MIRA
INFORM REPORT
|
Report Date : |
07.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
sICHUAN
NEW RISE IMP. & EXP. CO., LTD. |
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Registered Office : |
No. 182 Jianghan Road, Chengdu,
Sichuan Province 610031 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
28.02.2001 |
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Com. Reg. No.: |
510000000085902 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject includes selling pre-packaged food; international trade;
commodities wholesale & retail; renting business and commerce service;
real estate development; textile industry; textile & garment &
fashion industry; leather, fur, feathers & its products & footwear
manufacturing industry; storage; and public facilities management. |
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|
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|
No. of Employees |
100 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
|
Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
|
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
sICHUAN NEW RISE IMP. & EXP.
CO., LTD.
NO. 182
JIANGHAN ROAD, CHENGDU, SICHUAN PROVINCE 610031 PR CHINA
TEL: 86
(0) 28-84335234/86648364/86644291
FAX: 86 (0)
28-84301950/86645742
EXECUTIVE SUMMARY
Date of Registration : FEBRUARY 28, 2001
REGISTRATION NO. : 510000000085902
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : CNY 30,120,000
staff : 100
BUSINESS CATEGORY : TRADING
Revenue : CNY 2,790,504,000 (AS OF DEC. 31, 2013)
EQUITIES : CNY 101,722,000 (AS OF DEC. 31, 2013)
WEBSITE : www.new-rise.com
E-MAIL :
N/A
PAYMENT : AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : FAIRly
steady
GENERAL REPUTATION : average
EXCHANGE RATE : CNY 6.25 = 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.: 510000000085902 on February 28,
2001.
SC’s Organization Code Certificate No.:
72324718-9
SC’s Tax No.: 510105723247189
SC’s registered capital: CNY 30,120,000
SC’s paid-in capital: CNY 30,120,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
|
Registered Capital |
CNY 3,000,000 |
CNY 7,000,000 |
|
|
Registered Capital |
CNY 7,000,000 |
CNY 10,080,000 |
|
|
Registered Capital |
CNY 10,080,000 |
CNY 15,080,000 |
|
|
Registered Capital |
CNY 15,080,000 |
CNY 20,080,000 |
|
% of Shareholding |
Ma Jinkang 48.72% Wang Yuying 24.32% Xu Xiaochuan 18.18% Liang Ying 7.92% Xiang Tao 0.86% |
Ma Jinkang 49.76% Wang Yuying 22.92% Xu Xiaochuan 18.88% Liang Ying 6.95% Xiang Tao 1.49% |
|
|
2012 |
Registered Capital |
CNY 20,080,000 |
CNY 30,120,000 |
|
Shareholder (s) (% of
Shareholding) |
Ma Jinkang 49.76% Wang Yuying 22.92% Xu Xiaochuan 18.88% Liang Ying 6.95% Xiang Tao 1.49% |
Ma Jinkang 49.76% Wang Yuying 22.92% Xu Xiaochuan 18.88% Wang Wei 6.95% Zhang Jian 1.49% |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Ma Jinkang |
49.76 |
|
Wang Yuying |
22.92 |
|
Xu Xiaochuan |
18.88 |
|
Wang Wei |
6.95 |
|
Zhang Jian |
1.49 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman
and General Manager |
Ma Jinkang |
|
Director |
Xu Xiaochuan |
|
Wang Yuying |
|
|
Supervisor |
Wang Wei |
|
Zhang Jian |
RECENT DEVELOPMENT
SC is one of the top 30 export enterprises of foreign trade in Sichuan
Province.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Ma Jinkang 49.76
Wang Yuying 22.92
Xu Xiaochuan 18.88
Wang Wei 6.95
Zhang Jian 1.49
MANAGEMENT
Ma Jinkang, Legal
Representative, Chairman and General Manager
----------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
ID# 512901530115081
Ø
Age: 61
Ø Qualification:
University
Ø Working experience (s):
At present, working in SC as legal representative, chairman and
general manager
Also
working in Sichuan New Rise (Langzhong) Silk Co., Ltd. as legal representative
Director
-----------
Xu Xiaochuan ID#
310105660321241
Wang Yuying
ID#
510103630420194
Supervisor
--------------
Wang Wei
Zhang Jian
BUSINESS OPERATION
SC’s registered business scope includes selling pre-packaged food;
international trade; commodities wholesale & retail; renting business and
commerce service; real estate development; textile industry; textile &
garment & fashion industry; leather, fur, feathers & its products &
footwear manufacturing industry; storage; and public facilities management.
SC is mainly
engaged in international trade.
SC’s
products mainly include:
Textiles
Fabric
Home
textiles
Clothing
Silk
products
Food
SC sources its
products 60% from domestic market, and 40% from overseas market. SC sells 70%
in domestic market and 30% to overseas market, mainly Southeast Asia, etc.
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.
*Major
Suppliers*
---------------------
Shaoxing County Hongshang Textiles Co., Ltd.
Sichuan Huichuan Garments Co., Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 100 staff
at present.
SC rents an area
as its operating office, but the detailed information is unknown.
RELATED COMPANY
SC is known to have the
following subsidiaries:
Sichuan
New Rise (Langzhong) Silk Co., Ltd.
Registration
No.: 511381000006852
Date
of Registration: June 8, 2004
Legal
Form: Limited Liabilities Company
Registered
Capital: CNY 15,000,000
Legal
Representative: Ma Jinkang
PAYMENT
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: A trade enquiry currently
conducted with SC's supplier(s) reveal the following:
Supplier
A
Products sold: Textile
Date account opened: Since 2009 to present
Line of credit: N/A
Terms: 30-60
days
Average monthly sales: N/A
Current balance: N/A
Rating Key : 3
Payment record keys:
1 = Prompt: Payment made before the credit
period expires
2 = As agreed terms: Payment made upon due
date
3 = Slightly slow but acceptable: Payment
made 5 to 20 days beyond agreed terms
4 = Slow: Payment made 16 to 45 days beyond
agreed terms
5 = Poor: Payment made over 45 days beyond
agreed terms
6
= No comment: Account is newly opened & record is not yet established
Note: In some instances, payment beyond terms can be the result of disputes
over merchandise, lost invoices, disputed accounts & etc.
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
Basic Bank:
SPD
Bank Shuncheng Sub-branch
AC#:
73050155350000011
Bank
of China Sichuan Branch
AC#:
06087008092001
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
58,555 |
82,486 |
104,686 |
|
|
Notes receivable |
0 |
0 |
0 |
|
Accounts
receivable |
32,358 |
157,433 |
90,410 |
|
Advances to
suppliers |
0 |
0 |
0 |
|
Other receivable |
2,466 |
3,842 |
2,317 |
|
Inventory |
33,448 |
2,947 |
6,605 |
|
Deferred
expenses |
0 |
0 |
0 |
|
Other current
assets |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Current assets |
126,827 |
246,708 |
204,018 |
|
Long-term
investment |
40,351 |
40,351 |
52,351 |
|
Fixed assets |
37,041 |
35,044 |
34,785 |
|
Construction in
progress |
0 |
0 |
0 |
|
Intangible
assets |
0 |
0 |
0 |
|
Long-term
prepaid expenses |
0 |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
0 |
|
Other
non-current assets |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Total assets |
204,219 |
322,103 |
291,154 |
|
|
============= |
============= |
============= |
|
Short-term loans |
69,689 |
125,000 |
125,000 |
|
Notes payable |
8,774 |
6,752 |
0 |
|
Accounts payable |
34,958 |
93,975 |
40,587 |
|
Wages payable |
0 |
0 |
0 |
|
Taxes payable |
-4,634 |
-398 |
-1,814 |
|
Advances from
clients |
2,008 |
0 |
0 |
|
Other payable |
7,066 |
155 |
25,395 |
|
Other current
liabilities |
129 |
200 |
251 |
|
|
------------------ |
------------------ |
------------------ |
|
Current
liabilities |
117,990 |
225,684 |
189,419 |
|
Non-current
liabilities |
13 |
13 |
13 |
|
|
------------------ |
------------------ |
------------------ |
|
Total
liabilities |
118,003 |
225,697 |
189,432 |
|
Equities |
86,216 |
96,406 |
101,722 |
|
|
------------------ |
------------------ |
------------------ |
|
Total
liabilities & equities |
204,219 |
322,103 |
291,154 |
|
|
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
Revenue |
2,630,474 |
2,765,210 |
2,790,504 |
|
Cost of sales |
2,608,655 |
2,740,510 |
2,764,578 |
|
Taxes and surcharges |
4 |
0 |
0 |
|
Sales expense |
0 |
15,889 |
0 |
|
Management expense |
13,925 |
3,136 |
14,675 |
|
Finance expense |
2,828 |
5,675 |
5,837 |
|
Profit before
tax |
5,056 |
5,652 |
7,563 |
|
Less: profit tax |
781 |
1,499 |
1,890 |
|
4,275 |
4,153 |
5,673 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
*Current ratio |
1.07 |
1.09 |
1.08 |
|
*Quick ratio |
0.79 |
1.08 |
1.04 |
|
*Liabilities
to assets |
0.58 |
0.70 |
0.65 |
|
*Net profit
margin (%) |
0.16 |
0.15 |
0.20 |
|
*Return on
total assets (%) |
2.09 |
1.29 |
1.95 |
|
*Inventory /
Revenue ×365 |
5 days |
1 day |
1 day |
|
*Accounts
receivable / Revenue ×365 |
5 days |
21 days |
12 days |
|
*Revenue /
Total assets |
12.88 |
8.58 |
9.58 |
|
*Cost of sales
/ Revenue |
0.99 |
0.99 |
0.99 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC
appears fairly good in its line in three years.
l SC’s net profit
margin is average.
l SC’s return on
total assets is average.
l
SC’s cost of sales is high, comparing with its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a normal
level in three years.
l
SC’s quick ratio is maintained in a normal level in
2012 and 2013.
l
The inventory of SC appears average.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’s short-term loans appear large.
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered medium-sized in its line with fairly good
financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.20 |
|
|
1 |
Rs.101.67 |
|
Euro |
1 |
Rs.83.55 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
PDT |
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.