MIRA INFORM REPORT
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Report No. : |
318941 |
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Report Date : |
28.04.2015 |
IDENTIFICATION DETAILS
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Name : |
FOSHAN YI LONG ECONOMIC & TRADE CO., LTD. |
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Registered Office : |
W206, 2/F, Developing Building, No. 235 Lianjiang 1st Road, Chancheng District, Foshan City, Guangdong Province, 528000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
13.01.2006 |
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Com. Reg. No.: |
440602000000971 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in selling ceramic & chemical materials. |
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No of Employees : |
20 |
RATING & COMMENTS
|
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
China |
A2 |
A2 |
|
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, 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. In 2014 the People’s Bank of China (PBOC) doubled 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 2014 stood as the largest economy in the world, surpassing the US that year� 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; � 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. In 2014 China agreed to begin limiting carbon dioxide emissions by 2030. China implemented several economic reforms in 2014, including legislation allowing local governments to issue bonds, further opening several state-owned enterprises to private investment, loosening the one-child policy, passing harsher pollution fines, and cutting administrative red tape.
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. In 2014 China agreed to begin limiting carbon dioxide emissions by 2030. China implemented several economic reforms in 2014, including legislation allowing local governments to issue bonds, further opening several state-owned enterprises to private investment, loosening the one-child policy, passing harsher pollution fines, and cutting administrative red tape.
|
Source
: CIA |
Company
name & address
FOSHAN YI LONG ECONOMIC & TRADE CO., LTD.
W206, 2/F, DEVELOPING BUILDING, NO. 235 LIANJIANG 1ST ROAD,
CHANCHENG DISTRICT, FOSHAN CITY, GUANGDONG PROVINCE, 528000 PR CHINA
TEL: 86
(0) 757-83872737 FAX: 86 (0)
757-83872700
EXECUTIVE
SUMMARY
INCORPORATION DATE :
JAN. 13, 2006
REGISTRATION NO. :
440602000000971
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 20
REGISTERED CAPITAL : CNY 1,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 52,310,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 2,080,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE : CNY 6.21= 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
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 Jan. 13, 2006.
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
selling machinery & components, hardware, steel products, metal materials,
rubber & plastic products, ceramic products, building materials, furniture,
sanitary ware, insulation materials, textiles, groceries, electric appliances
& components, ceramic & chemical materials (excluding hazardous
chemicals ), diamond products, grinding aid and materials; importing and
exporting commodities & technology (excluding the projects prohibited
by laws and administrative regulations, the projects restricted by laws,
administrative laws and regulations have to obtain permits before
operating ).
SC is mainly engaged in selling ceramic & chemical materials.
Mr.
Huang Guoqiang has been the legal representative, chairman and general manager
of SC since 2006.
SC is known
to have approx. 20 employees
at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in Foshan. SC’s accountant refused to release the gross area
of the premise.
www.yilong-fs.com
The design is professional and the content is well organized. At present the
web site is in Chinese and English versions.
Email: sales@foshanaosibo.com
Changes
of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2007-07-25 |
Registration No. |
4406042202005 |
Present one |
|
2008-06-04 |
Registered capital |
CNY 520,000 |
Present amount |
|
2010-5 |
Company name |
Foshan Kexinda Yilong Economic & Trade
Co., Ltd. |
Present one |
|
Unknown |
Shareholders & % of shareholding |
Wu Huifen 8% He Yongbiao 5% Li Xianggang 18% Chen Shuling 2% Huo Rongbiao 2% Su Jianling 4% Li Rushen 5% Huang Guoquan 10% Huang Guoqiang 26% Luo Xiaomu 20% |
Present ones |
Subject passed the annual inspection of 2012
with Administration for Industry & Commerce.
Organization Code: 784854249
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name
% of
shareholdings
Wu Huifen 8
ID# 44060219751108xxxx
He Yongbiao 5
Li Xianggang 19
ID# 44060119610124xxxx
Chen Shuling 2
ID# 44060119580729xxxx
Huo Rongbiao 2
ID# 44060119470210xxxx
Li Rushen 5
ID# 44060119570326xxxx
Huang Guoquan 10
ID# 44060119620417xxxx
Huang Guoqiang 28
ID# 44060119570728xxxx
Luo Xiaomu 21
l Chairman, Legal
Representative & General Manager:
Mr. Huang Guoqiang (黄国强), ID# 44060119570728xxxx, born in 1957. He
is currently responsible for the overall management of SC.
Working Experience(s):
From 2006 to present Working in SC as chairman, legal
representative & general manager.
Also working in Foshan Aosibo Ceramic Technology Co., Ltd. as legal
representative.
Directors:
========
Li Xianggang
ID# 44060119610124xxxx, born in 1961
Luo Xiaomu
born in 1968
Supervisor:
========
Huang Guoquan
ID# 44060119620417xxxx, born in 1962
Also working in Guangdong Kexinda Technology Co., Ltd., Foshan Kexinda Robot
Technology and Equipment Co., Ltd. (literal translation) as legal
representative.
SC is mainly engaged in selling ceramic & chemical materials.
SC’s
products mainly include: ceramic tiles, porcelain tiles, modulation pigment,
etc.
SC sources its
materials 100% from domestic market; SC sells its products 100% to overseas
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’s management declined to release its major clients and suppliers.
Guangdong Kexinda
Technology Co., Ltd.
================================
Registration No.: 440600000013525
Incorporation Date: 1998-12-15
Chairman: Huang Guoquan
Registered Capital: CNY 10,680,000
E-mail: fskxda@kexinda.com
Tel.: 0086-757-82518822
Fax: 0086-757-83823670
Foshan Aosibo Ceramic Technology Co., Ltd.
=================================
Registration No.: 440602000131674
Incorporation Date: 2003-05-09
Chairman: Huang Guoqiang
Registered Capital: CNY 500,000
Web: http://www.foshanaosibo.com/
E-mail: sales@foshanaosibo.com
Tel.: 0086-757-83816088
Fax: 0086-757-83826524
Foshan Kexinda Robot Technology and
Equipment Co., Ltd. (literal translation)
====================================================
Registration No.: 440602000116843
Incorporation Date: 2009-8-10
Chairman: Huang Guoquan
Registered Capital: CNY 1,030,000
E-mail: kxd100@kexinda.com
Tel.: 0086-757-82518801
Fax: 0086-757-83823670
Etc.
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.
Bank of China
Foshan Lanpu Sub-branch
AC#:
649657748463
Relationship: Normal
SC’s management
refused to confirm the given banking information “China Construction Bank”.
Balance Sheet
Unit: CNY’000
|
|
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
Cash & bank |
3,720 |
1,870 |
|
Inventory |
0 |
0 |
|
Accounts
receivable |
11,330 |
6,200 |
|
Advances to
suppliers |
4,570 |
4,750 |
|
Other accounts
receivable |
6,660 |
7,430 |
|
Other current
assets |
0 |
20 |
|
|
----------------- |
----------------- |
|
Current assets |
26,280 |
20,270 |
|
Fixed assets net
value |
100 |
70 |
|
Project under
construction |
0 |
0 |
|
Long term
investment |
0 |
0 |
|
Intangible and
other assets |
0 |
0 |
|
|
------------------ |
----------------- |
|
Total assets |
26,380 |
20,340 |
|
|
============= |
============= |
|
Short loans |
0 |
0 |
|
Accounts payable
|
9,620 |
6,460 |
|
Advances from
clients |
14,830 |
11,760 |
|
Accrued payroll |
0 |
0 |
|
Taxes payable |
40 |
10 |
|
Other accounts
payable |
20 |
30 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
----------------- |
|
Current
liabilities |
24,510 |
18,260 |
|
Long-term
liabilities |
0 |
0 |
|
|
------------------ |
----------------- |
|
Total
liabilities |
24,510 |
18,260 |
|
Equities |
1,870 |
2,080 |
|
|
------------------ |
----------------- |
|
Total
liabilities & equities |
26,380 |
20,340 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
Turnover |
42,100 |
52,310 |
|
Cost of goods sold |
39,720 |
49,810 |
|
Sales expense |
1,660 |
1,800 |
|
Management expense |
600 |
750 |
|
Finance expense |
-60 |
-330 |
|
Profit before
tax |
230 |
250 |
|
60 |
70 |
|
|
Profits |
170 |
180 |
Important
Ratios
=============
|
|
As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
|
*Current ratio |
1.07 |
1.11 |
|
*Quick ratio |
1.07 |
1.11 |
|
*Liabilities
to assets |
0.93 |
0.90 |
|
*Net profit
margin (%) |
0.40 |
0.34 |
|
*Return on
total assets (%) |
0.64 |
0.88 |
|
*Inventory
/Turnover ×365 |
/ |
/ |
|
*Accounts
receivable/Turnover ×365 |
98 days |
43 days |
|
*Turnover/Total
assets |
1.60 |
2.57 |
|
* Cost of goods
sold/Turnover |
0.94 |
0.95 |
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 fairly 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 has no inventory in both years.
l
The accounts receivable of SC appears fairly large
in 2013 and average in 2014.
l
SC has no short-term loan in both years
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is 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. Taking into consideration of SC’s general performance and development
history.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 63.61 |
|
|
1 |
Rs. 96.55 |
|
Euro |
1 |
Rs. 69.18 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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|
Report Prepared
by : |
DPT |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
-- |
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.