MIRA
INFORM REPORT
|
Report Date : |
07.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
JIANGSU SOHO INTERNATIONAL GROUP CORP. |
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Registered Office : |
Unit A Soho International Plaza, No. 48 Ningnan Avenue Nanjing,
Jiangsu Province 210012 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
05.09.1981 |
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Com. Reg. No.: |
320000000006956 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject is engaged in importing and exporting silk, textiles,
garments. |
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No. of Employees : |
433 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Good |
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Payment Behaviour : |
Regular |
|
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 – March, 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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 2012 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 under 8% for 2012. An economic slowdown in Europe contributed to
China's, and is expected to further drag Chinese growth in 2013. 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
JIANGSU SOHO INTERNATIONAL GROUP
CORP.
UNIT A SOHO INTERNATIONAL PLAZA, NO. 48 NINGNAN AVENUE NANJING, JIANGSU
PROVINCE 210012 PR CHINA
TEL: 86 (0) 25-84785428/52334463
FAX: 86 (0) 25-84785426/52334465
EXECUTIVE SUMMARY
Date of Registration : SEPTEMBER 5, 1981
REGISTRATION NO. : 320000000006956
LEGAL FORM : SHARES LIMITED Company
CHIEF EXECUTIVE :
she xiangyuan (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 352,800,000
staff :
433
BUSINESS CATEGORY : TRADING
REVENUE :
CNY 1,275,927,000 (JAN. 1, 2012
TO JUN. 30, 2013)
EQUITIES :
CNY 1,389,698,000 (AS OF JUN. 30, 2013)
WEBSITE : http://www.cbnb.com.cn/www.meetsoho.com
E-MAIL :
mailto:cbnb@cbnb.com.cnN/A
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : fairly good
EXCHANGE RATE :
CNY 6.13 = 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
SC was established as a state-owned enterprise of PRC on September 5,
1981. However, SC changed to present legal form, and was registered as a shares
limited company of PRC with State Administration for Industry & Commerce
(SAIC) under registration No.: 320000000006956
in May 1994.
SC’s Organization Code Certificate No.:
13477808-8
SC’s Tax No.: 320103134778088
SC’s registered capital: CNY 352,800,000
SC’s paid-in capital: CNY 352,800,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
1994-05 |
Company Name |
Jiangsu Silk Import & Export Corporation |
Jiangsu Silk Import & Export Group Corporation |
|
1994-05 |
Legal Form |
State-owned Enterprise |
Shares Limited Company |
|
2000-07 |
Company Name |
Jiangsu Silk Import & Export Group Corporation |
Jiangsu Soho International Group Corp. |
|
2002-05 |
Legal Representative |
Zhang Donggui |
Wang Yimin |
|
2003-06 |
Legal Representative |
Wang Yimin |
Shen Xiangyuan |
|
2005-04 |
Legal Representative |
Shen Xiangyuan |
Sha Weiping |
|
-- |
Registration No. |
3200001102082 |
320000000006956 |
|
Legal Representative |
Sha Weiping |
Shen Xiangyuan |
|
|
2012 |
Registered Capital |
CNY 252,000,000 |
CNY 352,800,000 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Jiangsu SOHO Holding Group Co., Ltd. |
69.89 |
|
Shanghai Zendai Investment Management Co., Ltd. |
10.54 |
|
Guangdong Silk Textile Group Co., Ltd. |
4.61 |
|
China Silk Corporation |
2.31 |
|
Jiangsu Silk Group Materials Co., Ltd. |
1.69 |
|
Jiangsu Sainty International Group Co., Ltd. |
1.88 |
|
China Silk Industrial & Trading Corporation |
1.54 |
|
Jiangsu Holly Corporation |
1.62 |
|
Shanghai Tongyi Investment Management Co., Ltd. |
3.29 |
|
Jiangsu Stock Enterprises Association |
0.13 |
|
Staff Shares |
2.50 |
***Note: The above
shareholding information was SC’s former ones, and the former registered
capital was CNY 252,000,000. But SC’s new shareholding information has not been
on file at local SAIC.
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Shen Xiangyuan |
|
Vice Chairman |
Yu Yimin |
|
General Manager |
Zhao Chaowu |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
***Note: The above
shareholding information was SC’s former ones, and the former registered capital
was CNY 252,000,000. But SC’s new shareholding information has not been on file
at local SAIC.
Name %
of Shareholding
Jiangsu SOHO Holding Group Co., Ltd. 69.89
Shanghai Zendai Investment Management Co., Ltd. 10.54
Guangdong Silk Textile Group Co., Ltd. 4.61
China Silk Corporation 2.31
Jiangsu Silk Group Materials Co., Ltd. 1.69
Jiangsu Sainty International Group Co., Ltd. 1.88
China Silk Industrial & Trading Corporation 1.54
Jiangsu Holly Corporation 1.62
Shanghai Tongyi Investment Management Co., Ltd. 3.29
Jiangsu Stock Enterprises Association 0.13
Staff Shares 2.50
Jiangsu SOHO Holding Group Co., Ltd.
------------------------------
Web: www.meetsoho.cn
Tel.: 025-84785172
Fax: 025-84785106
Its former name was Jiangsu Silk Group Co., Ltd.
China Silk Corporation
-----------------------------------------------------
China Silk Corporation is a central enterprise supervised by State-owned
Assets Supervision and Administration Commission of the State Council. Founded
in 1951, it is one of the oldest and the longest enterprises in the business of
silk import and export. It has strong comprehensive competitive strength. At
present, it has 22 subsidiaries and more than 40 domestic cooperative
enterprises. It has set 4 trade organizations in the main silk consumption
countries or regions and has more than 1000 employees.
Web: www.chinasilk.com
Its former name was China National Silk Import & Export Corporation
MANAGEMENT
Shen Xiangyuan, Legal Representative and Chairman
---------------------------------------------------------------------------------
Gender: M
ID# 320105195704171612
Age: 56
Qualification: University
Working experience (s):
At present, working in SC as legal representative and chairman
Yu Yimin, Vice Chairman
----------------------------------------------
Gender: M
Age: 45
Qualification: University
Working experience (s):
At present, working in SC as vice chairman
Zhao Chaowu, General Manager
-------------------------------------------------------
Gender: M
Age: 43
Qualification: University
Working experience (s):
At present, working in SC as general manager
BUSINESS OPERATION
SC’s registered business scope includes: Permit business scope:
wholesaling of hazardous chemicals and selling of wines. General business
scope: importing and exporting silk, silk garments, reproduction, importing
wool; importing and exporting commodities and
technologies, excluding 16 export commodities under state-unified operation and 14 import commodities operated by the state-designated companies; processing with
imported materials, processing with imported samples, assembling with imported
parts, and compensation trade in agreement; counter trade & transit trade; domestic trade, material supply and
marketing industry, selling petroleum products.
SC is mainly engaged in importing and exporting silk, textiles,
garments.
SC’s products mainly include: silk, textile garments.
SC sources its materials 80% from domestic market, and 20% from overseas
market. SC sells 40% of its products in domestic market, and 60% 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.
Staff &
Office:
--------------------------
SC is known to have approx. 433
staff at present.
SC owns an area as its operating office, but the detailed information is
unknown.
RELATED COMPANY
SC is known to
have the following branches,
Jiangsu Soho International Group Corp. Silk
Branch
Jiangsu Soho International Group Corp.
Garments Branch
Jiangsu Soho International Group Corp.
Technology Trade Branch
Jiangsu Soho International Group Corp. Silk
Cloth Branch
Jiangsu Soho International Group Corp.
Knitting Raiment Branch
SC is known to
invest in the following companies,
Jiangsu Soho International Group Silk Thread Industrial Co., Ltd
Jiangsu Soho International Group Suzhou Co., Ltd
Jiangsu Soho Knitting Co., Ltd
Jiangsu Soho Garments Co., Ltd
Jiangsu Soho Silk Co., Ltd
Jiangsu Soho Shipping Co., Ltd
Shanghai Soho International Trade Co., Ltd
Etc.
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 Jiangsu Branch
AC#: 044138090010000868
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
As of Jun. 30,
2013 |
|
181,232 |
59,392 |
|
|
Short-term
investment |
2,249 |
0 |
|
Notes receivable |
98,242 |
5,352 |
|
Accounts receivable |
116,802 |
360,168 |
|
Advances to suppliers |
324,780 |
367,510 |
|
Other receivable |
344,539 |
286,525 |
|
Inventory |
120,500 |
201,956 |
|
Non-current assets within one year |
0 |
0 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
1,188,344 |
1,280,903 |
|
Long term investment |
2,047,162 |
1,778,864 |
|
Fixed assets |
115,556 |
113,333 |
|
Construction in progress |
0 |
0 |
|
Intangible assets |
13,895 |
13,755 |
|
Long-term prepaid expenses |
0 |
0 |
|
Other non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
3,364,957 |
3,186,855 |
|
|
============= |
============= |
|
Short-term loans |
230,000 |
150,000 |
|
Notes payable |
168,251 |
362,748 |
|
Accounts payable |
207,101 |
301,713 |
|
Wages payable |
1,258 |
1,258 |
|
Taxes payable |
-18,174 |
-34,261 |
|
Dividends payable |
250 |
0 |
|
Advances from clients |
551,913 |
438,642 |
|
Other payable |
333,909 |
333,774 |
|
Other current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current liabilities |
1,474,508 |
1,553,874 |
|
Non-current liabilities |
316,557 |
243,283 |
|
|
------------------ |
------------------ |
|
Total liabilities |
1,791,065 |
1,797,157 |
|
Equities |
1,573,892 |
1,389,698 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
3,364,957 |
3,186,855 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
Jan. 1, 2013 to
Jun. 30, 2013 |
|
Revenue |
1,275,927 |
|
Cost of sales |
1,223,401 |
|
Tax and associate charge |
7,469 |
|
Sales expense |
41,950 |
|
Management expense |
26,544 |
|
Finance expense |
-1,244 |
|
Investment income |
63,453 |
|
Non-operating income |
164 |
|
Non-operating expense |
26 |
|
Profit before tax |
42,762 |
|
Less: profit tax |
7,130 |
|
35,632 |
Important Ratios
=============
|
|
As of Dec. 31,
2012 |
As of Jun. 30,
2013 |
|
*Current ratio |
0.81 |
0.82 |
|
*Quick ratio |
0.72 |
0.69 |
|
*Liabilities to assets |
0.53 |
0.56 |
|
*Net profit margin (%) |
-- |
2.79 |
|
*Return on total assets (%) |
-- |
1.12 |
|
*Inventory / Revenue ×180 |
-- |
29 days |
|
*Accounts receivable / Revenue ×180 |
-- |
51 days |
|
*Revenue / Total assets |
-- |
0.40 |
|
*Cost of sales / Revenue |
-- |
0.96 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears fairly good in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of sales is fairly high, comparing with its revenue.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level.
SC’s quick ratio is maintained in a fair level.
The inventory of SC is maintained in an average level.
The accounts receivable of SC is maintained in an average level.
The short-term loans of SC appear average.
SC’s revenue is in a fair level, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered large-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.53 |
|
|
1 |
Rs.94.37 |
|
Euro |
1 |
Rs.81.58 |
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.