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MIRA INFORM REPORT
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Report No. : |
485944 |
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Report Date : |
15.01.2018 |
IDENTIFICATION DETAILS
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Name : |
FUZHOU HONGYI TRADE CO.,LTD |
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Registered Office : |
Shop No. 18 Building 3b Weilan International
No. 300 Zhenghe West Road Hangcheng Street Changle City Fujian Province, Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2016 |
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Date of Incorporation : |
22.07.2014 |
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Credibility Code : |
91350182310696293W |
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Legal Form : |
Limited liabilities co. |
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Line of Business : |
The subject’s registered business scope includes purchasing and
selling textile raw materials, textiles, clothing, shoes and hats, electrical
machinery and equipment, building materials, iron ore, coke, hardware
(excluding electric bicycles), arts and crafts, daily necessities, auto
parts; selling cars; importing and exporting goods and technologies,
excluding goods and technologies prohibited by the state (with permit if
needed). |
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No. of Employees : |
18 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
B |
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Credit Rating |
Explanation |
Rating Comments |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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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
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Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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. China has implemented reforms in a gradualist fashion, resulting in efficiency gains that have contributed to a more than tenfold increase in GDP since 1978. Reforms began with the phaseout 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 continues to pursue an industrial policy, state-support of key sectors, and a restrictive investment regime. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2016 stood as the largest economy in the world, surpassing the US in 2014 for the first time in modern history. China became the world's largest exporter in 2010, and the largest trading nation in 2013. Still, China's per capita income is below the world average.
After keeping its currency tightly linked to the US dollar for years, China in July 2005 moved to an exchange rate system that references a basket of currencies. From mid-2005 to late 2008, the renminbi appreciated more than 20% against the US dollar, 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 liberalization. In 2015, the People’s Bank of China announced it would continue to carefully push for full convertibility of the renminbi (RMB) after the currency was accepted as part of the IMF’s special drawing rights basket. After engaging in one-way, large-scale intervention to resist appreciation of the RMB for a decade, China’s 2016 intervention in foreign exchange markets has sought to prevent a rapid RMB depreciation that would have negative consequences for the United States, China, and the global economy.
China’s economic growth has slowed since 2011. The Chinese Government faces numerous economic challenges including: (a) reducing its high domestic savings rate and correspondingly low domestic household consumption; (b) servicing its high corporate debt burdens to maintain financial stability; (c) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and college graduates, while maintaining competitiveness; (d) dampening speculative investment in the real estate sector; (e) reducing industrial overcapacity; and (f) raising productivity growth rates through the more efficient allocation of capital. Economic development has progressed further in coastal provinces than in the interior, and by 2016 more than 169.3 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of China’s population control policy known as the “one-child policy” - which was relaxed in 2016 to permit all families to have two children - 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 urbanization. The Chinese government is seeking to add energy production capacity from sources other than coal and oil, focusing on natural gas, nuclear, and clean energy development. In 2016, China ratified the Paris Agreement, a multilateral agreement to combat climate change, and committed to peak its carbon dioxide emissions between 2025 and 2030.
The government's 13th Five-Year Plan, unveiled in March 2016, emphasizes the need to increase innovation and boost domestic consumption to make the economy less dependent on government investment, exports, and heavy industry. However, China has made only marginal progress toward these rebalancing goals. Under President XI Jinping, Beijing has signaled its understanding that China's long-term economic health depends on giving the market a more decisive role in allocating resources, but has moved slowly on market-oriented reforms because of potential negative consequences for stability and short-term economic growth. He has also increased state-control over key sectors and Party control over state-owned enterprises. Chinese leaders in 2010 pledged to double China’s GDP by 2020, and the 13th Five Year Plan includes annual economic growth targets of at least 6.5% through 2020 to achieve that goal. 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. Chinese leaders also have undermined some market-oriented reforms by reaffirming the “dominant” role of the state in the economy, a stance that threatens to discourage private initiative and make the economy less efficient over time.
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Source
: CIA |
COMPANY
NAME AND ADDRESS
Company Name : FUZHOU HONGYI TRADE CO.,LTD.
Address : SHOP NO. 18 BUILDING 3B
WEILAN INTERNATIONAL NO.
300 ZHENGHE WEST ROAD HANGCHENG STREET
CHANGLE CITY FUJIAN PROVINCE, PR CHINA
Telephone : 0086-591-83258153
Facsimile : --
Website : --
Email : 82587784@qq.com
REGISTRATION INFORMATION
Established Date : 2014-07-22
Credibility Code : 91350182310696293W
Legal Form : Limited liabilities co.
Issuing Authority : Administration for Industry & Commerce
(AIC) - Fuzhou
Status : Active
Registered Capital : RMB 10,000,000
Turnover : RMB 53,610,000 (as of Dec. 31, 2016)
Equities : RMB 9,870,000 (as of Dec. 31, 2016)
Chief Executive : Lin
Tao
Business Line : Trade
Manpower : 18
Tax Registration
Certificate No. : 91350182310696293W
Organization Code : 31069629-3
HS code :
3501962A0K
Import & Export code : 3500310696293
Financial
Condition : Fairly Stable
Business Size : Small Enterprise
Payment : Slow but correct
Registered Address
Shop No. 18 Building 3b Weilan International
No. 300 Zhenghe West Road Hangcheng Street Changle City Fujian Province, Pr
China
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 RMB 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.
Premise
The subject operates from premises located at
the heading address, and this address houses its operating office in Fuzhou.
Our checks reveal that the subject rents the total premise, but the square
meters are unknown.
MANAGEMENT
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Position |
Name |
Nationality |
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Legal representative, General Manager
Executive Director |
Lin Tao |
Chinese |
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Supervisors |
Lin
Yan |
Chinese |
MAJOR SHAREHOLDERS
Name % Shareholding
Lin
Yan 48
Zheng Mengjiang 52
KEY EVENTS
Changes of its registered information are as
follows:
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Date of change |
Item |
Before the change |
After the change |
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2017-10-31 |
Legal representative |
Zheng Mengjiang |
Present one |
BUSINESS OPERATIONS
The subject’s registered business scope includes purchasing and selling
textile raw materials, textiles, clothing, shoes and hats, electrical machinery
and equipment, building materials, iron ore, coke, hardware (excluding electric
bicycles), arts and crafts, daily necessities, auto parts; selling cars;
importing and exporting goods and technologies, excluding goods and
technologies prohibited by the state (with permit if needed).
The subject is mainly engaged in
international trade.
Products:
Textiles
Clothing
Shoes and hats
The
subject sources its materials 70% from domestic market, and 30% from overseas
market. the subject sells 30% of its products in domestic market, and 70% to
overseas market, mainly Netherlands Antilles, India, United States, Pakistan,
etc.
The
buying terms of the subject include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of the subject include Check, T/T, L/C and Credit of 30-60
days.
SUPPLIER
& CUSTOMER
*Major customer:
Sakshi Yarns Pvt Ltd. (India)
RELATED COMPANIES
Subsidiary
Changle Baolliyuan
Microfinance Co., Ltd.
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Credibility Code: 913501823990297792
Legal representative: Chen Minghong
Registered Capital: RMB 100,000,000
Established Date: 2014-05-26
NEGATIVE INFORMATION
Lawsuit Record: No record.
Trade payment experience: The subject 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 the subject was placed to us for collection
within the last 6 years.
Customs administrative penalty: No record.
Equity freeze information: No record.
Administrative Penalty: No record.
MORTGAGE
There is no record of mortgage information at
present.
TRADEMARK
No record.
PATENT
No record.
BANKING
Bank of China Changle Sub Branch
Account No.: 407872145302
ABBREVIATED FINANCIAL STATEMENT
Financial Summary
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Unit: RMB’000
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As
of Dec. 31, 2015 |
As
of Dec. 31, 2016 |
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Total assets |
32,198 |
46,392 |
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Total liabilities |
22,414 |
36,522 |
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Equities |
9,784 |
9,870 |
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-------------- |
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Total liabilities & equities |
32,198 |
46,392 |
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Turnover |
42,228 |
53,610 |
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Profits before tax |
-216 |
86 |
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Less: tax |
0 |
9 |
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Profits |
-216 |
77 |
Important Ratios
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As
of Dec. 31, 2015 |
As
of Dec. 31, 2016 |
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*Liabilities to assets |
0.70 |
0.79 |
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*Net profit margin (%) |
-0.51 |
0.14 |
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*Return on total assets (%) |
-0.67 |
0.17 |
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*Turnover/Total assets |
1.31 |
1.16 |
PROFITABILITY:
AVERAGE
The turnover of the subject appears average in its line.
the subject’s net profit margin is fair in 2015 and
average in 2016.
the subject’s return on total assets is fair in 2015 and
average in 2016.
the subject’s turnover is average, comparing with the size of its total
assets.
LEVERAGE: FAIR
The debt ratio of the subject is high.
The risk for the subject to go bankrupt is average.
TREND ANALYSIS
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2014 |
2015 |
2016 |
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Sales Trend |
-- |
-- |
Ç |
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Profit margin |
-- |
-- |
Ç |
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Debt to assets ratio |
-- |
-- |
Ç |
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Overall
Financial Condition |
□Good □Fairly Good □Stable ■Fairly Stable □Fair □Poor |
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COMMENT
The subject was registered as a Limited liabilities co. at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license).
The subject is considered small-sized in its line with fairly stable
financial conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 63.53 |
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1 |
INR 86.05 |
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Euro |
1 |
INR 76.53 |
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CNY |
1 |
INR 9.87 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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VIV |
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Report Prepared
by : |
SYL |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
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Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.