MIRA INFORM REPORT
|
Report Date : |
03.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
XINJIANG ZHONGTAI RESOURCES CO., LTD. |
|
|
|
|
Registered Office : |
No. 78, Xishan Road, Urumqi, Xinjiang, 830009 PR |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
10.09.2012 |
|
|
|
|
Com. Reg. No.: |
650000038003759 |
|
|
|
|
Legal Form : |
One-Person Limited Liability Company |
|
|
|
|
Line of Business : |
Subject is engaged in international trade. products mainly include:
chemicals, electro-mechanical products |
|
|
|
|
No. of Employees : |
30 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
Payment Behaviour : |
Slow but correct |
|
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) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
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.
|
Source
: CIA |
Company
name and address
XINJIANG ZHONGTAI RESOURCES Co., Ltd.
No. 78, xishan road, Urumqi, xinjiang, 830009
PR CHINA
TEL: 86 (0) 991-5101768
FAX: N/A
EXECUTIVE
SUMMARY
INCORPORATION DATE : SEPTEMBER 10, 2012
REGISTRATION NO. : 650000038003759
REGISTERED LEGAL FORM : ONE-PERSON LIMITED LIABILITY COMPANY
CHIEF EXECUTIVE :
MR. WANG HONGXIN (CHAIRMAN)
STAFF STRENGTH :
30
REGISTERED CAPITAL : CNY 30,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 119,200,000 (AS OF DEC. 31,
2012)
EQUITIES :
CNY 29,950,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.26 = 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
SC was registered as a One-person Limited Liability Company at local
Administration for industry & commerce (AIC - the official body of issuing
and renewing business license) on Sep. 10, 2012.
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 metal materials,
building materials, electro-mechanical products, plastics, ceramics, chemicals,
agricultural and livestock products, mechanical equipment, electric apparatus,
steel materials, hardware, electronics, telecommunication equipment, home
appliance, meter, equipment and parts, computer software and hardware and
parts, vehicle parts, cotton, cotton pulp, linters, fertilizer, wood chip,
packing materials, petroleum products, glassware, semi-coke, carbon products,
welding materials, lube, decoration materials, furniture, office equipment,
stationery, general merchandise, arts and crafts, fruit, iron ore, heat
insulating materials, bitumen and tar; storage services; import and export
goods and technology; agent services; business information technology
consultation.
SC is mainly engaged in international trade.
Mr. Wang Hongxin is legal representative, chairman and general manager
of SC at present.
SC is known to have approx. 30 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in Urumqi. The detailed information of the premise
is unspecified.
SC is not known to host website of its own at present.
No significant changes were found during our checks with the local
Administration for Industry and Commerce.
SC started its normal operation in Oct. of 2012.
There is no record of litigation till now.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Xinjiang Zhongtai (Group) Co., Ltd. 100
Registered no.: 650000038003638
Legal representative: Wang Hongxin
Legal
representative, Chairman and General manager:
Mr. Wang Hongxin, born in 1965, with EMBA degree, senior engineer. He is
currently responsible for the overall management of SC.
Working
Experience(s):
At present Working
in SC as legal representative, chairman and general manager
Also working in Xinjiang Zhongtai (Group) Co., Ltd. and Xinjiang
Zhongtai Chemical Co., Ltd. as legal representative
Supervisor:
Wang Xiaowei
SC started its normal operation in Oct. of 2012.
SC is mainly engaged in international trade
SC’s products mainly include: chemicals, electro-mechanical products
SC sources its materials 90% from domestic market, and 10% from overseas
market. SC sells 80% of its products in domestic market, and 20% 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 customer and supplier
details.
Xinjiang Zhongtai Chemical Co., Ltd.
It is a listed company in Shenzhen Stock Exchange Market with the code
of 002092.
Registered no.: 650000040000249
Registered capital: CNY 1,154,340,000
Legal representative: Wang Hongxin
Date of incorporation:
Tel: 0991-8751690 Fax:
0991-8751690
Web: http://www.zthx.com
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.
SC’s management declined to release its bank details.
Balance
Sheet
Unit: CNY’000
|
|
as
of Dec. 31, 2012 |
|
Cash & bank |
16,490 |
|
Notes receivable |
5,100 |
|
Inventory |
36,480 |
|
Accounts receivable |
13,240 |
|
Advances to suppliers |
1,770 |
|
Other receivables |
400 |
|
Other current assets |
0 |
|
|
------------------ |
|
Current assets |
73,480 |
|
Fixed assets net value |
450 |
|
Projects under construction |
0 |
|
Long term investment |
0 |
|
Other assets |
0 |
|
|
------------------ |
|
Total assets |
73,930 |
|
|
============= |
|
Short loans |
0 |
|
Accounts payable |
47,600 |
|
Other payable |
150 |
|
Taxes payable |
-6,150 |
|
Advances from clients |
2,380 |
|
Other current liabilities |
0 |
|
|
------------------ |
|
Current liabilities |
43,980 |
|
Long term liabilities |
0 |
|
|
------------------ |
|
Total liabilities |
43,980 |
|
Equities |
29,950 |
|
|
------------------ |
|
Total liabilities & equities |
73,930 |
|
|
============= |
Income
Statement
Unit: CNY’000
|
|
as
of Dec. 31, 2012 |
|
Turnover |
119,200 |
|
Cost of goods sold |
118,210 |
|
Taxes and additional of main operation |
6 |
|
Sales expense |
130 |
|
Management expense |
830 |
|
Finance expense |
80 |
|
Profit before tax |
-56 |
|
Less: profit tax |
-3 |
|
Profits |
-53 |
Important
Ratios
|
|
as
of Dec. 31, 2012 |
|
*Current ratio |
1.67 |
|
*Quick ratio |
0.84 |
|
*Liabilities to assets |
0.59 |
|
*Net profit margin (%) |
-0.04 |
|
*Return on total assets (%) |
-0.07 |
|
*Inventory /Turnover ×365 |
112 days |
|
*Accounts receivable/Turnover ×365 |
41 days |
|
*Turnover/Total assets |
1.61 |
|
* Cost of goods sold/Turnover |
0.99 |
PROFITABILITY:
FAIR
·
The turnover of SC appears fairly good in its line.
·
SC’s net profit margin is fair.
·
SC’s return on total assets is fair.
·
SC’s cost of goods sold is high, comparing with its
turnover.
LIQUIDITY: AVERAGE
·
The current ratio of SC is maintained in a normal level.
·
SC’s quick ratio is maintained in a normal level.
·
The inventory of SC appears fairly large in 2012.
·
The accounts receivable of SC is maintained in an
average level.
·
SC has no short-term loan in 2012.
·
SC’s turnover is in an average level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
·
The debt ratio of SC is average.
·
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fairly stable.
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of inventory could be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.23 |
|
|
1 |
Rs.101.68 |
|
Euro |
1 |
Rs.83.46 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
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.