MIRA
INFORM REPORT
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Report Date : |
09.01.2013 |
IDENTIFICATION DETAILS
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Name : |
FOSHAN SANEAGLE
INTERNATIONAL TRADING CO., LTD. |
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Registered Office : |
Hai 2 Road, Guicheng, Nanhai District, Foshan, Guangdong Province, 528200 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
20.08.2004 |
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Com. Reg. No.: |
440682000133950 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Selling Bicycles |
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No. of Employees : |
11 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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
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Country Name |
Previous Rating (31.03.2011) |
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 and address
FOSHAN
SANEAGLE INTERNATIONAL TRADING CO., LTD.
HAI 2 ROAD, GUICHENG, NANHAI DISTRICT,
FOSHAN, GUANGDONG PROVINCE, 528200 PR CHINA
TEL: 86 (0) 757-86288298/86226757/86280105 FAX: 86 (0) 757-86331805
EXECUTIVE SUMMARY
INCORPORATION DATE :
AUG. 20, 2004
REGISTRATION NO. :
440682000133950
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
STAFF STRENGTH : 11
REGISTERED CAPITAL : CNY 3,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 39,810,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 3,590,000 (AS OF DEC. 31, 2011)
PAYMENT : AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE : CNY 6.2358=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
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
Aug. 20, 2004.
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 domestic trade
and importing & exporting goods and technologies (excluding products
prohibited by legal, administrative rules and regulations, and operating the
limited products with permit if needed).
SC
is mainly engaged in selling bicycles.
Mr.
Zhou Kunhua is the legal representative,
chairman and general manager at present.
SC is known
to have approx. 11 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in Foshan. Our checks reveal that SC rents the
total premise, but the gross area of the premise is unspecific.
http://www.saneagle.com
The website belongs to San Eagle Bicycle Manufactory Co., Ltd. The design is
professional and the content is well organized. At present it is in Chinese and
English versions.
No significant changes were found during our checks with the local
Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name
%
of shareholdings
Zhou Kunhua 70
Luo Xiuqing 30
l
Legal Representative, Chairman and General Manager:
Mr. Zhou Kunhua , in his
Working Experience(s):
At present
Working in SC as legal representative, chairman and general manager.
Also working in San Eagle Bicycle Manufactory Co.,
Ltd. as legal representative.
SC
is mainly engaged in selling bicycles.
SC’s products mainly include:
electric bicycle, mountain
bike, suspension MTB, beach bike ,
folding bike, racing bike, city bike,
BMX , children bike and tandem bike.
SC sources its
materials 100% from domestic market. SC sells 100% of its products to overseas
market, mainly Switzerland, France, etc.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include Check, L/C and Credit of 30-60 days.
Note:
SC’s management declined to release its major suppliers and clients.
San Eagle Bicycle Manufactory Co., Ltd.
============================
Incorporation date: Aug. 29, 2000
Registration no.: 440682000039386
Registered capital: CNY 500,000
Legal rep.: Zhou Kunhua
Legal form: Limited Liabilities Co.
E-mail: saneagle@saneagle.com
Tel: 86-757-86280105/86333765/86324962/86226757
Fax: 86-757-86331805/86239588
Add: Hai 2 Road, Guicheng, Nanhai District, Foshan, Guangdong Province
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.
Bank of China Foshan Nanhai Sub-branch
AC#：N/A
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
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as of Dec. 31, 2011 |
|
Cash & bank |
6,180 |
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Inventory |
240 |
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Accounts
receivable |
1,950 |
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Advances to
suppliers |
4,530 |
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Subsidy
receivable |
690 |
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Prepaid expenses |
10 |
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Other
receivables |
230 |
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Other current
assets |
0 |
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|
------------------ |
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Current assets |
13,830 |
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Long-term
investments |
0 |
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Fixed assets net
value |
440 |
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Projects under
construction |
0 |
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Long-term
deferred expenses |
50 |
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Intangible
assets |
0 |
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Other assets |
0 |
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------------------ |
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Total assets |
14,320 |
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============= |
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Short loans |
0 |
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Accounts payable |
240 |
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Advances from customers |
10,370 |
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Accrued Payroll |
0 |
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Taxes payable |
30 |
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Dividends
payable |
90 |
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Other accounts
payable |
0 |
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Other current
liabilities |
0 |
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----------------- |
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Current
liabilities |
10,730 |
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Long term
liabilities |
0 |
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------------------ |
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Total liabilities |
10,730 |
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Shareholders
equities |
3,590 |
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|
------------------ |
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Total
liabilities & equities |
14,320 |
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|
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31, 2011 |
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Turnover |
39,810 |
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Cost of goods
sold |
37,820 |
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Taxes and
additional of main operation |
0 |
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Sales expense |
1,140 |
|
Management expense |
1,000 |
|
Finance expense |
-450 |
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Subsidy income |
40 |
|
Profit before
tax |
340 |
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Less: profit tax |
90 |
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Net profit |
250 |
Important
Ratios
=============
|
|
as of Dec. 31,
2011 |
|
*Current ratio |
1.29 |
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*Quick ratio |
1.27 |
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*Liabilities
to assets |
0.75 |
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*Net profit
margin (%) |
0.63 |
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*Return on
total assets (%) |
1.75 |
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*Inventory
/Turnover ×365 |
3 days |
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*Accounts
receivable/Turnover ×365 |
18 days |
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*Turnover/Total
assets |
2.78 |
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* Cost of
goods sold/Turnover |
0.95 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is fairly high, comparing
with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
The quick ratio of SC is maintained in a normal
level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears average.
l
SC has no short-term loan in 2011.
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 fairly 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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.33 |
|
|
1 |
Rs.89.05 |
|
Euro |
1 |
Rs.72.57 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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 |
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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 |
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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 |
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<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.