MIRA INFORM REPORT
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Report No. : |
309218 |
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Report Date : |
26.02.2015 |
IDENTIFICATION DETAILS
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Name : |
Forea Industries Co., Ltd. |
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Registered Office : |
28/f, Pinghetang Business Building, No. 88 Huangxing Middle Road, Tianxin District, Changsha, Hunan Province 410005 Pr |
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Country : |
China |
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Financials (as on) : |
30.06.2014 |
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Date of Incorporation : |
14.09.2007 |
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Com. Reg. No.: |
430100000008846 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject includes operating and
acting as an agent of importing and exporting various kinds of commodities and
technology, excluding the goods forbidden by the government; selling battery
materials, metal materials, chemical products, machinery and equipment,
electronic products. |
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No. of Employees : |
14 |
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 : |
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 – December 31, 2014
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Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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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
Forea Industries Co., Ltd.
28/f, pinghetang business building, no. 88 huangxing middle road
tianxin district, changsha, hunan province 410005 PR CHINA
TEL: 86 (0) 731-89855985/84489409/82562938/84457963
FAX: 86 (0) 731-84446572/82562492
EXECUTIVE
SUMMARY
Date of
Registration :
september 14, 2007
REGISTRATION NO. : 430100000008846
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : cny 5,000,000
staff : 14
BUSINESS CATEGORY : trading
REVENUE : CNY 31,240,000 (From Jan. 1, 2014 to Jun. 30, 2014)
EQUITIES : CNY 7,520,000 (As of Jun. 30, 2014)
WEBSITE : N/A
E-MAIL : N/A
PAYMENT : AVERAGE
Recommended Credit
Limit : UP TO USD 50,000
MARKET CONDITION : average
FINANCIAL CONDITION
: FAIRly stable
OPERATIONAL TREND : ordinary
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.25 = USD 1
Adopted
abbreviations (as follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL
TREND & GENERAL REPUTATION
This section aims at indicating the relative
positions of SC in respect of its operational trend & general reputation
Operational Trend:- General Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be determined
LEGAL
STATUS & HISTORY
SC was established
as a limited liabilities company of PRC with State Administration of Industry
& Commerce (SAIC) under registration No.: 430100000008846 on September 14, 2007.
SC’s Organization Code Certificate No.:
66632490-9
SC’s registered
capital: cny 5,000,000
SC’s paid-in
capital: cny 5,000,000
Registration
Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2010-12-10 |
Registered Capital |
CNY
1,080,000 |
cny 5,000,000 |
Current Co search
indicates SC’s shareholders & chief executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Zeng Feng |
80 |
|
Fan Xiaoyan |
20 |
SC’s Chief
Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Zeng Feng |
|
Supervisor |
Fan Xiaoyan |
RECENT
DEVELOPMENT
No recent development was found during our
checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Zeng Feng 80
Fan Xiaoyan 20
MANAGEMENT
Zeng Feng, Legal Representative, Chairman and General
Manager
-----------------------------------------------------------------------------------------------
Ø Gender: M
Ø Age: 41
Ø ID#
430521197402017317
Ø Qualification:
University
Ø Working experience
(s):
From 2007 to present, working in SC as
legal representative, chairman and general manager
Fan
Xiaoyan, Supervisor
--------------------------------------------
Ø Gender: F
Ø Age: 37
Ø ID#
430121197805161725
BUSINESS
OPERATION
SC’s registered business scope includes operating and
acting as an agent of importing and exporting various kinds of commodities and
technology, excluding the goods forbidden by the government; selling battery
materials, metal materials, chemical products, machinery and equipment,
electronic products.
SC is mainly engaged in international trade.
SC’s products mainly include:
Fluoride of potassium titanate
Fluoroborate potassium
Etc.
SC sources its
products 100% from domestic market, mainly Hunan. SC sells 100% of its products
to overseas market, mainly U.S.A., Europe and Southeast Asia.
The buying terms of SC include T/T and Credit of 30-60 days. The payment
terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Customer*
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N.T. Ruddock Co. (U.S.A.)
Staff & Office:
--------------------------
SC is known to have approx. 14
staff at present.
SC rents an area as its operating office of approx. 100 sq. meters at
the heading address.
RELATED
COMPANY
SC is not known to have any
subsidiary at present.
PAYMENT
Overall payment
appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.
BANKING
Basic Bank
Bank Name: Bank of China, Hunan Branch (SWIFT:
BKCHCNBJ970)
Bank Add.: 593 Furong Road (M), Changsha
410011, Hunan Province, China
Bank Tel
:+86 731-82580703
Account No.: 585957349592
Correspondent Bank: Bank of China, New York
(SWIFT: BKCHUS33)
FINANCIALS
Financial Summary
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Unit: CNY’000 |
As of Jun 30, 2014 |
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Total assets |
15,480 |
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Total liabilities |
7,960 |
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Equities |
7,520 |
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From Jan. 1, 2014 to Jun. 30, 2014 |
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Revenue |
31,240 |
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Profits |
200 |
Important
Ratios
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As of Jun 30, 2014 |
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*Liabilities
to assets |
0.51 |
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*Net profit
margin (%) |
0.64 |
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*Return on
total assets (%) |
1.29 |
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*Revenue /
Total assets |
2.02 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC
appears average.
l SC’s net profit margin
is average.
l SC’s return on
total assets is average.
LIQUIDITY:
AVERAGE
l SC’s revenue is in
a fairly good level, comparing with the size of its total assets.
LEVERAGE:
AVERAGE
l The debt ratio of
SC is average.
l The risk for SC to
go bankrupt is above average.
Overall
financial condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered small-sized in its line
with fairly stable financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.05 |
|
|
1 |
Rs.96.03 |
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Euro |
1 |
Rs.70.43 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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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.