MIRA INFORM REPORT
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Report No. : |
332898 |
|
Report Date : |
24.07.2015 |
IDENTIFICATION DETAILS
|
Name : |
Vats Liquor Chain
Store Management Joint Stock Co., Ltd. |
|
|
|
|
Registered Office : |
8/F, Jiahe Guoxin Mansion, No. 15, Baiqiao Street, Guangqumennei,
Dongcheng District, Beijing, 100062 Pr |
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|
|
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Country : |
China |
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|
|
|
Financials (as on) : |
31.12.2014 |
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|
|
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Date of Incorporation : |
26.05.2005 |
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|
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Com. Reg. No.: |
530000400005204 |
|
|
|
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Legal Form : |
Shares Limited Co. |
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Line of Business : |
Wholesaling and retailing liquor, non-staple food, pre-packaged foods,
tea, agricultural products, aquatic products, packaging products, daily
necessities, household goods, hardware, household appliances, photographic
equipments, chemical products (excluding dangerous chemicals), metal
materials and decoration materials, garments, machinery and electronic
products; import and export of goods and technology (excluding the goods and
technology prohibited or limited by the country); business management, marketing,
business, liquor and technology consulting services. |
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|
|
|
No. of Employees : |
600 (Including Subsidiaries) |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
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. 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; (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 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.
|
Source
: CIA |
Company
Name & address
Vats Liquor Chain Store Management Joint Stock
Co., Ltd.
8/F, JIAHE GUOXIN MANSION, NO. 15, BAIQIAO
STREET, GUANGQUMENNEI,
DONGCHENG DISTRICT, BEIJING, 100062 PR China
TEL: 86 (0) 10-56969686/56969285/56969661 FAX: 86 (0) 10-56969600
EXECUTIVE
SUMMARY
INCORPORATION DATE : MAY 26, 2005
REGISTRATION NO. : 530000400005204
REGISTERED LEGAL FORM : SHARES LIMITED CO.
CHIEF EXECUTIVE :
Mr. ZHU HE (GENERAL MANAGER)
STAFF STRENGTH :
600
(INCLUDING SUBSIDIARIES)
REGISTERED CAPITAL : CNY
165,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 806,450,000 (UNAUDITED, AS OF DEC. 31, 2014)
EQUITIES :
CNY 1,020,700,000 (UNAUDITED, AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND :
FAIRLY steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.2109 = 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
Note: the given address “
SC was registered as a Shares limited co. at Yunnan Provincial
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license).
Company Status: Shares limited co. This form of business in PR
China is defined as a legal person. Its registered capital is divided into
shares of equal par value and the co. raises capital by issuing share
certificates by promotion or by public offer. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to the extent of its total assets. The co has independent
property of legal person and enjoys property rights of legal person. The characteristics of the shares limited co. are as
follows: The establishment of the co.
requires at least two promoters and no more than 200, half of whom shall be domiciled
in The minimum registered capital
of a co. is CNY The board of directors must
consist of five to nineteen directors. If the co.
raises capital by public offer, the promoters must not subscribe less than
35% of the total shares. the promoters’ shares are restricted to transfer-
within one year of the offer. A state-owned enterprise that is restructured into a
shares limited co. must comply with the conditions & requirements
specified under the law & administrative rule.
SC’s registered business scope includes wholesaling and retailing
liquor, non-staple food, pre-packaged foods, tea, agricultural products,
aquatic products, packaging products, daily necessities, household goods,
hardware, household appliances, photographic equipments, chemical products
(excluding dangerous chemicals), metal materials and decoration materials,
garments, machinery and electronic products; import and export of goods and
technology (excluding the goods and technology prohibited or limited by the
country); business management, marketing, business, liquor and technology
consulting services.
SC is mainly engaged in selling liquor.
Mr. Zhu He has been legal representative and general manager of SC since
2014.
SC is known to have approx. 600 (including subsidiaries) employees at
present.
SC is currently operating at the above stated address, and this address houses
its operating office in the commercial zone of Beijing. SC’s management
declined to release detailed information of the premise.
SC has another address located in 4/F, Office Building, Yuntian
Community, No. 22, Jingqiao Road, Economic Development Zone, Kunming, Yunnan
Province
Tel: 86 (0) 871-63159739
Fax: 86 (0) 871-63159930
http://www.vatsliquor.com
The design is professional and the content is well organized. At present it is
in Chinese and English versions.
E-Mail: vatsliquor@vatsliquor.com
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2010.10.27 |
Registered capital |
CNY 50,000,000 |
CNY 52,173,913 |
|
2010.11.26 |
Company name |
Vats Liquor Chain Store Management Co., Ltd. |
Present one |
|
Registered capital |
CNY 52,173,913 |
Present amount |
|
|
Unknown |
Registration No. |
533400000000695 |
Present one |
|
2014 |
Legal rep. |
Wu Xiangdong |
Present one |
Tax Registration No.: 533421775500908
Organization Code: 775500908
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name Investment
amount % of Shareholding
Li Dahai CNY
16,128,750 9.78
Vats Group Co., Ltd. CNY
4,560,189 2.76
Yunnan Rongrui High-tech Investment Management
Co., Ltd. (in Chinese Pinyin)
CNY
110,687,500 67.08
CV Wine Investment Limited (Hong Kong) CNY 14,373,563 8.71
KKR Liquor Investment Holdings S.à r.l. (Luxemburg) CNY 12,374,998 7.50
Pullock Investment Limited (Hong Kong) CNY 4,399,999 2.67
New Long-term Growth (Tianjin) Equity Investment
Partnership (Limited Partnership) CNY
2,475,001 1.50
Yunnan Rongrui High-tech Investment Management Co., Ltd. (in Chinese
Pinyin)
================================================================
Registration no.: 533400100002237
Registered capital: CNY 360,000,000
Legal representative: Yan Tao 颜涛
Legal form: Limited liabilities co.
Vats Group Co., Ltd.
===============
The English name of VATS originally means a great many of casks filled
with wine. VATS GROUP was founded in March 2006, integrated from Jinliufu with
a history of over ten years; by virtue of advanced marketing mode and
management ideas, it has developed into a group company in China specialized in
liquor brewage, production, marketing and branding.
With a total staff of 15,000, VATS GROUP operates its business in 31
provinces, cities and autonomous regions across China. It has over 5,000
upstream and downstream cooperative enterprises, providing over 300 thousand
jobs.
Incorporation date: Feb. 1, 2005
Registration no.: 533400100000348
Registered capital: CNY 100,000,000
Legal representative: Yan Tao
Legal form: Limited liabilities co.
Tel: 010-56969000
Address: Floor 8, Jiahe Guoxin Building, No. 15, Baiqiao Street,
Dongcheng District, Beijing
CV Wine Investment Limited (Hong Kong)
===============================
Registration no.: 1481615
Legal form: Private company limited by shares
Status: Live
Pullock Investment Limited (Hong Kong)
==============================
Registration no.: 1488798
Legal form: Private company limited by shares
Status: Live
New Long-term Growth (Tianjin) Equity Investment Partnership (Limited
Partnership)
=============================================================
Registration no.: 120191000039430
Legal form: Partnership
Legal
Representative and General Manager:
Mr. Zhu He is currently responsible for the daily management of SC.
Working Experience(s):
From 2014 to present Working
in SC as legal representative and general manager.
Chairman:
Mr. Wu Xiangdong, born in 1969. He is currently responsible for the
overall management of SC.
Working Experience(s):
Before 2014 Worked in SC as legal representative
At present Working
in SC as chairman
Also working in Changsha Vats Wine Co., Ltd. as legal representative.
Vice
Chairman:
Chen Zhen is currently responsible for the daily management of SC.
Working Experience(s):
At present Worked in SC as vice
chairman
Vice
General Managers:
Huang Fei; Peng Yuqing); Xu Qinglin
Yang Qiang;
They are currently responsible for the daily management of SC.
Working Experience(s):
At present Working
in SC as vice general managers.
Peng Yuqing is also working in Liling Vats Wine Co., Ltd., Shaoyang
Xiangjiao Wine Sales Co., Ltd. and Beijing Jingdu Vats Trade Co., Ltd. as legal
representative.
Directors:
Li Xiang
Shi Tiantao
Wang Yijiang
Lv Benfu
Yu Yingmin
Zhang Yinghao
Supervisors:
Zhu Lin
Jiang Run
Tang Ling
Zhang Jing
Qu Jingwei
Yan Tao
SC is mainly engaged in selling liquor.
liqueur, red wine, whisky, health liquor.
Domestic brand: Wuliangye, Guyuelongshan, Shangri-la, Jin Liu Fu, Xiang
Jia, Yan Feng, etc.
Imported brand: Bordeaux,
LAPHROAIG, etc.
Health brand: Yu Shou Tang, etc.
SC sources its materials 70% from domestic market, and 30% from overseas
market, mainly France. SC sells 100% of its products in domestic market.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include Check, T/T and Credit of 30-60 days.
Trademark & Patents
|
Registration No. |
6056777 |
6090987 |
6090988 |
|
Registration Date |
Dec. 21, 2009 |
Dec. 28, 2009 |
Dec. 28, 2009 |
|
Trademark Design |
|
|
|
Note: SC’s management
declined to release its main suppliers and customers.
SC is known to
invest in the following companies:
Changsha Vats Wine Co., Ltd.
=======================
Incorporation date:
Registration no.: 430100000097193
Registered capital: CNY 50,000,000
Legal representative: Wu Xiangdong
Legal form: One-person Limited Liability Company
Shaoyang Xiangjiao Wine Sales Co., Ltd.
=============================
Incorporation date:
Registration no.: 430500000023549
Registered capital: CNY 5,000,000
Legal representative: Peng Yuqing
Legal form: One-person Limited Liability Company
Liling Vats Wine Co., Ltd.
==================
Incorporation date:
Registration no.: 430281000021394
Registered capital: CNY 100,000,000
Legal representative: Peng Yuqing
Legal form: One-person Limited Liability Company
Deqin Vats Gaoyuan Cellar Chain Store Management Co., Ltd.
============================================
Incorporation date:
Registration no.: 533422100000450
Registered capital: CNY 5,000,000
Legal representative: Tan Zhiqiang
Legal form: One-person Limited Liability Company
Beijing Jingdu Vats Trade Co., Ltd.
========================
Incorporation date:
Registration no.: 110105013165943
Registered capital: CNY 5,000,000
Legal representative: Peng Yuqing
Legal form: One-person Limited Liability Company
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.
China Construction Bank Kunming Kunjiaohui Sub-branch
AC#: 53001945037051778676
Relationship: Normal
Balance
Sheet
Unit: CNY’000
|
|
As of Dec. 31,
2013 |
Unaudited, As of
Dec. 31, 2014 |
|
Cash & bank |
43,970 |
12,940 |
|
Inventory |
1,413,370 |
1,140,960 |
|
Notes receivable |
1,480 |
4,370 |
|
Accounts receivable |
346,460 |
69,730 |
|
Advances to suppliers |
143,620 |
202,620 |
|
Other receivables |
93,770 |
36,960 |
|
Other current assets |
9,470 |
7,660 |
|
|
------------------ |
------------------ |
|
Current assets |
2,052,140 |
1,475,240 |
|
Fixed assets net value |
2,440 |
2,200 |
|
Long term accounts receivable |
35,970 |
36,100 |
|
Long term investment |
260,010 |
224,000 |
|
Projects under construction |
23,040 |
850 |
|
Long term deferred expenses |
66,230 |
51,780 |
|
Deferred income tax assets |
8,050 |
37,210 |
|
Intangible and other assets |
780 |
530 |
|
|
------------------ |
------------------ |
|
Total assets |
2,448,660 |
1,827,910 |
|
|
=========== |
=========== |
|
Short loan |
410,000 |
340,000 |
|
Accounts payable |
231,180 |
383,770 |
|
Notes payable |
0 |
0 |
|
Advances from clients |
42,090 |
13,900 |
|
Employee pay payable |
6,760 |
6,750 |
|
Taxes payable |
-16,750 |
-20,090 |
|
Interest payable |
700 |
0 |
|
Other Accounts payable |
607,620 |
45,210 |
|
Other current liabilities |
46,090 |
37,670 |
|
|
------------------ |
------------------ |
|
Current liabilities |
1,327,690 |
807,210 |
|
Long term liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total liabilities |
1,327,690 |
807,210 |
|
Equities |
1,120,970 |
1,020,700 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
2,448,660 |
1,827,910 |
|
|
=========== |
=========== |
Income
Statement
Unit: CNY’000
|
|
As
of Dec. 31, 2013 |
Unaudited,
As of Dec. 31, 2014 |
|
Turnover |
946,230 |
806,450 |
|
Cost of goods sold |
799,470 |
664,350 |
|
Taxes and additional of main operation |
70 |
2,370 |
|
Sales expense |
137,240 |
88,680 |
|
Management expense |
15,620 |
16,190 |
|
Finance expense |
40,490 |
27,740 |
|
Impairment of assets |
67,000 |
0 |
|
Investment income |
-990 |
-53,860 |
|
Non-operating income |
7,380 |
2,390 |
|
Non-operating expenses |
50 |
-1,540 |
|
Profit before tax |
-107,320 |
-42,810 |
|
Less: profit tax |
0 |
0 |
|
Profits |
-107,320 |
-42,810 |
Important
Ratios
=============
|
|
As of Dec. 31,
2013 |
as of Dec. 31,
2014 |
|
*Current ratio |
1.55 |
1.83 |
|
*Quick ratio |
0.48 |
0.41 |
|
*Liabilities to assets |
0.54 |
0.44 |
|
*Net profit margin (%) |
-11.34 |
-5.31 |
|
*Return on total assets (%) |
-4.38 |
-2.34 |
|
*Inventory /Turnover ×365 |
546 days |
517 days |
|
*Accounts receivable/Turnover ×365 |
134 days |
32 days |
|
*Turnover/Total assets |
0.39 |
0.44 |
|
* Cost of goods sold/Turnover |
0.84 |
0.82 |
PROFITABILITY:
FAIR
The turnover of SC appears fairly good in its line in both years, but it
decreased in 2014.
SC’s net profit margin is poor in 2013 and fair in 2014.
SC’s return on total assets is fair in both years.
SC’s cost of goods sold is average, comparing with its turnover in both
years.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a normal level in both years.
SC’s quick ratio is maintained in a fair level in both years.
The inventory of SC is large in both years.
The accounts receivable of SC is fairly large in 2013 and average in
2014.
The short-term loan of SC appears average in both years.
SC’s turnover is in a poor level, comparing with the size of its total
assets in both years.
LEVERAGE: AVERAGE
The debt ratio of SC is average in 2013 and low in 2014.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
SC is considered large-sized in its line with fairly stable financial conditions.
The large amount of inventory could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.71 |
|
|
1 |
Rs.99.57 |
|
Euro |
1 |
Rs.69.63 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
TPT |
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.