MIRA
INFORM REPORT
|
Report Date : |
20.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
DONGYING KANGSEN
STEMPULP CO., LTD. |
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Registered Office : |
Huaguan Industrial Park,
Guangrao County, Dongying Shandong
Province 257343 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
30.08.2010 |
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Com. Reg. No.: |
370523200007177 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
· Engaged in manufacturing and selling of food paper packaging products & container products Subject product ranges include disposable
paper tableware |
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No of Employees : |
400
(approximately) |
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 |
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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 |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate 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, 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
Dongying Kangsen Stempulp Co.,
Ltd.
huaguan
industrial park, guangrao county, dongying
shandong
PROVINCE 257343 PR CHINA
TEL: 86
(0) 4001061799/546-6086999/6086978/6086979
FAX: 86
(0) 546-6086998
EXECUTIVE SUMMARY
Date of Registration : AUGUST 30, 2010
REGISTRATION NO. : 370523200007177
LEGAL FORM : Limited Liability Company
CHIEF EXECUTIVE : WANG BAOHUI (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL :
CNY 78,180,000
staff : 400
BUSINESS CATEGORY :
MANUFACTURING & TRADING
Revenue :
CNY 12,110,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY 38,380,000 (AS OF DEC. 31, 2013)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT : AVERAGE
MARKET CONDITION : FAIR
FINANCIAL CONDITION : fair
OPERATIONAL TREND :
FAIR
GENERAL REPUTATION : FAIR
EXCHANGE RATE : CNY 6.23 = 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 limited liabilities company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 370523200007177 on August 30, 2010.
SC’s Organization Code Certificate No.:
56141366-5
SC’s Tax No.: 370523561413665
SC’s registered capital: CNY 78,180,000
SC’s paid-in capital: CNY 78,180,000
Registration Change Record:-
|
Date |
Change
of Contents |
Before
the change |
After
the change |
|
2014-4-2 |
Shareholder
(s) (% of Shareholding) |
Dongying
Xiangyu Industry and Trade Co., Ltd. 60.03% Wang
Xiaomei 10% Ma Qi 5% Yang
Guogang 24.97% |
Wang
Baohui 85% Cui
Xiaofen 10% Ma
Qi 5% |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Wang Baohui |
85 |
|
Cui Xiaofen |
10 |
|
Ma Qi |
5 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Wang
Baohui |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name
%
of Shareholding
Baohui 85
Cui Xiaofen 10
Ma Qi 5
MANAGEMENT
Wang
Baohui, Legal
Representative, Chairman and General Manager
-----------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
From 2010 to present, working in SC as legal representative,
chairman and general manager
BUSINESS
OPERATION
***Note: SC started
its normal operation in 2012.
SC’s registered business scope includes manufacturing and
selling food paper packaging products, container products; international trade.
SC is
mainly engaged in manufacturing and selling food paper packaging products.
Brand: KANGSEN
SC’s
products mainly include: disposable paper
tableware
SC sources its materials 100% from domestic market, mainly Shandong. SC sells 30% of its products in domestic market, and 70% to overseas market, mainly USA, Europe, etc.
The
buying terms of SC include Check, T/T and Credit of 30-60 days. The payment
terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Customer:
=============
Greenwave
International Inc. (USA)
Staff & Office:
--------------------------
SC is
known to have approx. 400
staff at present.
SC owns 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
The bank
information of SC is not filed in SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2013 |
|
Cash |
112,630 |
|
Notes receivable |
0 |
|
Accounts receivable |
6,030 |
|
Other receivable |
23,870 |
|
Inventory |
16,690 |
|
Non-current
assets within one year |
0 |
|
Other current
assets |
27,040 |
|
|
------------------ |
|
Current assets |
186,260 |
|
Fixed assets |
61,960 |
|
Construction in
progress |
104,890 |
|
Deferred income
tax assets |
0 |
|
Other
non-current assets |
11,970 |
|
|
------------------ |
|
Total assets |
365,080 |
|
|
============= |
|
Short-term loans |
89,700 |
|
Notes payable |
171,570 |
|
Accounts payable |
2,800 |
|
Advances from clients |
0 |
|
Other payable |
18,660 |
|
Other current
liabilities |
-1,030 |
|
|
------------------ |
|
Current
liabilities |
281,700 |
|
Non-current
liabilities |
45,000 |
|
|
------------------ |
|
Total
liabilities |
326,700 |
|
Equities |
38,380 |
|
|
------------------ |
|
Total
liabilities & equities |
365,080 |
|
|
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
|
Revenue |
12,110 |
|
Cost of sales |
16,480 |
|
Sales expense |
840 |
|
Management expense |
8,650 |
|
Finance expense |
19,280 |
|
Profit before
tax |
-33,150 |
|
Less: profit tax |
0 |
|
Profits |
-33,150 |
Important Ratios
=============
|
|
As
of Dec. 31, 2013 |
|
*Current ratio |
0.66 |
|
*Quick ratio |
0.60 |
|
*Liabilities
to assets |
0.89 |
|
*Net profit
margin (%) |
-273.74 |
|
*Return on
total assets (%) |
-9.08 |
|
*Inventory /
Revenue ×365 |
504 days |
|
*Accounts
receivable/ Revenue ×365 |
182 days |
|
*Revenue/Total
assets |
0.33 |
|
*Cost of sales
/ Revenue |
1.36 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIR
l
The revenue of SC appears
fair in its line.
l
SC’s net profit margin is poor.
l
SC’s return on total assets is fair.
l
SC’s cost of sales is high, comparing with its revenue.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC is maintained in an average
level.
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 a
fair level, comparing with the size of its total assets.
LEVERAGE:
FAIR
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Fair.
CONCLUSIONS
SC is considered medium-sized in its line with fair
financial conditions. The large amount of short-term loans may be a threat to
SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.58.43 |
|
UK Pound |
1 |
Rs.98.28 |
|
Euro |
1 |
Rs.80.12 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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.