MIRA INFORM REPORT
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Report Date : |
12.10.2012 |
IDENTIFICATION DETAILS
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Name : |
CHINA NATIONAL SERVICE CORPORATION FOR
CHINESE PERSONNEL WORKING ABROAD SHANGHAI SERVING CENTER |
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Registered Office : |
No. 261-293, Jiangning Road, Shanghai, 200041 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
19.07.1995 |
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Com. Reg. No.: |
310106000051152 |
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Legal Form : |
State-Owned Enterprise |
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Line of Business : |
importing and exporting
business, storage service and property rental |
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 : |
Good |
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Payment
Behaviour : |
Regular |
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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 (31.03.2012) |
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 & address
CHINA NATIONAL
SERVICE CORPORATION FOR CHINESE PERSONNEL WORKING ABROAD SHANGHAI SERVING
CENTER
NO. 261-293, JIANGNING ROAD, SHANGHAI, 200041 PR CHINA
TEL: 86 (0) 21-62711301 FAX: 86 (0) 21-62710403
EXECUTIVE SUMMARY
INCORPORATION DATE :
JUL. 19, 1995
REGISTRATION NO. :
310106000051152
REGISTERED LEGAL FORM : STATE-OWNED ENTERPRISE
STAFF STRENGTH :
70
REGISTERED CAPITAL : CNY 39,000,000
BUSINESS LINE :
TRADE, STORAGE, PROPERTY RENTAL
TURNOVER :
CNY 275,640,000 (AS OF DEC. 31,
2010)
EQUITIES :
CNY 56,760,000 (AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO
USD 400,000 (PERIODICAL REVIEW)
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.35 = 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
%2012-Oct-2012_files/image021.gif){kind=small}
SC was registered as a State-owned enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Jul. 19, 1995.
Company Status: State-Owned Enterprise This form of business in PR China is defined as a
commodity production or operational units of a socialist character which in
accordance with the law, has autonomy in management, takes full
responsibility for its profits and losses and practices independent
business accounting. It is a legal person established directly by central /
local government or enterprise owned by central or local government. In
theory, the liabilities of this form of enterprise are ultimately borne by
the government, since the adoption of company law in mid-1994, the Chinese
government has planned to separate the ownership from management and
liabilities bearing.
SC’s registered business scope includes providing all kinds of duty-free
foreign exchange goods for overseas travelers; providing living materials, free
exchange goods and RMB goods for institution functioning abroad; storage;
people going abroad information consulting; importing and exporting commodities
and technologies; retail of prepackaged food and dairy products; wines
(excluding bulk wine); property management; wood materials and products; metal
materials and products; mechanical equipment & parts; textile materials
& garments; building materials, decoration materials; mechanical equipment
leasing; (with permit if needed).
SC is mainly
engaged in importing and exporting business, storage service and property
rental.
Ms. Wang Qi is
legal representative, chairman and general manager of SC at present.
SC is known
to have approx. 70 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 but the gross area of the premise is unspecific.
According
to SC’s website, SC’s warehouse
is located in No. 1300, Jungong Road, Shanghai 上海市军工路1300号, the gross area of the premise is about 10,000 square
maters.
SC also has the other two premises for property rental, which are located in No. 12, Lane 25, Shaanxi South Road, Shanghai-上海市陕西南路25弄12号 and 1117-1127 Shops, Shangcheng Road, Shanghai 上海市商城路1117---1127号铺面房, the total gross area is 1,400 square maters.
%2012-Oct-2012_files/image022.gif){kind=small}
http://www.cnscsh.com/ the design
is professional and the content is well organized. At present it is only in
Chinese version.
E-mail: sh@cnsc.com.cn
%2012-Oct-2012_files/image023.gif){kind=small}
No significant events or changes were found during our checks with local
AIC.
%2012-Oct-2012_files/image024.gif){kind=small}
MAIN SHAREHOLDERS:
Name %
of Shareholding
China National Service Corporation for
Chinese Personnel Working Abroad 100
Incorporation Date : Sep. 28, 1983
Registration No. : 100000000001308
Registered Legal Form : State-Owned
Enterprise
Chief Executive : Mr. Zhou Yuxiang
(Chairman)
Website: http://www.cnsc.com.cn
Add: Fortune Tower, No. 4 Huixindongjie,
Chaoyang District, Beijing
Tel: 86 (0) 10-84618811
Fax: 86 (0) 10-84648145
%2012-Oct-2012_files/image025.gif){kind=small}
l
Legal Representative, Chairman and General Manager:
Ms. Wang Qi, in her
Working Experience(s):
At present Working
in SC as legal representative, chairman and general manager.
%2012-Oct-2012_files/image026.gif){kind=small}
SC is mainly
engaged in importing and exporting business, storage service and rental
property.
SC’s products
mainly include: duty free goods such as watch, cosmetic, jewelry, leather
product, cutter, lighter, food, camera, etc; bags and suitcases, industrial
chemicals, textiles, auto parts, etc.
%2012-Oct-2012_files/image008.jpg)
%2012-Oct-2012_files/image010.jpg)
%2012-Oct-2012_files/image012.jpg)
%2012-Oct-2012_files/image014.jpg)
SC sources its
materials 20% from domestic market and 80% from the overseas market. SC sells
70% of its products in domestic market, and 30% 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.
%2012-Oct-2012_files/image027.gif){kind=small}
SC is known to have subsidiaries, but the details are not available.
%2012-Oct-2012_files/image028.gif){kind=small}
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.
%2012-Oct-2012_files/image029.gif){kind=small}
Industrial and
Commercial Bank of China Shanghai Jiangning Road 2nd Sub-branch
AC#:
1001273109006515985
Relationship:
Normal.
%2012-Oct-2012_files/image030.gif){kind=small}
Balance Sheet
Unit: CNY’000
|
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As
of Dec. 31, 2010 |
|
Cash & bank |
35,860 |
|
Inventory |
18,970 |
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Accounts
receivable |
0 |
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Advances to
suppliers |
23,960 |
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Other
receivables |
4,280 |
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Other current
assets |
20 |
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|
------------------ |
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Current assets |
83,090 |
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Fixed assets net
value |
10,070 |
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Projects under
construction |
0 |
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Long term
investment |
37,940 |
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Investment real
estate |
18,090 |
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Available for
sale of financial assets |
10,230 |
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Other assets |
1,490 |
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------------------ |
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Total assets |
160,910 |
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============= |
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Short loans |
0 |
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Accounts payable |
11,640 |
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Advances from
clients |
41,470 |
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Notes payable |
37,840 |
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Taxes payable |
330 |
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Salaries payable |
120 |
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Other payable |
10,330 |
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Other current
liabilities |
30 |
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------------------ |
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Current
liabilities |
101,760 |
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Deferred tax
liabilities |
2,390 |
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Other non
current liabilities |
0 |
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------------------ |
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Total
liabilities |
104,150 |
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Equities |
56,760 |
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------------------ |
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Total
liabilities & equities |
160,910 |
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============= |
Income Statement
Unit: CNY’000
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As of Dec. 31,
2010 |
|
Turnover |
275,640 |
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Cost of goods sold |
261,110 |
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Sales expense |
10,110 |
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Management expense |
3,910 |
|
Finance expense |
90 |
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Investment
income |
10,470 |
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Profit before
tax |
10,470 |
|
Less: profit tax |
100 |
|
Profits |
10,370 |
Important Ratios
=============
|
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As
of Dec. 31, 2010 |
|
*Current ratio |
0.82 |
|
*Quick ratio |
0.63 |
|
*Liabilities
to assets |
0.65 |
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*Net profit
margin (%) |
3.76 |
|
*Return on
total assets (%) |
6.44 |
|
*Inventory /Turnover
×365 |
26
days |
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*Accounts
receivable/Turnover ×365 |
0 |
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*Turnover/Total
assets |
1.71 |
|
* Cost of
goods sold/Turnover |
0.95 |
%2012-Oct-2012_files/image031.gif){kind=small}
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is fairly good.
l
SC’s cost of goods sold is fairly high, comparing
with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC is average.
l
SC has no accounts receivable in 2010.
l
SC has no short loan in 2010.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
%2012-Oct-2012_files/image032.gif){kind=small}
SC is considered medium-sized in its line with fairly stable financial
conditions. A credit line up to USD 400,000 appears acceptable upon a
periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.07 |
|
|
1 |
Rs.84.94 |
|
Euro |
1 |
Rs.68.23 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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 |
|
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.