MIRA
INFORM REPORT
|
Report Date : |
13.02.2014 |
IDENTIFICATION DETAILS
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Name : |
TIANJIN YADONG LONGXIN INTERNATIONAL LIMITED |
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Registered Office : |
3/F, Block B,
Haojing International, No. 582, Hongqi South Road, Nankai District, Tianjin
300100 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
18.08.2010 |
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Com. Reg. No.: |
120116000001775 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Subject is engaged in international trade. Products mainly include:
Top Grade Direct Dyes, Reactive Dyeing For Wool, Neutral Dyes, Salt Free
Dyes, Cationic Liquid Dyes for Paper, Dyestuff Intermediate |
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No. of Employees : |
32 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
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
TIANJIN YADONG LONGXIN INTERNATIONAL LIMITED
3/F, BLOCK B,
HAOJING INTERNATIONAL, NO. 582, HONGQI SOUTH ROAD
NANKAI
DISTRICT, TIANJIN 300100 PR CHINA
TEL: 86 (0)
22-58283297/58283272
FAX: 86 (0)
22-58283299
EXECUTIVE SUMMARY
Date of Registration : AUGUST 18, 2010
REGISTRATION NO. : 120116000001775
LEGAL FORM : Limited Liability Company
CHIEF EXECUTIVE :
ZHAO BAOZHONG (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 5,000,000
staff :
32
BUSINESS CATEGORY : TRADING
Revenue :
CNY 505,160,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 6,190,000 (AS OF DEC. 31, 2012)
WEBSITE : www.yadongchem.com
E-MAIL :
yadongchem@tjyadong.cn
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : ordinary
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 limited liabilities company of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.:
120116000001775 on August 18, 2010.
SC’s Organization Code Certificate No.:
55947571-X
SC’s Tax No.: 12010955947571X
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 |
|
2011 |
Registered Capital |
CNY 2,000,000 |
CNY 5,000,000 |
|
Shareholder (s) (% of Shareholding) |
Inner Mongolia Xinya Chemical Industry Ltd. 2.5% Tianjin Yadong Investment Co., Ltd. 97.5% |
Inner Mongolia Xinya Chemical Industry Ltd. 1% Tianjin Yadong Investment Co., Ltd. 99% |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Tianjin Yadong Investment Co., Ltd. |
99 |
|
Inner Mongolia Xinya Chemical Industry Ltd. |
1 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Zhao Baozhong |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Tianjin Yadong Investment Co., Ltd. 99
Inner Mongolia Xinya Chemical Industry Ltd. 1
Tianjin Yadong Investment Co., Ltd.
-------------------------------------------------
Date of Registration: November 25, 2009
Registration No.: 120109000036629
Legal Form: One-person Limited
Liability Company
Legal Representative: Zhao Baozhong
Registered Capital: CNY
19,000,000
Inner Mongolia Xinya Chemical Industry Ltd.
-------------------------------------------------------------
Date of Registration: July 29, 2008
Registration No.: 152921000002457
Legal Form: Limited Liability
Company
Legal Representative: Zhao Xianqi
Registered Capital: CNY 26,000,000
MANAGEMENT
Zhao Baozhong, Legal Representative, Chairman and General
Manager
---------------------------------------------------------------------------------------------------------
Gender: M
Age:
Qualification: University
Working experience
(s):
From 2010 to present, working in SC as chairman, legal representative
and general manager
Also working in Tianjin Yadong Investment Co., Ltd. as legal
representative
BUSINESS
OPERATION
SC’s registered business scope includes international trade; importing
and exporting various goods and technology (excluding the items limited by
national laws and regulations); wholesaling and retailing lubricating oil,
pitch, paper products, hardware, building materials, dyeing: direct fast black
G, direct scarlet 4BS, direct fast blue B2RL, direct yellow R, direct blue FBL,
liquid yellow R, liquid red 4B, liquid brown NM, acidic golden G, acid orange
II, dye intermediate (naphthol, J acid, Tobias acid, sulfonated tobias acid,
γ acid, p-amino acetanilide, ethylene glycol). (country has special
provisions franchise regulations)
SC is mainly engaged in international trade.
SC’s products mainly include:
Top Grade Direct Dyes
Reactive Dyeing For Wool
Neutral Dyes
Salt Free Dyes
Cationic Liquid Dyes for Paper
Dyestuff Intermediate
SC sources its materials 100% from domestic market, mainly Tianjin. SC sells 20% of its products in domestic market, and 80% to overseas market, mainly U.S.A., etc.
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.
*Major Customers:
==============
Nebula Corporation
Greenville Colorants, LLC
Staff &
Office:
--------------------------
SC is known to have approx. 32
staff at present.
SC rents an area as its operating office of approx. 200 sq. meters at
the heading address.
RELATED
COMPANY
Tianjin Yadong Chemical Co., Ltd.
---------------------------------
Date of Registration: October 24, 1988
Registration No.: 120109000041634
Legal Form: Limited Liability
Company
Chief Executive: Zhang Baowen
Registered Capital: CNY 15,079,800
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:
Ping’an Bank Tianjin Dagang Sub-branch
AC#: 11011342982101
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
2,620 |
1,170 |
|
|
Notes receivable |
2,370 |
2,570 |
|
Accounts receivable |
48,510 |
82,710 |
|
Advances to suppliers |
0 |
0 |
|
Other receivable |
2,390 |
2,520 |
|
Inventory |
26,900 |
44,460 |
|
Non-current assets within one year |
0 |
0 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
82,790 |
133,430 |
|
Fixed assets |
590 |
470 |
|
Long-term prepaid expenses |
0 |
0 |
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Deferred income tax assets |
0 |
0 |
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Other non-current assets |
10 |
0 |
|
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------------------ |
------------------ |
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Total assets |
83,390 |
133,900 |
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|
============= |
============= |
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Short-term loans |
0 |
2,000 |
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Accounts payable |
80,360 |
125,260 |
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Taxes payable |
320 |
360 |
|
Advances from clients |
0 |
0 |
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Other payable |
130 |
90 |
|
Other current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current liabilities |
80,810 |
127,710 |
|
Non-current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total liabilities |
80,810 |
127,710 |
|
Equities |
2,580 |
6,190 |
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|
------------------ |
------------------ |
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Total liabilities & equities |
83,390 |
133,900 |
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|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
Revenue |
361,000 |
505,160 |
|
Cost of sales |
352,870 |
487,460 |
|
Sales expense |
3,520 |
6,520 |
|
Management expense |
5,990 |
5,860 |
|
Finance expense |
530 |
890 |
|
Profit before tax |
-2,030 |
4,140 |
|
Less: profit tax |
0 |
530 |
|
-2,030 |
3,610 |
Important Ratios
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
1.02 |
1.04 |
|
*Quick ratio |
0.69 |
0.70 |
|
*Liabilities to assets |
0.97 |
0.95 |
|
*Net profit margin (%) |
-0.56 |
0.71 |
|
*Return on total assets (%) |
-2.43 |
2.70 |
|
*Inventory / Revenue ×365 |
28 days |
33 days |
|
*Accounts receivable/ Revenue ×365 |
50 days |
60 days |
|
*Revenue/Total assets |
4.33 |
3.77 |
|
*Cost of sales / Revenue |
0.98 |
0.96 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
·
The revenue of SC appears fairly good in its line,
and it increased in 2012.
·
SC’s net profit margin is fair in 2011 and average
in 2012.
·
SC’s return on total assets is fair in 2011 and
average in 2012.
·
SC’s cost of sales is high, comparing with its
revenue.
LIQUIDITY: AVERAGE
·
The current ratio of SC is maintained in a normal
level in both years.
·
SC’s quick ratio is maintained in a fair level in
both years.
·
The inventory of SC is maintained in an average
level.
·
The accounts receivable of SC is maintained in an
average level.
·
SC’s short-term loans are in an average level.
·
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: FAIR
·
The debt ratio of SC is fairly high.
·
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.62.13 |
|
|
1 |
Rs.102.25 |
|
Euro |
1 |
Rs.84.72 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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 |
|
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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.