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MIRA INFORM REPORT
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Report No. : |
498976 |
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Report Date : |
20.03.2018 |
IDENTIFICATION DETAILS
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Name : |
FOSHAN KINGFUWAY COMPANY LIMITED |
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Registered Office : |
Shop No. 6, 6th Building, 1st Hongxiang
North Street, Chancheng District, Foshan, Guangdong Province 528041 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2016 |
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Date of Incorporation : |
02.04.2007 |
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Unified Social
Credit Code : |
91440604799363231Y |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject registered business scope includes domestic trade,
importing and exporting goods and technology. |
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No. of Employees : |
7 |
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 : |
No Complaints |
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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 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
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COMPANY NAME |
FOSHAN KINGFUWAY COMPANY LIMITED |
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CURRENT ADDRESS/ REGISTERED ADDRESS |
SHOP NO. 6, 6TH BUILDING, 1ST HONGXIANG
NORTH STREET, CHANCHENG DISTRICT, FOSHAN, GUANGDONG PROVINCE 528041 PR CHINA |
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TEL.
NO. |
86 (0) 757-82082182 |
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FAX
NO. |
86 (0) 757-82082181 |
EXECUTIVE
SUMMARY
Date of Registration : april 2, 2007
Unified social credit code : 91440604799363231Y
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : cny 1,000,000
staff :
7
BUSINESS CATEGORY : trading
REVENUE :
CNY 58,233,000 (AS OF DEC. 31, 2016)
EQUITIES :
CNY 1,810,000 (AS OF DEC. 31, 2016)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT :
NO COMPLAINTS
MARKET CONDITION : average
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : ORDINARY
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: 91440604799363231Y.
SC’s Import and Export Enterprise Code:
4400799363231
SC’s registered capital: cny 1,000,000
SC’s paid-in capital: cny 1,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2016-11-22 |
Registration No./ Unified Social Credit
Code |
440602000078032 |
91440604799363231Y |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
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Name of Shareholder (s) |
% of Shareholding |
|
Liao Liuzhen |
60 |
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Zhou Jialuo |
20 |
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Zhou Qingjing |
20 |
SC’s Chief Executives:-
|
Position |
Name |
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Legal Representative, Chairman and General
Manager |
Liao Liuzhen |
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Supervisor |
Zhou Qingjing |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Liao Liuzhen 60
Zhou Jialuo 20
Zhou Qingjing 20
MANAGEMENT
Liao Liuzhen,
Legal Representative, Chairman and General Manager
-----------------------------------------------------------------------------------------------------
Ø
Gender: F
Ø
Nationality: China
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal
representative, chairman and general manager.
Zhou
Qingjing, Supervisor
-----------------------------------------------
Ø
Gender: F
Ø
Nationality: China
Ø Qualification:
University
Ø Working experience
(s):
At present, as supervisor of SC
BUSINESS
OPERATION
SC’s registered business scope includes domestic trade,
importing and exporting goods and technology.
SC is mainly
engaged in international trade.
SC’s products
mainly include: vat machinery and accessories, high temperature chain oil,
industrial belts, electronic products.
SC sources its products 60% from domestic
market, mainly Guangdong, and 40% from overseas market, mainly Germany. SC
sells 40% of its products in domestic market, and 60% to overseas market,
mainly USA, Europe and Southeast Asian market.
The buying terms
of SC include T/T, L/C and Credit of 30-60 days. The payment terms of SC
include T/T, L/C and Credit of 30-60 days.
*Major Supplier*
=============
Foshan Nanhai
Quanpoo Electrical Factory
*Major Customers*
==============
Electro Mag Sa De
Cv
General Mfg. &
Trading Corporation
Metroworld Tiles
Pvt Ltd.
Staff & Office:
--------------------------
SC is known
to have approx. 7 staff at present.
SC rents an area
as its operating office of approx. 100 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’s suppliers
declined to make any comments.
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
The bank
information of SC is not filed in SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2014 |
|
Cash |
300 |
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Notes receivable |
0 |
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Accounts
receivable |
0 |
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Advances to
suppliers |
12,790 |
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Other receivable |
1 |
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Inventory |
0 |
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Non-current
assets within one year |
0 |
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Other current
assets |
2,989 |
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------------------ |
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Current assets |
16,080 |
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Fixed assets |
20 |
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Construction in
progress |
0 |
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Intangible
assets |
0 |
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Long-term
investment |
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 |
16,100 |
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============= |
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Short-term loans |
690 |
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Notes payable |
0 |
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Accounts payable |
0 |
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Welfares payable |
0 |
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Taxes payable |
0 |
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Advances from
clients |
14,510 |
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Other payable |
-600 |
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Other current liabilities |
10 |
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------------------ |
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Current
liabilities |
14,610 |
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Non-current
liabilities |
0 |
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------------------ |
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Total
liabilities |
14,610 |
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Equities |
1,490 |
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------------------ |
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Total
liabilities & equities |
16,100 |
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============= |
Income Statement
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Unit: CNY’000 |
As of Dec. 31,
2014 |
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Revenue |
63,810 |
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Cost of sales |
62,750 |
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Sales expense |
440 |
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Management expense |
460 |
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Finance expense |
60 |
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Profit before
tax |
67 |
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Less: profit tax |
17 |
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Profits |
50 |
Financial Summary
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Unit: CNY’000 |
As
of Dec. 31, 2015 |
As
of Dec. 31, 2016 |
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Total assets |
24,067 |
8,782 |
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------------- |
------------- |
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Total
liabilities |
22,483 |
6,972 |
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Equities |
1,584 |
1,810 |
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------------- |
------------- |
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Revenue |
48,643 |
58,233 |
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Profit before
tax |
84 |
153 |
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Less: profit tax |
21 |
36 |
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Profits |
63 |
117 |
Important Ratios
=============
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As
of Dec. 31, 2014 |
As
of Dec. 31, 2015 |
As
of Dec. 31, 2016 |
|
*Current ratio |
1.10 |
-- |
-- |
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*Quick ratio |
1.10 |
-- |
-- |
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*Liabilities
to assets |
0.91 |
0.93 |
0.79 |
|
*Net profit
margin (%) |
0.08 |
0.13 |
0.20 |
|
*Return on
total assets (%) |
0.31 |
0.26 |
1.33 |
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*Inventory /
Revenue ×365 |
-- |
-- |
-- |
|
*Accounts receivable
/ Revenue ×365 |
-- |
-- |
-- |
|
*Revenue /
Total assets |
3.96 |
2.02 |
6.63 |
|
*Cost of sales
/ Revenue |
0.98 |
-- |
-- |
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.
LIQUIDITY: AVERAGE
l
SC’s revenue is in a fairly good level, comparing
with the size of its total assets.
LEVERAGE: FAIR
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 65.04 |
|
|
1 |
INR 90.55 |
|
Euro |
1 |
INR 79.77 |
|
CNY |
1 |
INR 10.30 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
PRA |
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Report Prepared
by : |
TPT |
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.