MIRA INFORM REPORT
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Report No. : |
342743 |
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Report Date : |
29.09.2015 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
3-2001 Jiaye Int'l Town, No. 158 Lushan Road, Jianye District, Nanjing, Jiangsu Province, 210019 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
08.02.2006 |
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Com. Reg. No.: |
320100000117154 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged wholesaling chemical
products (within the permitted scope); importing and exporting commodities
and technology (excluding the items prohibited or limited by the country);
selling chemical products (excluding dangerous chemicals). (with permit if
needed) . |
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No. of Employees : |
5 |
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 |
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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
Qida Chemical CO., LTD.
3-2001 Jiaye Int'l Town, no. 158 Lushan Road, jianye
district, Nanjing, jiangsu province, 210019 PR CHINA
TEL: 86 (0) 25-86460031/87763435 FAX: 86 (0) 25-86462151
EXECUTIVE
SUMMARY
INCORPORATION DATE :
Feb. 8, 2006
REGISTRATION NO. : 320100000117154
REGISTERED LEGAL FORM : Limited
liabilities company
chief executive :
bao zhengda (CHAIRMAN)
STAFF STRENGTH :
5
REGISTERED CAPITAL :
CNY 2,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 5,570,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 1,240,000 (AS OF DEC. 31, 2014)
PAYMENT :
SLOW
MARKET CONDITION :
average
FINANCIAL CONDITION :
Fairly stable
OPERATIONAL TREND :
fairly STEADY
GENERAL REPUTATION :
average
EXCHANGE RATE :
CNY 6.3737
Adopted abbreviations:
ANS
- amount not stated
NS
- not stated
SC
- subject company (the company inquired by you)
NA
- not available
CNY
- China Yuan Renminbi
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 Feb. 8, 2006.
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 chemical products (within the
permitted scope); importing and exporting commodities and technology (excluding
the items prohibited or limited by the country); selling chemical products
(excluding dangerous chemicals). (with permit if needed)
SC
is mainly engaged in selling chemical products.
Bao
Zhengda is legal representative, chairman and general manager of SC at present.
SC
is known to have approx. 5 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Nanjing. SC’s
employee
refused to release the detailed information of the premise.
http://www.china-chemicals.com.cn/ The design is professional and the content is
well organized. At present it is in both Chinese and English versions.
Email:
info@qidachemical.com
The
other website: http://www.qidachemical.com/
No
significant changes were found during our checks with the local AIC.
Organization
Code: 783812063
For
the past two years there is no record of litigation.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
He
Jing 15
Bao
Zhengda 70
Chen
Qiong 15
Legal representative, chairman and general manager:
Bao
Zhengda 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:
He Jing
SC
is mainly engaged in selling chemical products.
SC’s
products mainly include:
Agrochemicals
Fertilizer
Flame
Retardant
Plastizer
Tertiary
Amines
Quaternary
Ammonium
Food
Additive
Others
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 refused to release its main suppliers and clients.
Partners:
according to SC’s website
=============================
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
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 |
840 |
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Inventory |
0 |
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Accounts receivable |
1,270 |
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Bills receivable |
0 |
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Other Accounts receivable |
370 |
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Advances to suppliers |
210 |
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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 |
2,690 |
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Fixed assets net value |
20 |
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Long-term investment |
0 |
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Intangible and other assets |
0 |
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------------------ |
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Total assets |
2,710 |
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============= |
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Short loans |
0 |
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Accounts payable |
1,330 |
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Advance from customers |
0 |
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Other Accounts payable |
140 |
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Notes payable |
0 |
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Taxes payable |
0 |
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Withdraw the expenses in advance |
0 |
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Other current liabilities |
0 |
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------------------ |
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1,470 |
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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 |
1,470 |
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Equities |
1,240 |
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------------------ |
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2,710 |
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Income Statement
Unit:
CNY’000
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As of Dec. 31, 2014 |
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Turnover |
5,570 |
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Cost of goods sold |
5,110 |
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Sales expense |
446 |
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Management expense |
70 |
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Finance expense |
6 |
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Profit before tax |
-42 |
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Less: profit tax |
0 |
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Profits |
-42 |
Important Ratios
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As of Dec. 31, 2014 |
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*Current ratio |
1.83 |
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*Quick ratio |
1.83 |
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*Liabilities to assets |
0.54 |
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*Net profit margin (%) |
-0.75 |
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*Return on total assets (%) |
-1.55 |
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*Inventory /Turnover ×365 |
/ |
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*Accounts receivable/Turnover ×365 |
84 days |
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*Turnover/Total assets |
2.06 |
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* Cost of goods sold/Turnover |
0.92 |
PROFITABILITY: FAIR
·
The turnover of SC appears average in its line.
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SC’s net profit margin is fair.
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SC’s return on total assets is fair.
·
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.
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SC has no inventory in 2014.
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The accounts receivable of SC is average.
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SC has no short-term loan in 2014.
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SC’s turnover is in a fairly good level, comparing with the size
of its total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is average.
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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.66.08 |
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UK Pound |
1 |
Rs.100.32 |
|
Euro |
1 |
Rs.73.81 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
VNT |
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.