MIRA INFORM REPORT

 

 

Report Date :

03.12.2012

 

IDENTIFICATION DETAILS

 

Name :

SHANGHAI MERCURIS WINES CO., LTD.

 

 

Registered Office :

Room E-H, 13/F Hengda Tower, No. 285 Changshou Road, Putuo District, Shanghai 200060 Pr

 

 

Country :

China

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

23.08.1993

 

 

Reg. No.:

310106000032785

 

 

Legal Form :

One-Person Limited Liability Company

 

 

Line of Business :

Selling of Wines

 

 

No. of Employees :

20

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

No Complaints

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

China

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

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 - in 2010 China became the world's largest exporter. Reforms began with the phasing out of collectivized agriculture, and expanded to include the gradual liberalization of prices, fiscal decentralization, increased autonomy for state enterprises, creation of a diversified banking system, development of stock markets, rapid growth of the private sector, and opening to foreign trade and investment. China has implemented reforms in a gradualist fashion. In recent years, China has renewed its support for state-owned enterprises in sectors it considers important to "economic security," explicitly looking to foster globally competitive national champions. After keeping its currency tightly linked to the US dollar for years, in July 2005 China revalued its currency by 2.1% against the US dollar and moved to an exchange rate system that references a basket of currencies. From mid 2005 to late 2008 cumulative appreciation of the renminbi against the US dollar was more than 20%, but the exchange rate remained virtually pegged to the dollar from the onset of the global financial crisis until June 2010, when Beijing allowed resumption of a gradual appreciation. The restructuring of the economy and resulting efficiency gains have contributed to a more than tenfold increase in GDP since 1978. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2010 stood as the second-largest economy in the world after the US, having surpassed Japan in 2001. The dollar values of China's agricultural and industrial output each exceed those of the US; China is second to the US in the value of services it produces. Still, per capita income is below the world average. The Chinese government faces numerous economic challenges, including: (a) reducing its high domestic savings rate and correspondingly low domestic demand; (b) sustaining adequate job growth for tens of millions of migrants and new entrants to the work force; (c) reducing corruption and other economic crimes; and (d) containing environmental damage and social strife related to the economy's rapid transformation. Economic development has progressed further in coastal provinces than in the interior, and by 2011 more than 250 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of population control policy 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 economic development. The Chinese government is seeking to add energy production capacity from sources other than coal and oil, focusing on nuclear and alternative energy development. In 2010-11, China faced high inflation resulting largely from its credit-fueled stimulus program. Some tightening measures appear to have controlled inflation, but GDP growth consequently slowed to near 9% for 2011. An economic slowdown in Europe is expected to further drag Chinese growth in 2012. Debt overhang from the stimulus program, particularly among local governments, and a property price bubble challenge policy makers currently. The government's 12th Five-Year Plan, adopted in March 2011, emphasizes continued economic reforms and the need to increase domestic consumption in order to make the economy less dependent on exports in the future. However, China has made only marginal progress toward these rebalancing goals.

 

 

Source : CIA

Company Name and address

 

SHANGHAI MERCURIS WINES CO., LTD.

Room E-H, 13/F HENGDA TOWER, NO. 285 CHANGSHOU ROAD

PUTUO DISTRICT, SHANGHAI 200060 PR CHINA

TEL: 86 (0) 21-62981633/62995800/62986485

FAX: 86 (0) 21-62985535/62991550

 

 

EXECUTIVE SUMMARY

 

Date of Registration          : August 23, 1993

REGISTRATION NO.                  : 310106000032785

LEGAL FORM                           : ONE-PERSON LIMITED LIABILITY COMPANY

CHIEF EXECUTIVE                    : SHI yongjing (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL : cny 10,000,000

staff                                      : 20

BUSINESS CATEGORY : TRADING

Revenue                                : CNY 46,278,000 (AS OF DEC. 31, 2011)

EQUITIES                                 : CNY 11,883,000 (AS OF DEC. 31, 2011)

WEBSITE                                 : www.mercuris.com.cn

E-MAIL                                     : info@mercuris.com

PAYMENT                                : AVERAGE

MARKET CONDITION                : average

FINANCIAL CONDITION             : FAIRly stable

OPERATIONAL TREND  : fairly STEADY

GENERAL REPUTATION           : AVERAGE

EXCHANGE RATE                     : CNY 6.23 = USD 1

 

Adopted abbreviations (as follows)

SC - Subject Company (the company inquired by you)

N/A – Not available

CNY – China Yuan Ren Min Bi

OPERATIONAL TREND & GENERAL REPUTATION

 

This section aims at indicating the relative positions of SC in respect of its operational trend & general reputation

 

Operational Trend:-                                             General Reputation:-

Upward                                                             Excellent

Steady                                                              Good

Fairly Steady                                                     Fairly Good

Ordinary                                                            Average

Fair                                                                   Fair

Stagnant                                                           Detrimental

Downward                                                         Not known

Not known                                                         Not yet be determined

Not yet be determined

 

 

LEGAL STATUS & HISTORY

 

SC was established as a limited liabilities company of PRC on August 23, 1993. However, SC changed to present legal form, and was registered as one-person limited liabilities company of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 310106000032785.

 

SC’s Organization Code Certificate No.: 13284607-5

SC’s registered capital: cny 10,000,000

 

SC’s paid-in capital: cny 10,000,000

 

Registration Change Record:-

 

Date

Change of Contents

Before the change

After the change

2003-12

Shareholder (s) (% of Shareholding)

Shanghai Guanqun Investment Financial Consulting Co., Ltd. 90% Shanghai Hengda Property Management Co., Ltd. 10%

Shanghai Hengda Scien. & Tech. Dev. Co., Ltd. 90%

Shanghai Hengda Property Management Co., Ltd. 10%

2007-2

Company Name

Shanghai Huqing Trading Co., Ltd.

Shanghai Mercuris Wines Co., Ltd.

Legal Representative

Han Lina

Shi Shuncheng

2007-7

Shareholder (s) (% of Shareholding)

Shanghai Hengda Scien. & Tech. Dev. Co., Ltd. 90%

Shanghai Hengda Property Management Co., Ltd. 10%

Shanghai Hengda Scien. & Tech. Dev. Co., Ltd. 70%

Mai Minyi 30%

--

Legal Representative

Shi Shuncheng

Shi Yongjing

Legal Form

Limited Liability Company

One-Person Limited Liability Company

Shareholder (s) (% of Shareholding)

Shanghai Hengda Scien. & Tech. Dev. Co., Ltd. 70%

Mai Minyi 30%

Shanghai Hengda Scien. & Tech. Dev. Co., Ltd. 100%

Registration No.

3101061007793

310106000032785

--

Registered Capital

CNY 1,000,000

cny 10,000,000

 

Current Co search indicates SC’s shareholders & chief executives are as follows:-

 

Name of Shareholder (s)

% of Shareholding

Shanghai Hengda Scien. & Tech. Dev. Co., Ltd.

100

 

SC’s Chief Executives:-

 

Position

Name

Legal Representative and General Manager

Shi Yongjing

Chairman

Shi Shuncheng

 

 

RECENT DEVELOPMENT

 

No recent development was found during our checks at present.

 

 

SHAREHOLDER CHART & BACKGROUND

 

Name                                                                          % of Shareholding

 

Shanghai Hengda Scien. & Tech. Dev. Co., Ltd.

                                                                                                100

-----------------------------------------

Date of Registration: March 24, 1998

Registration No.: 310000000060467

Legal Form: Shares Limited Company

Chief Executive: Shi Shuncheng

Registered Capital: CNY 30,000,000

 

Address: 26/F, No. 285 Changshou Road, Shanghai

Tel: 86 (0) 21-62270788

Fax: 86 (0) 21-62998090

 

 

MANAGEMENT

 

Shi Yongjing, Legal Representative and General Manager

---------------------------------------------------------------------------------------

Gender: M

Qualification: University

Working experience (s):

 

At present, working in SC as legal representative and general manager

Also working in Shanghai Mercuris Wines Co., Ltd. Beijing Branch as principal

 

Shi Shuncheng, Chairman

----------------------------------------------

Gender: M

Qualification: University

Working experience (s):

 

From 2007 to present, working in SC as chairman

Also working in Shanghai Hengda Scien. & Tech. Dev. Co., Ltd. as legal representative, and in Shanghai Mercuris Wines Co., Ltd. Branch as principal

 

 

BUSINESS OPERATION

 

SC’s registered business scope includes pre-packaged foods (excluding non-cooked food and assorted spiced meat, frozen food), wine, non gold and silver arts & crafts, general hardware, hardware, knitting and cotton textiles, garments, general chemicals, commodities, motorcycles and parts, metal materials, common machinery and parts, building materials, timber, veneer, non-hazardous chemical raw materials; import and export of goods and technology. (with permit if needed)

 

SC is mainly engaged in selling wines.

 

SC’s products mainly include: wines.

SC sources its materials 100% from overseas market, mainly France, Italy, U.S.A., Chile, Argentina, and Australia. SC sells 100% of its products in domestic market, Shanghai and Beijing.

 

The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days. The payment terms of SC include T/T and Credit of 30-60 days.

 

Staff & Office:

--------------------------

SC is known to have approx. 20 staff at present.

 

SC rents an area as its operating office, but the detailed information is unknown.

 

 

RELATED COMPANY

 

SC is known to have following branches and offices at present,

 

Shanghai Mercuris Wines Co., Ltd. Beijing Branch

---------------------------------------------------

Principal: Shi Yongjing

Registration No.: 110105010271926

Date of Registration: June 15, 2007

Address: Unit C, 16/F, Duhui International, Shi Li Pu, Chaoyang District, Beijing

Tel: 010-51315698

Fax: 010-51315699

E-mail: info@Mercuris.com

 

Shanghai Mercuris Wines Co., Ltd. Branch

---------------------------------------------

Principal: Shi Shuncheng

Registration No.: 310107000514851

Date of Registration: Aug. 31, 2007

 

Guangzhou Office

---------------

Add: Room 506, Building A8, Jiaxin Garden, No. 489 Xingang Middle Road, Guangzhou

Tel: 020-3407 3298

Fax: 020-3407 3398

 

Chengdu Office

-----------------

Add: Room 603, Sunshine 365, No. 34 Jinxing Road, Jinjiang District, Chengdu

Tel: 028-8672 2918

Fax: 028-8672 2918

 

Etc.

 

 

PAYMENT

 

Overall payment appraisal:

( ) Excellent      ( ) Good      (X) Average      ( ) Fair      ( ) Poor      ( ) Not yet be 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.

 

 

BANKING

 

Basic Bank:

 

Huaxia Bank Shanghai Putuo Sub-branch

 

AC#: 135864-8191089116

 

 

FINANCIALS

 

Balance Sheet

Unit: CNY’000

As of Dec. 31, 2011

Cash

3,930

Notes receivable

0

Accounts receivable

6,053

Advances to suppliers

0

Other receivable

8,252

Inventory

16,153

Non-current assets within one year

0

Other current assets

1,491

 

------------------

Current assets

35,879

Fixed assets

322

Long-term prepaid expenses

0

Deferred income tax assets

0

Other non-current assets

95

 

------------------

Total assets

36,296

 

=============

Short-term loans

0

Notes payable

0

Accounts payable

4,790

Advances from clients

0

Other payable

18,304

Other current liabilities

1,319

 

------------------

Current liabilities

24,413

Non-current liabilities

0

 

------------------

Total liabilities

24,413

Equities

11,883

 

------------------

Total liabilities & equities

36,296

 

=============

 

Income Statement

Unit: CNY’000

As of Dec. 31, 2011

Revenue

46,278

Cost of sales

27,741

    Sales expense

8,829

    Management expense

9,336

    Finance expense

-23

Profit before tax

588

Less: profit tax

379

Profits

209

 

Important Ratios

=============

 

As of Dec. 31, 2011

*Current ratio

1.47

*Quick ratio

0.81

*Liabilities to assets

0.67

*Net profit margin (%)

0.45

*Return on total assets (%)

0.58

*Inventory / Revenue ×365

128 days

*Accounts receivable/ Revenue ×365

48 days

* Revenue/Total assets

1.28

* Cost of sales / Revenue

0.60

 

 

FINANCIAL COMMENTS

 

PROFITABILITY: AVERAGE

The revenue of SC appears average in its line.

SC’s net profit margin is average.

SC’s return on total assets is average

SC’s cost of sales is average, comparing with its revenue.

 

LIQUIDITY: AVERAGE

The current ratio of SC is maintained in a normal level.

SC’s quick ratio is maintained in a normal level.

The inventory of SC appears large.

The accounts receivable of SC is maintained in an average level.

SC has no short-term loans.

SC’s revenue is in an average level, comparing with the size of its total assets.

 

LEVERAGE: AVERAGE

The debt ratio of SC is average.

The risk for SC to go bankrupt is above average.

 

Overall financial condition of the SC: Fairly Stable.

 

 

CONCLUSIONS

 

SC is considered small-sized in its line with fairly stable financial conditions.

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.52

UK Pound

1

Rs.87.48

Euro

1

Rs.70.89

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

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

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

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

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

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

New Business

 

--

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.