MIRA INFORM REPORT
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Report No. : |
346678 |
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Report Date : |
26.10.2015 |
IDENTIFICATION DETAILS
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Name : |
NINGBO SUNNY
FOREIGN TRADE CO., LTD. |
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Registered Office : |
No. 257 Huifeng East Road, Yinzhou District, Ningbo, Zhejiang Province, 315100 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
21.07.2000 |
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Com. Reg. No.: |
330212000028981 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Importing and exporting commodities and technology, excluding the
items prohibited or limited by the country. |
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No. of Employees : |
22 |
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 & address
NINGBO SUNNY FOREIGN TRADE
CO., LTD.
no. 257 huifeng east road, yinzhou district, ningbo,
zhejiang province, 315100 PR CHINA
TEL: 86 (0) 574-63886189/87425006 FAX: 86 (0) 574-63886305
EXECUTIVE
SUMMARY
INCORPORATION DATE : july 21, 2000
REGISTRATION NO. : 330212000028981
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
chief executive :
MR. mao yongping (CHAIRMAN)
STAFF STRENGTH :
22
REGISTERED CAPITAL : CNY
5,500,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 360,400,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 12,010,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : Fairly stable
OPERATIONAL TREND :
STEADY
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: the given address was the former 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 July 21, 2000.
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 importing and exporting
commodities and technology, excluding the items prohibited or limited by the
country.
SC is mainly engaged in trading different kinds of products.
Mr. Mao Yongping is legal representative, chairman and general manager
of SC at present.
SC is known to have approx. 22 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the commercial zone of Ningbo. SC’s employee refused to release the detailed information
of the premise.
The other address: Pingtang Village, Dongwu Town, Yinzhou District,
Ningbo
SC is not known to host website of its own at present.
Email: corrachen@sunnyningbo.com
Changes of its
registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2007-12-21 |
Registration no. |
3302271013220 |
Present one |
|
2010-3-1 |
Registered capital |
CNY 1,500,000 |
CNY 5,000,000 |
|
2012-5-11 |
Registered capital |
CNY 5,000,000 |
CNY 4,900,000 |
|
2012-7-4 |
Registered capital |
CNY 4,900,000 |
Present amount |
Organization Code: 724057328
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Wang Jingzhi 2
Xu Zhouye 3.5
Ma Yuan 22
Wang Lihui 2
Zhong Bin 2.5
Hou Haifeng 2.5
Chen Hao 4
Zhang Jian 2.5
Che Leiming 5
Chen Fei 4.5
Hu Shiyi 1.5
Bao Weifen 12
Mao Yongping 36
Legal representative,
chairman and general manager:
Mr. Mao Yongping is currently responsible for the overall management of
SC.
Working Experience(s):
At present
Working in SC as legal representative, chairman and general manager.
Also working in Ningbo Sunny Textile Co., Ltd. and Ningbo Weilisi
International Trade Co., Ltd. (in Chinese pinyin) as legal representative.
Supervisor:
Che Leiming
SC is mainly engaged in trading different kinds of products.
SC’s products mainly include: textiles, chemicals.
SC sources its materials 100% from domestic market. SC sells 10% of its
products in domestic market, and 90% to overseas market.
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 suppliers and
clients.
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TRADEMARKS & PATENTS |
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Registration No. |
10161597 |
10161646 |
10892086 |
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Registration Date |
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Trademark Design |
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SC is known to
invest in the following companies:
Ningbo Sunny Textile Co., Ltd.
=======================
Registration no.: 330212000108668
Legal representative: Mao Yongping
Incorporation date:
Ningbo Li Nan Garment Co., Ltd. (in Chinese pinyin)
=====================
Registration no.: 330212000279744
Legal representative: Xu Zhouye
Incorporation date:
Ningbo Youcheng Wood Co., Ltd. (in Chinese pinyin)
=======================
Registration no.: 330212000345112
Legal representative: Shi Renbo
Incorporation date:
Ningbo Weilisi International Trade Co., Ltd. (in Chinese pinyin)
======================
Registration no.: 330212000345717
Legal representative: Mao Yongping
Incorporation date: 2013-06-06
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.
SC declined to release its banking details.
Balance Sheet
Unit: CNY’000
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As of Dec. 31, 2014 |
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Cash & bank |
4,330 |
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Inventory |
0 |
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Accounts receivable |
26,140 |
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Bills receivable |
0 |
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Other Accounts receivable |
40,650 |
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Advances to suppliers |
14,710 |
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To be apportioned expense |
0 |
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Other current assets |
0 |
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------------------ |
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Current assets |
85,830 |
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Fixed assets net value |
3,750 |
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Long-term investment |
7,600 |
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Intangible and other assets |
10 |
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------------------ |
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Total assets |
97,190 |
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============= |
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Short loans |
23,600 |
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Accounts payable |
26,750 |
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Advance from customers |
29,210 |
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Other Accounts payable |
5,330 |
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Notes payable |
0 |
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Taxes payable |
270 |
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Withdraw the expenses in advance |
0 |
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Other current liabilities |
20 |
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------------------ |
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85,180 |
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Long term liabilities |
0 |
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Other liabilities |
0 |
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------------------ |
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Total liabilities |
85,180 |
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Equities |
12,010 |
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------------------ |
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97,190 |
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============= |
Income Statement
Unit: CNY’000
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As of Dec. 31, 2014 |
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Turnover |
360,400 |
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Cost of goods sold |
351,420 |
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Sales expense |
3,710 |
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Management expense |
2,760 |
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Finance expense |
1,700 |
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Profit before tax |
1,380 |
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Less: profit tax |
400 |
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Profits |
980 |
Important Ratios
=============
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As of Dec. 31, 2014 |
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*Current ratio |
1.01 |
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*Quick ratio |
1.01 |
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*Liabilities to assets |
0.88 |
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*Net profit margin (%) |
0.27 |
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*Return on total assets (%) |
1.01 |
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*Inventory /Turnover ×365 |
/ |
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*Accounts receivable/Turnover ×365 |
27 days |
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*Turnover/Total assets |
3.71 |
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* Cost of goods sold/Turnover |
0.98 |
PROFITABILITY:
AVERAGE
The turnover of SC appears fairly good 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 fairly 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.
SC has no inventory in 2014.
The accounts receivable of SC is maintained in an average level.
SC’s short-term loan appears large in 2014.
SC’s turnover is in a fairly good 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. The large amount of short loans could be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.88 |
|
|
1 |
Rs.99.89 |
|
Euro |
1 |
Rs.72.06 |
INFORMATION DETAILS
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Analysis Done by
: |
KAS |
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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.