MIRA
INFORM REPORT
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Report Date : |
12.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
DALIAN JINWUXING
FOOD CO., LTD. |
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Registered Office : |
No. 98 Xiaheyan, Xingda
Street, Zhuanghe City, Dalian Liaoning Province 116400 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
07.06.2007 |
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Com. Reg. No.: |
210283400001028 |
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Legal Form : |
Chinese-Foreign Contractual Joint Venture Enterprise |
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Line of Business : |
Engaged in purchasing, processing, storage, and sales
for aquatic product; purchasing, processing and selling edible mushroom, and
wild vegetables. subject products ranges include
herring roe, fillet of garrupa, shellfish and shrimp |
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No of Employees : |
180 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
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 |
|
Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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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, 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 & address
DALIAN JINWUXING FOOD CO., LTD.
NO. 98 XIAHEYAN, XINGDA STREET, ZHUANGHE
CITY, DALIAN
LIAONING PROVINCE 116400 PR CHINA
TEL: 86 (0) 411-89859300
FAX: 86 (0) 411-89716387
EXECUTIVE SUMMARY
Date of Registration : JUNE 7, 2007
REGISTRATION NO. : 210283400001028
LEGAL FORM : CHINESE-FOREIGN
CONTRACTUAL JOINT VENTURE ENTERPRISE
CHIEF EXECUTIVE : LIU CHAOJIN (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL :
USD 800,000
staff : 180
BUSINESS CATEGORY :
PROCESSING & trading
Revenue : CNY 95,911,000 (AS OF DEC. 31, 2013)
EQUITIES : CNY 10,702,000 (AS OF DEC. 31, 2013)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND :
ORDINARY
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
LEGAL STATUS
& HISTORY
SC was
established as a Chinese-foreign contractual joint venture enterprise of PRC
with State Administration of Industry & Commerce (SAIC) under registration
No.: 210283400001028
on June 7, 2007.
SC’s Organization Code Certificate
No.: 66111533-1
SC’s Tax No.: 210283661115331
SC’s registered capital: usd 800,000
SC’s paid-in capital: usd 800,000
Registration Change Record:-
No significant changes of SC have
been noted in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Canglin Xiusi (in Chinese
Pinyi) (Japan) |
40 |
|
Dalian Chaojin Seafood Co.,
Ltd. |
60 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman
and General Manager |
Liu Chaojin |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name
%
of Shareholding
Canglin Xiusi (in Chinese Pinyi) (Japan)） 40
Dalian Chaojin Seafood Co., Ltd. 60
Dalian Chaojin Seafood Co., Ltd.
---------------------------------------
Registration No.: 210283000016877
MANAGEMENT
Liu
Chaojin, Legal
Representative, Chairman and General Manager
---------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Working
experience (s):
At present, working in SC as legal representative, chairman
and general manager
BUSINESS
OPERATION
SC’s registered business scope includes purchasing,
processing, storage, and sales for aquatic product; purchasing, processing and
selling edible mushroom, and wild vegetables.
SC is
mainly engaged in processing and selling aquatic product
SC’s products
mainly include: herring roe, fillet of garrupa, shellfish and shrimp.
SC sources its materials 85% from domestic
market, and 15% from overseas market. SC sells 100% of its products to overseas
market, mainly U.S.A., 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
Clients*
------------------
The
Fishin' Co.
Mariner
Seafoods International Sdn. Bhd.
Staff & Office:
--------------------------
SC is
known to have approx. 180 staff
at present.
SC rents an area
as its operating office and factory, but the detailed information is unknown.
RELATED
COMPANY
SC is not known to have any subsidiary at present.
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.
BANKING
Basic Bank:
Agricultural
Bank of China
AC#:
1040002636
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
Cash |
5,269 |
7,719 |
|
Notes receivable |
0 |
0 |
|
Accounts
receivable |
8,753 |
15,735 |
|
Advances to
suppliers |
734 |
0 |
|
Other receivable |
203 |
494 |
|
Inventory |
17,872 |
8,930 |
|
Prepaid
expenses |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
32,831 |
32,878 |
|
Fixed assets |
7,663 |
7,663 |
|
Construction in
progress |
0 |
0 |
|
Intangible assets |
1,249 |
1,249 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
41,743 |
41,790 |
|
|
============= |
============= |
|
Short-term loans |
27,908 |
23,876 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
232 |
550 |
|
Wages payable |
1,408 |
1,424 |
|
Taxes payable |
-58 |
-166 |
|
Advances from
clients |
0 |
0 |
|
Other payable |
1,259 |
4,137 |
|
Accrued expenses |
1,129 |
1,267 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
31,878 |
31,088 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
31,878 |
31,088 |
|
Equities |
9,865 |
10,702 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
41,743 |
41,790 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
Revenue |
83,464 |
95,911 |
|
Cost of sales |
76,345 |
90,675 |
|
Taxes and surcharges |
0 |
0 |
|
Sales expense |
2,482 |
2,047 |
|
Management expense |
1,513 |
1,217 |
|
Finance expense |
1,269 |
1,603 |
|
Subsidy income |
0 |
474 |
|
Non-operating
income |
0 |
0 |
|
Non-operating expense |
0 |
4 |
|
Profit before
tax |
1,856 |
838 |
|
Less: profit tax |
0 |
0 |
|
Profits |
1,856 |
838 |
Important Ratios
=============
|
|
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
*Current ratio |
1.03 |
1.06 |
|
*Quick ratio |
0.47 |
0.77 |
|
*Liabilities
to assets |
0.76 |
0.74 |
|
*Net profit
margin (%) |
2.22 |
0.87 |
|
*Return on
total assets (%) |
4.45 |
2.01 |
|
*Inventory /
Revenue ×365 |
79 days |
34 days |
|
*Accounts
receivable / Revenue ×365 |
39 days |
60 days |
|
*Revenue /
Total assets |
2.00 |
2.30 |
|
*Cost of sales
/ Revenue |
0.91 |
0.95 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears
average in its line, and it increased in 2013.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of sales is fairly high, comparing with
its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears average in 2013.
l
The accounts receivable of SC appears large in
2013.
l
The short-term loans of SC appear large in both
years.
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 Stable.
CONCLUSIONS
SC is considered small-sized in its line with fairly stable
financial conditions. The large amount of accounts receivable and short-term
loans may be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.05 |
|
UK Pound |
1 |
Rs.101.65 |
|
Euro |
1 |
Rs.83.08 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
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|
Report Prepared
by : |
MNL |
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.