MIRA INFORM REPORT
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Report No. : |
345503 |
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Report Date : |
20.10.2015 |
IDENTIFICATION DETAILS
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Name : |
ANHUI TEA IMPORT & EXPORT CO., LTD. |
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Registered Office : |
5-10/F, Anhui Cooperative Economic Building, No. 1777 Qimen Road, New
Municipal District, Hefei, Anhui Province 230022 Pr |
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Country : |
China |
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Financials (as on) : |
30.06.2014 |
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Date of Incorporation : |
05.06.1989 |
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Com. Reg. No.: |
340000000016083 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Import, export and domestic sales of tea; importing and exporting
various products and technology; processing
with imported materials, processing with imported samples, assembling with
imported parts, and compensation trade in agreement; counter trade &
transit trade; purchasing, processing, storing and packaging agriculture
& by products. |
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No. of Employees : |
95 |
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 : |
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
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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 & address
ANHUI TEA IMPORT & EXPORT
CO., LTD.
5-10/F, ANHUI COOPERATIVE ECONOMIC BUILDING, NO. 1777 QIMEN ROAD
NEW MUNICIPAL DISTRICT, HEFEI, ANHUI PROVINCE 230022 PR CHINA
TEL: 86 (0) 551-62388959/62640512/62671541/62654110
FAX: 86 (0) 551-62654664
EXECUTIVE
SUMMARY
Date of Registration : JUNe 5, 1989
REGISTRATION NO. : 340000000016083
LEGAL FORM : LIMITED
LIABILITIES COMPANY
CHIEF EXECUTIVE :
gu gongxin (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY
10,104,700
staff :
95
BUSINESS CATEGORY :
trading
REVENUE :
CNY 173,580,000 (FROM JAN. 1, 2014 TO JUN. 30, 2014)
EQUITIES :
CNY 48,870,000 (AS OF JUN. 30, 2014)
WEBSITE : www.ahcy.com.cn
E-MAIL :
ahtea@mail.hf.ah.cn
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.32 = USD 1
Adopted
abbreviations (as follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL
TREND & GENERAL REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be determined
LEGAL STATUS & HISTORY
SC was established as a limited liabilities company of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.: 340000000016083 on June
5, 1989.
SC’s Organization Code Certificate No.:
14894055-X
SC’s registered capital: CNY 10,104,700
SC’s paid-in capital: CNY 10,104,700
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Legal Representative |
Li Nianhua |
Gu Gongxin |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
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Name of Shareholder (s) |
% of Shareholding |
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Anhui Supply and Marketing Cooperation |
37.44 |
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SC’s Employee Shareholders Association |
62.56 |
SC’s Chief Executives:-
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Position |
Name |
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Legal Representative, Chairman and General Manager |
Gu Gongxin |
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Vice Chairman |
Deng Yuejin |
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Director |
Zhou Qiwen |
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Chen Wenyou |
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Zhao Ping |
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Supervisor |
Yang Zhenshun |
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Zheng Wensong |
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RECENT DEVELOPMENT
SC has got certificates ISO9002 and its organic tea has been certified
by the IMO of Swiss.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Anhui Supply and Marketing Cooperation 37.44
SC’s Employee Shareholders Association 62.56
MANAGEMENT
Gu Gongxin, Legal Representative, Chairman and General
Manager
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Gender: M
Qualification: University
Working experience (s):
At present, working in SC as legal representative, chairman and general
manager
Deng Yuejin, Vice Chairman
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Gender: M
Qualification: University
Working experience (s):
At present, working in SC as vice chairman
Director
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Zhou Qiwen
Chen Wenyou
Zhao Ping
Supervisor
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Yang Zhenshun
Zheng Wensong
BUSINESS OPERATION
SC’s registered business scope includes import, export and domestic sales
of tea; importing and exporting various products and technology; processing with imported materials,
processing with imported samples, assembling with imported parts, and
compensation trade in agreement; counter trade & transit trade; purchasing,
processing, storing and packaging agriculture & by products.
SC is mainly engaged in international trade.
SC’s tea products include: “Lucky bird” brand series Anhui Green Tea
(Chumee, Gunpowder), Black tea; “Greeting pine” brand series Keemun Black tea,
Anhui Black Tea, Special Tea (including traditional famous tea, organic tea,
teabag, slimming tea and health-protection tea).
SC’s agricultural and animal by products include: Bristles, casing,
dehydrated vegetable, garlic products, citric acid, and candle etc. Machinery
& electrical products: Insulator, voltmeter, graphite products, “Merry”
brand lights.
SC’s chemical products include: rubber, plastics, glue tube; Textiles:
Cloth, feather, bath towel, sheet etc;
SC’s light industrial products include: Metals, lock, battery, iron
wire.
SC sources its products 90% from domestic market, and 10% from the
overseas market, mainly European countries. SC sells 10% of its products in
domestic market, and 90% to the overseas market, mainly Japan and European
countries.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Supplier*
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Anhui Hongxin Tea Making Co., Ltd.
*Major Customer*
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Dollarama L.P. (Canada)
Staff &
Office:
--------------------------
SC is known to have approx. 95
staff at present.
SC rents an area as its operating office of approx. 6,000 sq. meters at
the heading address.
RELATED COMPANY
Anhui Daye Mingfeng Tea Co., Ltd.
Registration No.: 340100000350964
Legal Representative: Dai Xianghai
Date of Registration:
Tel: 86 (0) 551-63542156/62654703
Fax: 86 (0) 551-63542400
Anhui Hongxin Tea Making Co., Ltd.
Registration No.: 342522000001658
Legal Representative: Li Yingqun
Date of Registration:
Anhui Dongfang Tea Co., Ltd.
Registration No.: 341523000005268
Legal Representative: Wei Xianguo
Date of Registration:
SC is known to have two subsidiaries in Anhui and one overseas office in
Uzbekistan:
Guichi Tea Factory
Wuhu Tea Factory
Anhui Tea Imp. and Exp. Co., Ltd. Uzbekistan Office
Tel: 998-71-1526488
E-mail: ahcygs@globalnet.uz
PAYMENT
Overall payment appraisal: ( ) Excellent ( ) Good (X)
Average ( ) Fair ( ) Poor ( ) Not yet be 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’s supplier refused to make any comments.
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
Basic Bank:
Bank of China Anhui Branch
AC#: 489900308908091001
FINANCIALS
Financial Summary
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
As of Jun. 30,
2014 |
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Total assets |
250,580 |
238,950 |
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Total liabilities |
202,860 |
190,080 |
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Equities |
47,720 |
48,870 |
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Unit: CNY’000 |
As of Dec. 31,
2013 |
From Jan. 1,
2014 to Jun. 30, 2014 |
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Revenue |
365,320 |
173,580 |
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Profits |
5,980 |
1,160 |
Important Ratios
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As of Dec. 31,
2013 |
As of Jun. 30,
2014 |
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*Liabilities to assets |
0.81 |
0.80 |
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*Net profit margin (%) |
1.64 |
0.67 |
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*Return on total assets (%) |
2.39 |
0.49 |
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*Revenue / Total assets |
1.46 |
0.73 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears fairly good in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
LIQUIDITY: AVERAGE
SC’s revenue 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: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.82 |
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|
1 |
Rs.100.12 |
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Euro |
1 |
Rs.73.75 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
TPT |
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 |
-- |
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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.