hong Qingshuang 45
MANAGEMENT
Ke
Honghua, Legal Representative,
Chairman and General Manager
---------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
ID# 350521197310297673
Ø
Age: 41
Ø
Working
experience (s):
At present, working in SC as legal representative, chairman and general manager
Also working in Jiafu (Fujian) Dyeing & Finishing Co., Ltd. as legal representative
Hong Qingshuang, Supervisor
---------------------------------------------------
Ø
Gender: M
BUSINESS OPERATION
SC’s registered business scope includes importing and
exporting commodities and technology; and storage business.
SC is
mainly engaged in international trade.
SC’s
products mainly include: Rubber, EVA & SB.
SC sources its products 100% from domestic
market. SC sells 60% of its products in domestic market, and 40% to overseas
market.
The
buying terms of SC include Check, T/T and Credit of 30-60 days. The payment
terms of SC include Check, T/T, L/C and Credit of 30-60 days.
Staff & Office:
--------------------------
SC is
known to have approx. 30 staff
at present.
SC rents an area
as its operating office, but the detailed information is unknown.
RELATED COMPANY
Sanfu
Textile Industry Co., Ltd. Jinjiang
Registration
No.: 350500400005988
Date
of Registration: April 8, 1996
Legal
Form: Wholly foreign-owned enterprise
Registered
Capital: HKD 605,000,000
Legal
Representative: Wu Yiming
Jinjiang
Jiafu Chemical Fiber Industry Co., Ltd.
Registration
No.: 350500400004844
Date
of Registration: January 22, 2003
Legal
Form: Wholly foreign-owned enterprise
Registered
Capital: HKD 133,000,000
Legal
Representative: Liu Qingyu
Jiafu
(Fujian) Dyeing & Finishing Co., Ltd.
Registration
No.: 350500400058137
Date
of Registration: February 16, 2012
Legal
Form: Wholly foreign-owned enterprise
Registered
Capital: USD 32,000,000
Legal
Representative: Ke Honghua
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:
China
Construction Bank Shishi Sub-branch
AC#:
35001658107052511500
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
|
437,230 |
|
|
Notes receivable |
0 |
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Accounts
receivable |
116,550 |
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Advances to
suppliers |
0 |
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Other receivable |
122,060 |
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Inventory |
139,450 |
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Non-current
assets within one year |
0 |
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Other current
assets |
50,370 |
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|
------------------ |
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Current assets |
865,660 |
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Fixed assets |
1,050 |
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Construction in
progress |
0 |
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Intangible
assets |
0 |
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Long-term
investment |
0 |
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Deferred income
tax assets |
0 |
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Other
non-current assets |
0 |
|
|
------------------ |
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Total assets |
866,710 |
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|
============= |
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Short-term loans |
385,410 |
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Notes payable |
0 |
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Accounts payable |
55,930 |
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Welfares payable |
0 |
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Taxes payable |
0 |
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Advances from
clients |
0 |
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Other payable |
320,040 |
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Other current
liabilities |
2,510 |
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|
------------------ |
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Current
liabilities |
763,890 |
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Non-current
liabilities |
77,680 |
|
|
------------------ |
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Total
liabilities |
841,570 |
|
Equities |
25,140 |
|
|
------------------ |
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Total
liabilities & equities |
866,710 |
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|
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
|
Revenue |
603,510 |
|
Cost of sales |
603,750 |
|
Sales expense |
210 |
|
Management expense |
3,770 |
|
Finance expense |
14,450 |
|
Profit before
tax |
-17,330 |
|
Less: profit tax |
0 |
|
-17,330 |
Important Ratios
=============
|
|
As of Dec. 31, 2012 |
|
*Current ratio |
1.13 |
|
*Quick ratio |
0.95 |
|
*Liabilities
to assets |
0.97 |
|
*Net profit
margin (%) |
-2.87 |
|
*Return on
total assets (%) |
-2.00 |
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*Inventory /
Revenue ×365 |
85 days |
|
*Accounts
receivable / Revenue ×365 |
71 days |
|
*Revenue /
Total assets |
0.70 |
|
*Cost of sales
/ Revenue |
1.00 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
l
The revenue of SC appears
fairly good in its line.
l
SC’s net profit margin is fair.
l
SC’s return on total assets is fair.
l
SC’s cost of sales is 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 appears average.
l
The accounts receivable of SC appears average.
l
The short-term loans of SC appear large.
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 high.
l
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. The large amount of short-term loans may be a threat to
SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.48 |
|
UK Pound |
1 |
Rs.102.95 |
|
Euro |
1 |
Rs.84.60 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
|
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 |
|
<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.