MIRA
INFORM REPORT
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Report Date : |
12.02.2014 |
IDENTIFICATION DETAILS
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Name : |
JIAOZUO WANYING TRADE CO., LTD. |
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Registered Office : |
East Section, |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
24.01.2005 |
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Com. Reg. No.: |
410802100001555 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in selling chemical products and raw materials.
Products mainly include: antibiotic, vitamin, antiphlogistic, cryolite,
aluminium fluoride and potassium fluoride. |
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No. of Employees : |
10 |
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 |
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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 – September 30, 2013
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Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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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.
|
Source
: CIA |
Company name & address
JIAOZUO WANYING TRADE CO., LTD.
EAST SECTION, RENMIN ROAD, JIAOZUO, HENAN PROVINCE, 454000 PR CHINA
TEL: 86 (0) 391-2620868/2622106
FAX: 86 (0) 391-2622851
EXECUTIVE SUMMARY
INCORPORATION DATE :
JAN. 24, 2005
REGISTRATION NO. :
410802100001555
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MS. MA JIE (CHAIRMAN)
STAFF STRENGTH :
10
REGISTERED CAPITAL : CNY 660,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 5,200,000 (UNaudited, AS OF DEC. 31, 2013)
EQUITIES :
CNY 260,000 (UNaudited, AS OF
DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIR
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.06 = 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
Note: SC’s current address is the heading one, while the (4/F Off Bldg.
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 Jan. 24, 2005.
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 selling chemical products and raw
materials (excluding dangerous chemicals), nonferrous metal, mineral, plastic
products, electric products, building materials, importing and
exporting commodities and technology (excluding
commodities limited or prohibited by the state) (able to engage
in items that need permit according to the regulation of the State Council,
after obtaining the permit from relative authorities and the registration in
the AIC
SC is mainly engaged in selling chemical products and raw materials.
Ms. Ma Jie（马杰） has been legal
representative and chairman of SC since 2005.
SC is known to have approx. 10 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the commercial zone of Jiaozuo. SC’s management
declined to release detailed information of the premise.
SC is not known to host website of its own at present.
Changes
of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Registration No. |
4108022000954 |
Present one |
Subject passed the annual inspection of 2012 with Administration for
Industry & Commerce.
Organization Code: 770885175
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Ma Jie 33.34
He Yu 33.33
Ma Zengxiang 33.33
Legal representative and chairman:
Ms. Ma Jie, about 33 years old with university education. She is
currently responsible for the overall management of SC.
Working
Experience(s):
From 2005 to present Working
in SC as chairman and legal representative.
SC is mainly engaged in selling chemical products and raw materials.
SC’s products mainly include: antibiotic, vitamin, antiphlogistic,
cryolite, aluminium fluoride and potassium fluoride.
SC sources its materials 80% from domestic market, and 20% from overseas
market. SC sells 70% of its products in domestic market, and 30% to overseas
market.
The buying terms of SC include Check, L/C, 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.
Note: SC’s management declined to release its customer and supplier
details.
SC is jointly occupying the heading premise with the following company
Jiaozuo Yuntai Mountain Pharmaceutical Co., Ltd. (Literal Translation)
---------------------------------------------------------------------------------------
Registered no.: 410821100000172
Legal representative: Yang Wencheng
Date of incorporation:
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.
China Construction Bank Jiaozuo Sub-branch
AC#：41001510516050203062
Relationship: Normal.
Balance
Sheet
Unit: CNY’000
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as
of Dec. 31, 2013 |
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Cash & bank |
330 |
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Accounts receivable |
280 |
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Other receivables |
0 |
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Advances to suppliers |
740 |
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Inventory |
2,840 |
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Other current assets |
220 |
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Current assets |
4,410 |
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Fixed assets net value |
200 |
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Projects under construction |
0 |
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Long term investment |
0 |
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Other assets |
0 |
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Total assets |
4,610 |
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============= |
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Short loans |
0 |
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Accounts payable |
1,950 |
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Tax payable |
-30 |
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Other payable |
2,430 |
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Other current liabilities |
0 |
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Current liabilities |
4,350 |
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Long term liabilities |
0 |
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Total liabilities |
4,350 |
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Equities |
260 |
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Total liabilities & equities |
4,610 |
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Income
Statement
Unit: CNY’000
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as
of Dec. 31, 2013 |
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Turnover |
5,200 |
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Cost of goods sold |
4,840 |
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Sales expense |
40 |
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Management expense |
420 |
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Finance expense |
0 |
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Profit before tax |
-110 |
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Less: profit tax |
20 |
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Profits |
-130 |
Note: The above
financial have not been audited.
Important
Ratios
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as
of Dec. 31, 2013 |
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*Current ratio |
1.01 |
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*Quick ratio |
0.36 |
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*Liabilities to assets |
0.94 |
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*Net profit margin (%) |
-2.5 |
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*Return on total assets (%) |
-2.82 |
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*Inventory /Turnover ×365 |
200 days |
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*Accounts receivable/Turnover ×365 |
20 days |
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*Turnover/Total assets |
1.13 |
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* Cost of goods sold/Turnover |
0.93 |
PROFITABILITY:
FAIR
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The turnover of SC appears average 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 fairly high, comparing
with its turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in a normal
level.
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SC’s quick ratio is maintained in a poor level.
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The inventory of SC appears too large in 2013.
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The accounts receivable of SC is maintained in an
average level.
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SC has no short-term loan in 2013.
·
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIR
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The debt ratio of SC is high.
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The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fair.
SC is considered small-sized in its line with fair financial conditions.
The large amount of inventory could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.62.44 |
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|
1 |
Rs.102.48 |
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Euro |
1 |
Rs.85.28 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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.