MIRA
INFORM REPORT
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Report Date : |
17.07.2014 |
IDENTIFICATION DETAILS
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Name : |
NINGBO ETDZ HUIXING TRADE CO., LTD. |
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Registered Office : |
10-11/F |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
14.12.1993 |
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Com. Reg. No.: |
330206000003930 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in the wholesaling prepackaged food and dangerous
chemicals; importing and exporting commodities and technology; wholesaling
and retailing fuel oil, nonferrous metal, chemical products, and mineral
products. |
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No. of Employees : |
108 |
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
|
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
NINGBO ETDZ HUIXING TRADE CO., LTD.
10-11/F
SHANSHAN PLAZA, NO. 777 RILI ROAD
NINGBO,
ZHEJIANG PROVINCE 315100 PR CHINA
TEL: 86 (0)
574-87161688/87161681/87026675
FAX: 86 (0)
574-87161698
EXECUTIVE SUMMARY
Date of Registration : december 14, 1993
REGISTRATION NO. : 330206000003930
LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE :
hu haiping (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : cny 10,000,000
staff :
108
BUSINESS CATEGORY : trading
Revenue :
CNY 1,388,520,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY 38,930,000 (AS OF DEC. 31, 2013)
WEBSITE : www.huixingtrade.com
E-MAIL :
admin@huixingtrade.com
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FIALRY STABLE
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 limited liabilities company of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.:
330206000003930 on December 14, 1993.
SC’s Organization Code Certificate No.:
72640770-7
SC’s Tax No.: 330206726407707
SC’s registered capital: cny 10,000,000
SC’s paid-in capital: cny 10,000,000
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:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Conference of Share Holding Employees of SC |
67 |
|
Shanshan Holding Co., Ltd. |
30 |
|
Shanshan Group Co., Ltd. |
3 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman and General Manager |
Hu Haiping |
|
Vice Chairman |
Xia Xiaofeng |
|
Lin Libing |
|
|
General Manager and Director |
Kuang Weidong |
|
Director |
Huang Lixing |
|
Yu Zhaoxin |
|
|
Yu Dalong |
|
|
Xia Weidong |
|
|
Supervisor |
Wang Wenzhen |
|
Qin Haiyun |
|
|
Wu Zhongxun |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Conference of Share Holding Employees of SC 67
Shanshan Holding Co., Ltd. 30
Shanshan Group Co., Ltd. 3
Shanshan Holding Co., Ltd
---------------------------------
Registration No.: 310115000853848
Legal Form: Limited Liabilities Company
Registered Capital: CNY 1,000,000,000
Legal Representative: Chen Guanghua
Shanshan Group Co., Ltd.
------------------------------
Registration No.: 330212000083050
Legal Form: Chinese-foreign equity joint venture enterprise
Registered Capital: CNY 216,000,000
Legal Representative: Zheng Xueming
MANAGEMENT
Hu Haiping, Legal Representative, Chairman and General
Manager
---------------------------------------------------------------------------------------------------
Gender: M
Working experience
(s):
At present, working in SC as legal representative, chairman and general
manager
Xia Xiaofeng, Vice Chairman
--------------------------------------------------
Gender: M
Working experience
(s):
At present, working in SC as vice chairman
Lin Libing, Vice Chairman
-----------------------------------------------
Gender: M
Working experience
(s):
At present, working in SC as vice chairman
Kuang
Weidong, General Manager and Director
---------------------------------------------------------------------------
Gender: M
Working experience
(s):
At present, working in SC as general manager and director
Director
-----------
Huang Lixing
Yu Zhaoxin
Yu Dalong
Xia Weidong
Supervisor
-------------
Wang Wenzhen
Qin Haiyun
Wu Zhongxun
BUSINESS
OPERATION
SC’s registered business scope includes wholesaling
prepackaged food and dangerous chemicals; importing and exporting commodities and
technology; wholesaling and retailing fuel oil, nonferrous metal, chemical
products, and mineral products.
SC is mainly engaged in international trade.
SC’s products mainly include:
Air Conditional Parts
Washing Machine Parts
Oven Parts
Water Heater Parts
Microwave Oven Parts
Water Dispenser Parts
Auto Parts
Other Parts
Electrical Machine
Medical Instrumentation
Laboratory Dish
Storage Rack
Household Items
Furniture
Kitchen Tackle
Bath-room
Outdoor
Clothing
Foodstuff
Solar products
SC sources its products 80% from domestic market, and 20% from overseas
market. SC sells 60% of its products in domestic market, and 40% to overseas
market, mainly U.S.A., Southeast Asia, 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 Client*
------------------
Dial Mfg. Inc.
Staff &
Office:
--------------------------
SC is known to have approx. 108
staff at present.
SC rents an area as its operating office, but the detailed information
is unknown.
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 local SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
|
130,780 |
|
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Notes receivable |
0 |
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Accounts receivable |
75,160 |
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Advances to suppliers |
0 |
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Other receivable |
21,900 |
|
Inventory |
64,690 |
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Non-current assets within one year |
0 |
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Other current assets |
81,110 |
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|
------------------ |
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Current assets |
373,640 |
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Fixed assets |
8,180 |
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Construction in progress |
0 |
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Intangible assets |
0 |
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Long-term investment |
0 |
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Deferred income tax assets |
0 |
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Other non-current assets |
37,730 |
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|
------------------ |
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Total assets |
419,550 |
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|
============= |
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Short-term loans |
54,800 |
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Notes payable |
0 |
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Accounts payable |
299,810 |
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Welfares payable |
0 |
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Taxes payable |
0 |
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Advances from clients |
0 |
|
Other payable |
11,760 |
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Other current liabilities |
14,250 |
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------------------ |
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Current liabilities |
380,620 |
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Non-current liabilities |
0 |
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------------------ |
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Total liabilities |
380,620 |
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Equities |
38,930 |
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------------------ |
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Total liabilities & equities |
419,550 |
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Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
|
Revenue |
1,388,520 |
|
Cost of sales |
1,335,140 |
|
Sales expense |
39,840 |
|
Management expense |
9,470 |
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Finance expense |
4,000 |
|
Profit before tax |
13,960 |
|
Less: profit tax |
300 |
|
13,660 |
Important Ratios
|
|
As of Dec. 31,
2013 |
|
*Current ratio |
0.98 |
|
*Quick ratio |
0.81 |
|
*Liabilities to assets |
0.91 |
|
*Net profit margin (%) |
0.98 |
|
*Return on total assets (%) |
3.26 |
|
*Inventory / Revenue ×365 |
18 days |
|
*Accounts receivable / Revenue ×365 |
20 days |
|
*Revenue / Total assets |
3.31 |
|
*Cost of sales / Revenue |
0.96 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIRLY GOOD
·
The revenue of SC appears fairly good in its line.
·
SC’s net profit margin is average.
·
SC’s return on total assets is average.
·
SC’s cost of sales is fairly high, comparing with
its revenue.
LIQUIDITY: AVERAGE
·
The current ratio of SC is maintained in a fair
level.
·
SC’s quick ratio is maintained in a normal level.
·
The inventory of SC appears average.
·
The accounts receivable of SC appears average.
·
The short-term loans of SC appear average.
·
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 average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.19 |
|
|
1 |
Rs.103.14 |
|
Euro |
1 |
Rs.81.66 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
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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 |
|
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.