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MIRA INFORM REPORT
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Report No. : |
509484 |
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Report Date : |
16.05.2018 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
Langkou Village, Taihuyuan Town, Lin’an, Zhejiang Province, 311306 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2016 |
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Date of Incorporation : |
15.05.2003 |
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Credibility Code
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91330185749469871E |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
· Manufacturing & selling of water-based wood paper, chemical fiber, ink; processing and selling composite flooring, composite boards furniture; importing and exporting goods. · Subject is mainly engaged in manufacturing and selling of decorative material. |
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No. of Employees : |
120 |
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
HANGZHOU BEST DECORATIVE MATERIAL CO., LTD.
langkou village, taihuyuan town, lin’an,
zhejiang province, 311306 PR CHINA
TEL: 86 (0) 571-63793568-802 FAX: 86 (0) 571-63792888
EXECUTIVE
SUMMARY
INCORPORATION DATE : may 15, 2003
Credibility Code : 91330185749469871E
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH : 120
REGISTERED CAPITAL : CNY 30,000,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER : CNY 68,085,000 (AS OF DEC. 31, 2016)
EQUITIES : CNY 10,380,000 (AS OF DEC. 31, 2016)
PAYMENT : Slow but correct
MARKET CONDITION : average
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEADY
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: SC’s correct name should be the heading one.
SC was registered as a limited liabilities co. at local Administration
for Industry & Commerce (AIC - The official body of issuing and renewing
business license) on May 15, 2003.
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 manufacturing & selling water-based wood paper, chemical fiber, ink; processing and selling composite flooring, composite boards furniture; importing and exporting goods.
SC is mainly engaged in manufacturing and selling decorative material.
Mr. Yu Liqiang has been legal representative, executive director and general manager of SC since Sep. of 2006.
SC is known to have approx. 120 employees at present.
SC is currently operating at the above stated address, and this address houses its operating office and factory in Lin’an. Our checks reveal that SC covers the total premise about 35,000 square meters.
SC is not known to host website of its own at present.
Changes of its
registered information:
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Date of change |
Item |
Before the change |
After the change |
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2004-03-17 |
Registered capital |
CNY 10,000,000 |
CNY 15,000,000 |
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2006-04-19 |
Registered capital |
CNY 15,000,000 |
Present amount |
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2006-09-05 |
Company’s name |
Present one |
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Legal representative |
Yuan Meizhen |
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2008-09-01 |
Registration no. |
3301852003363 |
330185000025141 |
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Shareholders |
Hangzhou Dawei Decorative Material Co., Ltd. 45% Yu Liyong 19% Yu Liqiang 36% |
Mao Jiehua 10% Yu Liqiang 90% |
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2009-05-26 |
Registration no. |
330185000025141 |
330185000034691 |
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2015-11-11 |
Registration no. |
330185000034691 |
(Credibility
code) 91330185749469871E |
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2017-06-01 |
Shareholders |
Mao Jiehua 10% Yu Liqiang 90% |
Present
ones |
Import/
Export License Number: 3300749469871
HS Code:
3301962957
See below records for SC as executive party
(defendant).
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Executed Party |
SC |
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Court |
Lin’an People's Court |
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Date
of Case |
2009-06-08 |
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Case Number |
(2009) 01169 |
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Claim
Amount |
RMB 7,930 |
Remark: Due to the lack
of information, we are unable to provide the cause of action, judgment or other
information.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Mao Jiefeng 10
Yu Liqiang 90
l
Legal representative, executive director and
general manager:
Mr. Yu Liqiang is currently responsible for the overall management of
SC.
Working Experience(s):
From
Sep. of 2006 to present Working in SC as legal representative, executive
director and general manager.
Also
working in Chengdu Best New Material Co., Ltd. (literal translation) as legal
representative.
l
Supervisor:
Mao Jiefeng
SC is mainly
engaged in manufacturing and selling decorative material.
SC’s products mainly include: water-based wood paper, composite
flooring, composite boards furniture, etc.
SC sources its materials 100% from domestic
market. SC sells 80% of its products in domestic market, and 20% to overseas
market.
The buying terms of SC include Check, T/T 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 refused to release its main
suppliers and clients.
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Registration No. |
5788855 |
5901247 |
5788856 |
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Registration
Date |
2009-10-21 |
2009-12-07 |
2009-11-21 |
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Trademark Design |
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Industry code:
2239
Industry name:
Other paper products manufacturing
The gross domestic product of China in 2016
which is 74412.72 billion that is increased 6.7% than previous year.
According to the data from National Bureau of Statistics, from Jan. to
June 2016, the turnover of paper-making and paper products industry was CNY
691.98 billion, an increase of 6.02%; the profit was CNY 34 billion, an increase
of 7.5%. The turnover of pulp manufacturing industry was 6.191 billion, dropped
by 4.34%; the turnover of paper-making industry was CNY 407.169 billion, an
increase of 5.86%; the turnover of paper products manufacturing industry was
CNY 278.616 billion, an increase of 6.51%.
Chengdu Best New Material Co., Ltd. (literal translation)
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Credibility code: 91510184590228581M
Legal representative: Yu Liqiang
Incorporation date: 2012-2-20
SC is known to invest in the following company:
Yunnan Anning Chouzhou Rural Bank Co., Ltd.
=========================================
Credibility code: 91530100054656953W
Legal representative: Zheng Mingliang
Incorporation date: 2012-9-21
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.
Industrial Bank
Hangzhou Lin’an Sub-branch
AC#：358530100100134591
Shanghai Pudong
Development Bank Hangzhou Lin’an Sub-branch
AC#：N/A
Relationship: Normal.
Financial Summary
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Unit: CNY’000
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As of Dec. 31, 2016 |
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Total assets |
62,129 |
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========= |
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Total liabilities |
51,749 |
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Equities |
10,380 |
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-------------- |
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Total liabilities & equities |
62,129 |
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========= |
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Turnover |
68,085 |
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Profit before tax |
1,172 |
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Less: profit tax |
0 |
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Profits |
1,172 |
Note: we did not find SC’s detailed financial
reports.
Important
Ratios
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As
of Dec. 31, 2016 |
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*Liabilities
to assets |
0.83 |
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*Net profit
margin (%) |
1.72 |
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*Return on
total assets (%) |
1.89 |
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*Turnover/Total
assets |
1.10 |
PROFITABILITY:
AVERAGE
l The turnover of SC
appears average in its line.
l SC’s net profit
margin is average.
l SC’s return on
total assets is average.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high.
l
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 60.53 |
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1 |
INR 91.49 |
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Euro |
1 |
INR 80.53 |
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CNY |
1 |
INR 10.66 |
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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DIV |
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Report Prepared
by : |
KET |
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.