MIRA
INFORM REPORT
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Report Date : |
13.04.2013 |
IDENTIFICATION DETAILS
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Name : |
SHANGHAI PIELCOLOR FOO YEE
CHEMICALS CO., LTD. |
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Registered Office : |
No. 7455 Jiasong North Road, Huangdu Town, Jiading
District, Shanghai 201804 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
18.06.1998 |
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Com. Reg. No.: |
310000400196360 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Engaged in manufacturing and selling leather chemical materials. |
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No. of Employees : |
57 |
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 : |
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 (31.03.2012) |
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.
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Source : CIA |
Company name and address
SHANGHAI PIELCOLOR FOO YEE CHEMICALS CO., LTD.
NO. 7455 JIASONG NORTH ROAD, HUANGDU TOWN, JIADING DISTRICT,
SHANGHAI 201804 PR CHINA
TEL: 86 (0) 21-59597007
FAX: 86 (0) 21-59597369
EXECUTIVE SUMMARY
INCORPORATION DATE : JUNE 18, 1998
REGISTRATION NO. : 310000400196360
REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE
STAFF STRENGTH :
57
REGISTERED CAPITAL : USD 2,200,000
BUSINESS LINE :
MANUFACTURING AND TRADING
TURNOVER :
CNY 64,620,000 (AS OF DEC. 31,
2011)
EQUITIES :
CNY 43,270,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.19= USD
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
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 June 18, 1998.
Company Status: Wholly foreign-owned enterprise 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 leather and
textile coating and matching auxiliaries, additives; selling self-made product
and providing technical service (with permit if needed).
SC is mainly
engaged in manufacturing and selling leather chemical materials.
Mr. Hong Shunxi is
the legal representative and chairman of SC at present.
SC is known
to have approx. 57 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 Shanghai. The detailed
information of the premise is unspecified.
SC is not known to host website of its own at present.
No significant events or changes were found during our checks with the
local AIC.
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Jieke Feierde Group Company (in Chinese
Pinyin) (British Virgin Islands)
100
l
Legal representative and Chairman:
Mr. Hong Shunxi is currently responsible for
the overall management of SC.
Working Experience(s):
At present Working in SC as legal representative
and chairman
SC is mainly
engaged in manufacturing and selling leather chemical materials.
SC’s products
mainly include leather coating agents, leather chemicals, etc.
SC sources its
materials 70% from domestic market and 30% from overseas market. SC sells 50%
of its products in domestic market, and 50% 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 declined to release its major clients and suppliers.
Shanghai
Pielcolor Foo Yee Chemicals Co., Ltd. Foshan Branch
…………………………………………………………………….
Principal:
Yan Ting’an
Registration
No.: 440600500004563
Incorporation
date: Jan. 20, 2003
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 any financial information.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
Cash & bank |
4,290 |
4,760 |
|
Inventory |
21,300 |
21,070 |
|
Accounts
receivable |
17,040 |
18,500 |
|
Advances to
suppliers |
450 |
420 |
|
Notes receivable |
11,290 |
16,250 |
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Other
receivables |
280 |
140 |
|
Other current
assets |
150 |
130 |
|
|
------------------ |
------------------ |
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Current assets |
54,800 |
61,270 |
|
Fixed assets net
value |
9,500 |
9,020 |
|
Long term
investment |
0 |
0 |
|
Projects under
construction |
0 |
0 |
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Intangible and other
assets |
3,660 |
3,580 |
|
|
------------------ |
------------------ |
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Total assets |
67,960 |
73,870 |
|
|
=========== |
=========== |
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Short loan |
12,000 |
12,120 |
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Accounts payable |
2,960 |
3,900 |
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Advances from
clients |
1,350 |
1,800 |
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Salaries and
welfare payable |
50 |
60 |
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Taxes payable |
1,020 |
2,120 |
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Other Accounts
payable |
14,050 |
10,600 |
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Other current
liabilities |
10 |
0 |
|
|
------------------ |
------------------ |
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Current
liabilities |
31,440 |
30,600 |
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Long term liabilities |
0 |
0 |
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|
------------------ |
------------------ |
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Total
liabilities |
31,440 |
30,600 |
|
Equities |
36,520 |
43,270 |
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|
------------------ |
------------------ |
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Total
liabilities & equities |
67,960 |
73,870 |
|
|
=========== |
=========== |
Income Statement
Unit: CNY’000
|
|
As
of Dec. 31, 2011 |
|
Turnover |
64,620 |
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Cost of goods sold |
36,620 |
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Sales expense |
10,060 |
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Management expense |
6,840 |
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Finance expense |
710 |
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Profit before tax |
9,110 |
|
Less: profit tax |
2,370 |
|
Profits |
6,740 |
Important
Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
1.74 |
2.00 |
|
*Quick ratio |
1.07 |
1.31 |
|
*Liabilities to
assets |
0.46 |
0.41 |
|
*Net profit
margin (%) |
/ |
10.43 |
|
*Return on
total assets (%) |
/ |
9.12 |
|
*Inventory
/Turnover ×365 |
/ |
120 days |
|
*Accounts
receivable/Turnover ×365 |
/ |
105 days |
|
*Turnover/Total
assets |
/ |
0.87 |
|
* Cost of
goods sold/Turnover |
/ |
0.57 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears average in its line in
2011.
l
SC’s net profit margin is fairly good in 2011.
l
SC’s return on total assets is fairly good in 2011.
l
SC’s cost of goods sold is low in 2011, 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 appears fairly large in both
years.
l
The accounts receivable of SC appears fairly large
in both years.
l
The short-term loan of SC appears fairly large in
both years.
l
SC’s turnover is in a fair level, comparing with the
size of its total assets in 2011.
LEVERAGE: AVERAGE
l
The debt ratio of SC is low in both years.
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 industry with fairly stable
financial conditions. The large amount of inventory
and accounts receivable could be a threat to
SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.44 |
|
|
1 |
Rs.83.77 |
|
Euro |
1 |
Rs.71.33 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
RATING EXPLANATIONS
|
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 |
|
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.