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Report Date : |
24.02.2014 |
IDENTIFICATION DETAILS
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Name : |
SHANDONG JINHAO
INTERNATIONAL TRADE CO., LTD. |
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Registered Office : |
10/F, Bank of |
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Country : |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
04.03.2011 |
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Com. Reg. No.: |
370523200008475 |
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Legal Form : |
Limited Liabilities Co |
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Line of Business : |
Engaged in selling chemical products. |
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No of Employees : |
5 |
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 |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
|
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 |
SHANDONG JINHAO INTERNATIONAL TRADE CO., LTD.
10/F, BANK OF CHINA TOWER, NO. 270, NANYI ROAD,
DONGYING, SHANDONG PROVINCE 257091 PR CHINA
TEL: 86 (0) 546-7769188/6877277 FAX: 86 (0) 546-6877877
INCORPORATION DATE : MAR. 4, 2011
REGISTRATION NO. : 370523200008475
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
STAFF STRENGTH :
5
REGISTERED CAPITAL : CNY 3,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 14,560,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 800,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
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 correct name shall be the heading one instead of
the given one (Dongying Jinhao International Trade Co. Ltd)
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 Mar. 4, 2011.
|
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 import and export business (with permit if
needed).
SC is mainly
engaged in selling chemical products.
Mr. Diao Zaisong is
legal representative, chairman and general manager of SC at present.
SC is known to
have approx. 5 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the commercial zone of Dongying. Our checks
reveal that SC rents the total premise about 80 square meters.
www.cnjinhao.com The web belongs
to Shandong Jinhao Chemical Co., Ltd., and it includes the information on SC.
The design is professional and the content is well organized. At present the
web site is in Chinese and English versions.
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the
change |
After the change |
|
2013-12 |
Company’s name |
Dongying Jinhao International Trade Co.,
Ltd. |
Present one |
|
Unknown |
Registered
capital |
CNY 1,000,000 |
Present Amount |
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Diao Zaisong 80
Diao Zailiang 20
l
Legal representative, Chairman and General manager:
Mr. Diao Zaisong is currently responsible for the overall management of
SC.
Working Experience(s):
At present Working
in SC as legal representative, chairman and general manager.
l
Supervisor:
-----------------------
Diao Zailiang
SC is mainly
engaged in selling chemical products.
SC’s products mainly include chemical dichlorome, chemical methylene,
pharmaceutical intermediates phenylamine, etc.
SC sources its
materials 100% from domestic market. SC sells 100% of its products 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.
Note:
SC declined to release its major suppliers and clients.
Shandong
Jinhao Chemical Co., Ltd.
============================
Reg.
No.: 370523228012870
Legal
representative: Guo Xiuling
Incorporation
date: July 6, 2006
Web:
www.cnjinhao.com
Add.:
Dawang Economic Development Zone, Dongying City, Shandong
Tel.:
0546-6877677
Fax:
0546-6877877
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.
Bank of China
Dongying Branch
Add.: No. 270,
Nanyi Road, Dongying, Shandong, China
Account #: N/A
Industrial and
Commercial Bank of China Guangrao Branch
Account #: N/A
Relationship:
Normal
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
Cash & bank |
40 |
2,700 |
|
Inventory |
0 |
0 |
|
Accounts
receivable |
1,120 |
4,000 |
|
Advances to
suppliers |
0 |
0 |
|
Other receivables |
50 |
40 |
|
Prepaid expenses |
0 |
30 |
|
|
------------------ |
------------------ |
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Current assets |
1,210 |
6,770 |
|
Fixed assets net
value |
10 |
10 |
|
Projects under
construction |
0 |
0 |
|
Intangible and
other assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
1,220 |
6,780 |
|
|
=========== |
=========== |
|
Short loan |
0 |
0 |
|
Accounts payable |
410 |
5,730 |
|
Advances from
clients |
0 |
0 |
|
Accrued payroll |
0 |
40 |
|
Taxes payable |
-160 |
-150 |
|
Other Accounts
payable |
60 |
360 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
310 |
5,980 |
|
Long term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
310 |
5,980 |
|
Equities |
910 |
800 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
1,220 |
6,780 |
|
|
=========== |
=========== |
Income Statement
Unit: CNY’000
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
Turnover |
2,120 |
14,560 |
|
Cost of goods sold |
1,940 |
13,300 |
|
Sales expense |
260 |
1,030 |
|
Management expense |
10 |
10 |
|
Finance expense |
0 |
30 |
|
Profit before tax |
-90 |
28,930 |
|
Less: profit tax |
0 |
60 |
|
Profits |
-90 |
130 |
Important
Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
3.90 |
1.13 |
|
*Quick ratio |
3.90 |
1.13 |
|
*Liabilities
to assets |
0.25 |
0.88 |
|
*Net profit
margin (%) |
-4.25 |
0.89 |
|
*Return on
total assets (%) |
-7.38 |
1.92 |
|
*Inventory
/Turnover ×365 |
/ |
/ |
|
*Accounts
receivable/Turnover ×365 |
193 days |
100 days |
|
*Turnover/Total
assets |
1.74 |
2.15 |
|
* Cost of
goods sold/Turnover |
0.92 |
0.91 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in both years
and it increased in 2012.
l
SC’s net profit margin is fair in 2011 and average
in 2012.
l
SC’s return on total assets is fair in 2011 and
average in 2012.
l
SC’s cost of goods sold is fairly high, comparing
with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a fairly good
level in 2011 and normal in 2012.
l
SC’s quick ratio is maintained in a fairly good
level in 2011 and normal in 2012.
l
SC has no inventory in both years.
l
The accounts receivable of SC appears large in both
years.
l
SC has no short-term loan in both years.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high in 2012.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered small-sized in its line with fairly stable financial
conditions. The large amount of accounts receivable could be a threat to SC’s
financial condition. Taking into consideration of SC’s development history and
operation size
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.16 |
|
|
1 |
Rs.103.44 |
|
Euro |
1 |
Rs.85.27 |
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 |
|
-- |
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.