MIRA INFORM REPORT
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Report No. : |
338319 |
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Report Date : |
01.09.2015 |
IDENTIFICATION DETAILS
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Name : |
CIXI ECONOMIC DEVELOPMENT ZONE HONGFEI TRADING CO., LTD. |
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Registered Office : |
Pudong Village, Economic Development Zone (Hangzhouwan New Zone), Cixi, Ningbo, Zhejiang Province, 315336 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
21.10.2009 |
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Com. Reg. No.: |
330218000008104 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Importing and exporting commodities and technologies, excluding items
limited or forbidden by State; wholesale and retail of electron component, motorcycle
and its accessories, bicycle and its accessories, hardware, household
appliance, building materials, chemical materials and products (excluding
hazardous chemicals), metal materials, plastics, textile materials and
products. |
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No. of Employees : |
10 |
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
CIXI ECONOMIC
DEVELOPMENT ZONE HONGFEI TRADING CO., LTD.
PUDONG VILLAGE, ECONOMIC DEVELOPMENT ZONE (HANGZHOUWAN NEW ZONE), CIXI,
NINGBO, ZHEJIANG PROVINCE, 315336 PR CHINA
TEL: 86 (0) 574-63598515 FAX:
86 (0) 574-63099826
EXECUTIVE
SUMMARY
INCORPORATION DATE :
OCT. 21, 2009
REGISTRATION NO. :
330218000008104
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MR. GAO FENG (CHAIRMAN)
STAFF STRENGTH :
10
REGISTERED CAPITAL :
CNY 30,000
BUSINESS LINE :
TRADING
TURNOVER : CNY 9,256,801 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 51,638 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE : CNY 6.4111=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
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 was registered as a Limited liabilities co. at local Administration
for industry & commerce (AIC - the official body of issuing and renewing
business license) on Oct. 21, 2009.
SC’s registered business scope includes importing and exporting
commodities and technologies, excluding items limited or forbidden by State;
wholesale and retail of electron component, motorcycle and its accessories,
bicycle and its accessories, hardware, household appliance, building materials,
chemical materials and products (excluding hazardous chemicals), metal
materials, plastics, textile materials and products.
SC is mainly engaged in domestic trade.
Mr. Gao Feng is legal representative, chairman and general manager of SC
at present.
SC is known to have approx. 10 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the development zone of Cixi. The detailed
information of the premise is unspecified.
SC is not known to host website of its own at present.
No significant events or changes were found during our checks with local
AIC.
Organization Code: 69508453-7
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Gao Feng 66.67
Sun Liu 33.33
Legal
representative, chairman and manager:
Mr. Gao Feng, ID# 33022219771013****, born in 1977. He is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as legal representative, chairman and manager.
Supervisor:
Sun Liu
SC is mainly engaged in domestic trade.
SC’s products mainly include natural silk and polyester silk.
SC sources its materials 100% from domestic market. SC sells its
products 80% in domestic market and 20% 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 refused
to release its major suppliers and customers.
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.
SC’s accountant refused to release the detailed
information of the banking.
Balance
Sheet
Unit: CNY
|
|
as of Dec. 31,
2014 |
as of Dec. 31,
2013 Restated |
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Cash & bank |
251,647.5 |
22,914.84 |
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Inventory |
194,581.3 |
0 |
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Accounts receivable |
583,714.1 |
606,441.5 |
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Advances to suppliers |
/ |
/ |
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Other receivables |
1,459,148 |
478,148.2 |
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Other current assets |
/ |
/ |
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----------------- |
------------------ |
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Current assets |
7,424,292 |
3,966,370 |
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Fixed assets net value |
1,193 |
1,193 |
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Projects under construction |
0 |
0 |
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Long term investment |
0 |
0 |
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Other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
7,425,485 |
3,967,563 |
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============= |
============= |
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Short loans |
/ |
/ |
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Notes payable |
/ |
/ |
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Accounts payable |
5,047,502 |
1,917,072 |
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Other payable |
0 |
0 |
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Taxes payable |
/ |
/ |
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Other current liabilities |
/ |
/ |
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------------------ |
------------------ |
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Current liabilities |
7,373,847 |
3,918,443 |
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Long term liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total liabilities |
7,373,847 |
3,918,443 |
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Equities |
51,638 |
49,120 |
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------------------ |
------------------ |
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Total liabilities & equities |
7,425,485 |
3,967,563 |
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============= |
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Income
Statement
Unit: CNY
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as of Dec. 31,
2013 Restated |
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Turnover |
9,256,801 |
14,092,510 |
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Cost of goods sold |
/ |
/ |
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Sales expense |
/ |
/ |
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Management expense |
/ |
/ |
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Finance expense |
/ |
/ |
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Other expenses |
/ |
/ |
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Profit before tax |
2,797.4 |
89,520.23 |
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Less: profit tax |
279.74 |
0 |
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Profits |
2,517.66 |
89,520.23 |
Important
Ratios
=============
|
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as of Dec. 31,
2014 |
as of Dec. 31,
2013 |
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*Current ratio |
1.01 |
1.01 |
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*Quick ratio |
0.98 |
1.01 |
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*Liabilities to assets |
0.99 |
0.99 |
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*Net profit margin (%) |
0.03% |
0.64% |
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*Return on total assets (%) |
0.03% |
2.26% |
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*Inventory /Turnover ×365 |
8 days |
/ |
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*Accounts receivable/Turnover ×365 |
23 days |
16 days |
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*Turnover/Total assets |
1.25 |
3.55 |
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* Cost of goods sold/Turnover |
/ |
/ |
PROFITABILITY:
AVERAGE
The turnover of SC appears average in both years.
SC’s net profit margin is average in both years.
SC’s return on total assets is average in both years, but obviously
declined in 2014.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a fair level in both years.
SC’s quick ratio is maintained in a normal level in both years.
SC has no inventory in 2013 and small in 2014.
The accounts receivable of SC is maintained in an average level in both years.
SC’s turnover is in a fairly good level in 2013 but average in 2014,
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.66.26 |
|
|
1 |
Rs.101.99 |
|
Euro |
1 |
Rs.74.79 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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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.