MIRA INFORM REPORT
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Report No. : |
353181 |
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Report Date : |
05.12.2015 |
IDENTIFICATION DETAILS
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Name : |
ABS TRADING CO., LTD. |
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Registered Office : |
4/F, Weihai Jinying Buttons and Plastics Co., Ltd., West Head of Pingdu Road, Economic and Technological Development Zone, Weihai, Shandong Province, 264200 Pr |
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Country : |
China |
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Financials (as on) : |
30.09.2015 |
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Date of Incorporation : |
14.07.2010 |
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Com. Reg. No.: |
371000400014716 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Subject includes wholesaling clothing, footwear, toys, luggage,
clothing main and auxiliary materials, import and export business within the
scope of the record |
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No. of Employees : |
8 |
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 : |
Unknown |
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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 – March 31, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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. 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 for the first time in modern history. Still, China's per capita income is below the world average.
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 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 2014 more than 274 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 also implemented several economic reforms in 2014, including passing legislation to allow local governments to issue bonds, opening several state-owned enterprises to further private investment, loosening the one-child policy, passing harsher pollution fines, and cutting administrative red tape.
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Source
: CIA |
Company
Name and Address
ABS TRADING CO.,
LTD.
4/F, WEIHAI JINYING
BUTTONS AND PLASTICS CO., LTD.,
WEST HEAD OF PINGDU
ROAD,
Economic and
Technological Development Zone,
WEIHAI, SHANDONG
province, 264200 PR CHINA
TEL: 86 (0)
631-5228459 FAX: 86 (0) 631-5228479
EXECUTIVE
SUMMARY
INCORPORATION DATE : JULY 14, 2010
REGISTRATION NO. : 371000400014716
REGISTERED LEGAL FORM : Wholly foreign-owned
enterprise
STAFF STRENGTH : 8
REGISTERED CAPITAL : USD 100,000
BUSINESS LINE :
Trading
TURNOVER : CNY 2,190,000 (JAN. 1 TO SEP. 30, 2015)
EQUITIES : CNY 320,000 (AS OF SEP. 30, 2015)
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.3933= USD1
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 wholly foreign-owned
enterprise at local Administration for Industry & Commerce (AIC - The
official body of issuing and renewing business license) on July
14, 2010.
Company Status: Wholly foreign-owned enterprise This form of business in PR
China is defined as a legal person. It is a limited co. established within
the territories of PR China with capital provided totally by the foreign investors.
More than one foreign investor may jointly invest in a wholly foreign-owned
enterprise. The investing party/parties solely exercise management, reap
profit and bear risks and liabilities by themselves. This form of companies
usually have a limited duration is extendible upon approval of Examination
and Approval Authorities.
SC’s registered
business scope includes wholesaling clothing, footwear, toys, luggage, clothing
main and auxiliary materials, import and export business within the scope of
the record (if the trade of the goods is
governed by the quota or special rule, relevant regulations shall be followed)
(with permit if needed).
SC is mainly
engaged in trading different kinds of products.
Ms. Jin Dianshun
(in Chinese pinyin) has been legal representative, chairman and general manager
of SC since 2010.
SC is known to
have approx. 8 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the economic and technological development zone of Weihai.
Our checks reveal that SC rents the total premise, but the gross area of the
premise is unspecific.
SC is not known to host website of its own at present.
E-Mail: 512097546@qq.com
Changes
of its registered information are as follows:
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Date of change |
Item |
Before the change |
After the change |
|
2014-10-23 |
Legal rep. |
Lv Zhongji |
Present one |
Tax registration no.: 371002558906856
Organization code: 558906856
For the past two years there is no record of litigation.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Asia Buying Service, Inc. (Korea) 100
l Legal
representative, Chairman and General manager:
Ms. Jin Dianshun (in Chinese pinyin),
Korean. She is currently responsible for the overall management of SC.
Working Experience(s):
From 2010 to present Working in SC as legal representative,
chairman and general manager;
l Supervisor:
Liu Hanzhu
SC is mainly
engaged in trading different kinds of products.
SC’s products
mainly include: clothing, footwear, toys, luggage, clothing main and auxiliary
materials, buttons, etc.
SC sources its materials 100% from domestic
market. SC sells 100% of its products 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, L/C and Credit of 30-60 days.
Trademark & Patents
No record
Note: SC’s management refused to release
information about its customers and suppliers.
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’s accountant
refused to release the bank details.
Balance Sheet
Unit: CNY’000
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as of
Dec. 31, 2014 |
as of
Sep. 30, 2015 |
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Cash & bank |
400 |
360 |
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Inventory |
230 |
250 |
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Accounts receivable |
90 |
-150 |
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Advances to suppliers |
0 |
0 |
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Other receivables |
60 |
60 |
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Other current assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
780 |
520 |
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Long-term investments |
0 |
0 |
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Fixed assets net value |
150 |
90 |
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Projects under construction |
0 |
0 |
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Intangible assets |
0 |
0 |
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Other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
930 |
610 |
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============= |
============= |
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Short loans |
0 |
0 |
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Accounts payable |
400 |
340 |
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Advances from customers |
60 |
60 |
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Accrued payroll |
0 |
0 |
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Taxes payable |
-110 |
-110 |
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Other accounts payable |
0 |
0 |
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Other current liabilities |
0 |
0 |
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----------------- |
----------------- |
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Current liabilities |
350 |
290 |
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Long term liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total liabilities |
350 |
290 |
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Shareholders equities |
580 |
320 |
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------------------ |
------------------ |
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Total liabilities & equities |
930 |
610 |
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============= |
============= |
Income Statement
Unit: CNY’000
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Jan. 1 to
Sep. 30, 2015 |
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Turnover |
2,190 |
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Cost of goods sold |
1,730 |
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Taxes and additional of main operation |
0 |
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Sales expense |
210 |
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Management expense |
510 |
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Finance expense |
0 |
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Non-operating income |
0 |
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Non-operating
expense |
0 |
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Profit before tax |
-260 |
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Less: profit tax |
0 |
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Net profit |
-260 |
Important Ratios
=============
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as of Dec. 31, 2014 |
as of Sep. 30, 2015 |
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*Current ratio |
2.23 |
1.79 |
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*Quick ratio |
1.57 |
0.93 |
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*Liabilities to assets |
0.38 |
0.48 |
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*Net profit margin (%) |
/ |
-11.87 |
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*Return on total assets (%) |
/ |
-42.62 |
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*Inventory /Turnover ×365 |
/ |
/ |
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*Accounts receivable/Turnover ×365 |
/ |
/ |
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*Turnover/Total assets |
/ |
3.59 |
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* Cost of goods sold/Turnover |
/ |
0.79 |
PROFITABILITY:
FAIR
l
The turnover of SC appears average in its line in
the first 3 quarters of 2015.
l
SC’s net profit margin is poor in the first 3
quarters of 2015.
l
SC’s return on total assets is poor in the first 3
quarters of 2015.
l
SC’s cost of goods sold is average in the first 3
quarters of 2015, 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
The inventory of SC is average.
l
The accounts receivable of SC is average in 2014.
l
SC has no short-term loan.
l
SC’s turnover is in a fairly good level in the
first 3 quarters of 2015, comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is low.
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.66.84 |
|
|
1 |
Rs.101.04 |
|
Euro |
1 |
Rs.73.05 |
|
CNY |
1 |
Rs.10.41 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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DIV |
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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.