MIRA INFORM REPORT
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Report No. : |
345723 |
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Report Date : |
20.10.2015 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG ARTS & CRAFTS IMP. & EXP. CO., LTD. |
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Registered Office : |
No. 12 Zhongshan North Road, Hangzhou City, Zhejiang Province
310003 Pr |
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Country : |
China |
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Financials (as on) : |
31.06.2014 |
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Date of Incorporation : |
03.08.1992 |
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Com. Reg. No.: |
330000000038204 |
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Legal Form : |
Limited liabilities company |
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Line of Business : |
Subject is
engaged in import and export business (with permit if needed) and consulting
service; selling arts and crafts; warehousing service. |
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No. of Employee : |
150 |
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 AND ADDRESS
ZHEJIANG ARTS &
CRAFTS IMP. & EXP. CO., LTD.
NO. 12 ZHONGSHAN NORTH ROAD, HANGZHOU CITY, ZHEJIANG PROVINCE 310003 PR CHINA
TEL: 86 (0) 571-87238896/87063393
FAX: 86 (0) 571-87063838
EXECUTIVE
SUMMARY
Date of Registration : augUST 3, 1992
REGISTRATION NO. : 330000000038204
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL :
cny 172,527,600
staff : 150
BUSINESS CATEGORY :
trading
REVENUE :
CNY 378,046,000 (FROM JAN. 1, 2014 TO JUN. 30, 2014)
EQUITIES :
CNY 291,158,000 (AS OF JUN. 30, 2014)
WEBSITE : www.zjarts.com.cn
E-MAIL :
chenqq@zjarts.com
PAYMENT : NO COMPLAINTS
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : stable
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.32 = USD
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.: 330000000038204 on August 3, 1992.
SC’s Organization Code Certificate
No.: 14291270-X
SC’s Tax No.: 33000014291270X
SC’s registered capital: cny 172,527,600
SC’s paid-in capital: cny 172,527,600
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
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Shareholder (s) (% of
Shareholding) |
Department of Foreign Trade and Economic Cooperation of Zhejiang
Government 49%; Zhejiang Handicraft Cooperatives Associated Union 51% |
Zhejiang Grand Glory (Holdings) Co., Ltd. 9%; Zhejiang Handicraft
Cooperatives Associated Union 51% |
|
|
Shareholder (s) (% of
Shareholding) |
Zhejiang Grand Glory (Holdings) Co., Ltd. 49%; Zhejiang Handicraft
Cooperatives Associated Union 51% |
Zhejiang International Business Group Co., Ltd. 49; Zhejiang Handicraft
Cooperatives Associated Union 51 |
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Registration No. |
3300001007461 |
330000000038204 |
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Legal Representative |
Meng Qingwu |
Wu Min |
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Legal Representative |
Wu Min |
Lai Tao |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
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Zhejiang International Business Group Co.,
Ltd. |
49 |
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Zhejiang Handicraft Cooperatives
Associated Union |
51 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Lai Tao |
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General Manager |
Fang Hua |
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Director |
Wu Jianhua |
|
Chen Xiaoqian |
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|
Wu Guangwei |
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Supervisor |
Zhou Jiwei |
|
Xie Weiran |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Zhejiang International Business Group Co.,
Ltd. 49
Zhejiang Handicraft Cooperatives Associated
Union 51
Zhejiang
International Business Group Co., Ltd.
----------------------------------------------------------------
Date of Registration: February 14, 2008
Registration No.: 330000000018008
Legal Form: Sole State-Owned
Enterprise
Registered Capital: CNY 980,000,000
Zhejiang
Handicraft Cooperatives Associated Union
---------------------------------------------------------------------
Date of Registration: September 19, 1990
Registration No.: 330000000052098
Legal Form: Collective-owned
enterprise
Registered Capital: CNY 102,350,000
MANAGEMENT
Lai Tao , Legal Representative and Chairman
-------------------------------------------------------------------
Ø
Gender: M
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal
representative and chairman
Fang Hua, General Manager
----------------------------------------------
Ø
Gender: M
Ø
Nationality: China
Ø Qualification: University
Ø Working experience
(s):
At present, working in SC as general
manager
Director
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Wu Jianhua ID#
330106195812061224
Chen Xiaoqian ID# 330106197410104040
Wu Guangwei ID#
330726197203113110
Supervisor
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Zhou Jiwei ID# 330103196205141359
Xie Weiran ID#
330106196504100134
BUSINESS
OPERATION
SC’s registered
business scopes include import and export business (with permit if needed) and
consulting service; selling Arts and crafts; warehousing service.
SC is mainly engaged
in international trade.
SC’s products mainly include: luggage and
handbags, toys, garments, home textiles, socks, lin straw products, bamboo
products, headwear, gloves and mittens, umbrellas, furniture, footwear, fans,
giftware, etc.
SC sources its
products 80% from domestic market, and 20% from overseas market. SC sells 40%
of its products in domestic market, and 60% to overseas market.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
Staff & Office:
--------------------------
SC is
known to have approx. 150 staff
at present.
SC owns an area as
its operating office of approx. 1,000 sq. meters at the heading address.
RELATED
COMPANY
SC is known to invest in
the following companies:
n
Zhejiang Yiwei Arts & Crafts Co., Ltd.
n
Zhejiang Yihong Arts & Crafts Co., Ltd.
n
Zhejiang Artex Arts & Crafts Co., Ltd.
n
Zhejiang Yixing Arts & Crafts Co., Ltd.
n
Zhejiang Yiyang Arts & Crafts Co., Ltd.
n
Zhejiang Yihe Arts & Crafts Co., Ltd.
n
Zhejiang Yitai Arts & Crafts Co., Ltd.
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 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
Basic Bank:
Bank of China Zhejiang Branch
AC#: 800100022608091001
FINANCIALS
Financial Summary
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Unit: CNY’000 |
As
of Jun. 30, 2014 |
|
Total assets |
841,912 |
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Total
liabilities |
550,754 |
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Equities |
291,158 |
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Unit: CNY’000 |
From Jan. 1, 2014 to Jun. 30, 2014 |
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Revenue |
378,046 |
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Profits |
9,135 |
Important Ratios
=============
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As
of Jun. 30, 2014 |
|
*Liabilities to
assets |
0.65 |
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*Net profit
margin (%) |
2.42 |
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*Return on
total assets (%) |
1.09 |
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*Revenue/Total
assets |
0.45 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC appears
fairly good in its line.
l SC’s net profit
margin is average.
l SC’s return on
total assets is average.
LIQUIDITY:
AVERAGE
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is low.
Overall financial condition
of the SC: Stable.
CONCLUSIONS
SC is considered medium-sized in its line with
stable financial conditions and favorable background.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.82 |
|
|
1 |
Rs.100.12 |
|
Euro |
1 |
Rs.73.75 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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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 |
|
<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.