MIRA INFORM REPORT
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Report No. : |
346510 |
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Report Date : |
26.10.2015 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
No. 4, 25/F, Building 2, King Lake City, No. 1, Baoshan
Street, Jingyang District, Deyang,
Sichuan Province, 618000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
30.01.2004 |
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Com. Reg. No.: |
510600000008380 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in selling phosphorus
chemical products |
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No. of Employees : |
6 |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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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
5-CONTINENT ENTERPRISE CO., LTD.
NO.
4, 25/F, BUILDING 2, KING LAKE CITY, NO. 1, BAOSHAN STREET,
JINGYANG
DISTRICT, DEYANG, SICHUAN PROVINCE, 618000 PR CHINA
TEL: 86 (0) 838-2202800-8003/13708105363 FAX: 86 (0) 838-2207315
EXECUTIVE
SUMMARY
INCORPORATION DATE :
JAN. 30, 2004
REGISTRATION NO. :
510600000008380
REGISTERED LEGAL FORM : LIMITED
LIABILITIES COMPANY
CHIEF EXECUTIVE :
MR. ZAN JUN (CHAIRMAN)
STAFF STRENGTH :
6
REGISTERED CAPITAL : CNY 1,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 15,580,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY -5,400,000 (AS OF DEC. 31, 2013)
PAYMENT :
SLOW
MARKET CONDITION :
FAIR
FINANCIAL CONDITION :
POOR
OPERATIONAL TREND : FAIR
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE : CNY 6.35= 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:
SC is also known as 5-Continent Import & Export Co., Ltd., and SC also uses
the name of its related company “5-Continent Phosphorus Co., Limited” as its
trading name.
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 Jan. 30, 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 wholesaling and retailing of red phosphorus,
yellow phosphorus, polyphosphoric acid, phosphorus pentoxide, thiourea,
phosphorous acid, caustic soda, potassium chlorate, nitrate, soda niter, calcium
hypochlorite, sodium nitrite, ammonium nitrate, calcium nitrate, sodium
chlorate, sodium hydrosulfite, trichloroisocyanuric acid, sodium cyanide,
sodium hypochlorite, copper sulfate, phosphorus trichloride, oxalic acid and
zinc sulfate. Selling agricultural & animal products, native products,
textile products, garments, articles of daily use, cultural & sports goods
& instrument, mineral precuts, building materials, chemical products,
general machinery equipment, hardware & electrical materials, electronic
products and fertilizer; importing and exporting various goods and
technologies, excluding goods or technologies limited or forbidden by state.
(with permit if needed)
SC
is mainly engaged in selling phosphorus chemical products.
Mr.
Zan Jun is legal representative, chairman and general manager of SC at present.
SC is
known to have approx. 6 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Deyang. Our checks reveal that SC
owns the total premise about 100 square meters.
www.5-continententerprises.com
The design is professional and the content is well organized. At present it is
in English version.
Changes of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2013 |
Shareholder & % of shareholding |
Zan Jun 50% Hong Shaoyi 30% Yang Xianhui 10% Luo Hui 5% Zhang Ying 5% |
Present ones |
Organization
code: 756633633
For
the past two years there is no record of litigation.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Zan
Jun 50
Yang
Xianhui 40
Yang
Shuming 10
Legal Representative, Chairman and General Manager:
Mr.
Zan Jun, with university education. He is currently responsible for the overall
management of SC.
Working
Experience(s):
At
present Working in SC as legal representative,
chairman and general manager.
Supervisor:
Yang
Xianhui
SC
is mainly engaged in selling phosphorus chemical products.
SC’s
products mainly include:
Citric
Acid
2-Keto
L-Gulonic Acid
Fumaric
Acid
Thiourea
Dioxide
Thiourea
Furfuryl
Alcohol
2-Naphthol
Tartaric
Acid
Silicon
Metal
Polysilicon
2,4
Dichloro Fluoro Benzene
2,4
Dichloro Phenacyl Chloride
Ortho
Chloro Phenol (Ocp)
2-4 Dichloro Phenol
1,3-Difluoro Benzene
Diphenylamine
Benzanthrone
Beta
Naphthol
Quinizarine
Saccharin
Sodium Salt
Hydroxylamine
Hydrochloride
Anthraquinone
Acrylamide
Triethyl
Orthoformate
Cimetidine
Paracetamol
Azithromycin
SC
sources its materials 100% from domestic market. SC sells 20% of its products
in domestic market, and 80% to overseas market, mainly to India.
The
buying terms of SC include Check, T/T 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
declined to release its major clients and suppliers.
5-Continent
Phosphorus Co., Limited (Hong Kong)
===========================
Incorporation
date: May 24, 2012
Registration
no.: 1749859
Legal
form: Private company limited by shares
According
to www.5-continententerprises.com
Oversea offices
India
Add:
1804 Sanchar Vihar Sector-4 Dwarka, New Delhi India, 110075
Tel:
+91 45017690 /+91 9899069694
Vietnam
Address:
No 70, 43 Street, Tan Quy Ward, District 7, HCMC
Tel: 0084 - 08.37755431
0084
- 08.37755463
0084
- 08.37752940
Philippines
Address:
unit 1601, Antel Global Corporate Center, 3 Julia vargas Avenue, Ortigas
Center, Pasig city, Philippines
Tel： 0063—25719088
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 Deyang Branch
AC#：118501771825
Relationship:
Normal.
Balance Sheet
Unit:
CNY’000
|
|
As of Dec. 31, 2013 |
As of Dec. 31, 2012 |
|
Cash & bank |
350 |
440 |
|
Inventory |
90 |
150 |
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Accounts receivable |
300 |
0 |
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Advances to suppliers |
370 |
2,280 |
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Other accounts receivable |
600 |
200 |
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Other current assets |
0 |
10 |
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------------------ |
------------------ |
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Current assets |
1,710 |
3,080 |
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Fixed assets net value |
390 |
70 |
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Long term investment |
0 |
0 |
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Intangible and other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
2,100 |
3,150 |
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============= |
============= |
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Short loans |
240 |
2,000 |
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Accounts payable |
0 |
0 |
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Advances from clients |
0 |
1,830 |
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Taxes payable |
0 |
30 |
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Other accounts payable |
6,470 |
3,410 |
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Other current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current liabilities |
6,710 |
7,270 |
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Long-term liabilities |
790 |
910 |
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------------------ |
------------------ |
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Total liabilities |
7,500 |
8,180 |
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Equities |
-5,400 |
-5,030 |
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|
------------------ |
------------------ |
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Total liabilities & equities |
2,100 |
3,150 |
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============= |
============= |
Income Statement
Unit:
CNY’000
|
|
As of Dec. 31, 2013 |
As of Dec. 31, 2012 |
|
Turnover |
15,580 |
21,970 |
|
Cost of goods sold |
14,490 |
20,690 |
|
Taxes and additional of main operations |
40 |
70 |
|
Sales expense |
1,170 |
1,700 |
|
Management expense |
90 |
50 |
|
Finance expense |
210 |
380 |
|
Subsidy income |
0 |
1,160 |
|
Non-operating income |
50 |
0 |
|
Non-operating expense |
0 |
20 |
|
Profit before tax |
-370 |
220 |
|
0 |
0 |
|
|
Profits |
-370 |
220 |
Important Ratios
=============
|
|
As of Dec. 31, 2013 |
As of Dec. 31, 2012 |
|
*Current ratio |
0.25 |
0.42 |
|
*Quick ratio |
0.24 |
0.40 |
|
*Liabilities to assets |
3.57 |
2.60 |
|
*Net profit margin (%) |
-2.37 |
1.00 |
|
*Return on total assets (%) |
-17.62 |
6.98 |
|
*Inventory /Turnover ×365 |
2 days |
3 days |
|
*Accounts receivable/Turnover ×365 |
7 days |
/ |
|
*Turnover/Total assets |
7.42 |
6.97 |
|
* Cost of goods sold/Turnover |
0.93 |
0.94 |
PROFITABILITY: FAIR
The
turnover of SC appears average in both years, but deceased in 2013.
SC’s
net profit margin is average in 2012 but fair in 2013.
SC’s
return on total assets is fairly good in 2012 but poor in 2013.
SC’s
cost of goods sold is fairly high, comparing with its turnover.
LIQUIDITY: POOR
The
current ratio of SC is poor in both years.
SC’s
quick ratio is poor in both years.
SC’s
inventory is average in both years.
SC’s
accounts receivable is average in 2013.
SC’s
short-term loan appears large in 2012, but average in 2013.
SC’s
turnover is fairly good in both years, comparing with the size of its total
assets.
LEVERAGE: POOR
The
debt ratio of SC is too high.
The
risk for SC to go bankrupt is high.
Overall financial
condition of the SC: Poor.
SC
is considered small-sized in its line with poor financial conditions. Great
caution is required in providing credit to SC & C.O.D. is recommended.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.88 |
|
UK Pound |
1 |
Rs.99.89 |
|
Euro |
1 |
Rs.72.06 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
TRU |
RATING EXPLANATIONS
|
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 |
|
|
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.