MIRA INFORM REPORT
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Report No. : |
343933 |
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Report Date : |
13.10.2015 |
IDENTIFICATION DETAILS
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Name : |
AVIC INTERNATIONAL MINERALS AND RESOURCES CO., LTD. |
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Registered Office : |
Room 1803& 19/F, Block B, Hangzhou Civic Center, No. 18, Jiefang East Road, Jianggan District,
Hangzhou City, Zhejiang Province,
310016 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
12.12.2011 |
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Com. Reg. No.: |
330100000162571 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in international trade business. |
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No. of Employee : |
105 |
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
mmitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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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) |
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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
AVIC INTERNATIONAL
MINERALS AND RESOURCES CO., LTD.
room 1803& 19/F,
block b, Hangzhou Civic Center, no. 18,
Jiefang east road, Jianggan district, hangzhou city, zhejiang province, 310016 PR CHINA
TEL: 86 (0)
571-86483710/87103192 FAX: 86 (0)
571-86483726
EXECUTIVE
SUMMARY
INCORPORATION DATE :
DEC. 12, 2011
REGISTRATION NO. :
330100000162571
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
105
REGISTERED CAPITAL : CNY 200,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 11,024,630,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 280,230,000 (AS OF DEC. 31, 2014)
PAYMENT :
NO COMPLAINTS
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.3441= 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
Note: the “Room 1803,
Tower A, Dragon Times Center, No. 18 Wantang Road Xihu District Hangzhou” was
SC’s previous address, and the current address of SC is the above one.
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 Dec. 12, 2011.
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 general business projects:
wholesaling and retailing: mineral products, metal materials, metallurgical
furnace, coal (no stored), machinery equipment, mechanical and electrical
products, chemical products (excluding dangerous chemicals and precursor
chemicals), building materials and fuel oil; service: economic information
consulting (excluding commodity brokers); goods import and export (excluding
items prohibited by law and regulation, able to operating the items prohibited
by law and regulation after obtained the special permit), warehouse service
(excluding dangerous chemicals)
SC is mainly engaged
in international trade business.
Mr. Xu
Yingcheng has been legal representative
and general manager of SC since Dec., 2011.
SC is known
to have approx. 105 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in Hangzhou. SC’s management refused to release the
detailed information of the premise.
www.avic-mr.com The design is
professional and the content is well organized. At present it is in both
Chinese and English versions.
Changes of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2013-03-21 |
Registered capital |
CNY 100,000,000 |
Present amount |
|
Shareholder and shareholdings |
AVIC International Holding Corporation
30%; AVIC International Steel Trade Co., Ltd. 50%; Qiu Yixin 2%; Zhang Kai 2%; Qian Haiming 5%; Wang Pingping 5%; Xu Yingcheng 6% |
AVIC International Holding Corporation
40%; AVIC International Steel Trade Co., Ltd. 40%; Qiu Yixin 2%; Zhang Kai 2%; Qian Haiming 5%; Wang Pingping 5%; Xu Yingcheng 6% |
|
|
2014-4-29 |
AVIC International Holding Corporation 40%; AVIC International Steel Trade Co., Ltd. 40%; Qiu Yixin 2%; Zhang Kai 2%; Qian Haiming 5%; Wang Pingping 5%; Xu Yingcheng 6% |
AVIC International Holding Corporation 40%; AVIC International Steel Trade Co., Ltd. 40%; Qiu Yixin 2%; Zhang Kai 2%; Wu Kang 5%; Wang Pingping 5%; Xu Yingcheng 6% |
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|
2014-8-29 |
AVIC International Holding Corporation 40%; AVIC International Steel Trade Co., Ltd. 40%; Qiu Yixin 2%; Zhang Kai 2%; Wu Kang 5%; Wang Pingping 5%; Xu Yingcheng 6% |
AVIC International Holding Corporation 40%; AVIC International Steel Trade Co., Ltd. 40%; Zhang Kai 4%; Wu Kang 5%; Wang Pingping5%; Xu Yingcheng 6% |
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|
2014-12-31 |
AVIC International Holding Corporation 40%; AVIC International Steel Trade Co., Ltd. 40%; Zhang Kai 4%; Wu Kang 5%; Wang Pingping 5%; Xu Yingcheng 6% |
Present ones |
Organization Code: 586522323
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
AVIC International Holding Corporation 40
AVIC International Steel Trade Co., Ltd. 40
Xu Yingcheng 6
Wu Kang 5
Chen Miaohong 5
Zhang Kai 4
AVIC International Holding Corporation
===================================
Registration no.: 100000000000991
Legal representative: Wu Guangquan
Registered capital: CNY 9,578,641,714
Legal form: Limited Liabilities Company
Incorporation date: April 12, 1983
It is a large comprehensive state-owned enterprise under direct
administration of Aviation Industry Corporation of China, with its core
business focused on import and export of aviation technologies and products. It
owns more than 20 sub-companies in China and over 80 overseas branches in over
40 countries and regions worldwide.
Website: www.avic-intl.cn
E-mail: public@avic-intl.cn
Tel: +86-10-84808613
Fax: +86-10-84971188
AVIC International Steel Trade Co., Ltd.
=====================================
Registration no.: 330216000001831
Legal form: Limited Liabilities Company
Legal representative: Wang Tianjun
Incorporation date: Jan. 12, 1999
Website: www.avic-steel.com
l
Legal representative, general manager &
director:
Mr. Xu Yingcheng, born in 1960. He is currently responsible for the
daily management of SC.
Working Experience(s):
From Dec., 2011 to present Working in SC as legal representative and
general manager.
Also working in SC and AVIC International
Steel Trade Co., Ltd. as director
l
Chairman:
Cheng Baozhong is currently responsible for the overall management of
SC.
Working Experience(s):
From Feb., 2015 to present
Working in SC as chairman
Also working in AVIC International Steel
Trade Co., Ltd. as chairman.
l
Vice-chairman:
Wang Tianjun is currently responsible for the overall
management of SC.
Working Experience(s):
From Mar., 2013 to Feb., 2015 Worked in SC as chairman
From Feb., 2015 to present
Working in SC as vice-chairman
Also working in AVIC International Steel Trade Co., Ltd. as legal
representative, general manager and director.
l
Directors:
Liu Yan
Liu Aiyi
Wang Mingchuan
Huang Yongfeng
l
Supervisors:
Cao Jiang
Sun Yu
Zhang Kai
SC is mainly
engaged in international trade business.
SC’s products mainly include: steel
products, iron ore.
SC sources its materials 20% from domestic
market, and 80% from overseas market. SC sells 80% of its products in domestic
market, and 20% to overseas market.
The buying terms of SC include Check, L/C, 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 management declined
to release its major clients and suppliers.
SC is known to invest in:
Jiaxing
Hanggong Energy Co., Ltd. (in Chinese Pinyin)
================================
Registration
no.: 330411000054413
Legal
representative: Wu Kang
Incorporation
date: May 31, 2012
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
Zhejiang Branch
AC#：366260357988
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
Cash & bank |
48,740 |
54,910 |
|
Inventory |
313,360 |
|
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Accounts
receivable |
2,490 |
87,820 |
|
Advances to
suppliers |
1,223,830 |
665,550 |
|
Other
receivables |
45,270 |
33,630 |
|
Dividend
receivable |
0 |
3,350 |
|
Notes receivable |
0 |
81,830 |
|
Other current
assets |
0 |
390 |
|
|
--------------- |
--------------- |
|
Current assets |
1,704,810 |
1,240,840 |
|
Fixed assets net
value |
2,360 |
1,460 |
|
Long-term equity
investments |
7,770 |
8,280 |
|
Intangible
assets |
310 |
230 |
|
Long-term
deferred expenses |
850 |
720 |
|
Deferred income
tax assets |
0 |
340 |
|
Other assets |
0 |
200,000 |
|
|
--------------- |
--------------- |
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Total assets |
1,716,100 |
1,451,870 |
|
|
============ |
============ |
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Short loans |
501,290 |
243,630 |
|
Accounts payable |
577,520 |
464,340 |
|
Notes payable |
163,910 |
135,660 |
|
Advances from
clients |
194,810 |
296,780 |
|
Accrued payroll |
8,680 |
4,650 |
|
Taxes payable |
14,160 |
13,310 |
|
Other payable |
170 |
13,270 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------- |
------------------- |
|
Current liabilities |
1,460,540 |
1,171,640 |
|
Long term
liabilities |
0 |
0 |
|
|
------------------- |
------------------- |
|
Total
liabilities |
1,460,540 |
1,171,640 |
|
Equities |
255,560 |
280,230 |
|
|
------------------- |
------------------- |
|
Total
liabilities & equities |
1,716,100 |
1,451,870 |
|
|
=========== |
=========== |
Income Statement
Unit: CNY’000
|
|
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
Turnover |
9,669,960 |
11,024,630 |
|
Cost of goods
sold |
9,513,440 |
10,841,040 |
|
Taxes and
additional of main operation |
770 |
820 |
|
Sales expense |
49,980 |
69,770 |
|
Management expense |
21,350 |
25,510 |
|
Finance expense |
23,690 |
48,450 |
|
Assets impairment loss |
0 |
1,370 |
|
Investment
income |
4,400 |
17,180 |
|
Non-operating
income |
700 |
4,000 |
|
Non-operating expense |
80 |
10 |
|
Profit before
tax |
65,750 |
58,840 |
|
Less: profit tax |
18,980 |
13,100 |
|
Profits |
46,770 |
45,740 |
Important
Ratios
=============
|
|
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
*Current ratio |
1.17 |
1.06 |
|
*Quick ratio |
0.90 |
0.79 |
|
*Liabilities
to assets |
0.85 |
0.81 |
|
*Net profit
margin (%) |
0.48 |
0.41 |
|
*Return on
total assets (%) |
2.73 |
3.15 |
|
*Inventory
/Turnover ×365 |
15 days |
11 days |
|
*Accounts
receivable/Turnover ×365 |
1 day |
3 days |
|
*Turnover/Total
assets |
5.63 |
7.59 |
|
* Cost of
goods sold/Turnover |
0.98 |
0.98 |
PROFITABILITY:
FAIRLY GOOD
l The turnover of SC
appears good and increased in 2014.
l SC’s net profit
margin appears average in both years.
l SC’s return on
total assets appears average in both years.
l
SC’s cost of goods sold is high in both years,
comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in 2013, but fair in 2014.
l
SC’s quick ratio is maintained in a normal level in
2013, but fair in 2014.
l
The inventory of SC appears average in both years.
l
The accounts receivable of SC appears small in both
years.
l
The short-term loan appears large in 2013, and
fairly large in 2014.
l
SC’s turnover is in a good level in both years,
comparing with the size of its total assets.
LEVERAGE: FAIR
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 medium-sized in its line with fairly stable financial
conditions. The fairly large amount of short-term loan could be a threat to
SC’s financial condition. Taking into consideration of SC’s general performance
and operation size,
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.73 |
|
|
1 |
Rs.99.30 |
|
Euro |
1 |
Rs.73.60 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
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Report Prepared
by : |
ASH |
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.