MIRA
INFORM REPORT
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Report Date : |
17.05.2014 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG ZHONGDA TECHNICAL IMPORT CO., LTD. |
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Registered Office : |
15-16/F, Huashun Building, No. 58, West Lake Avenue, Hangzhou, Zhejiang Province, 310009 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
02.04.1997 |
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Com. Reg. No.: |
330000000025894 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in the wholesaling and retailing pre-packaged
foods, dairy products (including infant formula milk powder) and liquor,
wholesaling dangerous chemicals; import and export business, selling machinery
and equipment, electronic equipment, light textile, metal materials, wood,
pulp, instrumentation, native produces and animal byproducts, crafts, general
merchandise, motor vehicles (including cars), motorcycles, auto parts, fuel
oil (excluding oil and dangerous chemicals), asphalt, coke, coal, primary
edible agricultural products, industrial investment & development,
warehousing services (excluding dangerous chemicals), electrical and
mechanical equipment leasing. |
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No. of Employees : |
60 |
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
ZHEJIANG ZHONGDA TECHNICAL IMPORT CO., LTD.
15-16/F, HUASHUN BUILDING, NO. 58, WEST LAKE AVENUE, HANGZHOU,
ZHEJIANG PROVINCE, 310009 PR CHINA
TEL: 86 (0) 571-87819202/87817591/87817611
FAX: 86 (0) 571-87817519
EXECUTIVE SUMMARY
INCORPORATION DATE :
APR. 2, 1997
REGISTRATION NO. :
330000000025894
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE :
MR. HAN QISHENG (CHAIRMAN)
STAFF STRENGTH :
60
REGISTERED CAPITAL : CNY 20,000,000
BUSINESS LINE :
TRADING
TURNOVER :
cny 2,609,050,000 (unaudited, AS OF DEC. 31, 2013)
EQUITIES :
cny 68,970,000 (unaudited, AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.2317= 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 Ren Min Bi
Note: SC’s correct operating address should be the heading one.
SC was registered as a Limited Liabilities Co. at Zhejiang Provincial
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Apr. 2, 1997.
Company Status: Limited Liabilities Co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders
contribute its registered capital jointly. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to extent of its total assets. The characteristics of this form
of co. are as follows: Upon
the establishment of the co., an investment certificate is issued to the
each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s registered business scope includes selling medical devices, wholesaling
and retailing pre-packaged foods, dairy products (including infant formula milk
powder) and liquor, wholesaling dangerous chemicals; import and export
business, selling machinery and equipment, electronic equipment, light textile,
metal materials, wood, pulp, instrumentation, native produces and animal
byproducts, crafts, general merchandise, motor vehicles (including cars),
motorcycles, auto parts, fuel oil (excluding oil and dangerous chemicals),
asphalt, coke, coal, primary edible agricultural products, industrial
investment & development, warehousing services (excluding dangerous
chemicals), electrical and mechanical equipment leasing.
SC is mainly engaged in trading different kinds of products.
Mr. Han Qisheng is legal representative and chairman of SC at present.
SC is known to have approx. 60 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the commercial zone of Hangzhou. But the
detailed information about the premise is unspecific.
http://www.zdjsjk.com/
The design is professional and the content is well organized. At present the
website is in Chinese and English versions.
E-mail: ztic@zdtechimport.com
No significant changes were found during our checks with the local AIC.
SC has passed ISO 9001: 2000 Quality Management System, and honored as
AAA Credit Enterprise.
Subject passed the annual inspection of 2012 with Administration for Industry
& Commerce.
Organization Code: 142942650
There is no record of litigation till now.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhejiang Zhongda Technical Imp. & Exp. Group Co., Ltd. 51
Labor Union of Zhejiang Zhongda Technical Import Co., Ltd. 49
Zhejiang Zhongda Technical Imp. & Exp. Group Co., Ltd.
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Zhejiang Zhongda Technical Import & Export Group Co, Ltd. （or simply called “Technical Group”）was originally
founded in 1988. Its predecessor was Zhejiang Province Import & Export
Company. The Group was established in 1999 by recapitalizing four local import
& export companies, became a diverse and comprehensive enterprise
specializing the fields of foreign trade, domestic trade, real estate and
investment.
The main business of Technical Group is international trade. Its major
export products include complete equipment, mechanical and electrical products,
clothing, stationary and crafts. The import projects engaged in wireless
communication technical equipment, ore, chemical raw material, plastic, textile
knitting machinery, medical device, wood and paper pulp.
Registration No.: 330000000035685
Registered Legal Form: Limited
Liabilities Co.
Chief Executive: Mr. Hu Qiyang
Address: 21-22 Floor, Huashun Building, No.58 West Lake Avenue, Hangzhou
City, P.R. China
Postcode: 310009
Tel: 0086-571-87817560
Fax: 0086-571-87817516
Legal
Representative and Chairman:
Mr. Han Qisheng 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 Zhejiang Guozhong Energy Co., Ltd. (in Chinese pinyin)
as legal representative.
Directors:
Wu Cairong
Wang Lingyun
Supervisors:
He Lieping
Wu Bin
SC is mainly engaged in trading different kinds of products.
SC’s products mainly include:
Machineries and Production Lines
Steel and Metals
Forest and Woods Products
Medical Equipments
Scientific Apparatus
Chemicals and Plastics
Grains and Forage
Electronics and Telecommunications
Technical Know-how and Patents
SC sources its materials 20% from domestic market, and 80% from overseas
market. SC sells 99% of its products in domestic market, and 1% 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 refused
to release its major suppliers and customers.
According to http://www.ztieg.com/
Zhejiang Zhongda Technical Export Co., Ltd.
Zhejiang Dida Import & Export Co., Ltd.
Huzhou Zhongda Real Estate Development Co., Ltd.
Deqing Zhongda Moganshan Real Estate Co., Ltd.
Zhejiang International Technology and Equipment Bidding Co., Ltd.
SC
is known to invest in the following companies:
Zhejiang Guozhong Energy Co., Ltd. (in Chinese pinyin)
Zhejiang Jinrun Real Estate Development Co., Ltd.
Chinawall Development Limited
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 banking details.
Financial
Summary
===============
Unit: CNY’000
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As
of Dec. 31, 2013 |
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Current assets |
1,095,350 |
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Total assets |
1,203,440 |
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========= |
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Current liabilities |
1,134,120 |
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Long term liabilities |
350 |
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Total liabilities |
1,134,470 |
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Equities |
68,970 |
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Total liabilities & equities |
1,203,440 |
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========= |
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Turnover |
2,609,050 |
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Cost of goods sold |
2,576,830 |
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Profit before tax |
11,970 |
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Less: profit tax |
2,740 |
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Profits |
9,230 |
Note:
SC’s management refused to release its detailed financial reports, and the Financial Report for Year 2013 hasn’t been audited.
Important
Ratios
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As
of Dec. 31, 2013 |
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*Current ratio |
0.97 |
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*Quick ratio |
/ |
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*Liabilities to assets |
0.94 |
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*Net profit margin (%) |
0.35 |
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*Return on total assets (%) |
0.77 |
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*Inventory /Turnover ×365 |
/ |
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*Accounts receivable/Turnover ×365 |
/ |
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*Turnover/Total assets |
2.17 |
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* Cost of goods sold/Turnover |
0.99 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears good in its line.
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SC’s net profit margin is average.
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SC’s return on total assets is average.
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SC’s cost of goods sold is high, comparing with its
turnover.
LIQUIDITY: AVERAGE
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The current ratio of SC is maintained in a fair
level.
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SC’s turnover is in a fairly good level, comparing
with the size of its total assets.
LEVERAGE: FAIR
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The debt ratio of SC is high.
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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
|
Indian Rupees |
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US Dollar |
1 |
Rs.58.86 |
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1 |
Rs.98.82 |
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Euro |
1 |
Rs.80.72 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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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 |
-- |
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.