MIRA
INFORM REPORT
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Report Date : |
30.11.2012 |
IDENTIFICATION DETAILS
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Name : |
SHANGHAI C
& D WINES CO., LTD. |
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Registered Office : |
23/F, BEA
Financial Tower, No. 66, |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
18.04.2008 |
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Reg. No.: |
310115001065859 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in selling wines. |
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No. of Employees : |
1,190 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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
|
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.
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Source : CIA |
Company Name and address
SHANGHAI C & D WINES CO., LTD.
23/F, BEA FINANcial TOWER, NO. 66, HUAYUAN
SHIQIAO ROAD
PUDONG NEW area, SHANGHAI 200120 PR CHINA
TEL: 86 (0) 21-38572188
FAX: 86 (0) 21-38572268
EXECUTIVE SUMMARY
Date of Registration : april 18, 2008
REGISTRATION NO. : 310115001065859
LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE :
YANG
WENHUA (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 30,000,000
staff :
1,190
BUSINESS CATEGORY : TRADING
Revenue :
CNY 922,690,000 (AS OF DEC. 31,
2011)
EQUITIES :
CNY 37,250,000 (AS OF DEC. 31, 2011)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
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
***Note: SC’s
related company-Shanghai C & D Industrial
Co., Ltd. locates in the given 1st
address (Room 1201, 620 Zhangyang Road, Pudong New Area Shanghai 200122).
***Note: The
interviewed person is SC’s accountant, but he refused to release the detailed
name.
SC was established as one-person limited liabilities company of PRC on
April 18, 2008. However, SC
changed to present legal form, and was registered as a limited liabilities
company of PRC with State Administration for Industry & Commerce (SAIC)
under registration No.: 310115001065859 in 2011.
SC’s Organization Code Certificate No.:
67456721-4
SC’s registered capital: CNY 30,000,000
SC’s paid-in capital: CNY 30,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2011 |
Registered Capital |
CNY 10,000,000 |
CNY 30,000,000 |
|
Legal Form |
One-Person Limited Liability Company |
Limited Liabilities Company |
|
|
Shareholder (s) (% of Shareholding) |
Xiamen C & D Wines Co., Ltd. 100% |
Xiamen C & D Wines Co., Ltd. 95% Xiamen Chunming Wines Co., Ltd. 5% |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Xiamen C & D Wines Co., Ltd. |
95 |
|
Xiamen Chunming Wines Co., Ltd. |
5 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Yang Wenhua |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Xiamen C & D Wines Co., Ltd. 95
Xiamen Chunming Wines Co., Ltd. 5
Xiamen C & D Wines Co., Ltd.
-------------------------------------------
Date of Registration: July 13, 2003
Registration No.: 350200200004089
Legal Form: Limited Liabilities
Company
Chief Executive: Lai Yanda
Registered Capital: CNY 40,000,000
Xiamen Chunming Wines Co., Ltd.
------------------------------------------------
Date of Registration: February 2, 2010
Registration No.: 350200200054936
Legal Form: Limited Liabilities
Company
Chief Executive: Yang Wenhua
Registered Capital: CNY 5,000,000
MANAGEMENT
Yang Wenhua, Legal Representative, Chairman and General
Manager
-------------------------------------------------------------------------------------------------------
Gender: M
Age: 43
Qualification: University
Working experience (s):
At present, working in SC as legal representative, chairman and general
manager
Also working in Xiamen Chunming Wines Co., Ltd. as legal representative
BUSINESS
OPERATION
SC’s registered business scope includes import and export goods and
technology; selling office supplies, telecommunication products,
electro-mechanical products, textiles, garments, shoes and caps, general
merchandise, building materials, hardware, chemicals (excluding the hazard
products), metal materials and wine; wholesaling prepackaged food; business
consulting, convention and exhibition services, attached to branches.
SC is mainly engaged in selling wines.
Brand: FRIEND
SC’s products mainly include: white wine, red wine, etc.
SC sources its materials 20% from domestic market, and 80% from overseas market, mainly France, Germany and Portugal. 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.
Staff &
Office:
--------------------------
SC is known to have approx. 1,190
staff at present.
SC rents an area as its operating office, but the detailed information
is unknown.
RELATED
COMPANY
Related Companies,
Shanghai C & D Industrial Co., Ltd.
Etc.
SC is known to
have a branch at present,
Shanghai C & D Wines Co., Ltd. Beijing Branch
---------------------------------------------
Registration No.: 110105012268983
Principal: Liu Zhen
Date of Registration: September 16, 2009
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:
Bank of China Shanghai Pudong New Area Branch
AC#: 044188805016262908091001
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
2,710 |
44,300 |
92,220 |
|
|
Notes receivable |
0 |
0 |
0 |
|
Accounts receivable |
990 |
5,340 |
22,940 |
|
Advances to suppliers |
17,250 |
26,990 |
17,810 |
|
Other receivable |
1,610 |
4,670 |
14,450 |
|
Inventory |
46,880 |
136,210 |
372,180 |
|
Non-current assets within one year |
0 |
0 |
0 |
|
Other current assets |
0 |
20 |
30,580 |
|
|
------------------ |
------------------ |
------------------ |
|
Current assets |
69,440 |
217,530 |
550,180 |
|
Fixed assets |
2,570 |
6,010 |
8,540 |
|
Long-term prepaid expenses |
0 |
0 |
0 |
|
Deferred income tax assets |
0 |
0 |
0 |
|
Other non-current assets |
6,330 |
9,900 |
10,520 |
|
|
------------------ |
------------------ |
------------------ |
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Total assets |
78,340 |
233,440 |
569,240 |
|
|
============= |
============= |
============= |
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Short-term loans |
0 |
0 |
78,070 |
|
Notes payable |
0 |
0 |
0 |
|
Accounts payable |
5,550 |
27,420 |
107,030 |
|
Taxes payable |
1,280 |
1,820 |
1,440 |
|
Advances from clients |
47,140 |
115,480 |
102,970 |
|
Other payable |
6,380 |
16,870 |
17,860 |
|
Other current liabilities |
0 |
54,860 |
224,620 |
|
|
------------------ |
------------------ |
------------------ |
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Current liabilities |
60,350 |
216,450 |
531,990 |
|
Non-current liabilities |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
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Total liabilities |
60,350 |
216,450 |
531,990 |
|
Equities |
17,990 |
16,990 |
37,250 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities & equities |
78,340 |
233,440 |
569,240 |
|
|
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
Revenue |
158,150 |
409,240 |
922,690 |
|
Cost of sales |
97,100 |
269,570 |
651,100 |
|
Sales expense |
35,820 |
109,020 |
215,360 |
|
Management expense |
9,470 |
20,580 |
38,480 |
|
Finance expense |
50 |
750 |
8,170 |
|
Profit before tax |
15,400 |
8,000 |
8,330 |
|
Less: profit tax |
2,870 |
2,000 |
2,510 |
|
12,530 |
6,000 |
5,820 |
Important Ratios
=============
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
1.15 |
1.00 |
1.03 |
|
*Quick ratio |
0.37 |
0.38 |
0.33 |
|
*Liabilities to assets |
0.77 |
0.93 |
0.93 |
|
*Net profit margin (%) |
7.92 |
1.47 |
0.63 |
|
*Return on total assets (%) |
15.99 |
2.57 |
1.02 |
|
*Inventory / Revenue ×365 |
108 days |
121 days |
148 days |
|
*Accounts receivable/ Revenue ×365 |
2 days |
5 days |
10 days |
|
* Revenue/Total assets |
2.02 |
1.75 |
1.62 |
|
* Cost of sales / Revenue |
0.61 |
0.66 |
0.71 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears good in its line, and it increased year by
year.
SC’s net profit margin is fairly good in 2009 and average in 2010 and
2011.
SC’s return on total assets is fairly good in 2009 and average in 2010
and 2011.
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a poor level.
The inventory of SC appears large.
The accounts receivable of SC is maintained in an average level.
SC’s short-term loans are in an average level in 2011.
SC’s revenue is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIR
The debt ratio of SC is fairly high.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of inventory may be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.20 |
|
|
1 |
Rs.88.37 |
|
Euro |
1 |
Rs.71.47 |
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%)
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.