MIRA
INFORM REPORT
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Report No. : |
346281 |
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Report Date : |
21.10.2015 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
Room 804, Shi Jia Plaza, No. 85, Nan Guan Central Street, Beilin District, Xi’an, Shaanxi Province,
710068 Pr |
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Country : |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
07.01.2004 |
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Com. Reg. No.: |
610100100411244 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in trading of chemicals. |
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No. of Employee : |
7 |
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 but correct |
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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
XI’an full-link trading co., ltd.
Room 804, Shi Jia PLAZA, No. 85, Nan Guan Central
Street,
beilin district, Xi’an, SHAANXI PROVINCE,
710068 PR CHINA
TEL: 86 (0) 29-86518469 FAX: 86 (0) 29-86518275
EXECUTIVE SUMMARY
INCORPORATION DATE : JANUARY 7, 2004
REGISTRATION NO. : 610100100411244
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE :
MR. SUN JINYUAN (CHAIRMAN)
STAFF STRENGTH :
7
REGISTERED CAPITAL : CNY 520,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 69,510,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 1,600,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.21 = USD 1 AS
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 company at local
Administration for Industry & Commerce (AIC - The official body of issuing and
renewing business license) on January 7, 2004.
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 selling mineral products
(excluding special controlled items), chemical products (excluding special
controlled items and flammable and explosive
chemical), machinery & equipment, metal materials (excluding special
controlled items), building materials (excluding wood materials), communication
equipment (excluding special controlled items), electronic products, household
electric appliances, general
merchandise, hardware tools, cultural goods, arts & crafts, textile, labor
supplies; commercial information consulting services; importing and exporting
commodities and technology, excluding the items prohibited by the state.
SC is mainly engaged in trading chemicals,
Mr. Sun Jinyuan has been legal representative, chairman and general
manager of SC since 2004.
SC is known to have approx. 7 employees at present.
SC is currently operating at the above stated address, and this address houses
its operating office in the commercial zone of Xi’an. Detailed premise
information is not available at present.
http://www.link-chem.com/ The
website could not be opened at present.
Email: sunjinyuan@sohu.com
Changes of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Registration No. |
6101012423674 |
Present one |
Organization Code: 750245226
There is no record of litigation till now.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Sun Jinyuan 50
Liu Min 42
Hui Qingsong
2
Sun Weihua
2
Liu Yuqin
2
Sun Weihong
2
Legal representative, chairman and general manager:
Mr. Sun Jinyuan, born in 1963. He is currently responsible for the
overall management of SC.
Working Experience(s):
From 2004 to present Working
in SC as chairman, legal representative and general manager.
Directors:
Hui Qingsong
Liu Min
Supervisor:
Sun Weihong
SC is mainly engaged in trading of chemicals,
Main Products: Beta-Naphthol, Tobias Acid, Acetainlde, Quinizarin,
3,4-Xylidine
Trademarks &
patents: N/A
SC sources its materials 99% from domestic market, and 1% from overseas
market. SC sells 10% of its products in domestic market, and 90% 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.
Note: SC’s management refused to release its main suppliers and clients.
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 Xi’an
AC#：491141510000000700 (USD
account)
Bank of China Chang’an Road
Sub-branch
AC#：N/A
Relationship: Normal.
Balance
Sheet
Unit: CNY’000
|
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as of Dec. 31,
2013 |
as of Dec. 31,
2014 |
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Cash & bank |
17,360 |
38,210 |
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Inventory |
2,000 |
630 |
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Accounts receivable |
2,800 |
3,920 |
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Advances to supplies |
0 |
0 |
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Other receivables |
10 |
210 |
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A receivable tax rebate of export |
410 |
630 |
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Other current assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
22,580 |
43,600 |
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Fixed assets net value |
30 |
30 |
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Projects under construction |
0 |
0 |
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Long-term investments |
0 |
0 |
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Intangible and other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
22,610 |
43,630 |
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============= |
============= |
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Short loans |
0 |
0 |
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Notes payable |
16,420 |
31,990 |
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Accounts payable |
-2,160 |
330 |
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Advances from customers |
0 |
0 |
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Taxes payable |
-340 |
-40 |
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Other Accounts payable |
7,560 |
9,750 |
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Other current liabilities |
0 |
0 |
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----------------- |
------------------ |
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Current liabilities |
21,480 |
42,030 |
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Long term liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total liabilities |
21,480 |
42,030 |
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Shareholders equities |
1,130 |
1,600 |
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------------------ |
------------------ |
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Total liabilities & equities |
22,610 |
43,630 |
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============= |
============= |
Income
Statement
Unit: CNY’000
|
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as of Dec. 31,
2013 |
as of Dec. 31,
2014 |
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Turnover |
49,270 |
69,510 |
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Cost of goods sold |
47,550 |
66,520 |
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Sales expense |
920 |
1,080 |
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Management expense |
840 |
1,110 |
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Finance expense |
-280 |
120 |
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Profit before tax |
240 |
690 |
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Less: profit tax |
60 |
170 |
|
Profits |
180 |
520 |
Important
Ratios
=============
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as of Dec. 31,
2013 |
as of Dec. 31,
2014 |
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*Current ratio |
1.05 |
1.04 |
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*Quick ratio |
0.96 |
1.02 |
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*Liabilities to assets |
0.95 |
0.96 |
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*Net profit margin (%) |
0.37 |
0.75 |
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*Return on total assets (%) |
0.80 |
1.19 |
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*Inventory /Turnover ×365 |
15 days |
4 days |
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*Accounts receivable/Turnover ×365 |
21 days |
21 days |
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*Turnover/Total assets |
2.18 |
1.59 |
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* Cost of goods sold/Turnover |
0.97 |
0.96 |
PROFITABILITY:
AVERAGE
The turnover of SC appears average in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of goods sold is high, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a normal level.
The inventory of SC appears average.
The accounts receivable of SC appears average.
SC has no short-term loan in both years.
SC’s turnover is in an average level, 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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.89 |
|
|
1 |
Rs.100.39 |
|
Euro |
1 |
Rs.73.52 |
INFORMATION DETAILS
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Analysis Done by
: |
RAS |
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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 |
|
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.