MIRA INFORM REPORT
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Report No. : |
305460 |
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Report Date : |
29.01.2015 |
IDENTIFICATION DETAILS
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Name : |
DONGGUAN ALL-RICH
TRADING CO., LTD. |
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Registered Office : |
6/F Lianfeng Business Building Of Chengqu Industrial Centre No. 36 Guantai Road, Guancheng District, Dongguan Guangdong Province 523071 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
02.02.2005 |
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Com. Reg. No.: |
441900001979006 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
· Subject includes domestic commerce, commercial information consultation service, importing and exporting commodities and technology. · Subject is mainly engaged in selling shoes. |
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No. of Employees : |
7 |
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 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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
|
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.
|
Source
: CIA |
Company
Name and address
DONGGUAN ALL-RICH TRADING CO., LTD.
6/F LIANFENG BUSINESS
BUILDING OF CHENGQU INDUSTRIAL CENTRE
NO. 36 GUANTAI ROAD,
GUANCHENG DISTRICT, DONGGUAN
GUANGDONG PROVINCE
523071 PR CHINA
TEL: 86 (0)
769-22812638
FAX: 86 (0) 769-22812608
EXECUTIVE
SUMMARY
Date of Registration : FEBRUARY 2, 2005
REGISTRATION NO. : 441900001979006
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : cny 1,000,000
staff : 7
BUSINESS CATEGORY :
trading
Revenue : CNY 58,920,000 (AS OF DEC. 31, 2014)
EQUITIES : CNY 1,220,000 (AS OF DEC. 31, 2014)
WEBSITE : N/A
E-MAIL : N/A
PAYMENT : AVERAGE
MARKET CONDITION : fair
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.: 441900001979006 on February 2,
2005.
SC’s Organization Code Certificate No.:
77187684-4
SC’s Tax No.: 441900771876844
SC’s registered capital: cny 1,000,000
SC’s paid-in capital: cny 1,000,000
Registration Change Record:-
No significant changes of SC have been noted
in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Liang
Guoqiang |
23 |
|
Ding
Jiangfeng |
38 |
|
Ma
Jianyi |
39 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal
Representative and Chairman |
Ma Jianyi |
|
General
Manager |
Ding
Jiangfeng |
|
Supervisor |
Liang Guoqiang |
RECENT
DEVELOPMENT
No recent development was found during our checks at present
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Liang Guoqiang 23
Ding Jiangfeng 38
Ma Jianyi 39
MANAGEMENT
Ma Jianyi, Legal Representative and Chairman
------------------------------------------------------------------------
Ø
Gender: M
Ø Working experience
(s):
At present, working in SC as legal
representative and chairman
Ding Jiangfeng, General Manager
--------------------------------------------------------
Ø
Gender: M
Ø Working experience
(s):
At present, working in SC as general manager
Liang
Guoqiang, Supervisor
------------------------------------------------
Ø Gender: M
BUSINESS
OPERATION
SC’s registered business scope includes domestic
commerce, commercial information consultation service, importing and exporting
commodities and technology.
SC is mainly
engaged in selling shoes, etc.
SC’s products
mainly include: shoes, etc.
SC sources its products 100% from domestic
market. SC sells 20% of its products in domestic market, and 80% to overseas
market, mainly U.S.A., etc.
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.
*Major Clients*
------------------
International
Trade Imports Llc.
Staff & Office:
--------------------------
SC is known
to have approx. 7 staff at
present.
SC rents an area as
its operating office, but the detailed information is unknown.
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
The bank
information of SC is not filed in local SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2014 |
|
Cash |
580 |
|
Notes receivable |
0 |
|
Accounts receivable |
8,700 |
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Advances to suppliers |
0 |
|
Other receivable |
3,360 |
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Inventory |
0 |
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Prepaid expenses |
0 |
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Other current assets |
840 |
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|
------------------ |
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Current assets |
13,480 |
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Fixed assets |
0 |
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Construction in progress |
0 |
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Intangible assets |
0 |
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Long-term prepaid expenses |
0 |
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Deferred income tax assets |
0 |
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Other non-current assets |
0 |
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------------------ |
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Total assets |
13,480 |
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|
============= |
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Short-term loans |
0 |
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Notes payable |
0 |
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Accounts payable |
11,120 |
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Wages payable |
0 |
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Taxes payable |
0 |
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Advances from clients |
0 |
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Other payable |
0 |
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Accrued expenses |
0 |
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Other current liabilities |
1,140 |
|
|
------------------ |
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Current liabilities |
12,260 |
|
Non-current liabilities |
0 |
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|
------------------ |
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Total liabilities |
12,260 |
|
Equities |
1,220 |
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|
------------------ |
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Total liabilities & equities |
13,480 |
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|
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2014 |
|
Revenue |
58,920 |
|
Cost of sales |
57,310 |
|
Sales expense |
1,380 |
|
Management expense |
250 |
|
Finance expense |
100 |
|
Profit before tax |
100 |
|
Less: profit tax |
30 |
|
Profits |
70 |
Important Ratios
=============
|
|
As of Dec.
31, 2014 |
|
*Current ratio |
1.10 |
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*Quick ratio |
1.10 |
|
*Liabilities to assets |
0.91 |
|
*Net profit margin (%) |
0.12 |
|
*Return on total assets (%) |
0.52 |
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*Inventory / Revenue ×365 |
-- |
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*Accounts receivable / Revenue ×365 |
54 days |
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*Revenue / Total assets |
4.37 |
|
*Cost of sales / Revenue |
0.97 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
l The revenue 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 sales is fairly high, comparing with
its revenue.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a fairly good
level.
l
SC has no inventory.
l
The accounts receivable of SC appears large.
l
SC has no short-term loans.
l
SC’s revenue 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 above average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered small-sized in its line with fairly stable financial
conditions. The large amount of accounts receivable may be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.46 |
|
|
1 |
Rs.92.77 |
|
Euro |
1 |
Rs.69.03 |
INFORMATION DETAILS
|
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 |
|
|
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 |
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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.