MIRA
INFORM REPORT
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Report Date : |
08.02.2014 |
IDENTIFICATION DETAILS
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Name : |
CHINA MEHECO
INTERNATIONAL TRADE DEVELOPMENT CORPORATION |
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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 : |
21.10.1993 |
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Com. Reg. No.: |
110000005020178 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Subject is includes business of
consulting services, exhibition business; selling animal products, food, edible
oil, textiles, hardware and electrical, chemical, mechanical and electrical
equipment, handicrafts, chemical light industry material, general
merchandise, fertilizer; importing and exporting goods and technology, import
and export agent. |
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No of Employees : |
35 |
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
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Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
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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, 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.
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Source
: CIA |
COMPANY NAME & ADDRESS
CHINA MEHECO
INTERNATIONAL TRADE DEVELOPMENT CORPORATION
NO. 18 GUANGMING
MIDDLE STREET, DONGCHENG DISTRICT
BEIJING 100061 PR
CHINA
TEL: 86 (0)
10-67107363/67107439
FAX: 86 (0)
10-67121746
EXECUTIVE SUMMARY
Date of Registration : october 21, 1993
REGISTRATION NO. : 110000005020178
LEGAL FORM : One-person Limited Liability Company
REGISTERED CAPITAL :
CNY 2,019,540.09
staff : 35
BUSINESS CATEGORY :
TRADING
Revenue :
CNY 737,750,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY 2,050,000 (AS OF DEC. 31, 2013)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.06 = 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 state-owned enterprise of
PRC on October 21, 1993. 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.: 110000005020178
in November 10, 2011.
SC’s Organization Code Certificate No.:
10117169-3
SC’s registered capital: CNY 2,019,540.09
SC’s paid-in capital: CNY 2,019,540.09
Registration Change Record:-
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Date |
Change of Contents |
Before the change |
After the change |
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2010-2-20 |
Legal Representative |
Liu Qiang |
Wang Hongxin |
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2011-11-10 |
Registered Capital |
CNY 2,000,000 |
CNY 2,019,540.09 |
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Legal Representative |
Wang Hongxin |
Zhang Tieping |
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Legal Form |
State-Owned Enterprise |
One-Person Limited Liabilities Company |
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Chinese Name |
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Current Co search indicates SC’s shareholders & chief
executives are as follows:-
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Name of Shareholder (s) |
% of Shareholding |
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China Meheco Corporation |
100 |
SC’s Chief Executives:-
|
Position |
Name |
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Legal Representative and
Chairman |
Zhang
Tieping |
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General Manager |
Zhou
Yinghui |
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Supervisor |
Chang
Furong |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name % of
Shareholding
China Meheco Corporation 100
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Date of Registration: July 18, 1983
Registration No.: 110000008319434
Legal Form: One-Person Limited Liability
Company
Chief Executive: Wang Hongxin
Registered Capital: CNY 300,000,000
MANAGEMENT
Zhang Tieping, Legal Representative and Chairman
------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 56
Ø
ID# 110108580729549
Ø
Qualification:
University
Ø
Working
experience (s):
From 2011 to present, working in SC as legal representative
and chairman
Also working in China Medical Equipment And Technical Service
Company as legal representative
Zhou
Yinghui, General
Manager
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Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as general manager
Chang Furong,
Supervisor
----------------------------------------------
Ø
Gender: F
BUSINESS OPERATION
SC’s registered business scope includes business of
consulting services, exhibition business; selling animal products, food, edible
oil, textiles, hardware and electrical, chemical, mechanical and electrical
equipment, handicrafts, chemical light industry material, general merchandise,
fertilizer; importing and exporting goods and technology, import and export
agent.
SC is
mainly engaged in international trade.
SC’s
products mainly include: pharmaceuticals, medical
equipment, clothing, etc.
SC sources its materials 100% from domestic market. 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.
Staff & Office:
--------------------------
SC is
known to have approx. 35 staff
at present.
SC rents an area
as its operating office of approx. 200 sq. meters at the heading address.
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
Financial Summary
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Unit: CNY’000 |
As
of Dec. 31, 2013 |
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Total assets |
168,480 |
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Total
liabilities |
166,430 |
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Equities |
2,050 |
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Revenue |
737,750 |
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Cost of sales |
728,760 |
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Profit before
tax |
14 |
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Less: profit tax |
4 |
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Profits |
10 |
Important Ratios
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As
of Dec. 31, 2013 |
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*Liabilities
to assets |
0.99 |
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*Net profit
margin (%) |
0.001 |
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*Return on
total assets (%) |
0.006 |
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*Revenue/Total
assets |
4.38 |
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*Cost of sales
/ Revenue |
0.99 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears fairly 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 sales is high, comparing with its
revenue.
LIQUIDITY: AVERAGE
l
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered small-sized in its line with fairly stable financial
conditions. Taking into consideration of SC’s good background.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
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US Dollar |
1 |
Rs. 62.31 |
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1 |
Rs. 101.77 |
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Euro |
1 |
Rs. 84.68 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPT |
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.