MIRA
INFORM REPORT
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Report Date : |
03.04.2013 |
IDENTIFICATION DETAILS
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Name : |
shanghai east best foreign trade co., ltd. |
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Registered Office : |
10-14F, no. 258-268, Zhaojiabang
Road, Shanghai, 200031 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
28.08.2008 |
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Com. Reg. No.: |
310104000418761 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged
in textiles, clothing, daily necessities, leather products, wood products,
bamboo products, etc. |
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No. of Employees : |
25 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Small company |
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Payment Behaviour : |
Slow but correct |
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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) |
|
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 east best foreign trade co., ltd.
10-14F,
no. 258-268, zhaojiabang road, shanghai, 200031 PR CHINA
TEL: 86
(0) 21-64333000/64330633 FAX: 86
(0) 21-64743340
EXECUTIVE SUMMARY
INCORPORATION DATE : AUGUST 28, 2008
REGISTRATION NO. : 310104000418761
REGISTERED LEGAL FORM :
Limited liabilities company
STAFF STRENGTH : 25
REGISTERED CAPITAL : CNY 7,000,000
BUSINESS LINE : trading
TURNOVER :
CNY 1,044,151,000 (AS OF DEC.
31, 2010)
EQUITIES :
CNY 11,492,000 (AS OF DEC. 31, 2010)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE :
SMALL AMOUNT
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE (AS OF DEC. 31, 2010)
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.21= USD
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 limited
liabilities company at local Administration for Industry & Commerce (AIC -
The official body of issuing and renewing business license) on Aug. 28, 2008.
Company Status: Limited liabilities co. This form of business in PR China
is defined as a legal person. No more than fifty shareholders contribute
its registered capital jointly. Shareholders bear limited liability to the
extent of shareholding, and the co. is liable for its debts only to extent
of its total assets. The characteristics of this form of co. are as
follows: Upon the establishment of the
co., an investment certificate is issued to the each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s registered
business scope includes import and export of goods and technology; selling
textiles, clothing, daily necessities, leather products, wood products, bamboo
products, process planning products, handicrafts, paper products, culture,
sports goods, fitness equipment, a class of medical equipment, mineral products
(except special control), building materials, chemical products (except
dangerous goods), machinery equipment, hardware, electronic products;
enterprise registration agency, economic information consultation. (with permit if needed)
SC is
mainly engaged in international trade.
Mr.
Gao Wenwei has been the legal representative and chairman of SC since 2010.
SC is
known to have approx. 25 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.
Detailed information of the premise is unknown.
http://www.shforeign.com/
It includes the information about SC and Shanghai Foreign Trade Enterprises Pu
Dong Co., Ltd. The design is professional and the content is well organized. At
present the web site is in Chinese and English versions.
E-mail: sales@shasft.com
Changes of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
|
Legal Representative |
Xia Xiping |
Gao Wenwei |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Shanghai Foreign Trade
Enterprises Co., Ltd. 50.00
Sun Dunming 5.01
Zhang Yan 3.13
Chen Ruilin 2.51
Pan Wei 2.51
Xu Jianhua 2.51
Huang Chamei
2.00
Tang Bin 2.00
Sang Xiaping 2.00
Xue Yanming 2.00
Other individuals 26.33
Shanghai Foreign Trade
Enterprises Co., Ltd.
================================
Registration No.:
310104000019293
Establishment Date: March 1,
1988
Chief Executive: Gao Wenwei
Add: 14/F, No. 258-268
Zhaojiabang Road, Shanghai
Tel: 86-21-64333000
Fax: 86-21-64373111
Email: infor@shasft.com
l
Legal representative and Chairman:
Mr. Gao Wenwei is currently
responsible for the overall management of SC.
Working Experience(s):
From 2010 to present Working in SC as legal
representative and chairman.
Also working in Shanghai Foreign Trade
Enterprises Co., Ltd. and Shanghai Foreign Trade Enterprises Pudong Co., Ltd.
as legal representative and chairman
SC is
mainly engaged in international trade.
SC’s
products mainly include: textiles, clothing, daily necessities, leather products,
wood products, bamboo products, etc.
SC
sources its materials 90% from domestic market, and 10% from overseas markets.
SC sells 10% of its products in domestic market, and 90% to overseas market,
mainly Southeast Asia, Europe and America.
The buying terms of SC include Check, L/C, 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’s management declined to release its major clients and
suppliers.
According to the above website http://www.shforeign.com/:
Shanghai East Best International Service Trade (Group) Co.,
Ltd.
Shanghai East Best International Business Development Co.,
Ltd.
Shanghai Foreign Trade Enterprises
Pu Dong Co., Ltd.
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.
SC’s
management declined to release its bank details.
Balance
Sheet
Unit:
CNY’000
|
|
As
of Dec. 31, 2009 |
|
Cash
& bank |
1,293 |
|
Notes
receivable |
0 |
|
Inventory |
19,904 |
|
Accounts
receivable |
0 |
|
Advances
to suppliers |
11,770 |
|
Other
accounts receivable |
30,121 |
|
Other
current assets |
0 |
|
|
------------------ |
|
Current
assets |
63,088 |
|
Fixed
assets net value |
11 |
|
Financial
assets available for sale |
101 |
|
Project
under construction |
0 |
|
Long
term investment |
0 |
|
Intangible
and other assets |
0 |
|
|
------------------ |
|
Total
assets |
63,200 |
|
|
============= |
|
Short
loans |
0 |
|
Notes
payable |
0 |
|
Accounts
payable |
5,350 |
|
Advances
from clients |
32,784 |
|
Accrued
payroll |
16 |
|
Taxes payable |
-3,255 |
|
Other
accounts payable |
22,815 |
|
Other
current liabilities |
0 |
|
|
------------------ |
|
Current
liabilities |
57,710 |
|
Long-term
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
57,710 |
|
Equities |
5,490 |
|
|
------------------ |
|
Total
liabilities & equities |
63,200 |
|
|
============= |
Income
Statement
Unit:
CNY’000
|
|
As
of Dec. 31, 2009 |
|
Turnover |
39,916 |
|
Cost of goods sold |
38,288 |
|
Taxes
and additional of main operations |
7 |
|
Sales expense |
3,256 |
|
Management expense |
466 |
|
Finance expense |
-375 |
|
Other expenses |
6 |
|
Investment
income |
225 |
|
Profit
before tax |
-1,507 |
|
0 |
|
|
Profits |
-1,507 |
Financial
Summary
===============
Unit:
CNY’000
|
|
As of Dec. 31, 2010 |
|
Total
liabilities |
530,517 |
|
Equities |
11,492 |
|
|
-------------- |
|
Total
liabilities & equities |
542,009 |
|
|
========= |
|
Turnover |
1,044,151 |
|
Profit
before tax |
8,003 |
|
Less:
profit tax |
2,001 |
|
Profits |
6,002 |
Note: we did not find SC’s detailed
financial reports for Yr2010. SC’s
management declined to release the latest financial information.
Important Ratios
=============
|
|
As of Dec. 31, 2009 |
As of Dec. 31, 2010 |
|
*Current
ratio |
1.09
|
/ |
|
*Quick
ratio |
0.75
|
/ |
|
*Liabilities
to assets |
0.91
|
0.98
|
|
*Net
profit margin (%) |
-3.78
|
0.57
|
|
*Return
on total assets (%) |
-2.38
|
1.11
|
|
*Inventory
/Turnover ×365 |
182
days |
/ |
|
*Accounts
receivable/Turnover ×365 |
/ |
/ |
|
*Turnover/Total
assets |
0.63
|
1.93
|
|
*
Cost of goods sold/Turnover |
0.96
|
/ |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in
its line in 2009 and fairly good in 2010.
l
SC’s net profit margin appears fair in
2009 and average in 2010.
l
SC’s return on total assets appears
fair in 2009 and average in 2010.
l
SC’s cost of goods sold is high in
2009, comparing with its turnover.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained
in a normal level in 2009.
l
SC’s quick ratio is maintained in a
fair level in 2009.
l
The inventory of SC appears fairly
large in 2009.
l
SC has no accounts receivable in 2009.
l
SC has no short-term loan in 2009.
l
SC’s turnover is in a fair level in
2009 and in an average level in 2010, 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 small-sized in its line with fairly stable
financial conditions. Credit dealings with SC in small amount appear
acceptable.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.33 |
|
|
1 |
Rs.82.72 |
|
Euro |
1 |
Rs.69.81 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.