MIRA INFORM REPORT
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Report Date : |
13.03.2013 |
IDENTIFICATION DETAILS
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Name : |
CHINA SDIC RESOURCES CO., LTD. |
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Registered Office : |
33/F, Jiali Mansion, No. 2,
Lane 1228, Yan’an West Road, Changning
District, Shanghai, 200052 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
26.08.1994 |
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Com. Reg. No.: |
310115000229789 |
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Legal Form : |
Sole State-Owned Enterprise |
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Line of Business : |
Subject engaged in selling wool spinning and cotton spinning products. |
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No. of Employees : |
60 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
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 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 &
ADDRESS
CHINA SDIC RESOURCES CO., LTD.
33/F, JIALI MANSION, NO. 2, LANE
1228, YAN’AN WEST ROAD,
CHANGNING DISTRICT, SHANGHAI,
200052 PR CHINA
TEL: 86 (0) 21-62816666 FAX: 86 (0) 21-62812828/62818655
EXECUTIVE SUMMARY
INCORPORATION DATE :
AUG. 26, 1994
REGISTRATION NO. :
310115000229789
REGISTERED LEGAL FORM :
SOLE STATE-OWNED ENTERPRISE
STAFF STRENGTH : 60
REGISTERED CAPITAL : CNY 50,000,000
BUSINESS LINE : TRADING
TURNOVER :
CNY 2,400,550,000 (UNaudited,
AS OF DEC. 31, 2012)
EQUITIES :
CNY 107,600,000 (UNaudited, AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
fairly stable
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE : CNY 6.22=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 sole state-owned enterprise at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Aug. 26, 1994.
Company Status: Sole state-owned enterprise This form of business in PR
China is defined as a commodity production or operational units of a
socialist character which in accordance with the law, have autonomy in
management, take full responsibility for its profits and losses and
practices independent business accounting. It is a legal person established
directly by central / local government or enterprise owned by central or
local government. In theory, the liabilities of this form of enterprise are
ultimately borne by the government, since the adoption of company law in
mid-1994, the Chinese government has planned to separate the ownership from
management and liabilities bearing. The shareholders of this form
of Limited Liabilities Company are State-owned Assets Supervision and
Administration Commission authorized by the State Council or local
Municipal Government. The regulation is set up by
State-owned Assets Supervision and Administration Commission or by the
board of directors after approval of State-owned Assets Supervision and
Administration Commission. Sole state-owned enterprise
does not set up board of shareholders, which is replaced by State-owned
Assets Supervision and Administration Commission. State-owned Assets Supervision
and Administration Commission assign the board of directors.
SC’s registered business scope includes distribution of textile raw materials and accessories;
import and export of various goods and technologies, excluding the goods
forbidden by the government; trade and trade agency among enterprises in the
Free Trade Zone; storage in the Free Trade Zone; simple processing and
displaying in the Zone; trade consultancy services. (Business Operations in
restricted industries may be subject to special license.).
SC is mainly engaged in selling wool spinning and cotton spinning products.
Mr.
Wu Huijun is the legal representative, chairman and general manager of SC at
present.
SC is known
to have approx. 60 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Shanghai. The detailed premise
information is unknown.
http://www.ctrcpd.com/ The design is professional and the content is well
organized. At present it is in both Chinese and English versions.
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
Organization Code: 13223089-5
MAIN SHAREHOLDERS:
Name %
of shareholdings
Sinotex Investment & Development Co., Ltd. 100
The company is a listed company in Shanghai Stock
Exchange Market with the code of 600061.
Registered no.: 310000000052733
Legal representative: Chang Junchuan
Registered Capital: CNY 429,082,940
Legal form: Shares Limited Company
Tel: 021-62818687
Fax: 021-62816868
Web: http://www.sinotex-ctrc.com.cn
E-mail: stic@sinotex-ctrc.com.cn
l
Legal Representative, Chairman and General Manager:
Mr. Wu Huijun is currently
responsible for the overall management of SC.
Working
Experience(s):
At present Working in SC as legal representative,
chairman and general manager
Also
working in Shanghai Salvadore Wool Co., Ltd. and STIC Logistics Co., Ltd. as
legal representative
SC is mainly engaged in selling wool spinning and cotton spinning
products.
SC’s main products include: wool yarn, wool string, tencel, pure &
blended milk fiber, etc.
SC sources its materials 80% from domestic market, and 20% from overseas
market. SC sells 70% of its products in domestic market, and 30% 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.
Note: SC’s management declined to release its main clients and
suppliers.
China SDIC International Trade Co., Ltd.
==============================
Registered no.: 100000000002366
Legal representative: Chang Junchuan
Registered capital: CNY 1,000,000,000
Date of incorporation: Sep. 27, 1984
Web: http://www.sdictrade.com/
Tel: 010-52021800
Fax: 010-52021877
State Development & Investment Corp.
============================
Registered no.: 100000000017644
Legal representative: Wang Huisheng
Registered capital: CNY 19,470,510,000
Date of incorporation: Apr. 14, 1995
E-mail: sdic@sdic.com.cn
Tel: 010-66579001
Fax: 010-66579002
SC is known to have the following subsidiaries: (website sources)
Shanghai Salvadore Wool Co., Ltd.
=========================
Registered no.: 310115400103408
Legal representative: Wu Huijun
Registered capital: USD 200,000
Date of incorporation: Sep. 11, 2002
STIC Logistics Co., Ltd.
=====================
Registered no.: 310115000802338
Legal representative: Wu Huijun
Registered capital: CNY 5,000,000
Date of incorporation: Nov. 17, 2003
Beijing Tongyizhong Specialty Fiber Technology & Development Co.,
Ltd.
=======================================================
Registered no.: 110302000272160
Legal representative: Zhang Shiquan
Registered capital: CNY 80,000,000
Date of incorporation: Feb. 10, 1999
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.
SC’s management declined to release its bank
details.
Balance Sheet
Unit: CNY’000
|
|
As of Dec. 31, 2011 |
As of Dec. 31,
2012 |
|
Cash & bank |
58,030 |
133,770 |
|
Notes receivable |
149,320 |
216,660 |
|
Inventory |
357,940 |
532,780 |
|
Accounts
receivable |
14,790 |
40,000 |
|
Other Accounts
receivable |
2,650 |
1,310 |
|
Advances to suppliers |
22,000 |
43,650 |
|
Other current
assets |
90 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
604,820 |
968,170 |
|
Fixed assets net
value |
7,940 |
7,320 |
|
Long-term
investment |
9,430 |
9,440 |
|
Intangible
assets |
2,410 |
2,340 |
|
Deferred tax
asset |
3,820 |
2,260 |
|
Other assets |
1,530 |
1,490 |
|
|
------------------ |
------------------ |
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Total assets |
629,950 |
991,020 |
|
|
============= |
============= |
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Short loans |
88,440 |
116,400 |
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Accounts payable |
185,910 |
473,560 |
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Advance from
customers |
104,230 |
198,190 |
|
Other Accounts
payable |
148,710 |
96,200 |
|
Taxes payable |
-3,140 |
-2,160 |
|
Interest payable |
610 |
610 |
|
Other current
liabilities |
1,840 |
620 |
|
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------------------ |
------------------ |
|
526,600 |
883,420 |
|
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Long term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Total
liabilities |
526,600 |
883,420 |
|
Equities |
103,350 |
107,600 |
|
|
------------------ |
------------------ |
|
629,950 |
991,020 |
|
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31, 2012 |
|
Turnover |
2,400,550 |
|
Cost of goods sold |
2,330,670 |
|
Taxes and additional of main
operation |
250 |
|
Sales expense |
26,590 |
|
Management expense |
11,930 |
|
Finance expense |
19,630 |
|
Non-operating
income |
450 |
|
Non-operating expense |
100 |
|
Asset impairment loss |
7,680 |
|
Investment
income |
1,650 |
|
Profit before
tax |
5,800 |
|
Less: profit tax |
1,560 |
|
Profits |
4,240 |
Note:
The above financial of Yr2012 have not been audited.
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As of Dec. 31,
2012 |
|
*Current ratio |
1.15 |
1.10 |
|
*Quick ratio |
0.47 |
0.49 |
|
*Liabilities
to assets |
0.84 |
0.89 |
|
*Net profit
margin (%) |
/ |
0.18 |
|
*Return on
total assets (%) |
/ |
0.43 |
|
*Inventory
/Turnover ×365 |
/ |
82 days |
|
*Accounts receivable/Turnover
×365 |
/ |
7 days |
|
*Turnover/Total
assets |
/ |
2.42 |
|
* Cost of
goods sold/Turnover |
/ |
0.97 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears good in its line in 2012.
l
SC’s net profit margin is average in 2012.
l
SC’s return on total assets is average in 2012.
l
SC’s cost of goods sold is high, comparing with its
turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears large in both years.
l
The accounts receivable
of SC is maintained in an average level.
l
SC’s short-term loan is in a fairly large level.
l
SC’s turnover is in a fairly good level, comparing
with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered medium-sized in its line with fairly stable
financial conditions. The large amount of inventory and short-term loan could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian
Rupees |
|
US Dollar |
1 |
Rs.54.33 |
|
UK Pound |
1 |
Rs.80.89 |
|
Euro |
1 |
Rs.70.73 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
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.