MIRA
INFORM REPORT
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Report Date : |
26.12.2012 |
IDENTIFICATION DETAILS
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Name : |
SHANGHAI KJ IMPORT & EXPORT CO., LTD. |
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Registered Office : |
Room 2302-2306, No. 689, Guangdong Road, Huangpu District, Shanghai, 200001 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
23.10.1992 |
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Com. Reg. No.: |
310115000003631 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Selling pharmaceutical, chemical raw materials, veterinary drugs and medical devices. |
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No. of Employees : |
33 |
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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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Status : |
Satisfactory |
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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 – June 30th, 2012
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Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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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 |
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 |
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 KJ IMPORT & EXPORT CO., lTD.
ROOM 2302-2306, NO.
689, GUANGDONG ROAD,
HUANGPU DISTRICT,
SHANGHAI, 200001 PR CHINA
TEL: 86 (0)
21-63410308-41/63410958 FAX: 86 (0) 21-63410398
EXECUTIVE SUMMARY
INCORPORATION DATE :
OCT. 23, 1992
REGISTRATION NO. :
310115000003631
REGISTERED LEGAL FORM : ONE-PERSON LIMITED LIABILITY COMPANY
STAFF STRENGTH : 33
REGISTERED CAPITAL : CNY 10,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 1,185,370,000 (AS OF DEC.
31, 2011)
EQUITIES :
CNY 41,490,000 (AS OF DEC. 31,
2011)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.2375 = 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 One-person Limited Liability Company at local
Administration for industry & commerce (AIC - the official body of issuing
and renewing business license) on Oct. 23, 1992.
Company Status: One-person Limited Liability Company Single person LLC refers to a
limited liability company set up by only one natural person or legal person
as the single shareholder of it. The minimum registered capital
of Single person LLC is CNY100,000. The shareholder’s capital contributes,
as set out by the articles of associations should be a lump-sum payment in
full. One natural person can only
invest in and set up one limited liability company, which is not permitted
to invest in and set up a new Single person LLC. As to any one-person limited
liability company, the sole-investor nature of the natural person or legal
person shall be indicated in the registration documents of the company and
shall be indicated in the business license thereof as well. The regulation of Single person
LLC should be set up by the shareholder The regulation of Single person
LLC has no shareholder meeting.
SC’s registered business scope includes importing and exporting goods
and technologies, own equipment leasing (shall not engage in financial
leasing), selling cosmetics, steel, veterinary chemicals, antibiotics,
non-compulsory vaccination veterinary biological products (range see license,
with permit if needed), medical devices (range see license, with permit if
needed), wholesaling pre-packaged food (excluding food lo, refrigerated), dairy
products (including infant formula milk powder), hazardous chemicals (range see
license), medicine, chemical medicine preparation, chemical raw materials,
antibiotics, biochemical drugs, biological products (with permit if needed).
[with permit if needed]
SC is mainly
engaged in selling pharmaceutical, chemical raw materials, veterinary drugs and
medical devices.
Mr. Chen
Jiahao is legal representative, chairman
and general manager of SC at present.
SC is known to
have approx. 33 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
owns the total premise about 900 square meters.
SC is not known to host website of its own at present.
No significant changes were found during our checks with the local
Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
SIIC Shanghai Int’l Trade (Group) Co., Ltd. 100
It is a member company of Shanghai
Industrial Group Economic and Trading board, established in 1988, and there are
six holding trading companies under the corporation.
The business scale of the company involves
bidding inviting and tender, import and export trading, investment,
Sino-foreign cooperation, carrying trade, domestic retail and whole sale etc.
The merchandise mainly sold by the company
includes: chemical raw materials; metal raw materials; weave raw materials and
garniture; mechanical equipment and spare parts; IT product and the fittings;
instrument and meters; light industry product such as shoes, cases and bags,
leather product etc.; craftwork product; medical raw materials and goods, etc.
Incorporation date: May 10, 1988
Registration no.: 310000000002353
Registered capital: CNY 63,000,000
Legal rep.: Wang Xingde
Legal form: One-person Limited Liability
Company
Add: 30th Floor, Shanghai Industrial
Mansion, No. 18 North Caoxi Road, Shanghai
Tel: 86-21-64277728
Fax: 86-21-64277727
l
Legal Representative, Chairman and General Manager:
Mr. Chen Jiahao is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as legal representative, chairman and general manager.
Also working in Shanghai KJ Import & Export Co.,
Ltd. Puxi Branch as principal.
SC is mainly
engaged in selling pharmaceutical, chemical raw materials, veterinary drugs and
medical devices.
SC’s products mainly include: pharmaceutical, chemical raw materials,
veterinary drugs and medical devices.
SC sources its materials 100% from domestic
market. SC sells 30% of its products in domestic market, and 70% 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, L/C, T/T and Credit of 30-60 days.
Note:
SC refused to release its major clients and suppliers.
SC is known to have the following branch:
Shanghai KJ Import & Export Co., Ltd. Puxi Branch
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Incorporation date: Nov. 2, 1998
Principal: Chen Jiahao
According to the website: http://www.siic.com
Shanghai Overseas United Investment Holding Co., Ltd.
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Incorporation date: Dec. 9, 2004
Registration no.: 310000000092866
Registered capital: CNY 850,000,000
Legal rep.: Teng Yilong
Legal form: Shares limited co.
SIIC Investment (Shanghai) Co., Ltd.
==========================
Incorporation date: Dec. 23, 1994
Registration no.: 310000400102600
Registered capital: USD 54,000,000
Legal rep.: Yang Xisheng
Legal form: Wholly foreign-owned enterprise
Etc.
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.
China Merchants Bank
AC# N/A
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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as of Dec. 31, 2010 |
as of Dec. 31, 2011 |
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Cash & bank |
34,210 |
78,420 |
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Inventory |
75,780 |
73,840 |
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Accounts receivable |
116,910 |
125,190 |
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Advances to
suppliers |
11,410 |
45,840 |
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Other
receivables |
35,680 |
30,760 |
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Other current
assets |
0 |
0 |
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------------------ |
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Current assets |
273,990 |
354,050 |
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Long-term
investments |
5,340 |
5,340 |
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Fixed assets net
value |
18,690 |
17,970 |
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Projects under
construction |
0 |
0 |
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Deferred income
tax assets |
410 |
440 |
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Intangible
assets |
0 |
0 |
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Other assets |
0 |
0 |
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Total assets |
298,430 |
377,800 |
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Short loans |
30,000 |
67,640 |
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Accounts payable |
179,480 |
202,800 |
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Advances from
customers |
41,840 |
50,850 |
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Accrued Payroll |
530 |
530 |
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Welfare Payable |
340 |
260 |
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Taxes payable |
3,350 |
5,670 |
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Other accounts
payable |
7,020 |
8,560 |
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Other current
liabilities |
0 |
0 |
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Current
liabilities |
262,560 |
336,310 |
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Long term
liabilities |
0 |
0 |
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------------------ |
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Total
liabilities |
262,560 |
336,310 |
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Shareholders
equities |
35,870 |
41,490 |
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Total
liabilities & equities |
298,430 |
377,800 |
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Income Statement
Unit: CNY’000
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as of Dec. 31, 2011 |
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Turnover |
1,185,370 |
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Cost of goods
sold |
1,119,480 |
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Taxes and
additional of main operation |
790 |
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Sales expense |
26,240 |
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Management expense |
19,820 |
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Finance expense |
-10 |
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Asset impairment loss |
170 |
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Non-operating
income |
600 |
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Non-operating expense |
300 |
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Profit before
tax |
19,180 |
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Less: profit tax |
4,850 |
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Net profit |
14,330 |
Important Ratios
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As
of Dec. 31, 2010 |
as
of Dec. 31, 2011 |
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*Current ratio |
1.04 |
1.05 |
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*Quick ratio |
0.75 |
0.83 |
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*Liabilities
to assets |
0.88 |
0.89 |
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*Net profit
margin (%) |
/ |
1.21 |
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*Return on
total assets (%) |
/ |
3.79 |
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*Inventory /Turnover
×365 |
/ |
23 days |
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*Accounts
receivable/Turnover ×365 |
/ |
39 days |
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*Turnover/Total
assets |
/ |
3.14 |
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* Cost of
goods sold/Turnover |
/ |
0.94 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears good in its line in
2011.
l
SC’s net profit margin remains in an average level
in 2011.
l
SC’s return on total assets remains in an average
level in 2011.
l
SC’s cost of goods sold is fairly high in 2011,
comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in both years.
l
SC’s quick ratio is maintained in a fair level in
2010 and normal in 2011.
l
The inventory of SC appears average in both years.
l
The accounts receivable of SC appears fairly large
in both years.
l
The short-term loan of SC appears fairly large in
both years.
l
SC’s turnover is in a fairly good level in 2011,
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. The large amount of short loans could be
a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.55.08 |
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|
1 |
Rs.89.09 |
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Euro |
1 |
Rs.72.62 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.