MIRA
INFORM REPORT
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Report Date : |
25.09.2014 |
IDENTIFICATION DETAILS
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Name : |
QUNBANG PRODUCT COMPANY LIMITED OF |
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Registered Office : |
Taipinggou Four 49, Trade Way,
Hanshan District, Handan City, Hebei, 056001 PR |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
05.07.2007 |
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Com. Reg. No.: |
130400000000466 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Engaged in international trade like, ·
Coal tar deep processing ·
Cenosphere ·
Coal tar ·
Petroleum coke ·
Crude naphthalene ·
Hard pitch; high temperature pitch ·
Water proofing pitch ·
Coal tar pitch |
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No. of Employees : |
10 |
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 |
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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
QUNBANG PRODUCT COMPANY LIMITED OF HANDAN CITY
TAIPINGGOU FOUR 49, TRADE WAY,
HANSHAN DISTRICT,
HANDAN CITY, HEBEI, 056001 PR
CHINA
TEL: 86 (0) 310-5100550 FAX: 86 (0) 310-5100550
EXECUTIVE SUMMARY
INCORPORATION DATE : July 5, 2007
REGISTRATION NO. : 130400000000466
REGISTERED LEGAL FORM : Limited liabilities co.
CHIEF EXECUTIVE :
Mr. wang guoqiang (CHAIRMAN)
STAFF STRENGTH :
10
REGISTERED CAPITAL : CNY 10,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 16,060,891 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 10,023,970 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.1364= 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 limited liabilities
company at local Administration for Industry & Commerce (The official body
of issuing and renewing business license).
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 benzene, coal
tar, absorber oil, coal tar pitch, crude naphthalene, anthracene oil and crude
carbolic acid; selling steel, cast iron, heavy oil, petroleum coke, coke,
building materials, palletizing, hardware, electronic materials, other
machinery equipment, electronic products, asphalt oil residue and fireproofing;
importing and exporting goods (with permit if needed).
SC is
mainly engaged in international trade.
Mr.
Wang Guoqiang is legal representative, chairman and general manager of SC at
present.
SC is
known to have approx. 10 employees at present.
SC is currently operating at the above stated address, and this
address houses its operating office in the commercial zone of Handan. Detailed
premise information is unspecified.
http://www.hdsqbwz.cn/ This is SC’s
promotion website. The design is professional and the content is well
organized. At present it is in Chinese version.
No significant events or changes were found
during our checks with local AIC.
Subject passed the annual inspection of
2012 with Administration for Industry & Commerce.
Organization code: 663685928
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Wang Zhaojun 50
Wang Guoqiang 50
l
Legal Representative, Chairman & General
Manager:
Mr. Wang Guoqiang is currently responsible
for the overall management of SC.
Working Experience(s):
At present Working in SC as legal
representative, chairman and general manager
l
Supervisor:
Wang Zhaojun
SC is
mainly engaged in international trade.
SC’s products
mainly include:
Coal tar deep
processing
Cenosphere
Coal tar
Petroleum coke
Crude naphthalene
Hard pitch; high
temperature pitch
Water proofing
pitch
Coal tar pitch
Etc.
SC sources its materials 100% from domestic market. SC sells
40% of its products to overseas market
and 60% in domestic market.
The buying terms
of SC include Check, T/T 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 refused
to release its major suppliers and clients.
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.
SC
refused to release its banking information.
Balance Sheet
Unit: CNY
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as of Dec. 31, 2013 |
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Cash
& bank |
197,543 |
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Inventory |
335,540 |
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Accounts
receivable |
5,036,654 |
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Other
receivables |
0 |
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Advances to
suppliers |
3,993,933 |
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Other
current assets |
87,676 |
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------------------ |
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Current
assets |
9,651,346 |
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Fixed
assets net value |
308,154 |
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Projects
under construction |
0 |
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Long
term investment |
0 |
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Intangible
assets |
0 |
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Other
assets |
0 |
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------------------ |
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Total
assets |
9,959,500 |
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============= |
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Short
loans |
0 |
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Accounts
payable |
0 |
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Advances from
clients |
0 |
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Tax
payable |
-64,470 |
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Other
payable |
0 |
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Other
current liabilities |
0 |
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------------------ |
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Current
liabilities |
-64,470 |
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Long term
liabilities |
0 |
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------------------ |
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Total
liabilities |
-64,470 |
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Equities |
10,023,970 |
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------------------ |
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Total
liabilities & equities |
9,959,500 |
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============= |
Income Statement
Unit: CNY
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as
of Dec. 31, 2013 |
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Turnover |
16,060,891 |
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Cost of goods
sold |
15,852,429 |
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Taxes and additional of main operation |
5,356 |
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Sales expense |
170,076 |
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Management expense |
29,680 |
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Finance expense |
-595 |
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Profit before
tax |
3,945 |
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Less: profit tax |
14,021 |
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Profits |
-10,076 |
Important Ratios
=============
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as
of Dec. 31, 2013 |
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*Current ratio |
-149.70 |
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*Quick ratio |
-144.50 |
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*Liabilities
to assets |
-0.01 |
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*Net profit
margin (%) |
-0.06 |
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*Return on
total assets (%) |
-0.10 |
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*Inventory
/Turnover ×365 |
8
days |
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*Accounts
receivable/Turnover ×365 |
114
days |
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*Turnover/Total
assets |
1.61 |
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* Cost of
goods sold/Turnover |
0.99 |
PROFITABILITY:
FAIR
l
The turnover of SC appears average in
its line.
l
SC’s net profit margin is fair.
l
SC’s return on total assets is fair.
l
SC’s cost of goods sold is high,
comparing with its turnover.
LIQUIDITY:
AVERAGE
l
The inventory
of SC appears small.
l
The accounts receivable of SC appears large in
2013.
l
SC has no short-term loan in 2013.
l
SC’s turnover is in an average level,
comparing with the size of its total assets.
LEVERAGE:
AVERAGE
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. The large amount of accounts receivable would be a threat to SC’s
financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.02 |
|
|
1 |
Rs.99.99 |
|
Euro |
1 |
Rs.78.37 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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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 |
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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.