MIRA INFORM REPORT
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Report No. : |
338960 |
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Report Date : |
07.09.2015 |
IDENTIFICATION DETAILS
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Name : |
DONGGUAN CHUNXIA INDUSTRY CO., LTD. |
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Registered Office : |
No. 1 New District of Ma Keng, Xinmalian Industry Zone Dalang Town, Dongguan City, Guangdong Province 523797 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
02.08.2010 |
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Com. Reg. No.: |
441900000866367 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
SC’s registered business scope includes manufacturing and
selling: garment accessories, embroidery accessories, clothes accessories, hard
wares, electrical products, packaging materials; industry investment;
property investment; importing and exporting goods and technologies. |
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No. of Employees : |
128 |
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.
|
Source
: CIA |
Company
name and address
DONGGUAN CHUNXIA
INDUSTRY CO., LTD.
NO. 1 NEW DISTRICT OF MA KENG, XINMALIAN INDUSTRY ZONE
DALANG TOWN, DONGGUAN CITY, GUANGDONG PROVINCE 523797 PR CHINA
TEL: 86 (0) 769-81208121/22677448/81208222
FAX: 86 (0) 769-81208123
***Note:
According to the, we locate SC. SC’s correct name should be the heading one,
instead of the given name-DONG GUAN CHUNXI INDUSTRY CO. LTD
EXECUTIVE
SUMMARY
Date of Registration : AUGUST
2, 2010
REGISTRATION NO. : 441900000866367
LEGAL FORM : Limited Liability Company
REGISTERED CAPITAL : CNY 10,000,000
staff : 128
BUSINESS CATEGORY : MANUFACTURING & TRADING
Revenue : CNY 59,460,000 (AS OF DEC. 31, 2014)
EQUITIES : CNY
3,290,000 (AS OF DEC. 31, 2014)
WEBSITE : www.cxjltex.com
E-MAIL : celery@cxjltex.com
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : ORDINARY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.36 = USD
1
Adopted abbreviations (as follows)
SC -
Subject Company (the company inquired by you)
N/A – Not
available
CNY –
China Yuan Ren Min Bi
OPERATIONAL
TREND & GENERAL REPUTATION:
This section aims at indicating the relative positions of SC
in respect of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be determined
LEGAL
STATUS & HISTORY
SC was
established as a one-person limited liabilities company of PRC on August 2,
2010. However, SC changed to present legal form, and was registered as a
limited liabilities company of PRC with State Administration of Industry &
Commerce (SAIC) under registration No.: 441900000866367 on May 5, 2014.
SC’s Organization Code Certificate
No.: 55916400-6
SC’s registered capital: CNY 10,000,000
SC’s paid-in capital: CNY 10,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2014-5-5 |
Registered Capital |
CNY 2,000,000 |
CNY 10,000,000 |
|
Shareholder
(s) (% of Shareholding) |
Shao Lexia 100% |
Shao Lexia 95% Zhong Zhanou 5% |
|
|
Legal
Form |
One-Person Limited Liability
Company |
Limited Liabilities Company |
|
|
2014-6-30 |
Shareholder |
Zhong Zhanou |
Xia Shenglan |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Shao Lexia |
95 |
|
Xia Shenglan |
5 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman
and General Manager |
Shao
Lexia |
|
Supervisor |
Xia
Shenglan |
RECENT
DEVELOPMENT
No recent development was found during our checks at
present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Shao Lexia 95
Xia Shenglan 5
MANAGEMENT
Shao
Lexia, Legal
Representative, Chairman and General Manager
--------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Nationality: China
Ø Qualification:
University
Ø Working
experience (s):
At present, working in SC
as legal representative, chairman and general manager
Supervisor
--------------
Xia Shenglan
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing and selling: garment accessories, embroidery accessories, clothes accessories, hard wares, electrical products, packaging materials; industry investment; property investment; importing and exporting goods and technologies.
SC is mainly engaged in manufacturing and selling garment accessories.
SC’s products mainly include: threads, velcro, rhinestones, interlining, ribbons, badges, buttons, rhinestuds, laces, zippers.
SC sources its materials 100% from domestic market. SC sells 50% of its products in domestic market, and 50% 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, L/C, T/T, and Credit of 30-60 days.
*Major Customers*
----------------------
Meztizos Usa Corp.
Grupo Industrial Dlv Sa De Cv
Staff & Office:
--------------------------
SC is known to have approx. 128 staff at present.
SC rents an area as its operating office & factory of approx. 20,000 sq. meters at the heading address.
RELATED
COMPANY
Dongguan Jelly Clothing Embroidery Accessories Co., Ltd.
---------------------------------------------
Date of Registration: April 16, 2004
Registration No.: 441900000544824
Chief Executive: Zhang Chunjie
Registered Capital: CNY 3,000,000
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good
(X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.
BANKING
Basic Bank:
Bank of China Dongguan Dalang Sub-branch
AC#: 692557741254
FINANCIALS
Balance Sheet
|
Unit:
CNY’000 |
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
|
170 |
640 |
|
|
Notes receivable |
0 |
0 |
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Accounts
receivable |
2,920 |
5,980 |
|
Advances
to suppliers |
2,880 |
5,670 |
|
Other
receivable |
0 |
150 |
|
Inventory |
1,170 |
1,840 |
|
Non-current
assets within one year |
0 |
0 |
|
Other
current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current
assets |
7,140 |
14,280 |
|
Fixed
assets |
330 |
650 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred
income tax assets |
0 |
0 |
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Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total
assets |
7,470 |
14,930 |
|
|
============= |
============= |
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Short-term
loans |
0 |
3,000 |
|
Notes
payable |
0 |
1,090 |
|
Accounts
payable |
4,620 |
5,300 |
|
Wages
payable |
210 |
320 |
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Taxes
payable |
160 |
-610 |
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Advances
from clients |
0 |
2,440 |
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Other
payable |
300 |
0 |
|
Other
current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Current
liabilities |
5,290 |
11,540 |
|
Non-current
liabilities |
0 |
670 |
|
|
------------------ |
------------------ |
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Total
liabilities |
5,290 |
12,210 |
|
Equities |
2,180 |
2,720 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
7,470 |
14,930 |
|
|
============= |
============= |
Income Statement
|
Unit:
CNY’000 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
Revenue |
20,840 |
41,110 |
|
Cost of sales |
19,190 |
36,320 |
|
Taxes and surcharges |
40 |
100 |
|
Sales expense |
520 |
1,960 |
|
Management expense |
700 |
1,560 |
|
Finance expense |
0 |
410 |
|
Profit
before tax |
390 |
760 |
|
Less:
profit tax |
100 |
180 |
|
290 |
580 |
Financial
Summary
|
Unit:
CNY’000 |
As of Dec. 31, 2014 |
|
Total
assets |
23,230 |
|
|
------------- |
|
Total
liabilities |
19,940 |
|
Equities |
3,290 |
|
|
------------- |
|
Revenue |
59,460 |
|
Profits |
577 |
Important
Ratios
=============
|
|
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
*Current
ratio |
1.35 |
1.24 |
-- |
|
*Quick
ratio |
1.13 |
1.08 |
-- |
|
*Liabilities
to assets |
0.71 |
0.82 |
0.86 |
|
*Net
profit margin (%) |
1.39 |
1.41 |
0.97 |
|
*Return
on total assets (%) |
3.88 |
3.88 |
2.48 |
|
*Inventory
/ Revenue ×365 |
20
days |
16
days |
-- |
|
*Accounts
receivable/ Revenue ×365 |
51
days |
53
days |
-- |
|
*Revenue/Total
assets |
2.79 |
2.75 |
2.56 |
|
*Cost
of sales / Revenue |
0.92 |
0.88 |
-- |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
l The
revenue of SC appears average in its line.
l SC’s net
profit margin is average.
l SC’s
return on total assets is average.
l
SC’s cost of sales is average,
comparing with its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained
in a normal level.
l
SC’s quick ratio is maintained in a
normal level.
l
The inventory of SC is maintained in an
average level.
l
The accounts receivable of SC is
maintained in an average level.
l
The short-term loans of SC appear
average.
l
SC’s revenue is in an average level,
comparing with the size of its total assets.
LEVERAGE:
FAIR
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is above
average.
Overall
financial condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered small-sized in its line with fairly stable
financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.40 |
|
UK Pound |
1 |
Rs.101.19 |
|
Euro |
1 |
Rs.73.89 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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Report Prepared
by : |
VNT |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
|
>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 |
-- |
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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.