MIRA INFORM REPORT
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Report No. : |
324321 |
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Report Date : |
28.05.2015 |
IDENTIFICATION DETAILS
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Name : |
CHANGZHOU BAIXING TRADING CO., LTD. |
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Registered Office : |
West Of Lixin Street, Lijia Town, Wujin District, Changzhou, Jiangsu Province, 213176 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
24.01.2005 |
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Com. Reg. No.: |
320483000101310 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Subject is engaged in wholesale of prepackaged food; importing and
exporting commodities and technologies |
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No. of Employee : |
40 |
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. 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 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.
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Source
: CIA |
Company
name and address
CHANGZHOU BAIXING TRADING CO., LTD.
WEST OF LIXIN STREET, LIJIA TOWN, WUJIN DISTRICT, CHANGZHOU,
JIANGSU PROVINCE, 213176 PR CHINA
TEL: 86 (0) 519-86236165
FAX: N/A
EXECUTIVE
SUMMARY
INCORPORATION DATE :
JAN. 24, 2005
REGISTRATION NO. : 320483000101310
REGISTERED LEGAL FORM : ONE-PERSON LIMITED LIABILITY COMPANY
CHIEF EXECUTIVE : MS. DU GUIZHEN (CHAIRMAN)
STAFF STRENGTH : 40
REGISTERED CAPITAL :
CNY 20,000,000
BUSINESS LINE :
TRADING
TURNOVER : CNY 142,970,000 (AS OF DEC. 31, 2014)
EQUITIES : CNY 20,730,000 (AS OF DEC. 31, 2014)
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION :
STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE : CNY 6.2039 = 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: SC’s detailed address should be the heading one.
SC was registered as one-person limited liability company at local
Administration for Industry & Commerce (AIC - The official body of issuing and
renewing business license) on Jan. 24, 2005.
Company Status: One-person Limited Liability Company Single person LLC refers to a
limited liability company set up by only one natural person or legal person
as the single shareholder of it. The minimum registered capital
of Single person LLC is CNY100,000. The shareholder’s capital contributes,
as set out by the articles of associations should be a lump-sum payment in
full. One natural person can only
invest in and set up one limited liability company, which is not permitted
to invest in and set up a new Single person LLC. As to any one-person limited
liability company, the sole-investor nature of the natural person or legal
person shall be indicated in the registration documents of the company and
shall be indicated in the business license thereof as well. The regulation of Single person
LLC should be set up by the shareholder The regulation of Single person
LLC has no shareholder meeting.
SC’s registered business scope includes wholesale of prepackaged food;
importing and exporting commodities and technologies (excluding items limited
or forbidden by State).
SC is mainly engaged in trading different kinds of products.
Ms. Du Guizhen is legal representative, chairman and general manager of
SC at present.
SC is known to have approx. 40 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the commercial zone of Changzhou. Our checks
reveal that SC rents the total premise about 200 square meters.
SC is not known to host website of its own at present.
No significant events or changes were found during our checks with local
AIC.
Organization Code: 770527220
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name % of Shareholding
Baixing Group Co., Ltd. 100
Registration no.: 320483000066707
Legal representative: Ru Boxing
Incorporation date: 2001-04-29
Tel: 0519-86232188
Add: Lijia Town, Wujin District, Changzhou, Jiangsu Province
Website: http://www.jn-group.com/
Legal representative, chairman and general manager:
Ms. Du Guizhen, ID# 32040419750902XXXX, born in 1975.
She is currently responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as legal representative, chairman and general manager.
Also working in Changzhou Jiangnan Plastic Products Co., Ltd. as legal
representative.
Supervisor:
Ru Boxing
SC is mainly engaged in trading different kinds of products.
SC’s products mainly include prepackaged food, PVC soft film
SC sources its materials 80% from domestic market, and 20% form overseas
market. SC sells 40% of its products in domestic market, and 60% to overseas
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, L/C and Credit of 30-60 days.
Note: SC refused
to release its major suppliers and customers.
Changzhou Jiangnan Plastic Products Co., Ltd.
===================================
Registration no.: 320400400000536
Legal representative: Du Guizhen
Incorporation date: 1992-08-18
Changzhou Baijia PV Material Co., Ltd.
==============================
Registration no.: 320483000147488
Legal representative: Ru Zhengwei
Incorporation date: 2007-09-25
Changzhou Baixing Plastic Products Co., Ltd.
==============================
Registration no.: 320483000145159
Legal representative: Yin Fengdi
Incorporation date: 2001-05-18
Changzhou Wujin Baixing Plastic Products Co., Ltd.
================================
Registration no.: 320483000145134
Legal representative: Ru Boxing
Incorporation date: 2000-07-10
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 management declined to release its bank details.
Balance
Sheet
Unit: CNY’000
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As of Dec. 31,
2014 |
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Cash & bank |
16,370 |
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Inventory |
990 |
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Accounts receivable |
1,720 |
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Bills receivable |
0 |
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Other Accounts receivable |
60 |
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Advances to suppliers |
0 |
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Export drawback receivable |
6,840 |
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Other current assets |
0 |
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------------------ |
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Current assets |
25,980 |
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Fixed assets net value |
60 |
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Long-term investment |
0 |
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Intangible and other assets |
20 |
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------------------ |
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Total assets |
26,060 |
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============= |
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Short loans |
0 |
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Accounts payable |
3,550 |
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Advance from customers |
0 |
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Other Accounts payable |
1,780 |
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Notes payable |
0 |
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Taxes payable |
0 |
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Withdraw the expenses in advance |
0 |
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Other current liabilities |
0 |
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------------------ |
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5,330 |
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Long term liabilities |
0 |
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Other liabilities |
0 |
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Total liabilities |
5,330 |
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Equities |
20,730 |
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26,060 |
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Income
Statement
Unit: CNY’000
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As of Dec. 31, 2014 |
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Turnover |
142,970 |
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Cost of goods sold |
136,290 |
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Sales expense |
2,730 |
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Management expense |
3,990 |
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Finance expense |
-260 |
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Profit before tax |
240 |
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Less: profit tax |
60 |
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Profits |
180 |
Important
Ratios
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As of Dec. 31,
2014 |
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*Current ratio |
4.87 |
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*Quick ratio |
4.69 |
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*Liabilities to assets |
0.20 |
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*Net profit margin (%) |
0.13 |
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*Return on total assets (%) |
0.69 |
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*Inventory /Turnover ×365 |
3 days |
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*Accounts receivable/Turnover ×365 |
5 days |
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*Turnover/Total assets |
5.49 |
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* Cost of goods sold/Turnover |
0.95 |
PROFITABILITY:
AVERAGE
The turnover of SC appears fairly good in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of goods sold is fairly high, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a normal level.
The inventory of SC is maintained in an average level.
The accounts receivable of SC is maintained in an average level.
SC has no short-term loan in 2014.
SC’s turnover is in a good level, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
The debt ratio of SC is low.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
SC is considered medium-sized in its line with stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.95 |
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|
1 |
Rs.98.64 |
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Euro |
1 |
Rs.69.86 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
ANK |
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.