MIRA INFORM REPORT
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Report No. : |
346692 |
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Report Date : |
28.10.2015 |
IDENTIFICATION DETAILS
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Name : |
ZheJiang YongKang Foreign Economy and Trade Corp. |
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Registered Office : |
No. 3 Jiangbin South Road, Chengnei, Yongkang, Zhejiang Province,
321300 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
05.11.1991 |
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Com. Reg. No.: |
3307841000339 |
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Legal Form : |
State-Owned Enterprise |
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Line of Business : |
Subject engaged in trading of garments, textile, metal products, machinery equipment and rubber products |
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No. of Employee : |
17 |
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 : |
Small Company |
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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
ZheJiang YongKang Foreign Economy and Trade Corp.
NO. 3 JIANGBIN
SOUTH ROAD, CHENGNEI, YONGKANG, ZHEJIANG PROVINCE, 321300 PR CHINA
TEL: 86 (0)
579-87179039 FAX: N/A
EXECUTIVE
SUMMARY
INCORPORATION DATE : NOv. 5, 1991
REGISTRATION NO. : 3307841000339
REGISTERED LEGAL FORM : State-owned enterprise
STAFF STRENGTH :
17
REGISTERED CAPITAL : CNY 4,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 305,400,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 7,300,000 (AS OF DEC. 31, 2014)
PAYMENT :
SLOW BUT CORRECT
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.3496 = USD
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 correct name is the heading one.
SC was registered as a State-owned enterprise
at local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on
Nov. 5, 1991.
Company Status:
State-owned enterprise
This form of
business in PR China is defined as a commodity production or operational units
of a socialist character which in accordance with the law, has autonomy in
management, takes full responsibility for its profits and losses and practices
independent business accounting. It is a legal person established directly by
central / local government or enterprise owned by central or local government.
In theory, the liabilities of this form of enterprise are ultimately borne by
the government, since the adoption of company law in mid-1994, the Chinese
government has planned to separate the ownership from management and liabilities
bearing.
SC’s registered business scope includes turning export to domestic sales
of grain and oil food, processing with imported samples, assembling with
imported parts, and compensation trade in agreement, owned cars freight, native
produce and animal by products, garments, light industry products, arts and
crafts, ferrous and non-ferrous metal, chemical machinery and equipment, tools
and farm tools, rubber products, instrumentation, feed, goods for export; the
allocation of imported goods, aquaculture industry (if needed with permit).
SC is mainly engaged in trading of goods.
Mr. Zhu Zihua has been legal representative of SC since
2004.
SC is known to
have approx. 17 employees at
present.
SC
is currently operating at the above stated address, and this address houses its
operating office in Yongkang. Detailed premise information is not available at
present.
SC is not known to host website of its own at present.
For the past two years there is no record of litigation.
Changes of its
registered information are as follows:
|
Date of change |
Item |
Before the
change |
After the change |
|
1991-11-19 |
Legal representative |
Li Licheng |
Lu Yaoze |
|
Registered capital |
CNY 1,000,000 |
CNY 670,000 |
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1993-9-14 |
Legal representative |
Lu Yaoze |
Xiang Xinping |
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1995-7-10 |
Registered capital |
CNY 670,000 |
Present amount |
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1997-1-27 |
Legal representative |
Xiang Xinping |
Yao Zhenming |
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1998-7-21 |
Legal representative |
Yao Zhenming |
Zhu Zicheng |
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2002-3-27 |
Legal representative |
Zhu Zicheng |
Ye Chengchao |
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2003-2-25 |
Legal representative |
Ye Chengchao |
Zhu Youkang |
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2004-7-13 |
Legal representative |
Zhu Youkang |
Present one |
Organization Code:
147455405
SUPERIOR
DEPARTMENT:
Yongkang Bureau of Commerce
l Legal
Representative:
Mr. Zhu Zihua is currently responsible for the overall management
of SC.
Working Experience(s):
From 2004 to present Working in SC as legal
representative.
SC is mainly engaged in trading of goods.
SC’s products mainly
include: garments, textile, metal products, machinery equipment and rubber
products.
SC sources its materials 50% from domestic
market, and 50% from overseas market. SC sells 50% of its products in domestic
market, and 50% 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 T/T, L/C and Credit of 30-60 days.
Note: SC declined to release its major
suppliers and clients.
SC
is not known to have the 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.
SC’s accountant
refused to release the bank details.
Financial Summary
Unit: CNY’000
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As
of Dec. 31, 2014 |
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Total assets |
21,330 |
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Total
liabilities |
14,030 |
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Equities |
7,300 |
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=========== |
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Turnover |
305,400 |
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Profits |
450 |
Note: We did not
find SC’s detailed financial reports.
Important
Ratios
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As of Dec. 31, 2014 |
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*Liabilities
to assets |
0.66 |
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*Net profit
margin (%) |
0.15 |
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*Return on
total assets (%) |
2.11 |
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*Turnover/Total
assets |
14.32 |
PROFITABILITY:
AVERAGE
l The turnover 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.
l
SC’s turnover is in a good 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 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.64.96 |
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|
1 |
Rs.99.73 |
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Euro |
1 |
Rs.71.84 |
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 |
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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 |
-- |
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.