MIRA
INFORM REPORT
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Report Date : |
16.05.2014 |
IDENTIFICATION DETAILS
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Name : |
ZHANJIANG LONGWEI MARINE CO., LTD. |
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Registered Office : |
Huagang Industrial Zone, Xiashan, Zhanjiang, Guangdong Province, 524017 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
25.11.2005 |
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Com. Reg. No.: |
440800400000050 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Subject is engaged in storage, processing and selling of aquatic
products. |
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No. of Employees : |
400 |
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
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Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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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 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.
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Source
: CIA |
Company name and address
zhanjiang longwei marine Co., Ltd.
huagang industrial zone, xiashan, zhanjiang,
guangdong
PROVINCE, 524017 PR CHINA
TEL: 86 (0) 759-2681330
FAX: 86 (0) 759-2681302
EXECUTIVE SUMMARY
INCORPORATION DATE : nov.
25, 2005
REGISTRATION NO. : 440800400000050
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE
ENTERPRISE
CHIEF EXECUTIVE :
MR. he guoqing (CHAIRMAN)
STAFF STRENGTH :
400
REGISTERED CAPITAL : usd 16,500,000
BUSINESS LINE : Storage, processing & SELLING
TURNOVER :
CNY 452,880,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 112,350,000 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY
STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.23 = 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: SC is also known as “Zhanjiang Longwei Aquatic Products Industry
Co., Ltd.”
SC was registered as a Chinese-foreign equity joint venture enterprise
at local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on Nov. 25, 2005.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered business scope includes shrimp farming; production and
sale: frozen food; acquisition and storage of fresh seafood. (excluding those
limited and prohibited by law and regulations, with permit if needed)
SC is mainly engaged in storage, processing and selling of aquatic
products.
Mr. He Guoqing is legal representative and chairman of SC at present.
SC is known to have approx. 400 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the industrial zone of Zhanjiang.
Detailed information of the premise is unspecified.
http://www.zjlongwei.cn/
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
E-mail: hrd1@zjlongwei.cn
No significant events or 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: 782028605
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name Amount
(USD) % of Shareholding
He Wenhui (Australian) 6,000,000 36.36
Zhanjiang Fuchang Aquatic Product Co., Ltd. 10,500,000 63.64
Zhanjiang Fuchang Aquatic Product Co., Ltd.
==================================
Registration No.: 440800000059286
Incorporation Date:
Chairman: He Liqiang
Legal Representative and Chairman:
Mr. He Guoqing born in 1952, he
is currently responsible for the overall management of SC.
Working
Experience(s):
At present Working in SC as
legal representative and chairman.
Also working in Fuqing Longwei Aquatic Foodstuff Co., Ltd. as legal
representative, etc.
General
manager:
Mr. He Meiguang, born in 1976, he is currently responsible for the daily
management of SC.
Working
Experience(s):
At present Working
in SC as general manager.
Vice
General manager:
Mr. Chen Long, in his
Working
Experience(s):
At present Working
in SC as vice general manager.
SC is mainly engaged in storage, processing and selling of aquatic
products.
SC’s products mainly include: fried breaded butterfly shrimp, raw or
cooked shrimp, cooked shrimp peeled & deveined tail-on, etc.
SC sources its materials 100% from domestic market. SC sells 20% of its
products in domestic market, and 80% to overseas market.
The buying terms of SC include Check, T/T 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 major clients and suppliers.
Fuqing Longwei Aquatic Foodstuff Co., Ltd.
======================
Registration No.: 350100400002410
Incorporation Date:
Chairman: He Guoqing
Web: http://www.fjlw.com/
E-mail: longwei@fjlw.com
Tel.: 0591-85772190/85771274
Fax: 0591-85771193/85978907
Fuqing Fuchang Trading Co., Ltd.
======================
Registration No.: 350181100016631
Incorporation Date:
Chairman: He Ruihua
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 declined to release its bank details.
Financial
Summary
Unit: CNY’000
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As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
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Total liabilities |
162,520 |
236,100 |
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Equities |
115,870 |
112,350 |
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-------------------- |
-------------------- |
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Total assets |
278,390 |
348,450 |
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============= |
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Turnover |
/ |
452,880 |
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Profit before tax |
/ |
-3,520 |
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Profits |
/ |
-3,520 |
Note: SC’s management refused to release the detail financial reports
for Yr 2012 & 2013.
Important
Ratios
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As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
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*Liabilities to assets |
0.58 |
0.68 |
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*Net profit margin (%) |
/ |
-0.78 |
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*Return on total assets (%) |
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-1.01 |
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*Turnover/Total assets |
/ |
1.30 |
PROFITABILITY:
FAIR
·
The turnover of SC appears fairly good in its line
in 2013.
·
SC’s net profit margin is fair in 2013.
·
SC’s return on total assets is fair in 2013.
·
SC’s turnover is average in 2013, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is average.
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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.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.59.47 |
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1 |
Rs.99.70 |
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Euro |
1 |
Rs.81.55 |
INFORMATION DETAILS
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Analysis Done by
: |
SUM |
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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 |
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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 |
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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.