MIRA INFORM REPORT
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Report Date : |
12.11.2014 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
Unit 02, 10/F, Building D, Xiamen International Shipping
Center, No. 97 Xiangyu Road, Modern Logistics Park, Xiamen, Fujian Province,
361000 Pr |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
11.08.2003 |
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Com. Reg. No.: |
350200200043831 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Importing and exporting commodities and technology (not attach catalog
of imported and exported commodities), excluding the goods prohibited or
limited by the country; wholesaling and retailing lubricants and chemical raw
materials (excluding hazardous chemicals and controlled chemicals), knitting
textiles, general merchandise, hardware, machinery and electronic equipment,
photographic equipment, building materials, metal materials, gold, silver and
products. |
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No of Employees : |
30 |
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 – June 1, 2014
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
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 & address
Xiamen Jiayu Trading Development CO., LTD.
Unit 02, 10/F, Building D, Xiamen International
Shipping Center,
No. 97 Xiangyu Road, Modern Logistics Park,
Xiamen,
FUJIAN province, 361000 PR CHINA
TEL: 86 (0) 592-5622427/6018852
FAX: 86 (0) 592-6021930
EXECUTIVE SUMMARY
INCORPORATION DATE : aug. 11, 2003
REGISTRATION NO. : 350200200043831
REGISTERED LEGAL FORM : Limited
liabilities company
chief executive :
zeng xulin (CHAIRMAN)
STAFF STRENGTH :
30
REGISTERED CAPITAL : CNY 50,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 766,580,000 (AS OF DEC. 31, 2013)
EQUITIES : CNY 48,010,000 (AS OF DEC. 31,
2013)
PAYMENT :
AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : Fairly stable
OPERATIONAL TREND : Fairly STEADY
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 6.1207 = usd 1 AS
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: The and contact way belong to SC’s Shenzhen Office.
SC was registered as a limited liabilities co. at local Administration
for Industry & Commerce (AIC - The official body of issuing and renewing
business license) on Aug. 11, 2003.
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 importing and exporting
commodities and technology (not attach catalog of imported and exported
commodities), excluding the goods prohibited or limited by the country;
wholesaling and retailing lubricants and chemical raw materials (excluding
hazardous chemicals and controlled chemicals), knitting textiles, general
merchandise, hardware, machinery and electronic equipment, photographic
equipment, building materials, metal materials, gold, silver and products.
SC is mainly engaged in trading different kinds of products.
Zeng Xulin is legal representative, chairman and general manager of SC
at present.
SC is known to have approx. 30 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the Modern Logistics Park of Xiamen. SC’s employee refused to release the detailed information
of the premise.
http://www.xiamenjiayu.com/ The design is professional and the content is
well organized. At present it is in English version.
Email: Christine.wu@shengwanlong.com
No significant changes were found during our checks with the local AIC.
Subject passed the annual inspection of 2012 with Administration for
Industry & Commerce.
Organization Code: 751601683
There is no record of litigation till now.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Lin Yijuan 95
Zeng Xulin 5
Legal
representative, chairman and general manager:
Zeng Xulin is currently responsible for the overall management of SC.
Working Experience(s):
At present
Working in SC as legal representative, chairman and general manager.
Supervisor:
Lin Yijuan
SC is mainly engaged in trading different kinds of products.
SC’s products mainly include: knitting textiles, building materials
SC sources its materials 40% from domestic market, and 60% from overseas
market. SC sells 70% of its products in domestic market, and 30% 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’s management refused to release its main suppliers and clients.
Shenzhen Office
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Add: 1901-2, North Tower, Cangsong Building, Tairan 6 Road, Chegongmiao,
Futian District, Shenzhen
Tel: 0755-82722614
Fax: 0755-82723614
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.
Balance
Sheet
Unit: CNY’000
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As of Dec. 31,
2013 |
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Cash & bank |
122,330 |
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Inventory |
3,200 |
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Accounts receivable |
101,820 |
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Bills receivable |
0 |
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Interest receivable |
2,010 |
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Export tax rebate receivable |
16,660 |
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Other Accounts receivable |
14,360 |
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Advances to suppliers |
0 |
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To be apportioned expense |
70 |
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Other current assets |
0 |
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Current assets |
260,450 |
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Fixed assets net value |
170 |
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Long-term investment |
0 |
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Intangible and other assets |
10 |
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Total assets |
260,630 |
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Short loans |
113,070 |
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Accounts payable |
72,540 |
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Advance from customers |
0 |
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Other Accounts payable |
26,620 |
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Notes payable |
0 |
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Taxes payable |
90 |
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Withdraw the expenses in advance |
300 |
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Other current liabilities |
0 |
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212,620 |
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Long term liabilities |
0 |
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Other liabilities |
0 |
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Total liabilities |
212,620 |
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Equities |
48,010 |
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260,630 |
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Income
Statement
Unit: CNY’000
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As of Dec. 31, 2013 |
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Turnover |
766,580 |
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Cost of goods sold |
746,840 |
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Sales expense |
16,460 |
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Management expense |
390 |
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Finance expense |
4,470 |
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Profit before tax |
110 |
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Less: profit tax |
30 |
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Profits |
80 |
Important
Ratios
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As of Dec. 31,
2013 |
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*Current ratio |
1.22 |
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*Quick ratio |
1.21 |
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*Liabilities to assets |
0.82 |
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*Net profit margin (%) |
0.01 |
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*Return on total assets (%) |
0.03 |
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*Inventory /Turnover ×365 |
2 days |
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*Accounts receivable/Turnover ×365 |
49 days |
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*Turnover/Total assets |
2.94 |
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* Cost of goods sold/Turnover |
0.97 |
PROFITABILITY:
AVERAGE
The turnover of SC appears fairly good in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of goods sold is high, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a normal level.
The inventory of SC is maintained in an average level.
The accounts receivable of SC is fairly large.
SC’s short-term loan is large in 2013.
SC’s turnover is in a fairly good level, comparing with the size of its
total assets.
LEVERAGE: FAIR
The debt ratio of SC is fairly high.
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. The large amount of accounts receivable and short loans could be a
threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.55 |
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|
1 |
Rs.97.53 |
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Euro |
1 |
Rs76.48 |
INFORMATION DETAILS
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Analysis Done by
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KAR |
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Report Prepared
by : |
TPT |
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.