MIRA
INFORM REPORT
|
Report Date : |
08.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
SHANGHAI HIGHLY GROUP TRADING CO., LTD. |
|
|
|
|
Registered Office : |
Room 116, S & T Building, No. 888 Ningqiao Road, Jinqiao Export Processing Zone, Pudong New Area, Shanghai, 201206 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
28.10.2003 |
|
|
|
|
Com. Reg. No.: |
3101151018751 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
International trade of mainly include refrigeration equipment and spare parts, household electrical appliances, etc. |
|
|
|
|
No. of Employees : |
12 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
Payment Behaviour : |
No Complaints |
|
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) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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 Highly Group trading CO., LTD.
ROOM 116, S & T BUILDING, NO. 888 NINGQIAO
ROAD, JINQIAO EXPORT PROCESSING ZONE, PUDONG NEW AREA, SHANGHAI, 201206 PR
CHINA
TEL: 86 (0) 21-58547777/58547925
FAX: 86 (0) 21-58995961
EXECUTIVE SUMMARY
INCORPORATION DATE : oct. 28, 2003
REGISTRATION NO. : 3101151018751
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
12
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 371,745,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 9,590,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : Fairly stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : average
EXCHANGE RATE : CNY 6.1996 = 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
Note: The given mobile no. (86 1381
1791 7078) is wrong.
SC was registered as a limited liabilities co. at local Administration
for Industry & Commerce (AIC - The official body of issuing and renewing
business license) on Oct. 28, 2003.
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 importing and exporting commodities and technology (excluding
the goods prohibited or limited by the country); selling refrigeration
equipment and accessories, Hardware household electrical appliances,
electromechanical equipment and accessories, auto spare parts, hardware
accessories, plastic products, consulting services of related business (with
permit if needed).
SC is mainly
engaged in international trade.
Mr. Li Li is legal
representative and chairman of SC at present.
SC is known to
have approx. 12 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in Jinqiao Export Processing Zone of Shanghai. Detailed
information of the premise is unknown.
http://www.highly.cc/
The website belongs to Shanghai Highly (Group) Co., Ltd., and it includes the
introduction on SC and its related companies. The design is professional and the
content is well organized. At present it is both in Chinese and English
versions.
No significant events or changes were found during our checks with local
AIC.
See below for SC as executive party (defendant).
|
Executed Party |
Shanghai Highly Group Trading Co., Ltd. |
|
Court |
Shanghai Pudong New Area People's Court |
|
Date
of Case |
Jan. 4, 2008 |
|
Case Number |
(2008) 00448 |
|
Claim
Amount |
RMB 5,772.5 |
|
Case
Status |
Completed |
|
Executed Party |
Shanghai Highly Group Trading Co., Ltd. |
|
Court |
Shanghai Pudong New Area People's Court |
|
Date
of Case |
Dec. 7, 2007 |
|
Case Number |
(2007) 08896 |
|
Claim
Amount |
RMB 792,530.94 |
|
Case
Status |
Completed |
Remark: Due to the lack of information, we are unable to provide the cause of
action, judgment or other information.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Shanghai Highly (Group) Co., Ltd. 80
Shanghai Shiny Investments Co., Ltd. 20
Shanghai Highly (Group) Co., Ltd.
===========================
Shanghai Highly (Group) Co., Ltd. is a listed company in Shanghai Stock
Exchange Market and its stock code is: 600619 and 900910.
HIGHLY has seven invested enterprises such as Shanghai Hitachi
Electrical Appliances Co., Ltd., etc. and its main products include home air
conditioning compressors, dehumidifier compressors, heat pump-specific
compressors, special refrigeration equipments, casting, commercial freezers,
automobile starters, etc.
Incorporation Date : March 26, 1993
Registration No. : 310000400040612
Registered Legal Form : Shares
Limited Company
Chief Executive : Mr. Shen Jianfang
(Chairman)
Registered Capital : CNY 667,744,115
Add: No. 888 Ningqiao Road, Jinqiao Export
Processing Zone, Pudong New Area, Shanghai, 201206 Pr China Tel: 86 (0)
21-50554560/58547777
Fax: 86 (0) 21-58349019/50326960
Email: heartfelt@highly.cc
Shanghai Shiny Investments Co., Ltd.
============================
Registration no.: 310115000770569
Registered capital: CNY 100,800,000
Legal representative: Yu Jianping
Company address: 10/F, No.1200 Pudong Rd.
Pudong Shanghai, China
Telephone: 021-50935566
Fax: 021-50938337
Web: http://www.sino-shiny.com.cn/
l
Legal representative and chairman:
Mr. Li Li , born in 1962 with MBA degree, senior economist, he is
currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as
legal representative and chairman.
Also working in Shanghai Highly (Group) Co.,
Ltd. as vice general manager, and in
Shanghai Hitachi Electrical Appliances Co., Ltd. as
director.
l
Supervisor:
Ms. Li Li
Note: The given contact person (Shirley Cheng) is
confirmed to be working in SC at present.
SC is mainly
engaged in international trade.
SC’s products mainly include: refrigeration equipment and spare parts,
household electrical appliances, etc.
SC sources its materials 50% from domestic
market, and 50% from overseas market. SC sells 30% of its products in domestic
market, and 70% 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’s management refused to release its
main suppliers and clients.
Shanghai Hitachi Electrical Appliances Co., Ltd.
Shanghai Jinxuan Property Management Co., Ltd.
Shanghai Highly Casting Co., Ltd.
Shanghai Highly Special Refrigeration Equipment Co., Ltd.
Nanchang Highly Electrical Appliances Co., Ltd.
Shanghai Highly Realnen Environmental Technology Co. Ltd.
Shanghai Refrigerating Machine Works Co., Ltd.
Shanghai Highly Nakano Refrigerators Co., Ltd.
Hitachi Highly Automobile Products (Shanghai) Co., Ltd.
Hitachi Highly Automobile Systems (Shanghai)
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
records 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 declined to
release its banking details.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
Cash & bank |
15,200 |
9,350 |
|
Inventory |
4,990 |
7,910 |
|
Bills receivable |
10,200 |
18,600 |
|
Accounts
receivable |
16,290 |
28,750 |
|
Other Accounts
receivable |
10,370 |
1,110 |
|
Advances to
suppliers |
25,460 |
13,030 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
82,510 |
78,750 |
|
Fixed assets net
value |
110 |
340 |
|
Long-term
investment |
0 |
0 |
|
Intangible and
other assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
82,620 |
79,090 |
|
|
============= |
============= |
|
Short loans |
12,000 |
12,000 |
|
Accounts payable |
30,410 |
21,910 |
|
Advance from
customers |
15,480 |
11,890 |
|
Other Accounts
payable |
9,730 |
14,610 |
|
Notes payable |
5,890 |
6,440 |
|
Accrued payroll |
1,110 |
1,260 |
|
Taxes payable |
540 |
1,390 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
75,160 |
69,500 |
|
|
Long term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
75,160 |
69,500 |
|
Equities |
7,460 |
9,590 |
|
|
------------------ |
------------------ |
|
82,620 |
79,090 |
|
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31, 2012 |
|
Turnover |
371,745 |
|
Cost of goods sold |
363,555 |
|
Taxes and additional of main operation |
258 |
|
Sales expense |
1,627 |
|
Management expense |
1,326 |
|
Finance expense |
107 |
|
Profit before
tax |
4,870 |
|
Less: profit tax |
1,250 |
|
Profits |
3,620 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
1.10 |
1.13 |
|
*Quick ratio |
1.03 |
1.02 |
|
*Liabilities
to assets |
0.91 |
0.88 |
|
*Net profit
margin (%) |
/ |
0.97 |
|
*Return on
total assets (%) |
/ |
4.58 |
|
*Inventory
/Turnover ×365 |
/ |
8 days |
|
*Accounts
receivable/Turnover ×365 |
/ |
29 days |
|
*Turnover/Total
assets |
/ |
4.70 |
|
* Cost of
goods sold/Turnover |
/ |
0.98 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in 2012.
l
SC’s net profit margin is average in 2012.
l
SC’s return on total assets is average in 2012.
l
SC’s cost of goods sold is high in 2012, 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 normal level in
both years.
l
The inventory of SC is maintained in an average
level in both years.
l
The accounts receivable of SC is maintained in an
average level in both years.
l
SC’s short-term loan appears fairly large in both
years.
l
SC’s turnover is in a fairly good level in 2012,
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. The large amount of short-term loan could be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.88 |
|
|
1 |
Rs.83.54 |
|
Euro |
1 |
Rs.70.90 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.