MIRA INFORM REPORT
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Report Date : |
06.02.2012 |
IDENTIFICATION DETAILS
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Name : |
SUZHOU CHONG CHONG METAL ART JEWELRY CO., LTD
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Registered Office : |
No. 8, Xihuan Road, Ludu Town, Taicang, Jiangsu Province, 215412 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
08.01.1994 |
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Com. Reg. No.: |
320585400009681 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
manufacturing and selling
all kinds of metal art jewelries |
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No. of Employees
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700 |
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 200,000 |
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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 – September 30th, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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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 |
Company name & address
SUZHOU CHONG CHONG METAL ART JEWELRY CO., LTD.
NO. 8, XIHUAN ROAD, LUDU TOWN, TAICANG,
JIANGSU PROVINCE, 215412 PR CHINA
TEL: 86 (0) 512-53458812 FAX:
86 (0) 512-53458980
EXECUTIVE SUMMARY
INCORPORATION DATE :
JAN. 8, 1994
REGISTRATION NO. :
320585400009681
REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE
STAFF STRENGTH :
700
REGISTERED CAPITAL : USD 4,018,800
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER :
CNY 53,754,000 (AS OF DEC. 31,
2010)
EQUITIES :
CNY 36,158,000 (AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO
USD 200,000
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.30 = 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 Ren Min Bi
Note: the accurate name of SC should be the heading one.
The heading address is also known as No. 8, Baiyundu Road, Ludu Town, Taicang, Jiangsu Province
SC was registered as a wholly foreign-owned enterprise at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on Jan. 8, 1994.
Company Status: Wholly
Foreign-Owned This form of business in PR China is defined as a legal
person. It is a limited co. established within the territories of PR China
with capital provided totally by the foreign investors. More than one
foreign investor may jointly invest in a wholly foreign-owned enterprise. The
investing party/parties solely exercise management, reap profit and bear
risks and liabilities by themselves. This form of companies usually have a
limited duration is extendible upon approval of Examination and Approval
Authorities.
SC’s registered
business scope includes manufacturing and selling all kinds of metal art
decorations, jewelry accessory, clocks decorations, jewel case, undertaking the
gold and silver materials processing and overseas processing business.
SC is mainly
engaged in manufacturing and selling all kinds of metal art jewelries.
Mr. Wei Chaozong
is legal representative, chairman and general manager of SC at present.
SC is known
to have approximately 700 employees at present.
SC is currently
operating at the above stated address, and this address houses its operating
office and factory in the industrial zone of Taicang. But the detailed
information about the premise is unspecific.
http://www.ccjgcn.com/ The design
is professional and the content is well organized. At present the web site is
in English version.
E-mail: sales@mail.ccjgcn.com
SC has got the certificate of ISO9001: 2008.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Thailand Chong Chong Gemstone Co., Ltd. (literal translation) 100
l
Legal representative,
chairman and general manager:
Mr. Wei Chaozong, Taiwanese, #: G100162360, with university education.
He 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 Chongqing Chong Chong Gemstone Jewelry Co., Ltd. and Guangdong Chong Chong Jewelry Mfg. Co., Ltd. as legal representative.
l
Vice Chairman:
Mr. Wei Zongwei, Taiwanese, with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as vice chairman.
l
General manager:
Mr. Wei Zonggui, Taiwanese, with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
At
present Working in SC
as general manager.
l
Directors:
Wei Zongyi #: TCGSJWZK15021
Wang Lili #: TCGSJWZK15022
SC is mainly
engaged in manufacturing and selling all kinds of metal art jewelries.
SC’s products
mainly include:
Micro pavee
New Arrival
Silver Pendant
Silver Earring
Silver Ring
Silver Necklace
Silver Jewelry Set
Silver Charm
Silver Brooch
Silver Bracelet
& Bangle
Semi-precious
stone jewelry
Silver Pearl
Jewelry
Silver jewelry
Marcasite
Etc.
SC sources its
materials 90% from domestic market, and 10% from overseas market. SC sells 10%
of its products in domestic market, and 90% to overseas 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, L/C and Credit of 30-60 days.
Note: SC refused
to release its major suppliers and customers.
Chongqing
Chong Chong Gemstone Jewelry Co., Ltd.
Guangdong
Chong Chong Jewelry Mfg. Co., Ltd.
SC is known to have subsidiaries, but the details are not available.
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.
We could not
find the bank information on SC in local AIC.
Financial Summary
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Unit: CNY’000 |
as of Dec. 31,
2009 |
as of Dec. 31,
2010 |
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Total liabilities |
39,858 |
39,304 |
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Shareholders equities |
33,522 |
36,158 |
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--------------- |
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Long term investment |
1,272 |
1,272 |
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Total assets |
73,380 |
75,462 |
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========== |
========== |
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Turnover |
42,346 |
53,754 |
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Profit before tax |
432 |
2,636 |
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Less: Profit tax |
0 |
0 |
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Net profit |
432 |
2,636 |
Note: we did not find SC’s detailed
financial reports at local AIC for Yr2009 and Yr2010.
Important Ratios
===============
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as of Dec. 31,
2009 |
as of Dec. 31,
2010 |
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*Liabilities
to assets |
0.54 |
0.52 |
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*Net profit margin
(%) |
1.02 |
4.90 |
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*Return on
total assets (%) |
0.59 |
3.49 |
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*Turnover/Total
assets |
0.58 |
0.71 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in its line.
l
SC’s net profit margin appears average in both 2
years.
l
SC’s return on total assets appears average in both
2 years.
l
SC’s turnover is in a fair level in both 2 years,
comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average in both 2 years.
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.
A credit line up to USD 200,000 would appear to be within SC’s capacities.
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.48.96 |
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UK Pound |
1 |
Rs.77.47 |
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Euro |
1 |
Rs.64.39 |
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.