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MIRA INFORM REPORT
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Report No. : |
508528 |
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Report Date : |
14.05.2018 |
IDENTIFICATION DETAILS
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Name : |
QUANZHOU MUNICIPALITY FOREIGN PROCESSING
& ASSEMBLING ADMINISTRATION AND SERVICE CORPORATION |
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Registered Office : |
Bldg. A Huiyuan Mansion East of Tian’an
North Road Fengze Dist. Quanzhou Fujian Province, Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
15.07.1989 |
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Credibility Code : |
91350500156101502D |
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Legal Form : |
State-owned enterprise |
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Line of Business : |
The subject’s registered business scope includes engage in business related
to processing trade; external processing and assembly business; processing
imported materials; three processing industries and one compensation (not
engage in specific production, processing and assembly activities); manage
and guide the business of the external processing and assembly enterprises in
the whole city; importing and exporting goods and technologies, excluding
goods and technologies prohibited by the state; counter trade; transit trade
(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 : |
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
Company Name : QUANZHOU MUNICIPALITY FOREIGN PROCESSING
& ASSEMBLING ADMINISTRATION AND SERVICE CORPORATION
Address : 6/F HUAERDUN BUILDING, TIANAN ROAD, FENGZE
DIST. QUANZHOU
FUJIAN PROVINCE, PR CHINA
Telephone : 0086 595 22770039
Facsimile : --
Website : --
Email : qz22121877@163.com
REGISTRATION INFORMATION
Established Date : 1989-07-15
Credibility Code : 91350500156101502D
Legal Form : State-owned enterprise
Registration Authority : Administration for Industry & Commerce (AIC) - Quanzhou Fujian
Status : Active
Registered Capital : RMB 5,000,000
Paid Up Capital : RMB
5,000,000
Turnover : RMB 618,750,000 (as of Dec. 31, 2017)
Equities : RMB 9,550,000 (as of Dec. 31, 2017)
Chief Executive : Li
Shengchang
Business Line : Trade &
management business of foreign material processing
Manpower : 38
Tax Registration
Certificate No. : 91350500156101502D
Organization Code : 15610150-2
HS code :
3505910013
Import & Export code : 3500156101502
Financial
Condition : Fairly
Stable
Business Size : Small Enterprise
Payment : Slow but correct
Registered Address
Bldg. A Huiyuan Mansion East of Tian’an North
Road Fengze Dist. Quanzhou Fujian Province, Pr China
Company Status: State-owned enterprise
This form of business in PR China is defined as a commodity production
or operational units of a socialist character which in accordance with the law,
has autonomy in management, takes full responsibility for its profits and
losses and practices independent business accounting. It is a legal person
established directly by central / local government or enterprise owned by
central or local government. In theory, the liabilities of this form of
enterprise are ultimately borne by the government, since the adoption of
company law in mid-1994, the Chinese government has planned to separate the
ownership from management and liabilities bearing.
Premise
The subject operates from premises located at
the heading address, and this address houses its operating office in Quanzhou.
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 |
Li Shengchang |
Chinese |
MAJOR SHAREHOLDERS
Name % Shareholding
Bureau of Foreign Trade And
Economic Cooperation of Quanzhou 100
KEY EVENTS
No Significant Changes.
BUSINESS OPERATIONS
The subject’s registered business scope includes engage in business
related to processing trade; external processing and assembly business;
processing imported materials; three processing industries and one compensation
(not engage in specific production, processing and assembly activities); manage
and guide the business of the external processing and assembly enterprises in
the whole city; importing and exporting goods and technologies, excluding goods
and technologies prohibited by the state; counter trade; transit trade (with
permit if needed)
The subject is mainly engaged in
international trade and management business of foreign material processing.
Products:
Clothing and shoes
Arts and Crafts
Plastic
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 U.S.A. and Mexico, 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
No record.
RELATED COMPANIES
Subsidiaries
Quanzhou Customs Broker
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Credibility Code: 91350503156127788R
Legal representative: Li Shengchang
Registered Capital: RMB 1,500,000
Established Date: 1991-08-05
NEGATIVE INFORMATION
Lawsuit Record:
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Date |
Case No. |
Petitioner |
Defendant |
Executive court |
Status |
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2016-12-16 |
2015-624 |
Bank of Communications
Ltd Quanzhou branch |
The subject
company. |
Quanzhou
intermediate people's court in Fujian |
Concluded |
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:
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Case No. |
Penalty date |
Nature of the case |
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53305022014289354 |
2014-07-09 |
Illegal |
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53305022014289367 |
2014-07-09 |
Illegal |
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
The subject declined to release its banking details.
ABBREVIATED FINANCIAL STATEMENT
Financial Summary
===============
Unit: RMB’000
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As
of Dec. 31, 2016 |
As
of Dec. 31, 2017 |
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Total assets |
124,150 |
206,010 |
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Total liabilities |
114,670 |
196,460 |
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Equities |
9,480 |
9,550 |
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-------------- |
-------------- |
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Total liabilities & equities |
124,150 |
206,010 |
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========= |
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Turnover |
713,890 |
618,750 |
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Profits before tax |
920 |
440 |
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Less: tax |
230 |
110 |
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Profits |
690 |
330 |
Important Ratios
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As
of Dec. 31, 2016 |
As
of Dec. 31, 2017 |
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*Liabilities to assets |
0.92 |
0.95 |
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*Net profit margin (%) |
0.10 |
0.05 |
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*Return on total assets (%) |
0.56 |
0.16 |
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*Turnover/Total assets |
5.75 |
3.00 |
PROFITABILITY:
AVERAGE
The turnover of the subject appears fairly good in its line.
the subject’s net profit margin is average.
the subject’s return on total assets is average.
the subject’s turnover is fairly good in 2016 and average in 2017,
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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2015 |
2016 |
2017 |
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Sales Trend |
-- |
-- |
È |
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Profit margin |
-- |
-- |
È |
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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 State-owned enterprise 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 67.22 |
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1 |
INR 90.88 |
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Euro |
1 |
INR 80.09 |
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CNY |
1 |
INR 10.61 |
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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PRA |
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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.