MIRA INFORM REPORT
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Report Date : |
11.07.2013 |
IDENTIFICATION DETAILS
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Name : |
ITOCHU
SHANGHAI LTD |
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Registered Office : |
56/f Shanghai World Financial Center, No. 100 Century
Avenue, Pudong New Area, Shanghai 200120
PR |
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Country : |
China |
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Financials (as on) : |
31.05.2013 |
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Date of Incorporation : |
22.05.1992 |
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Com. Reg. No.: |
310115400002316 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Subject registered business scope includes international
trade and transiting trade in the free trade zone, trade
and trade agent between the enterprises in the free trade zone, commercial
simple processing and trade advisory services in the free trade zone,
wholesale and commission agents of pre-packaged foods, grain products, dairy
products, plastic film, chemical fertilizer, steel and its products,
minerals, metals and metal products, chemical products and raw materials,
synthetic resins, natural rubber, rubber and its products, soil and
livestock, timber and timber products, paper and paper, construction materials,
daily necessities, textile raw materials and textile products, electrical
equipment, home appliances, electronic communications equipment and parts,
arts and crafts, medical equipment, providing related ancillary services,
real estate advisory services, trade advisory services, international trade. |
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No. of Employees : |
344 |
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 : |
Good |
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Payment Behaviour : |
Regular |
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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 – March 31st,
2013
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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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 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.
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Source : CIA |
Company name & address
ITOCHU
SHANGHAI LTD.
56/f
shanghai world financial center, no. 100 century avenue
pudong new
area, shanghai 200120 PR CHINA
TEL: 86
(0) 21-68776688
FAX: 86
(0) 21-20212135
EXECUTIVE SUMMARY
Date of Registration : may 22, 1992
REGISTRATION NO. : 310115400002316
LEGAL FORM : Wholly foreign-owned enterprise
REGISTERED CAPITAL :
usd 105,100,000
staff : 344
BUSINESS CATEGORY :
TRADING
REVENUE :
CNY 4,394,977,000 (JAN. 1 2013 TO MAY 31, 2013)
EQUITIES :
CNY 1,024,536,000 (AS OF MAY 31, 2013)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT : AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION : stable
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : FAIRLY GOOD
EXCHANGE RATE : CNY 6.14 = 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 wholly foreign-owned enterprise of PRC with
State Administration of Industry & Commerce (SAIC) under registration No.: 310115400002316 on May 22, 1992.
SC’s Organization Code Certificate
No.: 60722738-3
SC’s registered capital: usd 105,100,000
SC’s paid-in capital: usd 105,100,000
Registration Change Record:-
No significant changes of SC have
been noted in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Itochu China Holding Co., Ltd. |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Koseki
Shuichi |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Itochu China Holding Co., Ltd. 100
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Date of Registration: September 8, 1993
Registration No.: 100000400004047
Legal Form: Wholly
Foreign-Owned Enterprise
Address: Unit 501, 5/F, No. 2 Office
Building, China Central Place, No. 79 Jianguo Road, Chaoyang District, Beijing
Tel: 86 (0) 10-65997000/65997052
Fax: 86 (0) 10-65997111
Web: www.itochu.com.cn
MANAGEMENT
Koseki
Shuichi, Legal
Representative and Chairman
----------------------------------------------------------------------------------
Ø
Gender: M
Ø
Nationality: Japan
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal
representative and chairman, also working in Itochu
China Holding Co., Ltd. as legal representative
BUSINESS OPERATION
SC’s registered business scope includes international
trade and transiting trade in the free trade zone, trade
and trade agent between the enterprises in the free trade zone, commercial
simple processing and trade advisory services in the free trade zone, wholesale
and commission agents of pre-packaged foods, grain products, dairy products,
plastic film, chemical fertilizer, steel and its products, minerals, metals and
metal products, chemical products and raw materials, synthetic resins, natural
rubber, rubber and its products, soil and livestock, timber and timber
products, paper and paper, construction materials, daily necessities, textile
raw materials and textile products, electrical equipment, home appliances,
electronic communications equipment and parts, arts and crafts, medical
equipment, providing related ancillary services, real estate advisory services,
trade advisory services, international trade.
SC is mainly
engaged in international trade.
SC’s
products mainly include: sanitary ware, tiles,
concrete slab, kitchen products, wood, metal materials, etc.
SC sources its materials 100% from domestic market, mainly Jiangsu. SC sells 70% of its products in domestic market, and 30% to overseas market, mainly USA, Europe, Mid East, 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.
*Major Customer:
=============
Itochu Plastics
Inc.
Staff & Office:
--------------------------
SC is
known to have approx. 344 staff
at present.
SC rents an area
as its operating office, but the detailed information is unknown.
RELATED COMPANY
SC is known to have 5
branches at present,
n
Itochu Shanghai Ltd. Pudong New Area Branch
n
Itochu Shanghai Ltd. Zhangjiagang Free Trade Zone Branch
n
Itochu Shanghai Ltd. Ningbo Free Trade Zone Branch
n
Itochu Shanghai Ltd. Wuhan Branch
n
Itochu Shanghai Ltd. Nanjing Branch
n
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
The bank
information of SC is not filed in SAIC.
FINANCIALS
Financial Summary
|
Unit: CNY’000 |
As
of May 31, 2013 |
|
Current assets |
3,121,159 |
|
Long term investment |
0 |
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Fixed assets |
2,440 |
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Intangible
assets |
4,085 |
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|
------------- |
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Total assets |
3,183,698 |
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|
------------- |
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Current
liabilities |
2,159,162 |
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Long term liabilities |
0 |
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|
------------- |
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Total
liabilities |
2,159,162 |
|
Equities |
1,024,536 |
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|
------------- |
|
Unit: CNY’000 |
Jan. 1 2013 to May 31, 2013 |
|
Revenue |
4,394,977 |
|
Cost of sales |
4,208,609 |
|
Profit before
tax |
73,422 |
|
Less: profit tax |
18,931 |
|
Profits |
54,491 |
Note: The detailed financials are not available in SAIC.
Important Ratios
=============
|
|
As
of May 31, 2013 |
|
*Current ratio |
1.45 |
|
*Liabilities
to assets |
0.68 |
|
*Net profit
margin (%) |
1.24 |
|
*Return on
total assets (%) |
1.71 |
|
*
Revenue/Total assets |
1.38 |
|
* Cost of
sales / Revenue |
0.96 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC appears fairly good 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 sales is fairly high, comparing with
its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
FAIRLY GOOD
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is low
Overall financial
condition of the SC: Stable.
CONCLUSIONS
SC is considered large-sized in its line with
stable financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian
Rupees |
|
US Dollar |
1 |
Rs.60.13 |
|
UK Pound |
1 |
Rs.89.52 |
|
Euro |
1 |
Rs.76.89 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
RATING EXPLANATIONS
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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 |
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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 |
|
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.