MIRA INFORM REPORT
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Report Date : |
11.10.2014 |
IDENTIFICATION DETAILS
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Name : |
COFCO TRADING co., ltd. |
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Registered Office : |
7/F, Cofco Fortune Plaza, No. 8 Chaoyangmen South Street, Chaoyang District, Beijing 100020
PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
30.01.1988 |
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Com. Reg. No.: |
100000000041046 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Subject is
engaged in international trade which includes wheat, rice, sugar, corn and
other grain and oil products. |
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No of Employees : |
150 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
China |
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 |
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 & ADDRESS
COFCO TRADING co., ltd.
7/F, COFCO FORTUNE PLAZA, NO. 8 CHAOYANGMEN
SOUTH STREET,
CHAOYANG DISTRICT, BEIJING 100020
PR CHINA
TEL: 86 (0) 10-85006688/85006353
FAX: 86 (0) 10-65278652/85633580
EXECUTIVE
SUMMARY
INCORPORATION DATE : jan. 30, 1988
REGISTRATION NO. :
100000000041046
REGISTERED LEGAL FORM :
ONE-PERSON LIMITED LIABILITY COMPANY
STAFF STRENGTH :
150
REGISTERED CAPITAL : CNY 567,833,246.19
BUSINESS LINE :
TRADING
TURNOVER :
CNY 17,640,230,000 (AS OF DEC.
31, 2012)
EQUITIES :
CNY 1,388,933,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : well-known
EXCHANGE RATE :
CNY
6.13 =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
SC was registered as a State-owned enterprise at State Administration
for Industry & Commerce (AIC-The official body of issuing and renewing
business license) on Jan. 30, 1988 and has been under present ownership since 2007.
Company Status: One-person
Limited Liability Company Single person LLC refers to a
limited liability company set up by only one natural person or legal person
as the single shareholder of it. The minimum registered capital
of Single person LLC is CNY100,000. The shareholder’s capital contributes,
as set out by the articles of associations should be a lump-sum payment in
full. One natural person can only
invest in and set up one limited liability company, which is not permitted
to invest in and set up a new Single person LLC. As to any one-person limited
liability company, the sole-investor nature of the natural person or legal
person shall be indicated in the registration documents of the company and
shall be indicated in the business license thereof as well. The regulation of Single person
LLC should be set up by the shareholder The regulation of Single person
LLC has no shareholder meeting.
SC’s registered business scope includes purchasing grains; wholesaling (non-physical way) prepackaged food (valid until March 21, 2015); import & export business; selling feed, feed additives, knitting textiles, mechanical appliance equipment and paper; information consultation. (with permit if needed)
SC is mainly engaged in international trade.
Mr. Chi Jingtao has been the legal representative and general manager of SC since May of 2014.
SC is known to have approx. 150 employees at present.
SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Beijing. The detailed information of the area is unspecified.
Note: The address 8/F, COFCO Fortune Plaza, No. 8 Chao Yang Men South Street, Chaoyang District, Beijing 100020 PR China is SC’s sales department.
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 |
|
2006 |
Legal representative |
Yu Xubo |
Li Ming |
|
2007 |
Legal form |
State-owned enterprise |
Present one |
|
2007-11-12 |
Company name |
COFCO Grains & Oils Import And Export Corporation |
COFCO AGRI-Trading Co., Ltd. |
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Registered capital |
CNY 30,000,000 |
CNY 544,833,246.19 |
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|
2011-6-10 |
Registered capital |
CNY 544,833,246.19 |
Present amount |
|
Unknown |
Registered no. |
1000001004104 |
Present one |
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2014-5-7 |
Company name |
COFCO AGRI-Trading Co., Ltd. |
Present one |
|
Legal representative |
Li Ming |
Present one |
Organization code: 101146543
See below for SC as executive party (defendant).
|
Executed Party |
SC |
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Court |
Beijing City Dongcheng District People's Court |
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Date
of Case |
|
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Case Number |
(2012) 02105 |
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Claim
Amount |
RMB 1,821,000 |
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Case
Status |
Completed |
Remark: Due to the lack of information, we are unable to provide the cause of action,
judgment or other information.
MAIN
SHAREHOLDERS:
Name
% of Shareholding
COFCO Limited 100
Founded in 1952, COFCO is a leading grain,
oils and foodstuff import and export group in China and one of its largest food
manufacturers. Fortune magazine lists it as one of the world's Top 500
Enterprises.
Incorporation Date: July 6, 1983
Registration No.: 100000000001197
Registered Capital: CNY 1,977,768,000
Legal Rep.: Ning
Gaoning
Registered Legal Form: Sole
State-Owned Enterprise
Address: COFCO Fortune Plaza, No. 8
Chaoyangmen South Street, Chaoyang District, Beijing, China
Tel: 86 (0) 10- 85006603
Fax: 86 (0) 10- 85610700
Website: http://www.cofco.com
l Legal Representative and General Manager:
Mr. Chi Jingtao, ID# 11010819630115****, born in 1963, with master’s degree.
He is currently responsible for the overall management of SC.
Working Experience(s):
From May of 2014 to present Working in SC as legal
representative and general manager
Also working in China Foods Limited (Bermuda)
as director.
l Supervisor:
Wu Wenting ID#11010819640315****
SC is mainly
engaged in international trade.
SC’s products mainly include: wheat, rice, sugar, corn and other grain
and oil products.
SC sources its
materials 80% from domestic market, mainly Beijing, and 20% from overseas
market. SC sells 60% of its products to overseas market, and 40% in domestic
market, mainly Beijing, Tianjin, and Hebei Province, etc.
The buying terms of SC include T/T, L/C, Check and Credit of 30-60 days.
The payment terms of SC include T/T, L/C, Check and Credit of 30-60 days.
*Major Supplier:
============
COFCO Limited
Note:
SC’s management declined to release its major clients.
China Foods Limited (Bermuda)
======================
Incorporation Date: 1990-6-28
Registration No.: F0004677
Legal Form: Listed
Chairman: Yu Xubo
Status: Live
E-mail: 506ir@cofco.com & jackyman@cofco.com
Tel: (852) 2833 0288 / 2833 0388
Fax: (852) 2833 0283 / 2833 0380
The said company is a listed company in Hong Kong Stock Exchange Market with the code of 00506.
SC is known to invest in the following companies:
Beijing Fuqiang Electronic Commerce Co., Ltd. (in Chinese Pinyin)
===============================================
Date of incorporation: June 20, 2001
Registered no.: 110105002776193
Registered capital: CNY 1,000,000
Legal representative: Fu Ruliang
Legal form: Limited Liabilities Company
COFCO Finance Co., Ltd.
==================
Date of incorporation: September 24, 2002
Registered no.: 100000000037158
Registered capital: CNY 1,000,000,000
Legal representative: Ma Wangjun
Legal form: Limited Liabilities Company
Etc.
SC is known to have the following branches:
COFCO AGRI-Trading Co., Ltd. Guangdong Department (Literal Translation)
=======================================================
Date of incorporation: April 28, 2008
Registered no.: 440301103321251
Legal representative: Ma Lijun
COFCO AGRI-Trading Co., Ltd. North China Department (Literal Translation)
========================================================
Date of incorporation: July 4, 2008
Registered no.: 370100100040288
Legal representative: Qiao Rui
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’s suppliers
declined to make any comments.
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’s management
declined to release its bank information.
Financial Information
Unit: CNY’000
Note: SC’s
accountant refused to release the detailed financial reports for Yr2011 and
Yr2012 or the latest financial information.
Important Ratios
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|
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As
of Dec. 31, 2011 |
As of Dec. 31,
2012 |
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*Liabilities to
assets |
0.87 |
0.80 |
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*Net profit
margin (%) |
0.09 |
1.47 |
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*Return on
total assets (%) |
0.16 |
3.79 |
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*Turnover/Total
assets |
1.82 |
2.58 |
PROFITABILITY: AVERAGE
The turnover of SC appears good in its line in both years, and it
increased in 2012.
l
SC’s net profit margin is average in both
years.
SC’s return on total assets is average in both years.
l SC’s turnover is in
an average level in both years,
comparing with the size of its total assets.
LEVERAGE: AVERAGE
l The debt ratio of
SC is high in 2011, and fairly high in 2012.
l The risk for SC to
go bankrupt is low.
Overall financial condition of the SC:
Fairly Stable.
SC is considered medium-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.16 |
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|
1 |
Rs.98.63 |
|
Euro |
1 |
Rs.77.67 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
SMN |
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 |
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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.