MIRA INFORM REPORT
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Report Date : |
06.03.2014 |
IDENTIFICATION DETAILS
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Name : |
CHINA ARTEX CORP. FUJIAN COMPANY |
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Registered Office : |
Unit 304, 3/F, No. 166, Tapu East Road, Siming District, Xiamen, Fujian Province, 361008 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
1981 |
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Com. Reg. No.: |
350000100028644 |
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Legal Form : |
State-Owned Enterprise |
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Line of Business : |
Subject is engaged in trading different kinds of products. products
mainly include gold products, coal, shoes and luggage |
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No. of Employees : |
40 |
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 – September 30, 2013
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Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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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 |
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 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. Debt overhang from
its credit-fueled stimulus program in 2008-10, particularly among local
governments, and soaring property prices challenge policy makers currently.
Their efforts to cool a red-hot property market in 2011 appear to have curbed
inflation, but contributed to slower GDP growth in 2012 and 2013. Slow recovery
in Europe and other key export markets have also retarded growth. 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 fixed investments and exports in the future.
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.
|
Source
: CIA |
Company
name and address
CHINA ARTEX CORP. FUJIAN COMPANY
UNIT 304, 3/F, NO. 166, TAPU EAST ROAD, SIMING
DISTRICT,
XIAMEN, FUJIAN PROVINCE, 361008 PR CHINA
TEL: 86 (0) 592-2350260
FAX: 86 (0) 592-2350258
EXECUTIVE
SUMMARY
INCORPORATION DATE : 1981
REGISTRATION NO. : 350000100028644
REGISTERED LEGAL FORM : STATE-OWNED ENTERPRISE
CHIEF EXECUTIVE :
MR. chi chen (GENERAL MANAGER)
STAFF STRENGTH :
40
REGISTERED CAPITAL : CNY 50,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 1,672,650,000 (UNAUDITED, AS
OF DEC. 31, 2013)
EQUITIES :
CNY 63,910,000 (UNAUDITED, AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : well-known
EXCHANGE RATE :
CNY
6.1433 = 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: the “9/F Fortune Building no. 168, Hudong Road, Fuzhou Fujian
Province 350003 PR China” was SC’s former address, while SC has moved to the
heading one.
The given tel. no. “86 0 591
SC was registered as a State-owned enterprise at local Administration
for industry & commerce (AIC - the official body of issuing and renewing
business license) on 1981.
Company Status: State-owned enterprise This form of business in PR China is defined as a commodity
production or operational units of a socialist character which in
accordance with the law, have autonomy in management, take full
responsibility for its profits and losses and practices independent
business accounting. It is a legal person established directly by central /
local government or enterprise owned by central or local government. In
theory, the liabilities of this form of enterprise are ultimately borne by
the government, since the adoption of company law in mid-1994, the Chinese
government has planned to separate the ownership from management and
liabilities bearing.
SC’s registered business scope includes 1. importing and exporting
various goods and technology (do not attach import and export catalog),
excluding the items limited or prohibited by the state; 2. manufacturing,
processing and selling gold and silver jewelry products, gold products, jewelry
products (manufacturing and processing limited to branches); wholesaling coal
and coal products. SC is mainly engaged in trading different kinds of products
Mr. Chi Chen is legal representative and general manager of SC at
present.
SC is known to have approx. 40 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the commercial zone of Xiamen. Our checks reveal
that SC rents the total premise about 500 square meters.
http://www.cnacgc.com
The website belongs to SC’s parent company, and it includes the information on
SC and its related companies. The design is professional and the content is
well organized. At present it is in Chinese and English versions.
Changes of SC’s
registered information are as follows:
|
Date |
Item |
Before changed |
After changed |
|
Unknown |
Registered capital |
CNY 10,890,000 |
CNY 26,443,080 |
|
CNY 26,443,080 |
Present amount |
Subject passed the annual inspection of 2012 with Administration for
Industry & Commerce.
Organization Code: 158147918
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
China National Arts & Crafts (Group) Corp. 100
Under the background of Chinese central government to strongly
facilitate the structural adjustment of central government-owned companies,
China National Arts & Crafts (Group) Corporation is incorporated by two
former central government-owned companies as China National Arts & Crafts
Imp. & Exp. Corp. and China National Arts & Crafts (Group) Corporation.
This is a significant historical event in the development of merger in China’s
art and craft industry.
The main businesses of China National Arts & Crafts (Group)
Corporation include R&D and design of art and craft products, raw materials
purchase, production, and sales of raw materials (domestic trade and international
trade), storage and transportation, exhibition, and cultural businesses.
Registration no.: 100000000040856
Registered capital: CNY 537,014,000
Legal rep.: Zhou Zhengsheng
Legal form: State-owned enterprise
Website: http://www.cnacgc.com
E-mail: info@cnacgc.com
Address: China National Arts & Crafts Building, No. 103, Jixiangli,
Chaoyangmenwai, Beijing
Tel: 010-85698808
Fax: 010-85698866
Legal Representative
& General Manager:
Mr. Chi Chen, with university education. He is currently responsible for
the overall management of SC.
Working
Experience(s):
At present Working
in SC as legal representative and general manager.
SC is mainly engaged in trading different kinds of products.
SC’s products mainly include gold products, coal, shoes and luggage
SC sources its materials 40% from domestic market, and 60% from overseas
market. SC sells 90% of its products in domestic market, and 10% 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.
Note: SC’s management declined to release its main clients and
suppliers.
SC is known to have the following subsidiaries:
China Artex Corp. Fujian Company Quanzhou Drawnwork Factory
================================================
Incorporation date:
Registration no.: 350500100034825
Registered capital: CNY 4,770,000
Legal rep.: Wu Huixuan
Legal form: State-owned enterprise
According to the website: http://www.cnacgc.com
China Artex Shanghai Ltd., Corp.
=======================
Incorporation date:
Registration no.: 310115000683541
Registered capital: CNY 63,000,000
Legal rep.: Yu Yong Legal form: One-person Limited Liability Company
Tel: 86-21-61258700
Fax: 86-21-61258729
Email: lzf@chinaartex-sh.com
China Artex Corporation Yantai Company
===============================
Incorporation date:
Registration no.: 370600018002014
Registered capital: CNY 62,420,000
Legal rep.:
Legal form: State-owned enterprise
Web: http://www.yantaiartex.com.cn
E-mail: luyq@yantaiartex.com.cn
Tel: 86-535-6215101/6621894
Fax: 86-535-6216919/6209087
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.
Industrial Bank Co., Ltd.
AC#：N/A
Relationship: Normal
Note: the given bank “China Merchants Bank” was SC’s former bank account,
and SC has cancelled it.
Balance Sheet
Unit: CNY’000
|
|
as
of Dec. 31, 2013 |
|
Cash & bank |
167,040 |
|
Inventory |
125,540 |
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Accounts
receivable |
172,180 |
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Advances to
suppliers |
28,220 |
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Other
receivables |
8,470 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
501,450 |
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Fixed assets net
value |
4,330 |
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Projects under
construction |
0 |
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Long term
investment |
47,260 |
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Long term
deferred expenses |
90 |
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Deferred income
tax assets |
2,290 |
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Other assets |
0 |
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------------------ |
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Total assets |
555,420 |
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============= |
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Short loans |
220,520 |
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Accounts payable |
146,220 |
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Other payable |
4,210 |
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Taxes payable |
-38,920 |
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Advances from
clients |
159,480 |
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Other current
liabilities |
0 |
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------------------ |
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Current
liabilities |
491,510 |
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Long term
liabilities |
0 |
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------------------ |
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Total
liabilities |
491,510 |
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Equities |
63,910 |
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------------------ |
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Total
liabilities & equities |
555,420 |
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============= |
Income Statement
Unit: CNY’000
|
|
as
of Dec. 31, 2013 |
|
Turnover |
1,672,650 |
|
Cost of goods sold |
1,619,450 |
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Taxes and additional of main operation |
40 |
|
Sales expense |
23,390 |
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Management expense |
18,800 |
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Finance expense |
4,470 |
|
Investment income |
110 |
|
Non-operating income |
60 |
|
Non-operating expense |
0 |
|
Profit before tax |
6,670 |
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Less: profit tax |
2,450 |
|
Profits |
4,220 |
Note: The Financial Report for Year 2013 hasn’t been audited.
Important Ratios
|
|
as
of Dec. 31, 2013 |
|
*Current ratio |
1.02 |
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*Quick ratio |
0.76 |
|
*Liabilities to assets |
0.88 |
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*Net profit margin (%) |
0.25 |
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*Return on total assets (%) |
0.76 |
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*Inventory /Turnover ×365 |
28 days |
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*Accounts receivable/Turnover ×365 |
38 days |
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*Turnover/Total assets |
3.01 |
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* Cost of goods sold/Turnover |
0.97 |
PROFITABILITY:
AVERAGE
·
The turnover of SC appears good in its line.
·
SC’s net profit margin is average.
·
SC’s return on total assets is average.
·
SC’s cost of goods sold is high, comparing with its
turnover.
LIQUIDITY: FAIR
·
The current ratio of SC is maintained in a normal
level.
·
SC’s quick ratio is maintained in a fair level.
·
The inventory of SC appears average.
·
The accounts receivable of SC appears average.
·
The short-term loan appears large in 2013.
·
SC’s turnover is in a fairly good level, comparing
with the size of its total assets.
LEVERAGE: FAIR
·
The debt ratio of SC is high.
·
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered an old-established business with fairly stable
financial conditions. The large amount of short-term loan could be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.86 |
|
|
1 |
Rs.103.06 |
|
Euro |
1 |
Rs.84.92 |
INFORMATION DETAILS
|
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 |
|
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.