MIRA
INFORM REPORT
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Report Date : |
30.07.2014 |
IDENTIFICATION DETAILS
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Name : |
ZOUPING XINYU IND. INC. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
17.01.2006 |
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Com. Reg. No.: |
371626228013068 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Subject is engaged in selling color steel plate, galvanized sheet, aluminized zincograph, roll bending, steel structure and parts, belt steel, cold rolling, hot rolling, coil of strip, medium plate, composite board, clad plate, metal building materials, metal pipes, wire materials, steel bar, proximate matter, metal casting, metal grinding aid, aluminum zinc alloy, non ferrous metal, alloy and products, plastic products, injection machines, blow molding machines, plastic product machinery, alumina, ore, powdered ore, mineral machinery equipment & electronic products, copernik, non ferrous metal alloy and ferroalloy; importing and exporting goods with permit. (with permit if needed). |
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No of Employees : |
14 |
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 – June 01, 2014
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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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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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate 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 & ADDRESS
ZOUPING XINYU IND. INC.
QINGYANG INDUSTRIAL PARK, ZOUPING COUNTY,
SHANDONG PROVINCE, 256217 PR CHINA
TEL: 86
(0) 543-8190563 FAX: 86 (0)
543-8190573
EXECUTIVE SUMMARY
INCORPORATION DATE : JAN. 17, 2006
REGISTRATION NO. : 371626228013068
REGISTERED LEGAL FORM : One-person Limited
Liability Company
STAFF STRENGTH :
14
REGISTERED CAPITAL : CNY 20,000,000
BUSINESS LINE :
INTERNATIONAL TRADE
TURNOVER :
cny 45,620,000 (AS OF DEC. 31, 2013)
EQUITIES :
cny 12,370,000 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.1875= 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 Ren Min Bi
SC was registered as a limited liabilities company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Jan. 17, 2006, and later was changed into
current ownership.
Company Status: One-person Limited Liability Company Single person LLC refers to a
limited liability company set up by only one natural person or legal person
as the single shareholder of it. The minimum registered capital
of Single person LLC is CNY100,000. The shareholder’s capital contributes,
as set out by the articles of associations should be a lump-sum payment in
full. One natural person can only
invest in and set up one limited liability company, which is not permitted
to invest in and set up a new Single person LLC. As to any one-person limited
liability company, the sole-investor nature of the natural person or legal
person shall be indicated in the registration documents of the company and
shall be indicated in the business license thereof as well. The regulation of Single person
LLC should be set up by the shareholder The regulation of Single person
LLC has no shareholder meeting.
SC’s registered business scope includes selling color steel plate, galvanized
sheet, aluminized zincograph, roll bending, steel structure and parts, belt
steel, cold rolling, hot rolling, coil of strip, medium plate, composite board, clad plate,
metal building materials, metal pipes, wire materials, steel bar, proximate matter,
metal casting, metal grinding aid, aluminum zinc alloy, non ferrous metal,
alloy and products, plastic products, injection machines, blow molding
machines, plastic product machinery, alumina, ore, powdered ore, mineral
machinery equipment & electronic products, copernik, non ferrous metal
alloy and ferroalloy; importing and exporting goods with permit. (with permit
if needed).
SC is mainly
engaged in international trade.
Mr. Liu Gang is
legal representative, chairman and general manager of SC at present.
SC is known
to have approx. 14 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the industrial zone of Zouping. Our checks reveal that SC
rents the total premise about 200 square meters.
www.lushengmetal.com
The design is professional and the content is well organized. At present it is
in Chinese, Russian and English versions.
E-Mail: cnshengda@gmail.com, lushengmetal@126.com
Changes
of its registered information are as follows:
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Date of change |
Item |
Before the change |
After the change |
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Unknown |
Shareholders
& % of shareholding |
Liu Jin 60% Liu Gang 40% |
Present one |
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Legal form |
limited liabilities company |
Present one |
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Legal
representative |
Liu Jin |
Present one |
Note: SC’s former registered capital is CNY 5,000,000
Subject passed the annual inspection of 2012 with
Administration for Industry & Commerce.
Organization Code: 785004270
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name % of
Shareholding
Liu Gang 100
l
Legal representative, Chairman and General Manager:
Mr. Liu Gang, born in 1978, is currently responsible for the overall management
of SC.
Working Experience(s):
At present Working
in SC as legal representative, chairman and general manager.
SC is mainly
engaged in international trade.
SC’s products mainly
include: color steel plate, galvanized sheet, aluminized zincograph, roll
bending, borax, borocalcite, and chromium ore.
SC sources its
materials 100% from domestic market. SC sells 20% of its products in domestic
market, and 80% to the 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.
*Major Client:
==========
Shandong ShengDa Coating Material Co., Ltd.
*Major Supplier:
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Shandong ShengDa Coating Material Co., Ltd.
SC
is not known to have any subsidiary at present.
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’s suppliers
declined to make any comments.
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.
SC refused to
release any information about its bank.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2013 |
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Cash & bank |
57,230 |
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Inventory |
0 |
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Subsidies
receivable |
540 |
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Accounts
receivable |
0 |
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Advances to
suppliers |
100 |
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Other
receivables |
11,090 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
68,960 |
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Fixed assets net
value |
10 |
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Long term
investment |
0 |
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Long-term
deferred expenses |
0 |
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Intangible and
other assets |
0 |
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------------------ |
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Total assets |
68,970 |
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=========== |
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Short loan |
0 |
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Note payable |
25,000 |
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Accounts payable |
6,190 |
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Advances from
clients |
23,000 |
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Accrued payroll |
70 |
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Taxes payable |
-250 |
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Other Accounts
payable |
2,590 |
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Other current
liabilities |
0 |
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------------------ |
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Current
liabilities |
56,600 |
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Long term
liabilities |
0 |
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------------------ |
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Total
liabilities |
56,600 |
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Equities |
12,370 |
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------------------ |
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Total
liabilities & equities |
68,970 |
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Income Statement
Unit: CNY’000
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As
of Dec. 31, 2013 |
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Turnover |
45,620 |
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Cost of goods sold |
43,340 |
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Taxes
and additional of main operation |
10 |
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Sales expense |
940 |
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Management expense |
390 |
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Finance expense |
520 |
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Investment income |
-3,720 |
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Profit before tax |
-3,300 |
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Less: profit tax |
160 |
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Profits |
-3,460 |
Important
Ratios
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As of Dec. 31, 2013 |
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*Current ratio |
1.22 |
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*Quick ratio |
1.22 |
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*Liabilities
to assets |
0.82 |
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*Net profit
margin (%) |
-7.58 |
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*Return on
total assets (%) |
-5.02 |
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*Inventory
/Turnover ×365 |
/ |
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*Accounts
receivable/Turnover ×365 |
/ |
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*Turnover/Total
assets |
0.66 |
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* Cost of
goods sold/Turnover |
0.95 |
PROFITABILITY:
FAIR
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The turnover of SC appears average.
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SC’s net profit margin is fair.
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SC’s return on total assets is fair.
l
SC’s cost of goods sold is fairly high, comparing
with its turnover.
LIQUIDITY: AVERAGE
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The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
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SC has no inventory in 2013.
l
SC has no accounts receivable in 2013.
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SC has no short-term loan in 2013.
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SC’s turnover is in a fair level, comparing with
the size of its total assets.
LEVERAGE: FAIR
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The debt ratio of SC is fairly high.
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. Taking into consideration of SC’s general performance and
development history we would rate SC as an above average credit risk company.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs. 60.10 |
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1 |
Rs. 102.04 |
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Euro |
1 |
Rs. 80.73 |
INFORMATION DETAILS
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Analysis Done by
: |
RSM |
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Report Prepared
by : |
DPT |
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.