MIRA
INFORM REPORT
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Report Date : |
20.08.2012 |
IDENTIFICATION DETAILS
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Correct Name : |
SHENZHEN BAIJUE INDUSTRIAL DEVELOPMENT CO.,
LTD. |
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Registered Office : |
2/F, Block 2, Wanshan Jewellery Park, No. 42 Tianbei
4th Road, Luohu District, Shenzhen,
Guangdong Province, 518020 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
11.01.2002 |
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Com. Reg. No.: |
440301103419995 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
SC is mainly engaged in manufacturing and
selling gold, platinum, diamonds and jewelry |
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No. of Employees : |
850 employees |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 – March 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
China |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name & address
SHENZHEN BAIJUE INDUSTRIAL DEVELOPMENT CO., LTD.
2/F, BLOCK 2,
WANSHAN JEWELLERY PARK, NO. 42 TIANBEI 4TH ROAD, LUOHU DISTRICT, SHENZHEN,
GUANGDONG PROVINCE, 518020 PR CHINA
TEL: 86 (0)
755-25634688/25506243 FAX: 86 (0)
755-25627586/25537869
EXECUTIVE SUMMARY
INCORPORATION DATE : JAN. 11, 2002
REGISTRATION NO. : 440301103419995
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
850
REGISTERED CAPITAL : CNY 50,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 638,390,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 58,340,000 (AS OF DEC. 31, 2011)
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.36 = USD 1
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 limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Jan. 11, 2002.
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 initiating industry; manufacturing
and selling gold, platinum, diamonds, jewelery;
domestic commerce, material supply and marketing (excluding the products
privileged, prohibited or franchised); import and export of goods and
technology (with permit if needed); gold and platinum purchasing (excluding
futures and restricted items); information consultation (excluding talent
intermediary services, securities and restricted items).
SC is mainly engaged in manufacturing and
selling gold, platinum, diamonds and jewelry.
Mr. Li
Guanliang is the legal representative, chairman and
general manager of SC at present.
SC is known to have approx. 850 employees at
present.
SC is currently operating at the above stated address, and this
address houses its operating office and factory in Wanshan Jewellery
Park of Shenzhen. SC’s management declined to release
detailed information of the premise.
http://www.baijuechina.com/
The design
is professional and the content is well organized. At present it is in Chinese
version.
Email: customer_service@baijuechina.com
Changes
of its registered information:
|
Date of change |
Item |
Before the
change |
After the change |
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|
Legal representative |
Li Guanliang |
Li Guanbiao |
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Shareholders |
Li Guanliang 70% Zou Mengxiong 30% |
Li Guanliang 70% Li Guanbiao 30% |
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Registered capital |
CNY 1,000,000 |
CNY 3,000,000 |
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|
Registered capital |
CNY 3,000,000 |
CNY 13,000,000 |
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|
Registered capital |
CNY 13,000,000 |
CNY 18,000,000 |
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Registration No. |
4403012081093 |
Present one |
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Registered capital |
CNY 18,000,000 |
CNY 32,000,000 |
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Shareholders (shareholding) |
Li Guanliang 70% Li Guanbiao 30% |
Li Guanliang 35% Li Guanyuan 35%; Li Guanbiao 30% |
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|
Legal representative |
Li Guanbiao |
Li Guanliang |
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Registered capital |
CNY 32,000,000 |
Present amount |
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|
Legal representative |
Li Guanliang |
Li Guanbiao |
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|
Legal representative |
Li Guanbiao |
Present one |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Li Guanyuan 35
Li Guanliang 35
Li Guanbiao
30
Legal
representative,
chairman and general manager:
Mr. Li Guanliang is currently responsible for the overall
management of SC.
Working
Experience(s):
At present Working in SC as legal representative, chairman and general manager
Supervisor:
…………..
Li Guanyuan
SC is mainly engaged in manufacturing and
selling gold, platinum, diamonds and jewelry.
Main Products: diamond, gold, platinum, etc.
SC sources its materials 90%
from domestic market, and 10% from overseas market. SC sells 100% of its
products in domestic market.
The buying terms of SC include Check, T/T, L/C and Credit of
30-60 days. The payment terms of SC include Check, T/T and Credit of 30-60
days.
Note:
SC’s management declined to release its major suppliers and clients.
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 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.
SC’s management
declined to release its banking information.
Financial Summary
Unit: CNY’000
|
|
as of Dec. 31,
2010 |
as of Dec. 31,
2011 |
|
Total Liabilities |
152,550 |
270,820 |
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Shareholders equities |
54,890 |
58,340 |
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Total Assets |
207,440 |
329,160 |
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Turnover |
/ |
638,390 |
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Profit before tax |
/ |
2,210 |
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Less: profit tax |
/ |
530 |
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Net profit |
/ |
1,680 |
Note: SC's accountant refused to release
SC’s detailed financial reports for Yr2010 & 2011.
Important
Ratios
=============
|
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as of Dec. 31,
2010 |
as of Dec. 31,
2011 |
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*Liabilities
to assets |
0.74 |
0.82 |
|
*Net profit
margin (%) |
/ |
0.26 |
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*Return on
total assets (%) |
/ |
0.51 |
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*Turnover/Total
assets |
/ |
1.94 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in its line
in 2011
l
SC’s net profit margin is average in 2011
l
SC’s return on total assets is average in 2011.
l
SC’s turnover is in an average level in 2011, comparing
with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high in 2011.
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.
DIAMOND INDUSTRY –
INDIA
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From time immemorial, India is well known in the world
as the birthplace for diamonds. It is difficult to trace the origin of
diamonds but history says that in the remote past, diamonds were mined only in
India. Diamond production in India can be traced back to almost 8th
Century B.C. India, in fact, remained undisputed leader till 18th
Century when Brazilian fields were discovered in 1725 followed by emergence of
S. Africa, Russia and Australia.
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The achievement of the Indian diamond industry was
possible only due to combination of the manufacturing skills of the Indian
workforce and the untiring and unflagging efforts of the Indian diamantaires, supported by progressive Government policies.
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The area of study of family owned diamond businesses
derives its importance from the huge conglomerate of family run organizations
which operate in the diamond industry since many generations.
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Some of the basic traits of family run business
enterprises include spirit of entrepreneurship, mutual trust lowers transaction
costs, small, nimble and quick to react, information as a source of advantage
and philanthropy.
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Family owned diamond businesses need to improve on
many fronts including higher standard of corporate governance, long-term
performance – focused strategies, modern management and technology.
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The diamond jewellery
industry in India today may be more than Rs 60000 mil
and is rated amongst the fastest growing in the world. Indi ranks third in the world in domestic diamond
consumption.
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Utmost caution is to be exercised while dealing with
some medium and large diamond traders which are usually engaged in fictitious
import – export, inter-company transactions, financially assisted by banks. In
the process, several public sector banks lost several hundred million rupees.
They mostly diverted borrowed money for diamond business into real estate and
capital markets.
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Excerpts from Times of India dated 30th
October 2010 is as under –
DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT
This
could be the biggest credibility crisis the Indian diamond industry has ever
faced. Fifteen banks run the risk of losing Rs 2000 crore lent to a dozen diamond firms in Surat.
Until about two months ago, they had not repaid these dues. Bankers
believe many diamantaires borrowed money during the
economic downturn two years ago and diverted funds to businesses like real
estate and capital markets. Many of themselves made money from these businesses
but their diamond companies have gone sick and declared insolvency.
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Most of the money borrowed from the banks in the name
of their diamond business has been diverted in real estate and the share
market. The banks are not in a position to seize their properties because in
many cases, these were purchased in the name of their relatives and friends.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.70 |
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UK Pound |
1 |
Rs.87.55 |
|
Euro |
1 |
Rs.68.85 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
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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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.