MIRA INFORM REPORT
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Report No. : |
343324 |
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Report Date : |
02.10.2015 |
IDENTIFICATION DETAILS
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Name : |
HENAN TONGZHOU COTTON TRADE CO., LTD. |
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Registered Office : |
15/F, Qinghua International Bldg., No. 9, North Jingyi Road, Jinshui Dist., Zhengzhou City, Henan Province 450003 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
10.01.2002 |
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Com. Reg. No.: |
410000100051906 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in selling cotton and yarn. |
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No. of Employees : |
80 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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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
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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 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.
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Source
: CIA |
Company
name & address
HENAN TONGZHOU COTTON TRADE CO., LTD.
15/F, QINGHUA INTERNATIONAL BLDG., NO. 9, NORTH JINGYI ROAD,
JINSHUI DIST., ZHENGZHOU CITY, HENAN PROVINCE 450003 PR CHINA
TEL: 86 (0) 371-65836219/65836201-8135 FAX: 86 (0) 371-65836214
EXECUTIVE
SUMMARY
INCORPORATION DATE : JAN. 10, 2002
REGISTRATION NO. : 410000100051906
REGISTERED LEGAL FORM : LIMITED LIABILITIES
COMPANY
STAFF STRENGTH :
80
REGISTERED CAPITAL : CNY 200,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 2,250,700,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 273,630,000 (AS OF DEC. 31, 2013)
PAYMENT :
SLOW
BUT CORRECT
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.20
Adopted
abbreviations:
ANS - Amount not stated
NS - Not stated
SC - Subject company (the company inquired by you)
NA - Not available
CNY - China Yuan Ren Min Bi
SC was registered as a limited liabilities
company at local Administration for Industry & Commerce (AIC-The official
body of issuing and renewing business license) on Jan. 10, 2002.
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 selling lint cotton, chemical
fibers, cotton yarn, and textiles; information consulting services and
purchasing and selling agency services; import and export of various goods and
technologies, excluding the goods forbidden by the government (with permit if
needed). (the above scope national laws and regulations the projects shall be
approval, and shall not operate without approval)
SC is mainly engaged in selling cotton and yarn.
Mr. Wei Gangmin is legal representative, chairman and general manager of
SC at present.
SC is known to have approx. 80 employees at present.
SC is currently operating at the above stated address, and this address houses
its operating office in the commercial zone of Zhengzhou. The detailed
information of the premise is unspecified.
SC has another address located in 10/F, Henan Nongxin Building, No. 19,
Business Outer Ring Road, Zhengdong New District, Zhengzhou, Henan Province
http://www.hntzmy.com/
The design is professional and the content is well organized. At present the
web is both in English and Chinese versions.
E-mail: hntzmy@hntzmy.com ; yuan@hntzmy.com
Changes of its
registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
Unspecified |
Registration No. |
4100002007329 |
410000100051906 |
Honors:
.
Organization code: 73388806X
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name
% of Shareholding
Wei Gangmin 93
Li Yinping 7
Legal
Representative, Chairman and General Manager:
Mr. Wei Gangmin, with university education. He is currently responsible
for the overall management of SC.
Working Experience(s):
At present Working in SC as legal
representative, chairman and general manager
Directors:
Li Yinping
Li Zaijie
Supervisor:
Zhao Hongmin
SC is mainly engaged in selling cotton and yarn.
SC’s products mainly include: cotton, yarns and fabrics.
SC sources its materials 80% from domestic market, and 20% from overseas
market. SC sells 70% of its products in domestic market, and 30% 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.
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TRADEMARKS & PATENTS |
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Registration No. |
10195680 |
10195528 |
10195687 |
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Registration Date |
Jan. 14, 2013 |
Jan. 21, 2013 |
Jan. 14, 2013 |
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Trademark Design |
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Note: SC’s management declined to release its customer and supplier
details.
According to its website, SC is known to have the following branches at
present:
The United States of America Branch
India Branch
Hong Kong Branch
Uzbek Office
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.
Agricultural
Development Bank of China
AC#:
20341010500100000113941
Relation: Normal
Balance Sheet
Unit: CNY’000
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as of Dec. 31, 2013 |
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Cash & bank |
278,810 |
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Notes receivable |
3,730 |
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Inventory |
5,010 |
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Accounts receivable |
121,760 |
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Advances to suppliers |
294,650 |
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Other receivables |
10,600 |
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Other current assets |
0 |
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------------------ |
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Current assets |
714,560 |
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Long-term investments |
121,970 |
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Fixed assets net value |
44,050 |
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Projects under construction |
0 |
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Long-term deferred expense |
2,120 |
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Intangible assets |
0 |
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Other assets |
0 |
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------------------ |
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Total assets |
882,700 |
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============= |
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Short loans |
135,000 |
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Notes payable |
333,320 |
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Accounts payable |
0 |
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Advances from customers |
124,020 |
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Accrued payroll |
0 |
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Taxes payable |
-8,420 |
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Other accounts payable |
25,150 |
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Other current liabilities |
0 |
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----------------- |
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Current liabilities |
609,070 |
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Long term liabilities |
0 |
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------------------ |
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Total liabilities |
609,070 |
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Shareholders equities |
273,630 |
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------------------ |
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Total liabilities & equities |
882,700 |
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Income Statement
Unit: CNY’000
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as of Dec. 31, 2013 |
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Turnover |
2,250,700 |
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Cost of goods sold |
2,199,870 |
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Taxes and additional of main operation |
30 |
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Sales expense |
47,740 |
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Management expense |
5,740 |
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Finance expense |
8,970 |
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Investment income |
35,180 |
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Non-operating income |
3,880 |
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Non-operating expense |
110 |
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Profit before tax |
27,300 |
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Less: profit tax |
4,430 |
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Net profit |
22,870 |
Important Ratios
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as
of Dec. 31, 2013 |
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*Current ratio |
1.17 |
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*Quick ratio |
1.16 |
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*Liabilities
to assets |
0.69 |
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*Net profit
margin (%) |
1.02 |
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*Return on
total assets (%) |
2.59 |
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*Inventory
/Turnover ×365 |
1 day |
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*Accounts
receivable/Turnover ×365 |
20 days |
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*Turnover/Total
assets |
2.55 |
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* Cost of
goods sold/Turnover |
0.98 |
PROFITABILITY:
AVERAGE
The turnover of SC appears 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 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 appears average.
The accounts receivable of SC appears average.
SC’s short-term loan appears fairly large in 2013.
SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
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. 65.55 |
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|
1 |
Rs. 99.17 |
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Euro |
1 |
Rs. 73.08 |
INFORMATION DETAILS
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Analysis Done by
: |
RSM |
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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 |
-- |
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.