MIRA
INFORM REPORT
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Report Date : |
17.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
JIAXING
SUNLONG INDUSTRIAL & TRADING CO., LTD. |
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Registered Office : |
No. 8, Youyi Road,
Economic Development Zone, Jiaxing Zhejiang Province 314001 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
21.11.2003 |
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Com. Reg. No.: |
330403000010259 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in international trade mainly include Solar Led String light, Solar Garden Light, Solar Flood
& Sign Light, Solar Sensor Security Light, Solar Water Features, Garden
Ornament |
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No. of Employees : |
28 |
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) |
|
China |
A2 |
A2 |
|
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
JIAXING SUNLONG
INDUSTRIAL & TRADING CO., LTD.
NO. 8, YOUYI
ROAD, ECONOMIC DEVELOPMENT ZONE, JIAXING
ZHEJIANG PROVINCE
314001 PR CHINA
TEL: 86 (0)
573-82112093/82119590
FAX: 86 (0)
573-82117012
EXECUTIVE SUMMARY
Date of Registration : NOVember 21, 2003
REGISTRATION NO. : 330403000010259
LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE :
ZHU RUIRONG (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 3,800,000
staff :
28
BUSINESS CATEGORY : TRADING
Revenue :
CNY 173,917,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 5,504,000 (AS OF DEC. 31, 2011)
WEBSITE : www.sunlongtech.com
E-MAIL :
sales@sunlongtech.com
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.22 = 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 limited liabilities company of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.: 330403000010259 on November 21, 2003.
SC’s Organization Code Certificate No.:
75594698-8
SC’s Tax No.: 330411755946988
SC’s registered capital: CNY 3,800,000
SC’s paid-in capital: CNY 3,800,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2007-6-13 |
Shareholder (s) (% of Shareholding) |
Chen Hua 2.22% Yue Chunmei 2.22% Shen Yang 4.44% Yang Jianhua 5.56% Shen Lanlan 9.56% Zhu Lixing 15% Zhejiang Winsun Imp & Exp Co., Ltd 30% Zhu Ruirong 31% |
Chen Hua 2.5% Shen Yang 5% Shen Hong 8.06% Zhu Ruirong 31% Zhejiang Winsun Imp & Exp Co., Ltd 53.44% |
|
2008-8-27 |
Registered No. |
3304002700270 |
330403000010259 |
|
2008-9-28 |
Registered Capital |
CNY 1,800,000 |
CNY 3,800,000 |
|
Shareholder (s) (% of Shareholding) |
Chen Hua 2.5% Shen Yang 5% Shen Hong 8.06% Zhu Ruirong 31% Zhejiang Winsun Imp & Exp Co., Ltd 53.44% |
Chen Hua 1.8421% Shen Yang 7.8947% Shen Hong 14.7632% Zhu Ruirong 24.5% Zhejiang Winsun Imp & Exp Co., Ltd. 51% |
|
|
2010-11-9 |
Shareholder (s) (% of Shareholding) |
Chen Hua 1.8421% Shen Yang 7.8947% Shen Hong 14.7632% Zhu Ruirong 24.5% Zhejiang Winsun Imp & Exp Co., Ltd. 51% |
Winsun Imp. & Exp. Group Co., Ltd. 51% Zhu Ruirong 24.5% Chen Hua .8421% Shen Hong 14.7632% Shen Yang 7.8947% |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Winsun Imp. & Exp. Group Co., Ltd. |
51 |
|
Zhu Ruirong |
24.5 |
|
Chen Hua |
1.8421 |
|
Shen Hong |
14.7632 |
|
Shen Yang |
7.8947 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Zhu Ruirong |
|
General Manager |
Shen Yang |
|
Director |
Li Jun |
|
Supervisor |
Chen Hua |
|
Shen Hong |
|
|
Yang Hua |
RECENT
DEVELOPMENT
SC has passed ISO9001: 2000 Management System Certificate.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Winsun Imp. & Exp. Group Co., Ltd. 51
Zhu Ruirong 24.5
Chen Hua 1.8421
Shen Hong 14.7632
Shen Yang 7.8947
Winsun Imp. & Exp. Group Co., Ltd.
==============================
Date of Registration: June 10, 2003
Registration No.: 330000000019298
Legal Form: Shares Limited
Company
Chief Executive: Xu Qingquan
Registered Capital: CNY 62,000,000
MANAGEMENT
Zhu Ruirong, Legal
Representative and Chairman
-----------------------------------------------------------------------------
Gender: M
Age: 54
ID# 330402195902051215
Qualification: Senior High School
Working experience (s):
At present, working in SC as legal representative and chairman
Shen Yang, General
Manager
-----------------------------------------------
Gender: M
Age: 36
ID# 330402197705191218
Qualification: University
Working experience (s):
At present, working in SC as general manager
Wang Xueping,
General Manager
--------------------------------------------------------
Gender: M
Qualification: University
Working experience (s):
At present, working in SC as general manager;
Director
------------
Li Jun ID#
330402197302273315
Supervisor
--------------
Chen Hua ID#
430219197609165618
Shen Hong ID#
330402197212102125
Yang Hua ID#
330402196301241528
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing and processing
with arts and crafts (excluding gold and silver jewelry); wholesaling, importing
and exporting chemicals (excluding hazardous chemicals), hardware tools,
building materials, plumbing, instruments, machinery electrical equipment
(excluding cars), metal materials (excluding precious metal), electronic
products, arts and crafts (excluding gold and silver jewelry and heritage),
textiles, daily necessaries, rubber products, daily-use glass products, toys,
shoes & hats, furniture, sports supplies, general labor protection
supplies, garments and other sewing products; wholesaling hazardous chemical
products (excluding storage, limited to import); wholesaling and exporting
non-pharmaceutical precursor chemicals; importing and exporting commodities and
technologies (excluding commodities and technologies prohibited by country).
SC is mainly engaged in international trade.
SC’s products mainly include:
Solar Led String light
Solar Garden Light
Solar Flood & Sign Light
Solar Sensor Security Light
Solar Water Features
Garden Ornament
SC sources its materials 100% from domestic market, mainly Zhejiang. SC
sells 15% of its products in domestic market and 85% to the overseas market,
mainly Europe, Southeast Asia, etc.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
Staff &
Office:
--------------------------
SC is known to have approx. 28
staff at present.
SC owns an area as its operating office, but the detailed information is
unknown.
RELATED
COMPANY
SC is not known to have any subsidiary at present
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 Jiaxing Branch
AC#: 860025645008091001
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
6,293 |
11,782 |
10,803 |
|
|
Notes receivable |
0 |
0 |
4,000 |
|
Accounts receivable |
13,103 |
16,422 |
10,641 |
|
Advances to suppliers |
2,306 |
1,918 |
1,744 |
|
Other receivable |
4,912 |
4,226 |
3,354 |
|
Inventory |
527 |
368 |
4 |
|
Non-current assets within one year |
0 |
0 |
0 |
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Other current assets |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Current assets |
27,141 |
34,716 |
30,546 |
|
Fixed assets |
201 |
134 |
595 |
|
Construction in progress |
0 |
0 |
0 |
|
Intangible assets |
0 |
0 |
0 |
|
Long-term prepaid expenses |
0 |
0 |
0 |
|
Deferred income tax assets |
0 |
0 |
0 |
|
Other non-current assets |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
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Total assets |
27,342 |
34,850 |
31,141 |
|
|
============= |
============= |
============= |
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Short-term loans |
0 |
0 |
0 |
|
Notes payable |
0 |
0 |
0 |
|
Accounts payable |
17,702 |
19,902 |
15,804 |
|
Taxes payable |
-12 |
230 |
299 |
|
Advances from clients |
4,490 |
9,294 |
9,454 |
|
Other payable |
82 |
66 |
80 |
|
Other current liabilities |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Current liabilities |
22,262 |
29,492 |
25,637 |
|
Non-current liabilities |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities |
22,262 |
29,492 |
25,637 |
|
Equities |
5,080 |
5,358 |
5,504 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities & equities |
27,342 |
34,850 |
31,141 |
|
|
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
Revenue |
154,194 |
175,200 |
173,917 |
|
Cost of sales |
147,899 |
167,410 |
165,243 |
|
Taxes and surcharges |
2 |
12 |
20 |
|
Sales expense |
4,398 |
5,213 |
4,919 |
|
Management expense |
1,304 |
1,614 |
2,814 |
|
Finance expense |
70 |
-57 |
25 |
|
Non-business income |
417 |
253 |
279 |
|
Non-business expense |
156 |
176 |
194 |
|
Profit before tax |
781 |
1,085 |
980 |
|
Less: profit tax |
210 |
292 |
274 |
|
571 |
793 |
706 |
Important Ratios
=============
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
1.22 |
1.18 |
1.19 |
|
*Quick ratio |
1.20 |
1.16 |
1.19 |
|
*Liabilities to assets |
0.81 |
0.85 |
0.82 |
|
*Net profit margin (%) |
0.37 |
0.45 |
0.41 |
|
*Return on total assets (%) |
2.09 |
2.28 |
2.27 |
|
*Inventory / Revenue ×365 |
2 days |
1 day |
1 day |
|
*Accounts receivable/ Revenue ×365 |
32 days |
35 days |
23 days |
|
* Revenue/Total assets |
5.64 |
5.03 |
5.58 |
|
* Cost of sales / Revenue |
0.96 |
0.96 |
0.95 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears fairly good in three years.
SC’s net profit margin is average in three years.
SC’s return on total assets is average in three years.
SC’s cost of goods sold is fairly high, comparing with its revenue.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level in three years.
SC’s quick ratio is maintained in a fairly good level in three years.
The inventory of SC appears small.
The accounts receivable of SC is maintained in an average level.
SC has no short-term loans in three years.
SC’s revenue is in a fairly good level, comparing with the size of its
total assets.
LEVERAGE: FAIR
The debt ratio of SC is fairly high in three years.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered small-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.82 |
|
|
1 |
Rs.87.9 |
|
Euro |
1 |
Rs.72.83 |
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 |
|
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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.