MIRA INFORM REPORT
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Report No. : |
343587 |
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Report Date : |
03.10.2015 |
IDENTIFICATION DETAILS
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Name : |
NINGXIA
YOUXIN INDUSTRY Co., Ltd. |
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Formerly Known As : |
NINGXIA YOUXIN MATERIALS TRADING CO., LTD. |
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Registered Office : |
Rm. C1306, Bldg. B, Yinchuan Int’l Trade Center, No. 106
Wenhua West Street, Xingqing District, Yinchuan, Ningxia, 750001 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
06.11.1997 |
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Com. Reg. No.: |
640000200006984 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in trading minerals & chemicals
products, carborundum, activated carbon. |
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No. of Employee : |
6 |
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 : |
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 and expanded 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 2013 stood as the second-largest
economy in the world after the US, having surpassed Japan in 2001. The dollar values
of China's agricultural and industrial output each exceed those of the US;
China is second to the US in the value of services it produces. 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.
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Source : CIA |
Company
name and address
NINGXIA YOUXIN INDUSTRY Co., Ltd.
RM. C1306, BLDG. B, YINCHUAN
INT’L TRADE CENTER, NO. 106 WENHUA WEST STREET, XINGQING DISTRICT, YINCHUAN,
NINGXIA, 750001 PR CHINA
TEL: 86
(0) 951-5019909/7805100 FAX: 86
(0) 951-5033823/7805026
EXECUTIVE
SUMMARY
INCORPORATION DATE : november 6, 1997
REGISTRATION NO. : 640000200006984
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 6
REGISTERED CAPITAL : CNY 4,680,000
BUSINESS LINE : TRADING
TURNOVER : CNY 15,020,000 (AS OF DEC. 31, 2013)
EQUITIES : CNY 4,210,000 (AS OF DEC. 31,
2013)
PAYMENT : SLOW BUT CORRECT
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.2775= 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
HISTORY
SC was registered as a limited liabilities company at
Ningxia Hui Autonomous Region Administration for Industry & Commerce (AIC -
The official body of issuing and renewing business license) on Nov. 6, 1997.
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 wholesaling and retailing chemicals
(excluding dangerous goods and those needed special approval), minerals
(excluding those needed special approval), carborundum, activated carbon,
ferroalloy, electric machinery and apparatus, hardware tool, common machinery,
meters, metal materials, textiles, agriculture and sideline products (excluding
raw grain, excess rice and those needed special approval) (excluding those
needed special approval); import and export business (within permitted scope).
SC is
mainly engaged in trading minerals & chemicals products, carborundum,
activated carbon.
Mr. Li
Suichao has been legal representative of SC since 2002.
SC is known to have approx. 6 employees at
present.
SC is currently operating at the above stated address, and this
address houses its operating office in the commercial zone of Yinchuan. SC’s
management refused to release the detail information of the premise.
WEB
SITE
http://www.youxin.net.cn/
The design is professional and the content is well organized. At present it is
in English and Chinese versions.
Email: ivanlee@public.yc.nx.cn
KEY
EVENTS/RECENT DEVELOPMENT
Changes
of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
1999-03 |
Company name |
Ningxia Youxin Materials Trading Co., Ltd. |
Ningxia Youxin Industry Co.,
Ltd. |
|
Registered capital |
CNY 300,000 |
CNY 4,680,000 |
|
|
2002-09 |
Legal representative |
Zhang Yunguan |
Li Suichao |
|
2009-03 |
Registration No. |
6400002200978 |
640000200006984 |
|
Unknown |
Shareholders |
Zhang Yunguan 78.63% Li Suichao 21.37% |
Present ones |
Subject
passed the annual inspection of 2012 with Administration for Industry &
Commerce.
Organization
Code: 624912382
LITIGATION
For the past two years there is no record of litigation.
MAIN
SHAREHOLDERS
Name Amount (CNY) % of Shareholding
Li Suichao 1,000,000 21.37
Li Yifan 3,680,000 78.63
MANAGEMENT
l
Legal representative:
Mr. Li Suichao , born in 1939. He is currently responsible
for the overall management of SC.
Working Experience(s):
From 2002 to present Working in SC as legal representative.
BUSINESS
OPERATIONS
SC is
mainly engaged in trading minerals & chemicals products, carborundum,
activated carbon.
SC’s products mainly include dicyandiamide, activated
carbon, silicon carbide, calcium carbide, magnesium ingots, carbon additive.
SC sources its materials 100%
from domestic market. SC sells 100% of its products to overseas market, mainly
Germany, France, and Italy.
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 suppliers
and clients.
RELATED
COMPANIES
SC is not known to have any subsidiary at present.
PAYMENT
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.
BANKING
China Construction Bank Yinchuan Branch
AC#：102483891
Relationship:
Normal.
FINANCIAL
HIGHLIGHTS
Financial
Summary
Unit:
CNY’000
|
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as
of Dec. 31, 2013 |
as
of Dec. 31, 2012 |
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Current
assets |
4,820 |
7,250 |
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Total
assets |
4,880 |
7,340 |
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Current
liabilities |
670 |
540 |
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Total
liabilities |
670 |
540 |
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Shareholders
equities |
4,210 |
6,800 |
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============= |
============= |
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Turnover |
15,020 |
32,250 |
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Cost
of goods sold |
14,110 |
31,080 |
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Taxes and additional of main
operation |
/ |
10 |
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Sales expense |
/ |
1,086 |
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Management expense |
/ |
10 |
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Finance expense |
/ |
340 |
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Profit
or loss on exchange |
/ |
280 |
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Profit
before tax |
-30 |
4 |
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Less:
profit tax |
0 |
1 |
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Profits |
-30 |
3 |
Note:
We did not find SC’s detailed financial reports
Important
Ratios
=============
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as
of Dec. 31, 2013 |
as
of Dec. 31, 2012 |
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*Current
ratio |
7.19 |
13.43 |
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*Liabilities
to assets |
0.14 |
0.07 |
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*Net
profit margin (%) |
-0.20 |
0.01 |
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*Return
on total assets (%) |
-0.61 |
0.04 |
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*Turnover/Total
assets |
3.08 |
4.39 |
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*
Cost of goods sold/Turnover |
0.94 |
0.96 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIR
l
The turnover of SC appears average in
its line in both years, but it decreased in 2013.
l
SC’s net profit margin is average in
2012, but fair in 2013.
l
SC’s return on total assets is average
in 2012, but fair in 2013.
l
SC’s cost of goods sold is fairly high,
comparing with its turnover.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained
in a normal level in both years.
l
SC’s turnover is in a fairly good level
in both years, comparing with the size of its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is
average.
Overall
financial condition of the SC: Fairly stable.
REMARKS
SC is considered small-sized in its line with fairly stable
financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.55 |
|
UK Pound |
1 |
Rs.99.17 |
|
Euro |
1 |
Rs.73.08 |
INFORMATION DETAILS
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Analysis
Done by : |
KAR |
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Report
Prepared by : |
TRU |
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 |
|
<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.