MIRA
INFORM REPORT
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Report Date : |
15.07.2014 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
8/F No. 910,
Jinsong 9th Section, Chaoyang District, |
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Country : |
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Financials (as on) : |
30.06.2013 |
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Date of Incorporation : |
24.12.1987 |
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Com. Reg. No.: |
110000005008096 |
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Legal Form : |
State-Owned Enterprise |
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Line of Business : |
Subject is engaged in the wholesaling (non-kind) the pre-packaged
foods, dairy products (including infant formula milk powder); importing and
exporting general merchandise and other commodities |
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No. of Employees : |
55 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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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 – March 31, 2014
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Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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, growth of the private sector, development of stock markets and a modern banking system, 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 considered important to "economic security," explicitly looking to foster globally competitive industries. After keeping its currency tightly linked to the US dollar for years, in July 2005 China 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 and expanded the daily trading band within which the RMB is permitted to fluctuate. 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 2013 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 consumption; (b) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and increasing numbers of college graduates; (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. Several factors are converging to slow China's growth, including debt overhang from its credit-fueled stimulus program, industrial overcapacity, inefficient allocation of capital by state-owned banks, and the slow recovery of China's trading partners. The government's 12th Five-Year Plan, adopted in March 2011 and reiterated at the Communist Party's "Third Plenum" meeting in November 2013, emphasizes continued economic reforms and the need to increase domestic consumption in order to make the economy less dependent in the future on fixed investments, exports, and heavy industry. However, China has made only marginal progress toward these rebalancing goals. The new government of President XI Jinping has signaled a greater willingness to undertake reforms that focus on China's long-term economic health, including giving the market a more decisive role in allocating resources.
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Source
: CIA |
Company name and address
CHINA LIGHT GENERAL MERCHANDISE IMP. &
EXP. CORP.
8/F NO. 910,
JINSONG 9TH SECTION, CHAOYANG DISTRICT
BEIJING 100021
PR CHINA
TEL: 86 (0)
10-87763920/87763957/87763909
FAX: 86 (0)
10-67747284
EXECUTIVE SUMMARY
Date of Registration : DECember 24, 1987
REGISTRATION NO. : 110000005008096
LEGAL FORM : State-owned enterprise
CHIEF EXECUTIVE :
QIU FENG (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 7,440,000
staff :
55
BUSINESS CATEGORY : TRADING
REVENUE :
CNY 754,680,000 (FROM JAN. 1, 2013 TO JUN. 30, 2013)
EQUITIES :
CNY 84,980,000 (AS OF JUN. 30, 2013)
WEBSITE : www.chinalight.com.cn
E-MAIL :
info@chinalight.com.cn
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.20 = 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 with State
Administration of Industry & Commerce (SAIC) under registration No.: 110000005008096 on December 24, 1987.
SC’s Organization Code Certificate No.:
10113202-9
SC’s Tax No.: 110101101132029
SC’s registered capital: CNY 7,440,000
SC’s paid-in capital: CNY 7,440,000
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:-
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Name of Shareholder (s) |
% of Shareholding |
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China National Light Industrial Products Import and Export Corporation |
100 |
SC’s Chief Executives:-
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Position |
Name |
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Legal Representative, Chairman, and General Manager |
Qiu Feng |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
China National Light Industrial Products Import and Export Corporation 100
-----------------------------------
China National Light Industrial Products Import and Export Corporation (Chinalight
for short) is a state foreign trade entity with abundant financial resources,
good business reputation and bright prospects. Chinalight is involved in four
major business areas in relation to pulp and paper, natural resources,
international trade (such as import & export), and financial services (such
as investment, financing and capital operation). In 2008, Chinalight was
incorporated into China General Technology (Group) Holding Limited with a view
to reinforcing mutual strengths, rationalizing & optimizing allocation of
resources, constantly opening up new fields and stepping up operational
efficiency.
Date of Registration: June 9, 1983
Registration No.: 100000000001148
Legal Representative: Pan Wang
Registered Capital: CNY 553,330,000
Address: No. 910, Jinsong 9th Section, Chaoyang District,
Tel: 86 (0) 10-87763388
Email: info@chinalight.com.cn
MANAGEMENT
Qiu Feng, Legal Representative, Chairman and General
Manager
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Gender: M
Age: 58
ID# 110101195606134098
Qualification: University
Working experience
(s):
At present, working in SC as legal representative, chairman and general
manager
Also working in Beijing Dalike Garment Co., Ltd. as legal representative
BUSINESS
OPERATION
SC’s registered business scope includes wholesaling (non-kind) the pre-packaged
foods, dairy products (including infant formula milk powder); importing and
exporting general merchandise and other commodities approved by Ministry of
Economy and Commerce; agent for import and export business; undertaking Chinese foreign equity joint venture
enterprise and Chinese foreign contractual joint venture enterprise; compensation trade
in agreement; counter trade & transit
trade; selling textiles, daily necessaries, hardware, chemical, furniture,
gear, labour protection articles, machinery equipment, wood materials, plastic
products, building materials and communication equipment; technical
development, labour service, information advisory, labour dispatching.
SC is mainly engaged in international trade.
SC’s products mainly include: mineral products, dairy products, food
additives, textile, chemicals, stationery, electrical and mechanical products,
etc.
SC sources its merchandise 80% from domestic market and 20% from overseas market. SC sells 30% of its products in domestic market and 70% to overseas market.
The buying terms of SC include Check, T/T, L/C 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:
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SC is known to have approx. 55
staff at present.
SC owns an area as its operating office, but the detailed information is
unknown.
RELATED
COMPANY
Chinalight Footwear & Headgear I/E Corp.
China Household Electrical Appliances Import and Export Corp.
Chinalight Shenzhen Import & Export Co., Ltd.
Chinalight Ningbo Import & Export Co., Ltd.
Kunlun International Trading Co., Ltd.
China Light Resources Imp. & Exp. Corp.
SC is known to
have a subsidiary at present,
Beijing Dalike Garment Co., Ltd.
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Date of Registration: December 18, 1996
Registration No.: 110112006673489
Legal Form: Limited Liabilities
Company
Chief Executive: Qiu Feng
Registered Capital: CNY 7,264,900
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 Beijing Guangming
Sub-branch
AC#: 11001071200056000523
FINANCIALS
Financial Summary
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Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
As of Jun. 30,
2013 |
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Total assets |
251,330 |
361,300 |
347,649 |
358,120 |
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Total liabilities |
184,290 |
285,790 |
267,523 |
273,140 |
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Equities |
67,040 |
75,510 |
80,126 |
84,980 |
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As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
From Jan. 1,
2013 to Jun. 30, 2013 |
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Revenue |
1,157,280 |
1,523,520 |
1,652,004 |
754,680 |
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Profit before tax |
31,770 |
16,320 |
13,601 |
5,140 |
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Less: profit tax |
7,380 |
1,490 |
4,544 |
1,280 |
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Profits |
24,390 |
14,830 |
9,057 |
3,860 |
Important Ratios
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As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
As of Jun. 30,
2013 |
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*Liabilities to assets |
0.73 |
0.79 |
0.77 |
0.76 |
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*Net profit margin (%) |
2.11 |
0.97 |
0.55 |
0.51 |
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*Return on total assets (%) |
9.70 |
4.10 |
2.61 |
1.08 |
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*Revenue / Total assets |
4.60 |
4.22 |
4.75 |
2.11 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIRLY GOOD
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The revenue of SC appears fairly good in its line.
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SC’s net profit margin is average.
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SC’s return on total assets is average.
LIQUIDITY: AVERAGE
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SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: FAIRLY
GOOD
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The debt ratio of SC is average.
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The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered medium-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.60.01 |
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1 |
Rs.102.72 |
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Euro |
1 |
Rs.81.60 |
INFORMATION DETAILS
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Analysis Done by
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KAR |
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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 |
-- |
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.