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MIRA INFORM REPORT
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Report No. : |
517081 |
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Report Date : |
26.06.2018 |
IDENTIFICATION DETAILS
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Name : |
ZHONGSHAN NEWECAN
ENTERPRISE DEVELOPMENT CORPORATION LIMITED |
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Registered Office : |
No. 23 Nan’an Road, Shiqi District, Zhongshan, Guangdong Province,
528400 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2016 |
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Date of Incorporation : |
23.04.2003 |
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Credibility Code
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91442000749197917U |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject registered business scope includes selling general
merchandise, hardware, decorative materials, textile and apparel products, household
appliances, plush feather and their products, leather products, fur products,
sports goods, instruments, porcelain crafts, footwear, plastic products,
feed, agricultural by-products; importing and exporting of goods and
technology. (With permit if needed). |
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No. of Employees : |
38 |
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 (31.12.2017) |
Current
Rating (01.04.2018) |
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China |
A2 |
A1 |
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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 announced it would allow a resumption of gradual liberalization. From 2013 until early 2015, the renminbi (RMB) appreciated roughly 2% against the dollar, but the exchange rate fell 13% from mid-2015 until end-2016 amid strong capital outflows in part stemming from the August 2015 official devaluation; in 2017 the RMB resumed appreciating against the dollar – roughly 7% from end-of-2016 to end-of-2017. From 2013 to 2017, China had one of the fastest growing economies in the world, averaging slightly more than 7% real growth per year. In 2015, the People’s Bank of China announced it would continue to carefully push for full convertibility of the renminbi, after the currency was accepted as part of the IMF’s special drawing rights basket. However, since late 2015 the Chinese Government has strengthened capital controls and oversight of overseas investments to better manage the exchange rate and maintain financial stability.
The Chinese Government faces numerous economic challenges including: (a) reducing its high domestic savings rate and correspondingly low domestic household consumption; (b) managing its high corporate debt burden to maintain financial stability; (c) controlling off-balance sheet local government debt used to finance infrastructure stimulus; (d) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and college graduates, while maintaining competitiveness; (e) dampening speculative investment in the real estate sector without sharply slowing the economy; (f) reducing industrial overcapacity; and (g) raising productivity growth rates through the more efficient allocation of capital and state-support for innovation. 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 more progress on subsidizing innovation than
rebalancing the economy. Beijing has committed to giving the market a more
decisive role in allocating resources, but the Chinese Government’s policies
continue to favor state-owned enterprises and emphasize stability. 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. The slight acceleration in economic growth in 2017—the first such
uptick since 2010—gives Beijing more latitude to pursue its economic reforms,
focusing on financial sector deleveraging and its Supply-Side Structural Reform agenda, first announced in late 2015.
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Source
: CIA |
Company name & address
ZHONGSHAN NEWECAN ENTERPRISE DEVELOPMENT
CORPORATION LIMITED
NO. 23 NAN’AN ROAD, SHIQI DISTRICT, ZHONGSHAN,
GUANGDONG PROVINCE, 528400 PR CHINA
TEL: 86 (0) 760-88810211
FAX: 86 (0) 760-88920931
EXECUTIVE
SUMMARY
INCORPORATION DATE : APRIL 23, 2003
CREDIBILITY CODE : 91442000749197917U
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
chief executive :
MR. liN QINGSHENG (legal representative)
STAFF STRENGTH :
38
REGISTERED CAPITAL : CNY 300,000
BUSINESS LINE :
trade agent
TURNOVER : CNY
1,618,634,000 (as of dec. 31, 2016)
EQUITIES :
CNY 2,497,000 (as of dec. 31, 2016)
PAYMENT :
slow but correct
FINANCIAL CONDITION : Fairly stable
GENERAL REPUTATION : average
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 given address
is previous.
SC was registered as a Limited Liabilities Company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license).
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 selling general merchandise,
hardware, decorative materials, textile and apparel products, household
appliances, plush feather and their products, leather products, fur products,
sports goods, instruments, porcelain crafts, footwear, plastic products, feed,
agricultural by-products; importing and exporting of goods and technology.
(With permit if needed).
SC is mainly engaged in trading agent.
Mr. Lin Qingsheng is legal representative and general manager of SC at
present.
SC is known to have approx. 38 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in Zhongshan. Detailed premise
information is not available at present.
http://www.chinawintime.com/
The website includes the introduction about SC. The design is professional and
the content is well organized. At present it is in Chinese version.
Email: wt@chinawintime.com
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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2003-05-07 |
Legal rep. |
Huang Zhizhong |
Lin Qingsheng |
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2004-04-27 |
Registered capital |
CNY 500,000 |
CNY 1,000,000 |
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2008-02-29 |
Legal rep. |
Lin Qingsheng |
Huang Zhizhong |
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Registered no. |
4420001015269 |
442000000091014 |
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2009-05-26 |
Legal rep. |
Huang Zhizhong |
Lin Qingsheng |
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Legal form |
One-person Limited Liability Company |
Present one |
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2015-08-24 |
Registered capital |
CNY 1,000,000 |
CNY 300,000 |
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Unknown |
Registered no. |
442000000091014 |
Credibility Code: 91442000749197917U |
Import/Export License Code: 4400749197917
HS Code: 4420950969
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Lin Qingsheng 10
Huang Zhizhong 90
Legal
Representative and General Manager:
Mr. Lin Qingsheng is currently responsible for the daily management of
SC.
Working Experience(s):
At present
Working in SC as legal representative and general manager.
Executive
Director:
Mr. Huang Zhizhong is currently responsible for the overall management
of SC.
Working Experience(s):
At present
Working in SC as executive director.
Also working in Wintime Import & Export Trading Limited of Zhongshan
as legal representative; in Wintime Import & Export Corporation Limited of
Zhongshan, Newline Import & Export Limited of Zhongshan as executive
director, etc.
Supervisor:
Huang Chunyan
SC is mainly engaged in trading agent.
The buying terms of SC include Check, T/T, L/C 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 declined to release its major suppliers and clients.
Trademark & Patents
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Registration No. |
11059442 |
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Registration Date |
2013-10-21 |
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Trademark Design |
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Industry code: 5100
Industry name: Wholesale industry
The gross domestic product of China in 2015 which is 676,708 billion
that is increased 6.9% than previous year.
According to National Bureau of Statistics data released, at the end of
2015, there are 91,819 wholesale enterprises in China. In 2015, total assets of
wholesale industry was 18119.854 billion Yuan, and increased by 2.81% compared
with 2014; total liabilities was 13201.39 billion Yuan, and increased by 1.42%
compared with 2014; main business income was 35848.13 billion Yuan, and
declined by 7.45% compared with 2014; main business profit was 2237.612 billion
Yuan, and declined by 1.49% compared with 2014.
According to http://www.chinawintime.com/:
Wintime Import & Export Trading Limited of Zhongshan
=====================
Incorporation Date: 2007-10-26
Credibility Code: 914420006681830114
Legal representative: Huang Zhizhong
Wintime Import & Export Corporation Limited of Zhongshan
=======================
Incorporation Date: 1987-08-29
Credibility Code: 91442000198071022W
Legal representative: Zhou Xiaoping
Newline Import & Export Limited of Zhongshan
=========================
Incorporation Date: 2008-07-08
Credibility Code: 914420006770942646
Legal representative: Zhou Xiaoping
Etc.
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 records 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.
Bank of China Zhongshan Branch
A/C # 801825957408093001
Relationship: Normal
Balance
Sheet
Unit: CNY’000
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As of Dec. 31,
2015 |
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Cash & bank |
6,680 |
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Bills receivable |
0 |
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Accounts receivable |
187,430 |
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Advances to suppliers |
0 |
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Other Accounts receivable |
10 |
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Inventory |
0 |
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Other current assets |
0 |
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Export rebate |
22,700 |
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------------------ |
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Current assets |
216,820 |
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Fixed assets net value |
120 |
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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 |
216,940 |
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============= |
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Short loans |
28,200 |
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Notes payable |
0 |
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Accounts payable |
186,770 |
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Advance from customers |
0 |
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Other Accounts payable |
50 |
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Accrued payroll |
0 |
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Taxes payable |
410 |
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Other current liabilities |
0 |
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------------------ |
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215,430 |
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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 |
215,430 |
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Equities |
1,510 |
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------------------ |
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216,940 |
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============= |
Income
Statement
Unit: CNY’000
Financial Summary
Unit: CNY’000
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As of Dec. 31, 2016 |
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Total liabilities |
255,011 |
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Equities |
2,497 |
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------------------ |
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Total assets |
257,508 |
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============= |
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Turnover |
1,618,634 |
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Profits |
1,025 |
Note: We did not find SC’s detailed
financial reports for Yr2016.
Important
Ratios
=============
|
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As
of Dec. 31, 2016 |
As
of Dec. 31, 2015 |
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*Current ratio |
/ |
1.01 |
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*Quick ratio |
/ |
1.01 |
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*Liabilities to assets |
0.99 |
0.99 |
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*Net profit margin (%) |
0.06 |
0.08 |
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*Return on total assets (%) |
0.40 |
0.42 |
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*Inventory /Turnover ×365 |
/ |
/ |
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*Accounts receivable/Turnover ×365 |
/ |
60 days |
|
*Turnover/Total assets |
6.29 |
5.28 |
|
* Cost of goods sold/Turnover |
/ |
0.99 |
PROFITABILITY:
AVERAGE
The turnover of SC appears good in its line, and it increased in 2016.
SC’s net profit margin is average in both years.
SC’s return on total assets is average in both years.
SC’s cost of goods sold is high in 2015, comparing with its turnover.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level in 2015.
SC’s quick ratio is maintained in a normal level in 2015.
SC has no inventory of SC in 2015.
The accounts receivable of SC is fairly large in 2015.
SC’s short-term loan is large in 2015.
SC’s turnover is in a good level in both years, 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 medium-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 68.15 |
|
|
1 |
INR 90.27 |
|
Euro |
1 |
INR 79.35 |
|
CNY |
1 |
INR 10.37 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
NIS |
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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
·
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.