MIRA
INFORM REPORT
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Report Date : |
05.05.2014 |
IDENTIFICATION DETAILS
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Name : |
Shandong Zhonghe Fruit and Vegetable Foodstuffs
Co., Ltd. |
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Registered Office : |
no.
16001 Jingshi East Road, Zhangqiu, Ji’nan, Shandong Province,
250220 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
29.05.2012 |
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Com. Reg. No.: |
370181000009170 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Engaged in trading of food. |
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No. of Employees |
10 |
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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
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
|
Source
: CIA |
Company name and address
Shandong Zhonghe Fruit and Vegetable Foodstuffs Co.,
Ltd.
no.
16001 jingshi east road, zhangqiu,
ji’nan,
shandong PROVINCE, 250220 PR CHINA
TEL: 86
(0) 531-80953630/80953639 FAX: 86 (0)
531-80953639
EXECUTIVE SUMMARY
INCORPORATION DATE : may 29, 2012
REGISTRATION NO. : 370181000009170
REGISTERED LEGAL FORM : One-person Limited
Liability Company
STAFF STRENGTH : 10
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 9,170,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 4,890,000 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : fairly steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.2583 = 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 May 29, 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 licensed storage, sub-assembly
and sales of fruit, vegetable and edible fungi; processing of fruit and
vegetable (excluding deep processing), sales of health care products, fruit and
vegetable processing equipment, fruit and vegetable preservative, packaging
materials and technology research, development, promotion, consulting of
related products, online sales; import and export of goods and technology (if
needed with permit).
SC is mainly engaged in trading of food.
Mr. Wu Maoyu is
legal representative and executive director of SC at present.
SC is
known to have approx. 10 employees
at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in Zhangqiu. Detailed premise
information is not available at present.
http://www.fruit.ac.cn/ (belongs
to SC’s parent company) The design is professional and the content is well
organized. At present it is in Chinese version.
For the past two years there is no record of litigation.
No significant changes were found during our
checks with the local Administration for Industry and Commerce.
Subject
passed the annual inspection of 2012 with Administration for Industry &
Commerce.
Organization
Code: 597003326
According to SC’s accountant, SC started its normal operation in 2012.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Ji’nan Fruit Research Institute All China
Federation of Supply & Marketing Co-Operatives
100
Incorporation Date:
Registration No.: 370100000028699
Registered Capital: CNY 7,970,000
Legal Representative: Wu Maoyu
Website: http://www.fruit.ac.cn/
l
Legal Representative and Executive Director:
Mr. Wu Maoyu, researcher. He is currently responsible for the overall
management of SC.
Working Experience(s):
At present Working
in SC as legal representative and executive director
Also
working in Ji’nan Fruit Research Institute All China Federation of Supply &
Marketing Co-Operatives, Ji’nan Fruit and Vegetable Huade Company All China
Federation of Supply and Marketing Co-operatives as legal representative.
l
General Manager:
Zhang Weihong is currently responsible for the daily management of SC.
Working Experience(s):
At present Working
in SC as general manager.
l
Supervisor:
Wang Wenbo
According to SC’s accountant, SC started its normal operation in 2012.
SC is mainly engaged in trading of food.
SC’s products
mainly include: fruit and vegetable.
SC sources its materials 70% from domestic market,
and 30% from overseas market. SC sells 50% of its products in domestic market,
and 50% 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 T/T, L/C and Credit of 30-60 days.
Note: SC declined to release its major
suppliers and clients.
According
to the website:
Ji’nan
Fruit and Vegetable Huade Company All China Federation of Supply and Marketing
Co-operatives
=============================
Incorporation Date:
Registration No.: 370100000028703
Legal Representative: Wu Maoyu
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 accountant
refused to release the bank details.
Balance Sheet
Unit: CNY’000
|
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As
of Dec. 31, 2013 |
|
Cash & bank |
2,010 |
|
Inventory |
150 |
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Accounts
receivable |
1,100 |
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Advances to
suppliers |
1,210 |
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Other
receivables |
110 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
4,580 |
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Fixed assets net
value |
520 |
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Long term
investment |
200 |
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|
------------------ |
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Total assets |
5,300 |
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|
=========== |
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Short loan |
0 |
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Accounts payable |
290 |
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Advances from
customers |
70 |
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Taxes payable |
30 |
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Other accounts
payable |
20 |
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|
------------------ |
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Current
liabilities |
410 |
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Long term
liabilities |
0 |
|
|
------------------ |
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Total
liabilities |
410 |
|
Equities |
4,890 |
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|
------------------ |
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Total
liabilities & equities |
5,300 |
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|
=========== |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31,
2013 |
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Turnover |
9,170 |
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Cost of goods
sold |
8,530 |
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Taxes and additional of main operation |
10 |
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Sales expense |
490 |
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Management expense |
390 |
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Finance expense |
20 |
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Other business
income |
280 |
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Profit before
tax |
10 |
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Less: profit tax |
0 |
|
Profits |
10 |
Important
Ratios
=============
|
|
As
of Dec. 31, 2013 |
|
*Current ratio
|
11.17 |
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*Quick ratio |
10.80 |
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*Liabilities
to assets |
0.08 |
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*Net profit
margin (%) |
0.11 |
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*Return on
total assets (%) |
0.19 |
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*Inventory
/Turnover ×365 |
6 days |
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*Accounts
receivable/Turnover ×365 |
44 days |
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*Turnover/Total
assets |
1.73 |
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* Cost of
goods sold/Turnover |
0.93 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears
average in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is fairly high.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears small.
l
The accounts receivable of SC is maintained in an
average level.
l
SC has no short loans in 2013.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low.
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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.22 |
|
|
1 |
Rs.101.68 |
|
Euro |
1 |
Rs.83.45 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
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Report Prepared
by : |
PDT |
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 |
|
|
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 |
-- |
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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.