MIRA
INFORM REPORT
|
Report Date : |
27.11.2013 |
IDENTIFICATION DETAILS
|
Name : |
ETERNAL ASIA SUPPLY CHAIN MANAGEMENT LTD. |
|
|
|
|
Formerly Known
as: |
Shenzhen Eternal
Asia Commercial & Trade Co., Ltd. |
|
|
|
|
Registered Office : |
27f International
Culture Building, No. 3039, Shennan Middle Road, Futian District, Shenzhen,
Guangdong Province 518033 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
30.09.2013 |
|
|
|
|
Date of Incorporation : |
10.11.1997 |
|
|
|
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Com. Reg. No.: |
440301501127886 |
|
|
|
|
Legal Form : |
Shares Limited Company |
|
|
|
|
Line of Business : |
Subject is
engaged in providing of
outsourcing services and supply chain services including purchase
fulfillment, import & export customs clearance service, bonded logistics
service, consulting service for supply chain solution. |
|
|
|
|
No. of Employees : |
3,169 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
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 – September 30th, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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.
|
Source : CIA |
Company name & address
ETERNAL ASIA
SUPPLY CHAIN MANAGEMENT LTD.
27F INTERNATIONAL CULTURE BUILDING, NO. 3039, SHENNAN MIDDLE ROAD
FUTIAN DISTRICT, SHENZHEN, GUANGDONG PROVINCE 518033 PR CHINA
TEL: 86 (0) 755-88393198
FAX: 86 (0) 755-83663778
EXECUTIVE SUMMARY
Date of Registration : november 10, 1997
REGISTRATION NO. : 440301501127886
LEGAL FORM : SHARES LIMITED
COMPANY
CHIEF EXECUTIVE : ZHOU GUOHUI (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 986,126,000
staff : 3,169
BUSINESS CATEGORY : SUPPLY CHAIN SERVICE
REVENUE : CNY 3,279,166,000 (JAN. 1 2013 TO SEP. 30,
2013)
EQUITIES :
CNY 2,407,949,000 (AS OF SEP. 30, 2013)
WEBSITE : www.eascs.com
E-MAIL : 002183@eascs.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : fairly good
EXCHANGE RATE : CNY 6.10 = 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
LEGAL STATUS & HISTORY
SC was established
as a limited liabilities company of PRC on November 10, 1997. However, SC changed to present legal form, and was
registered as shares limited company
of PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 440301501127886
on March 30, 2004.
SC’s Organization Code Certificate No.:
27939840-6
SC’s Tax No.: 440301279398406
SC’s registered capital: CNY 986,126,000
SC’s paid-in capital: CNY 986,126,000
Registration Change Record:-
|
Date |
Change
of Contents |
Before
the change |
After
the change |
|
2004-3-30 |
Company
Name |
Shenzhen
Eternal Asia
Commercial & Trade Co., Ltd. |
Eternal
Asia Supply Chain Management Ltd. |
|
Legal Form |
Limited Liabilities Company |
Shares Limited
Company |
|
|
Registered Capital |
CNY 20,000,000 |
CNY 70,822,231 |
|
|
2007-2-12 |
Registered Capital |
CNY 70,822,231 |
CNY 92,574,258 |
|
2008-4-8 |
Registered Capital |
CNY 92,574,258 |
CNY 123,574,258 |
|
2008-10-9 |
Registered Capital |
CNY 123,574,258 |
CNY 247,148,516 |
|
2009-9-14 |
Registered Capital |
CNY 247,148,516 |
CNY
370,722,774 |
|
2010-7-21 |
Registered Capital |
CNY
370,722,774 |
CNY
556,084,161 |
|
2011-7-5 |
Registered Capital |
CNY
556,084,161 |
CNY 834,126,241 |
|
2013-7-17 |
Registered Capital |
CNY 834,126,241 |
CNY
986,126,000 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) (as
of September 30, 2013) |
% of Shareholding |
|
Shenzhen Eternal Asia Investment Holding Co.,
Ltd. |
41.89 |
|
Donghai Funds Co.-Industrial
and Commercial Bank of China-Donghai Funds-Haijie-Xinlong No.3 Asset
Management Plan |
4.77 |
|
Tibet United Elite
Technology Co., Ltd. |
3.79 |
|
Changjiang Securities Co.,
Ltd. |
3.04 |
|
Saif II Mauritius (China
Investments) Limited |
2.53 |
|
Shenzhen Innovation Capital
Investment Co., Ltd. |
2.17 |
|
Guohua Life Insurance Co.,
Ltd.-Wanneng No. 1 |
1.83 |
|
Donghai Securities-Bank of
Communications-Dongfeng No. 5 Aggregate Asset Management Plan |
0.89 |
|
Donghai Securities Co.,
Ltd.-China Construction Bank-Dongfeng No. 3 Aggregate Asset Management Plan |
0.61 |
|
Bank of China-Dacheng Fortune
Management 2020 Life Cycle Security investment fund |
0.61 |
|
Bank of China- Dacheng Blue Chip. Steady Securities Investment Fund |
0.61 |
|
Other shareholders |
37.26 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman
and General Manager |
Zhou Guohui |
|
Vice Chairman |
Chen
Weimin |
|
Independent Director |
Cao
Dieyun |
|
Mo
Shaoxia |
|
|
Xu
Jingan |
|
|
Zhou
Chengxin |
|
|
Director |
Feng Junhong |
RECENT
DEVELOPMENT
SC is a listed company in Shenzhen Stock Exchange Market with the code
of 002183.
Year 2009,
Awarded “The Best Business Mode of China in the 21st Century”
Awarded “Top 100 Tax Private Enterprises, 2009” in Futian District
Awarded “Logistics Statistic Sample Enterprise, 2009”
Awarded “Top 100 Logistics Enterprises of China”
Year 2008,
Awarded “Famous Brand in Shenzhen”
Awarded “Top 100 Tax Private Enterprises, 2008” in Futian District
Award “Leading Key Private Enterprise of Futian District, 2008”
Awarded “Best Innovative Logistics Enterprise”
Awarded “Top 100 Logistics Enterprises of China” (the 19th)
Awarded “The Second Prize of Advanced Enterprise of Guangdong Province
Foreign Trade & Economy Commission”
Year 2007,
Awarded “Zero2IPO·China Top 50 Most-Valuable Enterprises” (the 31st)
Awarded “Top 100 Tax Private Enterprises, 2007” in Futian District
Awarded “Top 10 Tax Enterprises, 2007” of Huanggang Customs
Awarded “Coordinator-System Enterprise”
Awarded “Most Competitive Brand of Shenzhen Logistics Industry, 2007”
Awarded “Top 500 Private Enterprise of China” (rank the 11th)
Award “Leading Key Private Enterprise of Shenzhen”
Awarded “Shenzhen Key Logistics Enterprise”
Awarded “Top 10 Innovative Logistics Enterprises of Shenzhen High-end
Service” in 2007
Awarded “Top 10 Logistics Enterprises, 2007”
Awarded “Top 10 Persons of Shenzhen Logistics Industry” in 2007
Awarded “Advanced Unit of Futian District Foreign Trade and Economy,
Shenzhen”
Year 2006,
Rank the 25th of the first “Top Enterprise in China” of Forbes
Rank No.1 Import & Export of the Non-Production Enterprises of the
Capital Airport Customs
Awarded “Top 100 Tax Private Enterprises, 2006” in Futian District
Awarded “Top Logistics and Supply Chain Enterprise Received by Shenzhen
Industrial and Commercial Enterprises”
Awarded “Top 10 Innovative Logistics Enterprises of Shenzhen High-end
Service” in 2006
Awarded “Excellent Private Enterprise of Guangdong Province”
SHAREHOLDER CHART & BACKGROUND
Name (as of September 30, 2013) % of Shareholding
MANAGEMENT
Zhou Guohui, Legal Representative, Chairman and General Manager
-----------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 40’s
Ø
Qualification:
Master Degree
Ø
Working
experience (s):
From 1988 to 1993, worked in Shenzhen ExSaf Electronics Co., Ltd. as general manager
From 1993 to 1996, worked in Shenzhen Zhixing Computer Technology Co. as general manager
At present, working in SC as legal representative, chairman and general manager
Chen
Weimin, Vice Chairman
--------------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as vice chairman
Independent Director
---------------------------
Cao Dieyun
Mo Shaoxia
Xu Jingan
Zhou Chengxin
Director
-----------
Feng Junhong
BUSINESS
OPERATION
SC’s registered
business scope includes domestic commerce, Pre-packaged foods, dairy products,
wholesale; computer hardware and software development; business management
consulting; wholesale, import, export and related business of fuel oil; the
purchase and sale of gold, silver, K gold, platinum, palladium, gold, diamonds,
jewelry and other jewelries; import and export business, supply chain
management and related support services.
SC is mainly
engaged in providing outsourcing services and supply chain services.
SC’s services
mainly include: purchase fulfillment, import & export customs clearance
service, bonded logistics service, consulting service for supply chain
solution, etc.
SCS Platform:
About Platform
Capabilities
Domestic Network
Global Network
Partner
Video Online
Production-Oriented
SCS
Consumption-Oriented
SCS
Product
Integration SCS
Global Procurement
Center
SC sources its materials 50%
from domestic market, and 50% from overseas market. SC sells 60% of its
products in domestic market, and 40% 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.
Staff & Office:
--------------------------
SC is
known to have approx. 3,169
staff at present.
SC
owns an area as its operating office and factory, but the detailed information
is unknown.
RELATED COMPANY
SC is
known to have the following subsidiaries:
·
Eternal Asia (HK)
Limited
·
Shanghai Eternal Asia Lingang Supply Chain Ltd.
·
Shanghai Yushang Supply Chain Management Ltd.
·
Shenzhen Weiyi Electric Co., Ltd.
· Shenzhen Eternal Asia Ming Jiu Supply Chain Management Co., Ltd.
(Hong Kong) EA Display Limited
(Hong Kong) EA Communications Limited
· Shenzhen Yushangwang Technology Co, Ltd.
· Shenzhen Yi An’te Security Equipment Co., Ltd.
· Shenzhen Runyi International Trade Co., Ltd.
· Xinyi (Shenzhen) Communication Products Co., Ltd.
· Wandian Technology (Jiujiang) Co., Ltd.
· Changyi Technology (Jiujiang) Co., Ltd.
· Changyi Electric (Shenzhen) Co., Ltd.
(Hong Kong) EA Time Limited
· Shenzhen Eternal Asia Logistics Co., Ltd.
· Eternal Asia Supply Chain Management (M) SDN. BHD. (Malaysia)
· Eternal Asia Supply Chain Management (India) Private Limited
· Eternal Asia Supply Chain Management (S) PTE. LTD. (Singapore)
· Eternal Asia Supply Chain Management USA Corp.
· Eternal Asia Supply Chain Management GmbH
Etc.
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 local SAIC.
FINANCIALS
Consolidated Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
As
of Sep. 30, 2013 |
|
4,820,060 |
2,819,191 |
|
|
Held for trading financial assets |
23,735 |
34,043 |
|
Notes receivable |
90,982 |
80,709 |
|
Accounts
receivable |
1,953,037 |
3,695,033 |
|
Advances to
suppliers |
510,561 |
671,697 |
|
Interest
receivable |
76,767 |
24,559 |
|
Other receivable |
125,960 |
178,000 |
|
Inventory |
951,498 |
1,689,691 |
|
Other current
assets |
126,521 |
203,215 |
|
|
------------------ |
------------------ |
|
Current assets |
8,679,121 |
9,396,138 |
|
Financial assets
available for sale |
213,462 |
712,764 |
|
Granting loans
and advances |
404,965 |
229,941 |
|
Long-term
receivables |
11,792 |
77,599 |
|
Long-term equity
investment |
247 |
100 |
|
Fixed assets |
470,300 |
474,497 |
|
Construction in
progress |
419,046 |
491,050 |
|
Intangible
assets |
150,668 |
148,018 |
|
Goodwill |
9 |
9 |
|
Long-term
prepaid expenses |
91,564 |
88,132 |
|
Deferred income
tax assets |
23,612 |
16,760 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
10,464,786 |
11,635,008 |
|
|
============= |
============= |
|
Short-term loans |
5,849,133 |
6,136,605 |
|
Held for trading
financial liabilities |
36,845 |
28,570 |
|
Notes payable |
1,119,338 |
947,640 |
|
Accounts payable |
536,494 |
457,961 |
|
Advances from
clients |
235,119 |
265,429 |
|
Payroll payable |
26,802 |
19,414 |
|
Tax payable |
61,734 |
65,128 |
|
Interest payable |
31,146 |
20,922 |
|
Dividend payable |
0 |
2,308 |
|
Other payable |
91,183 |
141,060 |
|
Current
liabilities due within one year |
47,775 |
122,016 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
8,035,569 |
8,207,053 |
|
Non-current
liabilities |
901,688 |
1,020,006 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
8,937,257 |
9,227,059 |
|
Equities |
1,527,529 |
2,407,949 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
10,464,786 |
11,635,008 |
|
|
============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
Jan.
1 2013 to Sep. 30, 2013 |
|
Revenue |
7,554,701 |
3,279,166 |
|
Cost of sales |
6,651,569 |
2,953,581 |
|
Taxes and Surcharges |
24,177 |
6,403 |
|
Sales expense |
72,055 |
24,054 |
|
Management expense |
531,064 |
151,219 |
|
Finance expense |
130,321 |
56,523 |
|
Investment
income |
316 |
-14,503 |
|
Non-operating
income |
12,786 |
1,338 |
|
Non-operating expense |
2,979 |
776 |
|
Profit before
tax |
158,460 |
68,266 |
|
Less: profit tax |
28,476 |
12,623 |
|
Profits |
129,984 |
55,643 |
Important Ratios
=============
|
|
As of Dec. 31, 2012 |
As of Sep. 30, 2013 |
|
*Current ratio |
1.08 |
1.14 |
|
*Quick ratio |
0.96 |
0.94 |
|
*Liabilities
to assets |
0.85 |
0.79 |
|
*Net profit
margin (%) |
1.72 |
1.70 |
|
*Return on
total assets (%) |
1.24 |
0.48 |
|
*Inventory /
Revenue ×365/270 |
46
days |
140 days |
|
*Accounts
receivable / Revenue ×365/270 |
95
days |
305 days |
|
*Revenue /
Total assets |
0.72 |
0.28 |
|
*Cost of sales
/ Revenue |
0.88 |
0.90 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears
fairly good.
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 average, comparing with
its revenue.
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 average.
l
The accounts receivable of SC appears fairly large.
l
The short-term loans of SC appear large.
l
SC’s revenue is in a fair
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 low.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable
financial conditions. The large amount of short-term loans may be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.45 |
|
UK Pound |
1 |
Rs.100.86 |
|
Euro |
1 |
Rs.84.50 |
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 |
|
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.