MIRA INFORM REPORT
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Report Date : |
20.03.2013 |
IDENTIFICATION DETAILS
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Name : |
SHANGHAI STAR HOUSE CO., LTD. |
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Registered Office : |
No. 5, Lane 3100, Binguo Road, Shuyuan Town, Pudong New Area, Shanghai City, 201303 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
01.02.2008 |
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Com. Reg. No.: |
310225000591202 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing, processing and selling activity room and ancillary facilities, containers and container parts. |
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No. of Employees : |
300 |
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
NO. 5, lane 3100, BINGUO
ROAD, SHUYUAN TOWN, PUDONG NEW AREA,
SHANGHAI CITY,
201303 PR CHINA
TEL: 86 (0)
21-68043174/68043191 FAX: 86 (0)
21-68016135
EXECUTIVE SUMMARY
INCORPORATION DATE : feb. 1, 2008
REGISTRATION NO. : 310225000591202
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
300
REGISTERED CAPITAL : CNY 13,800,000
BUSINESS LINE :
MANUFACTURING, processing & TRADING
TURNOVER :
CNY 277,330,000 (unaudited, AS OF DEC. 31, 2012)
EQUITIES :
CNY 15,500,000 (unaudited, AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : Fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 6.215 = 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
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 Feb. 1, 2008.
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 manufacturing, processing, selling, leasing activity room
and ancillary facilities, containers and container parts, selling hardware,
building and decoration materials, metal materials, plumbing fittings, sanitary
ware, stainless steel products, plastic products, importing and exporting
commodities and technology (with permit if needed).
SC is mainly
engaged in manufacturing, processing and selling activity room and ancillary
facilities, containers and container parts.
Mr. Ni Sihai is legal representative, chairman and general
manager of SC at present.
SC is known to
have approx. 300 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.
Note:
SC also has the other address – Block 7, No. 2303, Xuanhuang Highway, Huinan
Town, Pudong New Area, Shanghai
http://www.star-house.com.cn/ The design is professional and the content is
well organized. At present it is in Chinese, English and other versions.
Email: info@star-house.com.cn
; shnee@star-house.com.cn
Qualifications:
SC has passed ISO 9001:2008, ISO 14001:2004.
Changes
of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Registered capital |
CNY 500,000 |
Present amount |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Ma Yi 50
Ni Sihai 40
Yang Ming’an 10
l
Legal representative, chairman and general manager:
Mr. Ni Sihai is currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal
representative, chairman and general manager.
SC is mainly
engaged in manufacturing, processing and selling activity room and ancillary
facilities, containers and container parts.
SC’s products mainly include: Gallery, Flat Pack Modular Building,
Modified Container House (Accommodation Units), Shipping Container, Steel
Structure House, Solutions, Accessories, Transportation, etc.
SC sources its materials 98% from domestic
market, and 2% from overseas market. SC sells 5% of its products in domestic
market, and 95% 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 refused to release its
main suppliers and clients.
SC
is not known to have any subsidiary at present.
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
Shanghai Huinan Town Sub-branch
AC#：450759231493
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
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As
of Dec. 31, 2012 |
|
Cash & bank |
28,310 |
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Inventory |
6,810 |
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Bills receivable |
0 |
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Accounts
receivable |
11,090 |
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Other Accounts
receivable |
58,780 |
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Advances to
suppliers |
0 |
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To be
apportioned expense |
0 |
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Other current
assets |
10 |
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------------------ |
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Current assets |
105,000 |
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Fixed assets net
value |
21,230 |
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Projects under
construction |
2,080 |
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Long-term investment |
0 |
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Intangible and
other assets |
20 |
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------------------ |
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Total assets |
128,330 |
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============= |
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Short loans |
55,000 |
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Accounts payable |
18,200 |
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Advance from
customers |
0 |
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Other Accounts
payable |
3,540 |
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Notes payable |
38,390 |
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Taxes payable |
-2,310 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
10 |
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------------------ |
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112,830 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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------------------ |
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Total
liabilities |
112,830 |
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Equities |
15,500 |
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------------------ |
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128,330 |
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============= |
Income Statement
Unit: CNY’000
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As of Dec. 31, 2012 |
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Turnover |
277,330 |
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Cost of goods sold |
252,020 |
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Profit from
other business |
480 |
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Sales expense |
10,510 |
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Management expense |
10,340 |
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Finance expense |
3,680 |
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Non-operating
income |
0 |
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Non-operating expense |
40 |
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Profit before
tax |
1,210 |
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Less: profit tax |
300 |
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Profits |
910 |
Note: The Financial Report for Year 2012 hasn’t
been audited.
Important Ratios
=============
|
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As
of Dec. 31, 2012 |
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*Current ratio |
0.93 |
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*Quick ratio |
0.87 |
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*Liabilities
to assets |
0.88 |
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*Net profit
margin (%) |
0.33 |
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*Return on
total assets (%) |
0.71 |
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*Inventory
/Turnover ×365 |
9 days |
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*Accounts
receivable/Turnover ×365 |
15 days |
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*Turnover/Total
assets |
2.16 |
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* Cost of
goods sold/Turnover |
0.91 |
PROFITABILITY:
AVERAGE
l The turnover of SC
appears fairly good in its line.
l SC’s net profit
margin is average.
l SC’s return on
total assets 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 fair
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’s short-term loan appears large in 2012.
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 short loans could be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.26 |
|
|
1 |
Rs.81.93 |
|
Euro |
1 |
Rs.70.21 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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 |
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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 |
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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.