MIRA
INFORM REPORT
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Report Date : |
17.12.2008 |
IDENTIFICATION
DETAILS
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Name : |
SHANGHAI ELECTRIC IMPORT & EXPORT CORP. |
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Registered Office : |
3/F Yongxing
Business Building, No.22 Lane 376 Yan’an West Road, Shanghai, 200040 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
04.11.1992 |
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Com. Reg. No.: |
3101151017013 |
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Legal Form : |
State-Owned Enterprise |
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Line of Business : |
International Trade. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
usd 280,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
naME & address
shanghai electric import & export corp.
3/f
yongxing business building, no.22 lane 376 yan’an west road,
shanghai,
200040 PR CHINA
376 22 3
TEL:
86 (0) 21-62492282/62482144 FAX:
86 (0) 21-62492282
EXECUTIVE SUMMARY
INCORPORATION
DATE : november 4, 1992
REGISTRATION
NO. : 3101151017013
REGISTERED
LEGAL FORM : State-owned enterprise
STAFF
STRENGTH : 60
REGISTERED
CAPITAL :
CNY 14,000,000
BUSINESS
LINE : trading
TURNOVER : CNY 760,009,000 (AS OF DEC. 31,
2007)
EQUITIES : CNY 39,445,000
(AS OF DEC. 31, 2007)
PAYMENT
: AVERAGE
RECOMM.
CREDIT RANGE : UP TO usd 280,000
MARKET
CONDITION : COMPETITIVE
FINANCIAL
CONDITION : STABLE
OPERATIONAL
TREND :
STEADY
GENERAL
REPUTATION : AVERAGE
EXCHANGE
RATE : CNY6.87 = USD1
Adopted abbreviations
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
SC was registered as a state-owned enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on November 4, 1992.
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.
SC’s registered business scope includes
operating and acting as an agent of importing and exporting various kinds of
commodities and technology, excluding the goods forbidden by the government,
processing with imported materials, processing with imported samples,
assemblying with imported parts, and compensation trade in agreement; counter
trade & transit trade, in
accordance with the license.
SC is mainly engaged in international trade.
Mr. Hou Xiling has been general manager of SC
since 2006.
SC is known to have approx. 60 employees 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 rents the total premise
about 800 square meters.
SC is not known to
host web site of its own at present.
Changes of its
registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2001 |
Legal Representative |
Mi Qiting |
Jin Mingda |
|
2004-11-5 |
Legal Representative |
Jin Mingda |
Yu Chuanyu |
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2006-7-26 |
Legal Representative |
Yu Chuanyu |
Hou Xiling |
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2007 |
Registered capital |
CNY 10,000,000 |
CNY 14,000,000 |
SUPERIOR DEPARTMENTS:
Name
Shanghai Electric Group Corporation
l
Legal
Representative and General Manager:
Mr. Hou Xiling, with
university education. He is currently responsible for the overall management of
SC.
Working Experience(s):
From 2006 to present Working
in SC as legal representative and general manager.
SC is mainly engaged in international trade.
SC’s products mainly include: power
generation equipment, electrical equipment, steels.
SC sources its materials 80% from domestic market, and 20% from
overseas market, mainly USA and Europe. SC sells 20% of its products in
domestic market, and 80% 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:
==============
Shanghai Yifengyuan
Silicon Steel Co., Ltd.
SC is not known to have
any subsidiary at present.
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’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.
China Construction
Bank Shanghai Branch
AC# 31001550400055613182
Relationship: Normal.
Balance Sheet
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Unit: CNY’000 |
as of Dec. 31, 2006 |
as of Dec. 31, 2007 |
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Cash & bank |
62,202 |
94,270 |
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Inventory |
296,780 |
132,938 |
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Accounts receivable |
5,565 |
1,872 |
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Other Accounts receivable |
7,379 |
7,758 |
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Advances to suppliers |
177,653 |
202,997 |
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To be apportioned expense |
0 |
0 |
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Other current assets |
3 |
2 |
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------------------ |
------------------ |
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Current assets |
549,582 |
439,837 |
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Fixed assets net value |
6,745 |
6,784 |
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Projects under construction |
0 |
0 |
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Long term investment |
122 |
13,050 |
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Other assets |
1 |
0 |
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------------------ |
------------------ |
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Total assets |
556,450 |
459,671 |
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============= |
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Short loans |
0 |
0 |
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Accounts payable |
118,037 |
190,745 |
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Other Accounts payable |
2,191 |
2,659 |
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Advances from clients |
423,747 |
238,035 |
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Withdraw the expenses in advance |
0 |
0 |
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Other current liabilities |
-3,855 |
-11,213 |
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Current liabilities |
540,120 |
420,226 |
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Long term liabilities |
0 |
0 |
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Other liabilities |
0 |
0 |
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------------------ |
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Total liabilities |
540,120 |
420,226 |
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Equities |
16,330 |
39,445 |
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------------------ |
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Total liabilities & equities |
556,450 |
459,671 |
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Income Statement
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Unit: CNY’000 |
as
of Dec. 31, 2006 |
as
of Dec. 31, 2007 |
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Turnover |
588,586 |
760,009 |
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Cost of goods sold |
580,203 |
735,667 |
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Sales expense |
5,300 |
12,723 |
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Management expense |
7,674 |
9,673 |
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Finance expense |
-9,087 |
-913 |
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Profit before tax |
1,733 |
11,497 |
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Less: profit tax |
444 |
1,860 |
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Profits |
1,289 |
9,637 |
Important Ratios
=============
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As of Dec. 31, 2006 |
As of Dec. 31, 2007 |
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*Current ratio |
1.02 |
1.05 |
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*Quick ratio |
0.47 |
0.73 |
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*Liabilities to assets |
0.97 |
0.91 |
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*Net profit margin (%) |
0.22 |
1.27 |
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*Return on total assets (%) |
0.23 |
2.10 |
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*Inventory /Turnover ×365 |
184 days |
64 days |
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*Accounts receivable/Turnover ×365 |
3 days |
1 day |
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*Turnover/Total assets |
1.06 |
1.65 |
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*Cost of goods sold/Turnover |
0.99 |
0.97 |
PROFITABILITY: AVERAGE
l
The turnover of
SC appears fairly good, and it was rising in 2007.
l
SC’s net profit
margin is average in 2006 and average in 2007.
l
SC’s return on
total assets is average in 2006 and average in 2007.
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SC’s cost of
goods sold is high, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current
ratio of SC is maintained in a normal level.
l
SC’s quick
ratio is maintained in a fair level.
l
The inventory
of SC is maintained in an average level.
l
The accounts
receivable of SC is maintained in an average level.
l
SC has no
short-term loan in both two years.
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SC’s turnover
is in an acceptable level, comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio
of SC is high.
l
The risk for SC
to go bankrupt is low.
Overall financial condition of the SC:
Stable.
Over the past 16
years, SC has made a stable growth with stable financial conditions. A credit
line up to USD 280,000 would
appear to be within SC’s capacities.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.47.33 |
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UK Pound |
1 |
Rs.73.92 |
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Euro |
1 |
Rs.66.69 |
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%)