MIRA INFORM REPORT
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Report No. : |
343274 |
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Report Date : |
09.10.2015 |
IDENTIFICATION DETAILS
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Name : |
CHANGSHA DOUBLE BEST INDUSTRY CO., LTD. |
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Registered Office : |
Room 1024, No. 1061-1
Jintai Donghuan Apartment, Section 1 Of East Second Ring Raod, Hehuayuan
Street, Furong District, Changsha, Hunan Province, 410001 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
28.07.2008 |
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Com. Reg. No.: |
430102000069539 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is
engaged in trading of chemical raw materials. |
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No. of Employee : |
5 |
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 |
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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. 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.
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Source
: CIA |
Company
name and address
CHANGSHA DOUBLE
BEST INDUSTRY CO., LTD.
ROOM 1024, NO. 1061-1
JINTAI DONGHUAN APARTMENT, SECTION 1 OF EAST SECOND RING RAOD, HEHUAYUAN
STREET, FURONG DISTRICT, CHANGSHA, HUNAN PROVINCE, 410001 PR CHINA
TEL: 86 (0)
731-82885488/82883248 FAX:
86 (0) 731-82883078
EXECUTIVE
SUMMARY
INCORPORATION DATE : JUL. 28, 2008
REGISTRATION NO. : 430102000069539
REGISTERED LEGAL
FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 5
REGISTERED CAPITAL : CNY 500,000
BUSINESS LINE : TRADING
TURNOVER : CNY 28,360,000
(AS OF DEC. 31, 2014)
EQUITIES : CNY 290,000
(AS OF DEC. 31, 2014)
PAYMENT : SLOW
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION
: FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE
RATE : CNY 6.3564 =USD
1 AS OF 2015-10-9
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
Note: SC’s correct address should be the heading
one.
SC was registered as a limited liabilities co. at local
Administration for Industry & Commerce (AIC-The officialbody of issuing and
renewing business license) on Jul. 28, 2008.
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 various goods and technology
(excluding those limited or prohibited by the state); selling chemical raw
materials (excluding dangerous goods and MCC), machinery and electronics
product and groceries; technology consulting (if needed with permit)
SC is mainly engaged in trading of chemical
raw materials. (
Mr. Kuang Wenchu has been legal representative, executive
director and general manager of SC since 2008.
SC is known to have approx. 5
employees at present.
SC is currently operating at the above stated
address, and this address houses its operating office in the commercial zone of
Changsha. The “Tower E 9/F Biyuntian Mansion 129 Wuyi Middle Road Changsha
Hunan” is SC’ s former operating address.
http://www.csdbindustry.com/ The design
is professional and the content is well organized. At present it is both in
Chinese and English versions.
Email: hemkuang@2118.cn / kwchu@371.net / hemkuang@csdbindustry.com
No significant events
or changes were found during our checks with the local AIC.
Organized code:
678016663
MAIN SHAREHOLDERS:
Name %
of shareholdings
Kuang Wenchu 60
Tan Xiaoqiong 40
l
Legal
Representative, Executive director and General Manager:
Mr. Kuang Wenchu, ID#
43030219650302****, born in 1965 with university education, he is currently
responsible for the overall and daily management of SC.
Working Experience(s):
From 2008 to present Working in SC as legal representative,
executive director and general manager
l Supervisor:
Tan Xiaoqiong
SC is mainly engaged in trading of chemical
raw materials.
SC’s products mainly include: Manganese
Dioxide (NMD/EMD), Manganese Sulfate, Potassium Chlorate, Potassium
Perchlorate, Sodium Chlorate, Sodium Silicofluoride, Sodium Metabisulphite,
Zinc Sulphate, and etc.
SC sources its materials 100% from domestic
market. SC sells 100% of its products to overseas market, mainly Southeast
Asia.
The buying terms of
SC include Check, T/T and Credit of 30-60 days. The payment terms of SC include
Check, L/C, T/T, and Credit of 30-60 days.
Note: SC’s employee refused to release its major customers or suppliers.
SC is not known to have any subsidiary at present.
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.
Bank of China
Hunan Branch Business Department
AC#: N/A
Relationship:
Normal
Financial
Summary
Unit: CNY’000
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As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
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Total liabilities |
3,140 |
2,490 |
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Equities |
230 |
290 |
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-------------------- |
-------------------- |
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Total assets |
3,370 |
2,780 |
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============= |
============= |
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Turnover |
25,430 |
28,360 |
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Profit before tax |
-90 |
60 |
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Less: income tax |
0 |
0 |
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Net Profits |
-90 |
60 |
Note: SC’s management refused to release the detail financial reports
for Year 2013 & 2014.
Important
Ratios
=============
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as of Dec. 31, 2013 |
as of Dec. 31, 2014 |
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*Current ratio |
/ |
/ |
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*Quick ratio |
/ |
/ |
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*Liabilities to assets |
0.93 |
0.90 |
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*Net profit
margin (%) |
-0.35% |
0.21% |
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*Return on
total assets (%) |
-2.67% |
2.16% |
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*Inventory
/Turnover ×365 |
/ |
/ |
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*Accounts
receivable/Turnover ×365 |
/ |
/ |
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*Turnover/Total
assets |
7.55 |
10.20 |
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* Cost of
goods sold/Turnover |
/ |
/ |
PROFITABILITY: AVERAGE
l
The
turnover of SC appears average in both years and there is a rise in 2014.
l
SC’s net
profit margin appears fair in 2013 and rise to average in 2014.
l
SC’s
return on total assets appears fair in 2013 and rise to average in 2014.
l SC’s turnover is in a good level in both
years, comparing with the size of its total assets.
LEVERAGE: POOR
l The debt ratio of SC is high in both years.
l The risk for SC to go bankrupt is average.
Overall financial condition of the SC:
Fairly stable
SC is considered
small-sized in its line with fairly stable financial conditions. After our research and based on the information
obtained.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.65.16 |
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|
1 |
Rs.99.78 |
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Euro |
1 |
Rs.73.33 |
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
ASH |
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.