MIRA
INFORM REPORT
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Report Date : |
23.07.2013 |
IDENTIFICATION DETAILS
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Name : |
EMOBILE COMM (SHANGHAI) INC. |
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Formerly Known As : |
Long Life
Electronic Shanghai Co., Ltd. |
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Registered Office : |
No. 3938, Huqingping Road, Qingpu District, Shanghai, 201703 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
28.03.1994 |
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Com. Reg. No.: |
310000400078380 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
manufacturing & selling of
communication equipment’s, computers and other electronic products. |
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No. of Employees : |
500 |
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 – March 31st 2013
|
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
emobile comm (shanghai) inc.
no. 3938,
huqingping road, qingpu district, shanghai, 201703 PR CHINA
TEL: 86 (0)
21-59753561 FAX: 86 (0) 21-59755042
EXECUTIVE SUMMARY
INCORPORATION DATE : MARCH 28, 1994
REGISTRATION NO. : 310000400078380
REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE
CHIEF EXECUTIVE :
MS. WANG CUILING (CHAIRMAN)
STAFF STRENGTH : 500
REGISTERED CAPITAL : USD 29,300,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 1,004,690,000 (AS OF DEC.
31, 2012)
EQUITIES : CNY 192,260,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.14 = 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 Renminbi
%20INC%20%20-%20229325%2023-Jul-2013_files/image018.gif){kind=small}
SC was registered as a Chinese-foreign contractual joint venture enterprise
at local Administration for industry & commerce (AIC – the official body of
issuing and renewing business license) on March 28, 1994 and has been under
present legal form since 2011.
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 researching, developing,
processing & manufacturing mobile parts & components, electronic &
communication applications, relevant module plate, dial frequency applications,
PDA, notebook computer, LCD monitors, routers, servers, motherboards, switches,
mouse, drives, scanners, fax machine and other products, selling self-made
products and providing products technical service; wholesaling, import &
export, commission agent of the similar products and providing related supporting
service.
SC is
mainly engaged in manufacturing & selling communication equipment,
computers and other electronic products.
Ms. Wang Cuiling
has been legal representative and chairman of SC since 2010.
SC is known to
have approx. 500 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. SC’s employee refused to release the detailed information of the premise.
%20INC%20%20-%20229325%2023-Jul-2013_files/image019.gif){kind=small}
http://www.eglobalmfg.com The
design is professional and the content is well organized. At present it is in
both Chinese and English versions.
Email: bdsh@eglobalmfg.com hr@eglobalmfg.com
%20INC%20%20-%20229325%2023-Jul-2013_files/image020.gif){kind=small}
SC has passed ISO9001, TL9000, ISO14001, QC 080000.
%20INC%20%20-%20229325%2023-Jul-2013_files/image005.jpg)
%20INC%20%20-%20229325%2023-Jul-2013_files/image007.gif)
Changes
of its registered information:
|
Date of change |
Item |
Before the
change |
After the change |
|
2000-5 |
Company name |
Long Life Electronic Shanghai Co., Ltd. |
Present one |
|
Legal representative |
Xu Quanzhen |
Zhang Pingzhao |
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Registered capital |
USD 7,000,000 |
USD 29,200,000 |
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Shareholding |
(Hong Kong)
Kingsman International Limited 90% Shanghai Qingpu Zhaoxiang Industrial Corp. 10% |
(Hong Kong) Kingsman
International Limited 100% Shanghai Qingpu Zhaoxiang Industrial Corp. (providing the land use right) |
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|
2004-4 |
Registered capital |
USD 29,200,000 |
USD 19,300,000 |
|
2009-12 |
Shareholders |
(Hong Kong)
Kingsman International Limited 100% Shanghai Qingpu Zhaoxiang Industrial Corp. (providing the land use right） |
(Samoa) Rightway Holdings Limited 100% Shanghai Qingpu Zhaoxiang Industrial Corp.
(providing the land use right) |
|
2010-3 |
Legal representative |
Zhang Pingzhao |
Present one |
|
2010-12 |
Shareholders |
(Samoa) Rightway Holdings Limited 100% Shanghai Qingpu Zhaoxiang Industrial Corp.
(providing the land use right |
Emobile (Hong Kong) Communication
Technology Limited 100% Shanghai Qingpu Zhaoxiang Industrial Corp.
(providing the land use right) |
|
2011-2 |
Registered Legal Form |
Chinese-foreign contractual joint venture
enterprise |
Present one |
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Shareholders (% of shareholding) |
Emobile (Hong Kong) Communication
Technology Limited 100% Shanghai Qingpu Zhaoxiang Industrial Corp.
(providing the land use right) |
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|
|
Unknown |
Registered capital |
USD 19,300,000 |
Present amount |
Tax Registration Certificate No.: 310229607289592
Organization Code: 607289592
%20INC%20%20-%20229325%2023-Jul-2013_files/image021.gif){kind=small}
For the past two years there is no record of litigation.
%20INC%20%20-%20229325%2023-Jul-2013_files/image022.gif){kind=small}
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Emobile (Hongkong) Communication Technology
Limited 100
Registration no.: 1533256
Legal form: private
Date of
Incorporation: 2010-11-26
%20INC%20%20-%20229325%2023-Jul-2013_files/image023.gif){kind=small}
Legal
Representative and Chairman:
Ms. Wang Cuiling is currently responsible for the overall
management of SC.
Working
Experience(s):
From 2010 to present Working in SC as legal representative and chairman
General Manager:
Mr. Zhu Bo is currently responsible for the daily management of SC.
Working
Experience(s):
At present Working in SC as general manager.
%20INC%20%20-%20229325%2023-Jul-2013_files/image024.gif){kind=small}
SC is mainly
engaged in manufacturing & selling communication equipments, computers and
other electronic products.
SC’s products mainly include: mobile parts
& components, electronic & communication applications, relevant module
plate, dial frequency applications, PDA, notebook computer, LCD monitors,
routers, servers, motherboards, switches, mouse, drives, scanners, fax machine,
etc.
SC sources its materials 80% from domestic
market, and 20% from overseas market. SC sells 20% of its products in domestic
market, and 80% to overseas market.
The buying terms of SC include Check, L/C, T/T and Credit of 30-60 days.
The payment terms of SC include Check, L/C, T/T and Credit of 30-60 days.
Note: SC refused to release its major
clients and suppliers.
%20INC%20%20-%20229325%2023-Jul-2013_files/image025.gif){kind=small}
SC is said to have subsidiaries, but the detail is unspecified.
%20INC%20%20-%20229325%2023-Jul-2013_files/image026.gif){kind=small}
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.
%20INC%20%20-%20229325%2023-Jul-2013_files/image027.gif){kind=small}
Agricultural Bank of China Shanghai Qingpu Zhaoxiang Sub-branch
AC#：037797-08015008500
Relationship:
Normal.
%20INC%20%20-%20229325%2023-Jul-2013_files/image028.gif){kind=small}
Balance Sheet
Unit: CNY’000
|
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as
of Dec. 31, 2012 |
|
Cash & bank |
20,980 |
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Notes receivable |
58,420 |
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Inventory |
145,900 |
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Accounts
receivable |
153,960 |
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Advances to
suppliers |
5,080 |
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Other
receivables |
266,350 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
650,690 |
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Fixed assets net
value |
51,810 |
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Long term
investment |
15,200 |
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Other assets |
2,490 |
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------------------ |
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Total assets |
720,190 |
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============= |
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Short loans |
/ |
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Accounts payable |
/ |
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Advance from
customers |
/ |
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Other current
liabilities |
/ |
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|
------------------ |
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Current
liabilities |
527,930 |
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Long term
liabilities |
0 |
|
|
------------------ |
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Total
liabilities |
527,930 |
|
Equities |
192,260 |
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------------------ |
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Total
liabilities & equities |
720,190 |
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|
============= |
Note: SC’s management declined to release its detail Balance Sheet of
Yr2012.
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2012 |
|
Turnover |
1,004,690 |
|
Cost of goods
sold |
937,550 |
|
Sales expense |
2,560 |
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Management expense |
60,460 |
|
Finance expense |
3,760 |
|
Non-operating
income |
9,750 |
|
Profit before
tax |
8,680 |
|
Less: profit tax |
1,300 |
|
Profits |
7,380 |
Important Ratios
=============
|
|
as
of Dec. 31, 2012 |
|
*Current ratio |
1.23 |
|
*Quick ratio |
0.96 |
|
*Liabilities
to assets |
0.73 |
|
*Net profit
margin (%) |
0.73 |
|
*Return on
total assets (%) |
1.02 |
|
*Inventory
/Turnover ×365 |
54 days |
|
*Accounts
receivable/Turnover ×365 |
56 days |
|
*Turnover/Total
assets |
1.40 |
|
* Cost of
goods sold/Turnover |
0.93 |
%20INC%20%20-%20229325%2023-Jul-2013_files/image029.gif){kind=small}
PROFITABILITY:
AVERAGE
l
The turnover of SC appears 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 goods sold is fairly high, comparing
with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears fairly large in 2012.
l
The accounts receivable of SC appears fairly large
in 2012.
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 average.
l
The risk for SC to go bankrupt is average.
Overall financial condition of the SC:
Fairly stable.
%20INC%20%20-%20229325%2023-Jul-2013_files/image030.gif){kind=small}
SC is considered medium-sized in its line with fairly stable
financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.41 |
|
UK Pound |
1 |
Rs.90.74 |
|
Euro |
1 |
Rs.78.11 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
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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 |
|
<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.