MIRA
INFORM REPORT
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Report Date : |
15.10.2007 |
IDENTIFICATION DETAILS
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Name : |
SHANGHAI DOUBLE HAPPINESS CO., LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Dec. 26, 1995 |
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Com. Reg. No.: |
036447 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Engaged
in manufacturing various sporting goods, mainly ping-pang serious
products. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
Up To USD 900,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
SHANGHAI DOUBLE HAPPINESS CO., LTD.
NO.917
TEL : 0086-21-63789977
FAX :
0086-21-63787863
EXECUTIVE SUMMARY
INCORPORATION DATE :
DEC. 26, 1995
REGISTRATION NO. : 036447
REGISTERED LEGAL FORM :
SHARES LIMITED CO.
CHIEF EXECUTIVE :
MR. HUANG YONGWU (CHAIRMAN)
STAFF STRENGTH :
620
REGISTERED CAPITAL :
CNY 112,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 324,218,000 (AS OF DEC. 31,
2006)
EQUITIES :
CNY 141,821,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
WELL KNOWN
EXCHANGE RATE :
CNY 7.51100=US1$
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
SC was registered as a shares limited co. at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Dec. 26, 1995.
Company Status:
Shares limited co. This
form of business in PR China is defined as a legal person. Its registered capital
is divided into shares of equal par value and the co. raises capital by
issuing share certificates by promotion or by public offer. Shareholders
bear limited liability to the extent of shareholding, and the co. is liable
for its debts only to the extent of its total assets. The co has
independent property of legal person and enjoys property rights of legal
person. The characteristics of the shares limited co. are as follows: The
establishment of the co. requires at least two promoters and no more than
200, half of whom shall be domiciled in The
minimum registered capital of a co. is CNY The
board of directors must consist of five to nineteen directors. If the co. raises
capital by public offer, the promoters must not subscribe less than 35% of
the total shares. the promoters’ shares are restricted to transfer- within
one year of the offer. A
state-owned enterprise that is restructured into a shares limited co. must
comply with the conditions & requirements specified under the law &
administrative rule.
SC’s registered business scope includes producing various
sporting goods and casual products; selling its own products (with permit if
needed).
SC is
mainly engaged in manufacturing various sporting goods, mainly ping-pang
serious products.
Mr.
Huang Yongwu has been legal representative and chairman of SC since 1995.
SC is known to have approx. 620 staff members at
present.
SC is currently operating at the above stated address, and this
address houses its operating office in the commercial zone of Shanghai. Our
checks reveal that SC owns the total premise.
http://www.dhs-sports.com
The
design is professional and the content is well organized. At present it is in
Chinese, German and English versions.
E-Mail: yrosey@sina.com
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Date of change |
Item |
Before the change |
After the change |
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Shareholders (Shareholding) |
Shanghai Double Happiness (Group) Co.,
Ltd. (70%), Hong Kong Crown City Co., Ltd. (30%) |
Shanghai Double Happiness (Group) Co.,
Ltd. (70%), Hong Kong Crown City Industry Co., Ltd. (30%) |
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Shareholders (Shareholding) |
Shanghai Double Happiness (Group) Co.,
Ltd. (70%), Hong Kong Crown City Industry Co., Ltd. (30%) |
Shanghai Double Happiness (Group) Co.,
Ltd. (44.77%), Hong Kong Crown City Industry Co., Ltd. (30%), Shanghai Light
Industry Co., Ltd. (25.23%) |
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2002-08 |
Registered Legal Form |
Chinese-foreign
contractual joint venture enterprise |
Chinese-foreign
equity joint venture enterprise |
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Shareholders (Shareholding) |
Shanghai Double Happiness (Group) Co.,
Ltd. (44.77%), Hong Kong Crown City Industry Co., Ltd. (30%), Shanghai Light Industry
Co., Ltd. (25.23%) |
Shanghai Double Happiness (Group) Co.,
Ltd. (49.77%), Hong Kong Crown City Industry Co., Ltd. (25%), Shanghai Light
Industry Co., Ltd. (25.23%) |
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Registered name |
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Shanghai Double Happiness Co., Ltd. |
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Registered capital |
USD 7,250,000 |
CNY 112,000,000 |
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Shareholders (Shareholding) |
Shanghai Double Happiness (Group) Co., Ltd.
(49.77%), Hong Kong Crown City Industry Co., Ltd. (25%), Shanghai Light
Industry Co., Ltd. (25.23%) |
Shanghai Double
Happiness (Group) Co., Ltd. (33%), Hong Kong Crown City Industry Co., Ltd.
(17.5%), Shanghai Shuangsheng House Purchasing Co., Ltd. (10%), Shanghai
Kecheng Enterprise Development Co., Ltd. (10%), Shanghai Yuanhui Industry
Investment Co., Ltd. (20%), Shanghai Huijin Enterprise Development Co., Ltd.
(9.5%) |
In 1998, DHS
finished research of
In 2000, DHS
entered into yacht line.
In 2004, DHS
101 shuttlecock was approved by IBF and could be used in international events.
Badminton becomes important sports item for DHS with table tennis together.
DHS is sponsor
of lots of top world events.
29th
Olympic Games (Beijing 2008)
28th
Olympic Games (Athens 2004)
27th
Olympic Games (Sydney 2000)
48th
World Table Tennis Championships (Shanghai 2005)
47th
World Table Tennis Team Championships (Doha 2004)
47th
World Table Tennis Championships (Paris 2003)
DHS is first
Chinese official supplier for world event -- 26th World T.T
Championships.
DHS is first
Chinese official supplier for Olympic Games – Sydney 2000
MAIN SHAREHOLDERS:
Name %
of Shareholding
Shanghai Double Happiness
(Group) Co., Ltd. 33
Crown City Industry Co., Ltd. (
Shanghai Shuangsheng Real Estate
Co., Ltd.
10
Shanghai Kecheng Enterprise
Development Co., Ltd. 10
Shanghai Yuanhui Industry
Investment Co., Ltd. 20
Shanghai Huijin Enterprise
Development Co., Ltd. 9.5
l
Legal
representative and
chairman:
Mr. Huang Yongwu, in his
Working Experience(s):
From 1995 to present Working in SC as chairman and legal representative.
SC is
mainly engaged in manufacturing various sporting goods, mainly ping-pang
serious products.
SC’s products mainly include: ping-pong goods, badminton
goods, weightlifting goods, tennis goods, chest protectors, healthy equipments
and field equipment.
SC sources its materials 80% from domestic market and 20%
from the overseas market. SC sells 30% of its products to overseas market and 70% in domestic
market.
The buying terms of SC include Check, L/C, T/T and Credit of
15-30 days. The payment terms of SC include Check, T/T, and Credit of 15-30
days.
Brand: 
DHS has been the
*Major Suppliers*
=============
Shanghai Double Happiness (Group) Co., Ltd.
Shanghai Double Happiness Rizhuo Ping-Pang Equipment Co.,
Ltd
*Major Customers*
==============
Shanghai Double Happiness (Group) Co., Ltd.
Shanghai Double Happiness Jiangyin Huashi Sporting Goods
Co., Ltd.
SC invests in the following enterprises:
Shanghai Double Happiness Sporting Goods Sales Co., Ltd.
Shanghai Hongzhan Sporting Goods Co., Ltd.
Shanghai Hongguan Sporting Goods Co., Ltd.
Wujiang Daoboer Sporting Goods Co., Ltd.
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
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 & Commercial Bank of
AC#：022155-100121550916222384
Relationship:
Balance Sheet
Unit: CNY’000
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as
of Dec. 31, 2005 |
as
of Dec. 31, 2006 |
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Cash
& bank |
42,077 |
48,203 |
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Bills
receivable |
0 |
0 |
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Dividends
receivable |
0 |
0 |
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Accounts
receivable |
14,419 |
14,020 |
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Other
receivables |
3,586 |
3,531 |
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Advances to
suppliers |
2,419 |
2,502 |
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Inventory |
47,074 |
46,958 |
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Prepaid expenses |
99 |
120 |
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Other
current assets |
0 |
0 |
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------------------ |
------------------ |
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Current
assets |
109,674 |
115,334 |
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Fixed assets |
133,092 |
146,501 |
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Fixed
assets net value |
91,746 |
94,427 |
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Projects
under construction |
41,346 |
52,074 |
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Long
term investment |
3,208 |
782 |
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Other
assets |
11,228 |
8,660 |
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------------------ |
------------------ |
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Total
assets |
257,202 |
271,277 |
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============= |
============= |
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Short
loans |
41,500 |
47,000 |
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Bills
payable |
2,000 |
2,000 |
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Accounts
payable |
35,961 |
40,977 |
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Welfare
payable |
15,011 |
15,446 |
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Advances from
clients |
10,029 |
4,891 |
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Accrued
payroll |
1,296 |
880 |
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Dividends
payable |
628 |
1,589 |
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Tax
payable |
-301 |
1,880 |
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Other
payable |
12,057 |
9,978 |
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Surcharge
payable |
118 |
176 |
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Accrued expenses |
100 |
20 |
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Other
current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current
liabilities |
118,399 |
124,837 |
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Long
term liabilities |
5,730 |
4,619 |
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------------------ |
------------------ |
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Total
liabilities |
124,129 |
129,456 |
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Equities |
133,073 |
141,821 |
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------------------ |
------------------ |
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Total
liabilities & equities |
257,202 |
271,277 |
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============= |
============= |
Income Statement
Unit: CNY’000
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as of Dec. 31,
2005 |
as of Dec. 31,
2006 |
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Turnover |
270,392 |
324,218 |
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Cost of goods
sold |
192,098 |
228,443 |
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Sales expense |
17,455 |
28,463 |
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Management expense |
34,353 |
33,743 |
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Finance expense |
2,662 |
3,152 |
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Investment
income |
694 |
3,277 |
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Subsidy income |
1,590 |
2,250 |
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Profit before
tax |
29,523 |
38,483 |
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Less: profit tax |
9,113 |
13,431 |
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Shareholders’
profit & loss |
1,597 |
2,482 |
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Profits |
18,813 |
22,570 |
Important Ratios
=============
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as
of Dec. 31, 2005 |
as
of Dec. 31, 2006 |
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*Current ratio |
0.93 |
0.92 |
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*Quick ratio |
0.53 |
0.55 |
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*Liabilities
to assets |
0.48 |
0.48 |
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*Net profit
margin (%) |
6.96 |
6.96 |
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*Return on
total assets (%) |
7.31 |
8.32 |
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*Fixed
assets/Total assets |
0.52 |
0.54 |
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*Inventory
/Turnover ×365 |
64 days |
53 days |
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*Accounts
receivable/Turnover ×365 |
20 days |
16 days |
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*Turnover/Total
assets |
1.05 |
1.20 |
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* Cost of
goods sold/Turnover |
0.71 |
0.70 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line,
and it increased in 2006.
l
SC’s net profit margin is fairly good.
l
SC’s return on total assets is fairly good, and it
increased in 2006.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained
in a normal level, and it decreased in 2006.
l
SC’s quick ratio is maintained in a
fair level.
l
The inventory of SC and inventory conversion period appears average.
l
The accounts receivable of SC appears average.
l
The short loans appear average.
l
SC’s turnover 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
average.
Overall
financial condition of the SC: Stable.
SC is well-known in its line with a development history of 12 years. Taking into consideration of SC’s general performance, reputation as well as market conditions we would rate SC as a low credit risk company.
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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 and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)