MIRA INFORM REPORT
|
Report No. : |
344232 |
|
Report Date : |
09.10.2015 |
IDENTIFICATION DETAILS
|
Name : |
TANGSHAN FENGZHAN IMPORT AND EXPORT TRADING CO., LTD. |
|
|
|
|
Registered Office : |
East Of Yinchengpu, Fengrun District, Tangshan, Hebei Province, 064099 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
27.09.2012 |
|
|
|
|
Com. Reg. No.: |
130221000034382 |
|
|
|
|
Legal Form : |
Limited Liabilities Co. |
|
|
|
|
Line of Business : |
Subject is engaged in selling steel. |
|
|
|
|
No. of Employee : |
20 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
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 moreMARKET -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 foreignTRADE 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 dailyTRADING 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 andOIL, 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
TANGSHAN FENGZHAN
IMPORT AND EXPORT TRADING CO., LTD.
EAST OF YINCHENGPU, FENGRUN DISTRICT, TANGSHAN,
HEBEI PROVINCE, 064099 PR CHINA
TEL: 86 (0) 315-5019008/5018103
FAX: 86 (0)
315-5019003/5019555
EXECUTIVE
SUMMARY
INCORPORATION DATE : SEP. 27, 2012
REGISTRATION NO. : 130221000034382
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
CHIEF EXECUTIVE : MR. SUN JIANWEI (CHAIRMAN)
STAFF STRENGTH : 20
REGISTERED CAPITAL : CNY 20,000,000
BUSINESS LINE :
TRADING
TURNOVER : CNY 1,670,900,000 (UNAUDITED, AS OF DEC. 31, 2014)
EQUITIES : CNY 20,370,000
(UNAUDITED, AS OF DEC. 31, 2014)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 100,000 (PERIODICAL REVIEW)
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.40 = 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 Sep. 27, 2012.
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 black
metal materials (excluding productive scrap metal material), building materials
(excluding wood and timber) and chemical products (excluding poisonous,
flammable, pesticides and other items limited, prohibited by state laws and
regulations); importing and exporting commodities.
SC is mainly engaged in selling steel.
Mr. Sun Jianwei has been the legal representative, chairman and general
manager of SC since 2012.
SC is known to have approx. 20 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in Tangshan. Our checks reveal that SC rents the
total premise, but the gross area of the premise is unspecific.
SC is not known to host web site of its own at present.
Email: 25860323@qq.com
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2013-12 |
Registered capital |
CNY 1,000,000 |
Present amount |
|
Shareholdings |
Yao Fuli 50% Sun Jianwei 50% |
Yao Fuli2.5% Sun Jianwei 97.5% |
|
|
|
Shareholdings |
Yao Fuli 2.5% Sun Jianwei 97.5% |
Present ones |
SC was taken into operation in January of 2013.
Subject passed the annual inspection of 2012 with Administration for
Industry & Commerce.
Organization Code: 055451925
There is no record of litigation till now.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Gao Xiurong 2.5
Sun Jianwei 97.5
Legal
Representative, Chairman and General Manager:
Mr. Sun Jianwei is currently responsible for the overall management of
SC.
Working Experience(s):
From 2012 to present Working
in SC as legal representative, chairman and general manager.
Supervisor:
Gao Xiurong
SC is mainly engaged in selling steel.
SC’s products mainly include: angle steel, channel steel, flat steel
SC was taken into operation in January of 2013.
SC sources its materials 100% from domestic market. SC sells 60% of its
products to overseas market, and 40% in domestic market.
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, Check and Credit of 30-60 days.
Note: SC’s
management declined to release its major suppliers and clients.
Hebei Yuxuan International Trading Co., Ltd.
=================================
Incorporation Date :
Sep. 25, 2007
Registration No. : 130221000002380
Registered Legal Form :
Limited Liabilities Co.
Chief Executive :
Mr. Han Zhiping (Chairman)
Registered Capital :
CNY 30,000,000
Add: East of Yinchengpu, Fengrun District, Tangshan, Hebei Province
Tel: 86 (0) 315-5019008/0315-5018373
Fax: 86 (0) 315-5019003
Web: http://www.yuxuansteel.com/
Email: haigangyuxuan888@126.com
Tangshan Fengrun District Zhonghe Trade Co., Ltd.
======================================
Registration no.: 130221000014467
Registered capital: CNY 30,000,000
Legal representative: Zhang Hao
Incorporation date:
Legal form: Limited Liabilities Co.
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 Bank of China Tangshan Xincheng Sub-branch
AC#：N/A
Relationship: Normal
Balance
Sheet
Unit: CNY’000
|
|
as of Dec. 31,
2013 |
as of Dec. 31,
2014 |
|
Cash & bank |
2,830 |
19,130 |
|
Notes receivable |
73,000 |
3,000 |
|
Inventory |
37,200 |
92,390 |
|
Accounts receivable |
0 |
37,750 |
|
Advances to suppliers |
11,880 |
11,660 |
|
Other receivables |
3,760 |
12,290 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
128,670 |
176,220 |
|
Fixed assets net value |
10 |
20 |
|
Projects under construction |
0 |
0 |
|
Long term investment |
0 |
0 |
|
Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
128,680 |
176,240 |
|
|
============= |
============= |
|
Short loans |
68,650 |
7,500 |
|
Accounts payable |
0 |
0 |
|
Other payable |
60 |
163,570 |
|
Accrued payroll |
100 |
0 |
|
Taxes payable |
-1,140 |
-15,200 |
|
Advances from clients |
40,810 |
0 |
|
Other current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current liabilities |
108,480 |
155,870 |
|
Long term liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total liabilities |
108,480 |
155,870 |
|
Equities |
20,200 |
20,370 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
128,680 |
176,240 |
|
|
============= |
============= |
Income
Statement
Unit: CNY’000
|
|
as of Dec. 31,
2013 |
as of Dec. 31,
2014 |
|
Turnover |
985,460 |
1,670,900 |
|
Cost of goods sold |
965,220 |
1,646,880 |
|
Taxes and additional of main operation |
490 |
720 |
|
Sales expense |
14,910 |
21,520 |
|
Management expense |
1,570 |
1,390 |
|
Finance expense |
3,000 |
70 |
|
Profit before tax |
270 |
320 |
|
Less: profit tax |
70 |
80 |
|
Profits |
200 |
240 |
Note: The Financial Report for Year 2014 hasn’t been audited.
Important
Ratios
=============
|
|
as of Dec. 31,
2013 |
as of Dec. 31, 2014 |
|
*Current ratio |
1.19 |
1.13 |
|
*Quick ratio |
0.84 |
0.54 |
|
*Liabilities to assets |
0.84 |
0.88 |
|
*Net profit margin (%) |
0.02 |
0.01 |
|
*Return on total assets (%) |
0.16 |
0.14 |
|
*Inventory /Turnover ×365 |
14 days |
20 days |
|
*Accounts receivable/Turnover ×365 |
/ |
8 days |
|
*Turnover/Total assets |
7.66 |
9.48 |
|
* Cost of goods sold/Turnover |
0.98 |
0.99 |
PROFITABILITY:
AVERAGE
The turnover of SC appears fairly good in its line in 2013 and good in
2014.
SC’s net profit margin is average in both years.
SC’s return on total assets is average in both years.
SC’s cost of goods sold is high in both years, comparing with its
turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level in both
years.
SC’s quick ratio is maintained in a normal level in 2013 but fair in
2014.
The inventory of SC appears average in 2013, but fairly large in 2014.
SC’s accounts receivable is average in 2014.
The short-term loan appears large in 2013, and average in 2014.
SC’s turnover is in a good level in both years, comparing with the size
of its total assets.
LEVERAGE: FAIR
The debt ratio of SC is high.
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. Taking into consideration of SC’s general performance and operation
size.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.16 |
|
|
1 |
Rs.99.78 |
|
Euro |
1 |
Rs.73.33 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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.