MIRA INFORM REPORT
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Report Date : |
30.10.2014 |
IDENTIFICATION DETAILS
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Name : |
fuzhou highway import & export co., ltd. |
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Registered Office : |
26c, Ping’an Building, No. 88 Wuyi Middle Road, Chating Street, Taijiang District, Fuzhou, Fujian Province, 350005 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
08.02.2007 |
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Com. Reg. No.: |
350102100026528 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject includes wholesale, purchase and sales agent of building
materials, chemical products (excluding dangerous products), electronic
products, household appliances, electrical equipment, machinery equipment, garments,
textiles and plastic products, importing and exporting various kinds of
commodities and technology, excluding the items forbidden by the government. |
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No. of Employees : |
9 |
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 : |
Small Business |
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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
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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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 |
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 and address
fuzhou highway import & export co., ltd.
26c, Ping’an
Building, no. 88 Wuyi Middle Road, chating street,
Taijiang District,
fuzhou, fujian PROVINCE, 350005 PR CHINA
TEL: 86 (0)
591-83352261 FAX: 86 (0)
591-83351211
EXECUTIVE
SUMMARY
INCORPORATION DATE : february 8, 2007
REGISTRATION NO. : 350102100026528
REGISTERED LEGAL
FORM : Limited liabilities company
STAFF STRENGTH : 9
REGISTERED CAPITAL :
CNY 2,000,000
BUSINESS LINE : trading
TURNOVER : CNY 59,570,000
(AS OF DEC. 31, 2013)
EQUITIES : CNY 3,270,000 (AS
OF DEC. 31, 2013)
PAYMENT : AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION
: FAIRLY STABLE
OPERATIONAL TREND :
fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.1111 = 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
Note: SC’s current operating address
should be the heading one, while the was the former one.
According to SC’s website, SC is also known
as Fuzhou Highway Ceramic 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 February 8,
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 wholesale, purchase & sales
agent of building materials, chemical products (excluding dangerous products),
electronic products, household appliances, electrical equipment, machinery equipment,
garments, textiles and plastic products, importing and exporting various kinds
of commodities and technology, excluding the items forbidden by the government.
SC is mainly engaged in selling building materials.
Mr. Huang Weihang (黄威航) has been
chairman of SC since 2007.
SC is known to have approx. 9 employees at present.
SC is currently operating at the above
stated address, and this address houses its operating office in the commercial
zone of Fuzhou. The detailed premise information is unknown.
http://www.highwayceramic.com/ The design
is professional and the content is well organized. At present it is in Chinese,
English and other versions.
Email: kinon555@public.fz.fj.cn
SC has passed ISO9001, CE, SASO, SONCAP,
etc.
Changes of its registered information are as
follows:
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Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Registration No. |
3501022100701 |
Present one |
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Registered capital |
CNY 500,000 |
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Shareholders (% of shareholding) |
Chen Xiuqiong 60% Huang Weihang 40% |
Present ones |
Subject passed the annual inspection
of 2012 with Administration for Industry & Commerce.
Organization Code: 798376508
There is no record of litigation till
now.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Chen Xiuqiong 40
Huang Weihang 60
l Chairman:
Mr. Huang Weihang, about 41 years old with
university education. He is currently responsible for the overall management of
SC.
Working Experience(s):
From 2007 to present Working in SC as
chairman.
l General Manager:
Chen Xiuqiong is currently responsible for
the daily management of SC.
Working Experience(s):
At present Working in SC as general
manager.
l Supervisor:
Huang Haisheng
SC is mainly engaged in selling
building materials.
SC’s products mainly include:
Wood Floor Bricks
Wall Tiles
Floor Tiles
Porcelain Tile
Pulati
Semi-polished
Tiles
Archaize Metal
Glaze
Full-polished
Floor Tiles
Polished Crystal
Tiles
Square and
Moisture-proof
Moisture-proof
Square
Printing Tiles
Etc.
SC sources its
materials 100% from domestic market. SC sells 100% of its products to overseas
market, mainly Southeast Asian market.
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.
Note:
SC declined to release its major suppliers and clients.
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TRADEMARKS
& PATENTS |
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Registration No. |
6786806 |
6753612 |
6753610 |
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Registration Date |
July 7, 2010 |
June 14, 2010 |
June 14, 2010 |
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Trademark Design |
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Cooperators:
according to SC’s website
============================
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 Merchants Bank Fuzhou Branch
AC#：N/A
Relationship: Normal.
Balance Sheet
Unit: CNY’000
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as of Dec. 31, 2013 |
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Cash & bank |
625 |
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Inventory |
265 |
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Accounts receivable |
0 |
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Advances to suppliers |
8,330 |
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Other receivables |
4,330 |
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Dividends receivable |
0 |
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Other current assets |
0 |
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------------------ |
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Current assets |
13,550 |
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Fixed assets net value |
260 |
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Projects under construction |
0 |
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Long term investment |
0 |
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Intangible assets |
30 |
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Other assets |
0 |
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------------------ |
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Total assets |
13,840 |
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============= |
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Short loans |
0 |
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Accounts payable |
80 |
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Other accounts payable |
10,380 |
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Notes payable |
0 |
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Taxes payable |
80 |
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Advances from clients |
20 |
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Other current liabilities |
10 |
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Current liabilities |
10,570 |
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Long term liabilities |
0 |
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Total liabilities |
10,570 |
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Equities |
3,270 |
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Total liabilities & equities |
13,840 |
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Income Statement
Unit: CNY’000
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as of Dec. 31, 2013 |
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Turnover |
59,570 |
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Cost of goods sold |
55,380 |
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Taxes and additional of main operation |
0 |
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Sales expense |
2,400 |
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Management expense |
1,220 |
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Finance expense |
40 |
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Profit before tax |
650 |
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Less: profit tax |
160 |
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Profits |
490 |
Important Ratios
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as of Dec. 31, 2013 |
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*Current
ratio |
1.28 |
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*Quick
ratio |
1.26 |
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*Liabilities
to assets |
0.76 |
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*Net profit
margin (%) |
0.82 |
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*Return on
total assets (%) |
3.54 |
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*Inventory
/Turnover ×365 |
2 days |
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*Accounts
receivable/Turnover ×365 |
/ |
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*Turnover/Total
assets |
4.30 |
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* Cost of
goods sold/Turnover |
0.93 |
PROFITABILITY:
AVERAGE
l The turnover of SC
appears average in its line.
l SC’s net profit
margin is average.
l SC’s return on
total assets is average.
l SC’s cost of goods
sold is high, comparing with its turnover.
LIQUIDITY:
AVERAGE
l The current ratio
of SC is maintained in a normal level.
l SC’s quick ratio
is maintained in a normal level.
l SC’s inventory is
average.
l SC has no accounts
receivable in 2013.
l SC has no
short-term loan in 2013.
l SC’s turnover is
in a fairly good 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 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.61.32 |
|
|
1 |
Rs.99.00 |
|
Euro |
1 |
Rs.78.14 |
INFORMATION DETAILS
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Analysis Done by
: |
SUB |
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Report Prepared
by : |
NIT |
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.