MIRA INFORM REPORT
|
Report No. : |
349012 |
|
Report Date : |
13.11.2015 |
IDENTIFICATION DETAILS
|
Name : |
CHINA ARTS (FAR EAST) LTD. |
|
|
|
|
Registered Office : |
China Arts Building, No. 103 Jixiangli, Chaoyangmenwai Chaoyang
District, Beijing 100020 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
26.04.1993 |
|
|
|
|
Com. Reg. No.: |
110000005013313 |
|
|
|
|
Legal Form : |
One-Person Limited Liability Company |
|
|
|
|
Line of Business : |
Importing and exporting goods and technology; selling textiles, general merchandise, hardware, chemicals,
arts and crafts, machinery and electrical equipment, timber, building
materials, chemical products, fuel oil, asphalt, commercial vehicles and nine
seats or more passenger cars, gold products, silver products, metal
materials, mining product; technology transfer; information consultation. |
|
|
|
|
No. of Employee : |
50 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
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 |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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.
|
Source
: CIA |
COMPANY NAME ANDADDRESS
CHINA ARTS (FAR
EAST) LTD.
CHINA ARTS BUILDING, NO. 103 JIXIANGLI, CHAOYANGMENWAI
CHAOYANG DISTRICT, BEIJING 100020 PR CHINA
TEL: 86 (0) 10-85656888
FAX: 86 (0) 10-85654076
EXECUTIVE SUMMARY
Date of Registration : april 26, 1993
REGISTRATION NO. : 110000005013313
LEGAL FORM : One-person Limited Liability Company
REGISTERED CAPITAL : CNY
100,000,000
staff : 50
BUSINESS CATEGORY : TRADING
Revenue : CNY 3,923,148,000 (AS OF DEC. 31, 2014)
EQUITIES : CNY 73,250,000 (AS OF DEC. 31, 2014)
WEBSITE : N/A
E-MAIL : N/A
PAYMENT : slow but correct
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND :
fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.35 = 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 on April 26, 1993. However, SC changed to present legal form, and was
registered as one-person limited liabilities company of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.: 110000005013313 on August 7, 2013.
SC’s Organization Code Certificate No.:
10114504-9
%20LTD.%20-%20349012%2013-Nov-2015_files/image006.jpg)
SC’s Tax No.: 110105101145049
SC’s registered capital: CNY 100,000,000
SC’s paid-in capital: cny 10,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
|
Legal Form |
Limited Liability Company |
One-Person Limited Liability Company |
|
Shareholder (s) (% of Shareholding) |
China National Arts & Crafts (Group) Corp. 65% Employee Shareholders Association of China Arts (Far East) Ltd.35% |
China National Arts & Crafts (Group) Corp. 100% |
|
|
Legal Representative |
Zhang Hong |
Sun Maohu |
|
|
|
Shareholder |
China National Arts & Crafts (Group) Corp. 100% |
China Taurus International Group Corp. 100% |
|
|
Registered
Capital |
CNY 10,000,000 |
CNY 100,000,000 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
China Taurus International Group Corp. |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and
General Manager |
Sun Maohu |
|
Director |
Chen Wenjin |
|
Sun Li |
|
|
Supervisor |
Zhang Guohua |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
China Taurus International Group Corp.
-----------------------------
Date of Registration: October 17, 2002
Registration No.: 100000000037279
Legal Form: State-owned
Enterprise
Registered Capital: CNY 150,000,000
MANAGEMENT
Sun Maohu, Legal Representative, Chairman and General
Manager
---------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø Qualification:
University
Ø Working experience
(s):
From
2013 to present, working in SC as legal representative, chairman and general
manager, also working in China Taurus International Group Corp. as legal
representative
Director
----------
Chen
Wenjin
Sun
Li
Supervisor
--------------
Zhang
Guohua
BUSINESS OPERATION
SC’s registered business scope includes importing and
exporting goods and technology; selling textiles,
general merchandise, hardware, chemicals, arts and crafts, machinery and
electrical equipment, timber, building materials, chemical products, fuel oil,
asphalt, commercial vehicles and nine seats or more passenger cars, gold
products, silver products, metal materials, mining product; technology
transfer; information consultation.
SC is mainly
engaged in international trade.
SC’s products
mainly include: autos, machinery and electrical products, industrial raw
materials, and light industry products and so on.
SC sources its products 100% from domestic market. SC sells 100% of its products to overseas market, mainly USA, Europe, Mid East, Southeast Asia, etc.
The buying terms
of SC include Check, 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 Customers:
==============
Nova Chemicals
(Intl) S.A.
Focus Products
Group LLC.
Trading Fashion
Line SA
Staff & Office:
--------------------------
SC is known
to have approx. 50 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 SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2013 |
|
133,600 |
|
|
Accounts
receivable |
414,210 |
|
Other receivable |
1,540 |
|
Inventory |
110,550 |
|
Non-current
assets within one year |
0 |
|
Other current
assets |
101,720 |
|
|
------------------ |
|
Current assets |
761,620 |
|
Fixed assets |
1,250 |
|
Long-term
prepaid expenses |
0 |
|
Deferred income
tax assets |
0 |
|
Other
non-current assets |
580 |
|
|
------------------ |
|
Total assets |
763,450 |
|
|
============= |
|
Short-term loans |
210,030 |
|
Accounts payable |
58,260 |
|
Other payable |
520 |
|
Other current
liabilities |
443,900 |
|
|
------------------ |
|
Current
liabilities |
712,710 |
|
Non-current
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
712,710 |
|
Equities |
50,740 |
|
|
------------------ |
|
Total
liabilities & equities |
763,450 |
|
|
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
|
Revenue |
2,845,780 |
|
Cost of sales |
2,830,940 |
|
Sales expense |
2,490 |
|
Management expense |
20,740 |
|
Finance expense |
17,140 |
|
Profit before
tax |
15,970 |
|
Less: profit tax |
3,060 |
|
12,910 |
Financial Summary
|
Unit: CNY’000 |
As
of Dec. 31, 2014 |
|
Total assets |
1,092,922 |
|
|
------------- |
|
Total
liabilities |
1,019,672 |
|
Equities |
73,250 |
|
|
------------- |
|
Revenue |
3,923,148 |
|
Profit before
tax |
30,164 |
|
Less: profit tax |
7,654 |
|
Profits |
22,510 |
Important Ratios
=============
|
|
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
*Current ratio |
1.07 |
-- |
|
*Quick ratio |
0.91 |
-- |
|
*Liabilities to
assets |
0.93 |
0.07 |
|
*Net profit
margin (%) |
0.45 |
0.57 |
|
*Return on
total assets (%) |
1.69 |
2.06 |
|
*Inventory /
Revenue ×365 |
15 days |
-- |
|
*Accounts
receivable/ Revenue ×365 |
54 days |
-- |
|
*Revenue/Total
assets |
3.73 |
3.59 |
|
*Cost of sales
/ Revenue |
0.99 |
-- |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC
appears fairly good 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 normal level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC appears large.
l
The short-term loans of SC appear large.
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 fairly high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions. Taking into consideration of SC’s good background, general
performance, reputation as well as market conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.35 |
|
|
1 |
Rs.100.28 |
|
Euro |
1 |
Rs.71.30 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
|
|
|
|
Report Prepared
by : |
ANK |
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.