MIRA INFORM REPORT
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Report No. : |
349367 |
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Report Date : |
16.11.2015 |
IDENTIFICATION DETAILS
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Name : |
NINGBO FENGYA IMP. AND
EXP. CO., LTD. |
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Registered Office : |
Room 305, Yuehu Yinzuo, No. 66, Nanzhan East Road, Ningbo, Zhejiang Province
315012 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
21.03.19958 |
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Com. Reg. No.: |
330226000059024 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Subject is engaged in trading of goods. Products mainly include domestic electric appliances, the handicraft,
the stationery, the clothing, the spinning and weaving, the daily necessities,
the steam to match, the machinery, the medical instrument, the hardware, the
furniture, Bath Products. |
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No. of Employee : |
47 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
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. 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 and address
NINGBO FENGYA IMP.
AND EXP. CO., LTD.
ROOM 305, YUEHU
YINZUO, NO. 66, NANZHAN EAST ROAD,
NINGBO, ZHEJIANG PROVINCE
315012 PR CHINA
TEL: 86 (0)
574-27915600 FAX: 86 (0) 574-27915613
EXECUTIVE
SUMMARY
INCORPORATION DATE : MAR. 21, 1995
REGISTRATION NO. : 330226000059024
REGISTERED LEGAL FORM : LIMITED
LIABILITIES CO.
STAFF STRENGTH : 47
REGISTERED CAPITAL : CNY 6,000,000
BUSINESS LINE :
TRADING
TURNOVER : CNY 1,009,690,000 (AS OF DEC. 31, 2014)
EQUITIES : CNY 11,690,000
(AS OF DEC. 31, 2014)
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.35= 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
SC was registered as a Limited liabilities co. at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Mar. 21, 1995.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders
contribute its registered capital jointly. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to extent of its total assets. The characteristics of this form
of co. are as follows: Upon the establishment of the
co., an investment certificate is issued to the each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s
registered business scope includes importing and exporting commodities and
technologies, excluding commodities and technologies prohibited or limited by the
state; wholesale and retail of household appliances, daily necessities, metal
materials, chemical raw materials (excluding hazardous chemicals), building
materials (excluding storage), mineral products, electronic products, precious
metals (gold, silver), wholesale of coal (without storage).
SC is mainly
engaged in trading of goods.
Ms. Wu Zhaodi is legal
representative, general manager and executive director of SC at present.
SC is known to
have approx. 47 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the commercial zone of Ningbo. Our checks reveal
that SC owns the total premise, but SC’s accountant refused to release the
gross area.
http://www.nb-best.cn/ The design is professional and the content is
well organized. At present the web site is in Chinese and English versions.
E-mail: best21@nb-best.cn
See below for SC as executive party (defendant).
|
Executed
Party |
Ningbo
Fengya Imp. And Exp. Co., Ltd. |
|
Court |
Ninghai
County People's Court |
|
Date of Case |
|
|
Case
Number |
(2014)
03713 |
|
Claim Amount |
RMB 481,954 |
|
Executed
Party |
Ningbo
Fengya Imp. And Exp. Co., Ltd. |
|
Court |
Ninghai
County People's Court |
|
Date of Case |
|
|
Case
Number |
(2014)
03714 |
|
Claim Amount |
RMB 308,185 |
|
Executed
Party |
Ningbo
Fengya Imp. And Exp. Co., Ltd. |
|
Court |
Ninghai
County People's Court |
|
Date of Case |
|
|
Case
Number |
(2014)
03712 |
|
Claim Amount |
RMB 370,431.6 |
Remark: Due to the lack of information, we
are unable to provide the cause of action, judgment or other information.
No significant events
or changes were found during our checks with the local Administration for
Industry and Commerce.
Organization Code:
254386118
MAIN
SHAREHOLDERS:
Name
Amount (CNY) % of Shareholding
Wu Zhaodi 650,000 10.83
Wu Qinying 5,350,000 89.17
l Legal
representative, general manager and executive director:
Ms. Wu Zhaodi, born in 1953, with university education. She is currently
responsible for the overall management of SC.
Working
Experience(s):
At present Working
in SC as legal representative, general manager and executive director.
l Supervisor:
Wu Qinying
SC is mainly engaged
in trading of goods.
SC’s products mainly include domestic
electric appliances, the handicraft, the stationery, the clothing, the spinning
and weaving, the daily necessities, the steam to match, the machinery, the medical
instrument, the hardware, the furniture, Bath Products , etc.
SC sources its materials 100% from domestic
market. SC sells 10% of its products in domestic market; and 90% of its
products to overseas market, mainly to Russia and Finland.
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.
Note: SC’s management declined to release
its main clients and suppliers.
Ningbo
Fengya Imp. And Exp. Co., Ltd. Haishu Office
=======================================
Incorporation
Date:
Registration
No.: 330203000034711
Principal:
Wu Qinying
Ningbo
Fengya Electrical Appliances Co., Ltd.
==================================
Incorporation
Date:
Registration
No.: 330226000049474
Legal
representative: Wu Zhaofeng
Ningbo
Zhaotai Industrial Development Co., Ltd.
===================================
Incorporation Date:
Registration No.: 330200400043434
Legal representative: Wu Zhaofeng
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 Merchants
Bank
AC#:
574902786810201
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2014 |
|
Cash & bank |
239,230 |
|
Inventory |
340 |
|
Bills receivable |
246,920 |
|
Accounts
receivable |
49,930 |
|
Advances to
suppliers |
130 |
|
Other
receivables |
137,950 |
|
|
------------------ |
|
Current assets |
674,500 |
|
Fixed assets net
value |
9,010 |
|
Intangible and
other assets |
1,770 |
|
|
------------------ |
|
Total assets |
685,280 |
|
|
=========== |
|
Short loan |
343,630 |
|
Accounts payable |
313,980 |
|
Bills payable |
34,370 |
|
Advances from
clients |
-17,770 |
|
Taxes payable |
-630 |
|
Other Accounts
payable |
10 |
|
Other current
liabilities |
0 |
|
|
------------------ |
|
Current
liabilities |
673,590 |
|
Long term
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
673,590 |
|
Equities |
11,690 |
|
|
------------------ |
|
Total
liabilities & equities |
685,280 |
|
|
=========== |
Income Statement
Unit: CNY’000
|
|
As
of Dec. 31, 2014 |
|
Turnover |
1,009,690 |
|
Cost of goods sold |
987,000 |
|
Sales expense |
9,830 |
|
Management expense |
5,080 |
|
Finance expense |
6,840 |
|
Non-operating income |
160 |
|
Non-operating expenses |
50 |
|
Profit before tax |
1,050 |
|
Less: profit tax |
260 |
|
Profits |
790 |
Important
Ratios
=============
|
|
As
of Dec. 31, 2014 |
|
*Current ratio |
1.00 |
|
*Quick ratio |
1.00 |
|
*Liabilities
to assets |
0.98 |
|
*Net profit
margin (%) |
0.08 |
|
*Return on
total assets (%) |
0.12 |
|
*Inventory
/Turnover ×365 |
1 day |
|
*Accounts
receivable/Turnover ×365 |
19 days |
|
*Turnover/Total
assets |
1.47 |
|
* Cost of
goods sold/Turnover |
0.98 |
PROFITABILITY:
AVERAGE
l The turnover of SC
appears 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 goods sold is high, comparing with its
turnover.
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 appears small
l
The accounts receivable of SC appears average.
l
The short-term loan of SC appears large.
l
SC’s turnover 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 average.
Overall financial condition
of the SC: Fairly stable.
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of short-term loan could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.14 |
|
|
1 |
Rs.100.55 |
|
Euro |
1 |
Rs.71.26 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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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.