MIRA
INFORM REPORT
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Report Date : |
30.05.2014 |
IDENTIFICATION DETAILS
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Name : |
QINGDAO TONGLI UNITED CO., LTD. |
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Registered Office : |
Room 102, Unit 4, Building 7, Yuanyang Binhai Garden, No. 2 Zhuhai Vicinal Road, Shinan
District, Qingdao, Shandong Province, 266071 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
02.11.2007 |
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Com. Reg. No.: |
370202228233088 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in trading chemical products. products mainly include
various kinds of chemical products, such as caustic soda, petroleum resin,
chloride, |
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No. of Employees : |
3 |
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
|
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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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate 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, 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 2012 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 demand; (b) sustaining adequate job growth for tens of millions of migrants and new entrants to the work force; (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. In 2010-11, China faced high inflation resulting largely from its credit-fueled stimulus program. Some tightening measures appear to have controlled inflation, but GDP growth consequently slowed to under 8% for 2012. An economic slowdown in Europe contributed to China's, and is expected to further drag Chinese growth in 2013. Debt overhang from the stimulus program, particularly among local governments, and a property price bubble challenge policy makers currently. 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 exports in the future. However, China has made only marginal progress toward these rebalancing goals.
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Source
: CIA |
Company name & address
qingdao tongli united co., ltd.
Room 102, Unit 4, Building 7, Yuanyang Binhai
Garden,
No. 2 Zhuhai Vicinal Road, Shinan District,
Qingdao,
SHANDONG PROVINCE, 266071 PR CHINA
TEL: 86 (0) 532-66775937/83655368
FAX: 86 (0) 532-68884282
EXECUTIVE SUMMARY
INCORPORATION DATE : nov. 2, 2007
REGISTRATION NO. : 370202228233088
REGISTERED LEGAL FORM : Limited
liabilities company
CHIEF EXECUTIVE :
Mr. zhao qiang (CHAIRMAN)
STAFF STRENGTH :
3
REGISTERED CAPITAL : CNY
500,000
BUSINESS LINE :
trading
TURNOVER :
CNY 38,500,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 460,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND :
fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.0407= 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: the (Room 1703, Zhonghuan International Plaza, No. 19 Zhangzhou 2nd
Road, Qingdao 266071 China) was SC’s former address.
SC’s correct name shall be the heading one instead of the given one
(Qingdao Tongli Limited Co. Ltd).
SC was registered as a limited liabilities company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Nov. 2, 2007.
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 wholesaling and retailing of
textiles, general merchandise, electronics, office supplies, chemical products (excluding hazardous chemicals),
plastic products, furniture, hardware, mechanical and electrical equipments and
spare parts, metal products, instruments and meters, importing and exporting
commodities and technologies (excluding
items prohibited by laws and administrative regulations; able to engage in
items that need permit s according to the regulation of laws and administrative
regulations); domestic highway
freight forwarding (with permits if needed).
SC is mainly engaged in trading chemical products
Mr. Zhao Qiang has been legal representative and chairman of SC since
2012.
SC is known to have approx. 3 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the commercial zone of Qingdao. Our checks
reveal that SC owns the total premise about 50 square meters.
SC is not known to host website of its own at present.
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Registration No. |
3702022823308 |
Present one |
|
2010-1 |
Legal representative |
Yang Xiufang |
Yu Fangyuan |
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Shareholders |
Yang Xiufang 45% Yuan Hongsheng 10% Liu Ruimei 45% |
Present ones |
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|
2012 |
Legal representative |
Yu Fangyuan |
Present one |
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Yang Xiufang 55
Cui Ying 45
Legal representative and chairman:
Mr. Zhao Qiang is currently responsible for the overall management of
SC.
Working
Experience(s):
From 2012 to present Working
in SC as legal representative and chairman
General
manager:
Ms. Cui Ying, in her
Working
Experience(s):
From 2010 to present Working
in SC as general manager
SC is mainly engaged in trading chemical products
SC’s products mainly include various kinds of chemical products, such as
caustic soda, petroleum resin, chloride,
SC sources its materials 95% from domestic market and 5% from overseas
market. SC sells 5% of its products in domestic market, and 95% to overseas
market, mainly to Africa and India, 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.
Note: SC’s
management declined to release its major clients and suppliers.
SC is not known to have any subsidiary at present.
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.
China CITIC Bank Qingdao Branch
AC#: 7371060182200164760
Relationship: Normal.
Balance
Sheet
Unit: CNY’000
|
|
as of Dec. 31,
2012 |
as of Dec. 31,
2011 |
|
Cash & bank |
460 |
1,370 |
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Inventory |
170 |
300 |
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Accounts receivable |
1,180 |
0 |
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Advances to supplies |
0 |
1,380 |
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Export tax rebate receivable |
590 |
1,120 |
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Other receivables |
0 |
0 |
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Other current assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
2,400 |
4,170 |
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Fixed assets net value |
1,020 |
50 |
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Projects under construction |
0 |
0 |
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Long-term investments |
0 |
0 |
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Intangible and other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
3,420 |
4,220 |
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|
============= |
============= |
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Short loans |
0 |
0 |
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Accounts payable |
1,130 |
290 |
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Advances from customers |
200 |
1,130 |
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Accrued payroll |
0 |
0 |
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Welfares payable |
0 |
0 |
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Taxes payable |
0 |
-30 |
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Other Accounts payable |
1,630 |
2,370 |
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Other current liabilities |
0 |
0 |
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----------------- |
----------------- |
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Current liabilities |
2,960 |
3,760 |
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Long term liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total liabilities |
2,960 |
3,760 |
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Shareholders equities |
460 |
460 |
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------------------ |
------------------ |
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Total liabilities & equities |
3,420 |
4,220 |
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============= |
============= |
Income
Statement
Unit: CNY’000
|
|
as
of Dec. 31, 2012 |
as
of Dec. 31, 2011 |
|
Turnover |
38,500 |
41,460 |
|
Cost of goods sold |
36,020 |
38,120 |
|
Taxes and additional of main operations |
10 |
10 |
|
Sales expense |
1,920 |
2,820 |
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Management expense |
450 |
350 |
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Finance expense |
90 |
140 |
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Profit before tax |
10 |
20 |
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Less: profit tax |
0 |
10 |
|
Profits |
10 |
10 |
Important
Ratios
|
|
as
of Dec. 31, 2012 |
as
of Dec. 31, 2011 |
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*Current ratio |
0.81 |
1.11 |
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*Quick ratio |
0.75 |
1.03 |
|
*Liabilities to assets |
0.87 |
0.89 |
|
*Net profit margin (%) |
0.03 |
0.02 |
|
*Return on total assets (%) |
0.29 |
0.24 |
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*Inventory /Turnover ×365 |
2 days |
3 days |
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*Accounts receivable/Turnover ×365 |
11 days |
/ |
|
*Turnover/Total assets |
11.26 |
9.82 |
|
* Cost of goods sold/Turnover |
0.94 |
0.92 |
PROFITABILITY:
AVERAGE
·
The turnover of SC appears average in both years,
but it decreased in 2012.
·
SC’s net profit margin is average in both years.
·
SC’s return on total assets is average in both
years.
·
SC’s cost of goods sold is fairly high in both
years, comparing with its turnover.
LIQUIDITY: FAIR
·
The current ratio of SC is maintained in a normal
level in 2011 and fair level in 2012.
·
SC’s quick ratio is maintained in a normal level in
2011 and fair level in 2012.
·
The inventory of SC appears small in both years.
·
SC’s accounts receivable is average in 2012.
·
SC has no short-term loan in both years.
·
SC’s turnover is in a good level in both years,
comparing with the size of its total assets.
LEVERAGE: FAIR
·
The debt ratio of SC is high in both years.
·
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered small-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.58.84 |
|
|
1 |
Rs.98.40 |
|
Euro |
1 |
Rs.80.03 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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 |
|
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 |
|
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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.