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MIRA INFORM REPORT
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Report No. : |
497520 |
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Report Date : |
15.03.2018 |
IDENTIFICATION DETAILS
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Name : |
CIDIC CO., LTD. |
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Registered Office : |
1508, 15/F, Hodo International Plaza, 531 Zhongshan
Road, Wuxi, Jiangsu Province 214002 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2016 |
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Date of Incorporation : |
08.07.2004 |
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Unified Social
Credit Code : |
91320200763555514A |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject includes import and export of goods and technology (excluding
those limited or prohibited by the state); sales of chemicals and raw
materials, textile and metal products. |
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No. of Employees : |
16 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with moderate
risk of default |
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Status : |
Satisfactory |
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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 (30.09.2017) |
Current Rating (31.12.2017) |
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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 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 and address
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COMPANY NAME |
CIDIC Co., Ltd. |
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CURRENT ADDRESS/ REGISTERED
ADDRESS |
1508, 15/F, Hodo International Plaza, 531
Zhongshan Road, Wuxi, Jiangsu Province 214002 PR China |
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TEL. NO. |
86 (0) 510-82303030/81807011 |
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FAX NO. |
86 (0) 510-82303031 |
EXECUTIVE
SUMMARY
Date
of Registration : JULY
8, 2004
Unified
social credit code : 91320200763555514A
LEGAL
FORM : Limited liabilities company
REGISTERED
CAPITAL : CNY 10,000,000
staff :
16
BUSINESS
CATEGORY : TRADING
Revenue :
CNY 216,560,000 (AS OF DEC. 31,
2016)
EQUITIES :
CNY 20,000,000 (AS OF DEC. 31, 2016)
WEBSITE : www.cidic.com.cn
E-MAIL :
sales@cidic.com.cn
PAYMENT
:
Slow but correct
MARKET
CONDITION :
competitive
FINANCIAL
CONDITION : fairly
stable
OPERATIONAL
TREND : fairly STEADY
GENERAL
REPUTATION : AVERAGE
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 limited liabilities company of PRC with State Administration of Industry
& Commerce (SAIC) under Unified Social Credit Code: 91320200763555514A.
SC’s Import and Export Enterprise Code: 3200763555514
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 |
|
2007 |
Registered Capital |
CNY 2,100,000 |
CNY 5,000,000 |
|
-- |
Registration No. |
3202002113511 |
320200000112277 |
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2016-12-23 |
Company Chinese Name |
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Registered Capital |
CNY 5,000,000 |
CNY 10,000,000 |
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Registration No./Unified Social Credit Code |
320200000112277 |
91320200763555514A |
Current Co
search indicates SC’s shareholders & chief executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Bao Ming |
34 |
|
Di Lingyun |
33 |
|
Xiao Qiang |
33 |
SC’s Chief
Executives:-
|
Position |
Name |
|
Legal Representative, Chairman and General
Manager |
Bao Ming |
|
Supervisor |
Xiao Qiang |
RECENT
DEVELOPMENT
No recent
development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Bao Ming 34
Di Lingyun 33
Xiao Qiang 33
MANAGEMENT
Bao Ming, Legal Representative, Chairman and
General Manager
---------------------------------------------------------------------------------------------
Ø Gender: F
Ø Nationality: China
Ø Age: 50
Ø ID# 320211196807134141
Ø Qualification:
University
Ø Working experience
(s):
From 2004 to present, working in SC as legal
representative, chairman and general manager
Supervisor
---------------
Xiao Qiang
BUSINESS
OPERATION
SC’s registered business scope includes
import and export of goods and technology (excluding those limited or
prohibited by the state); sales of chemicals and raw materials, textile and
metal products.
SC is mainly engaged in selling chemical
products.
SC’s products mainly include:
Optical
Brighteners
Food&Feed
Additives
Cosmetics
Additives
Water Treatment
Chemicals
A.P.Is
Intermediates
Metal Products
Import Products
Recommended
Product
SC sources its products 90% from domestic market, mainly Beijing, and
10% from overseas market, mainly Japan. SC sells 10% of its products in
domestic market, and 90% to overseas market, mainly U.S.A., Japan, Taiwan, etc.
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.
*Major Customers*
==============
F&F imp and exp ltd.
Technodetersa S.A.S
Exandal S.A.
Chemical Direct Inc.
Staff
& Office:
--------------------------
SC is known to have approx. 16
staff at present.
SC owns an area as its operating office of
approx. 210 sq. meters at the heading address.
RELATED
COMPANY
SC is not known to have any subsidiary at present.
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 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.
BANKING
Basic Bank:
Bank of China Wuxi
Branch
AC#:
553458218248
FINANCIALS
Balance
Sheet
|
Unit:
CNY’000 |
As of Dec. 31, 2016 |
|
12,530 |
|
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Notes receivable |
0 |
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Financial
assets held for trading |
190 |
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Accounts receivable |
34,610 |
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Advances to
suppliers |
15,800 |
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Other
receivable |
10 |
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Inventory |
3,400 |
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Other
current assets |
370 |
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------------------ |
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Current
assets |
66,910 |
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Fixed
assets |
2,030 |
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Long-term
prepaid expenses |
0 |
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Deferred income
tax assets |
0 |
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Other
non-current assets |
0 |
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|
------------------ |
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Total
assets |
68,940 |
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|
============= |
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Short-term
loans |
8,650 |
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Notes
payable |
4,260 |
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Accounts
payable |
4,560 |
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Taxes
payable |
-820 |
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Advances
from clients |
32,040 |
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Other
payable |
250 |
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Other
current liabilities |
0 |
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------------------ |
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Current
liabilities |
48,940 |
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Non-current
liabilities |
0 |
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|
------------------ |
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Total
liabilities |
48,940 |
|
Equities |
20,000 |
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------------------ |
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Total
liabilities & equities |
68,940 |
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============= |
Income
Statement
|
Unit:
CNY’000 |
As of Dec.
31, 2016 |
|
Revenue |
216,560 |
|
Cost of sales |
208,190 |
|
Sales expense |
2,830 |
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Management expense |
3,230 |
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Finance expense |
970 |
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Profit
before tax |
1,510 |
|
Less:
profit tax |
370 |
|
1,140 |
Important Ratios
=============
|
|
As of Dec. 31, 2016 |
|
*Current ratio |
1.37 |
|
*Quick ratio |
1.30 |
|
*Liabilities to assets |
0.71 |
|
*Net profit margin (%) |
0.53 |
|
*Return on total assets (%) |
1.65 |
|
*Inventory / Revenue ×365 |
6 days |
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*Accounts receivable/ Revenue ×365 |
59 days |
|
*Revenue/Total assets |
3.14 |
|
*Cost of sales / Revenue |
0.96 |
FINANCIAL
COMMENTS
PROFITABILITY: AVERAGE
l
The revenue
of SC appears fairly good 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 fairly high, 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 fairly
good level.
l The inventory of SC appears small.
l The accounts receivable of SC is maintained
in an average level.
l SC’s short-term loans are in an average
level.
l SC’s revenue is in an average level,
comparing with the size of its total assets.
LEVERAGE: AVERAGE
l The debt ratio of SC is average.
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 |
INR 64.99 |
|
|
1 |
INR 90.83 |
|
Euro |
1 |
INR 80.09 |
|
CNY |
1 |
INR 10.29 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
|
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.