MIRA INFORM REPORT
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Report Date : |
14.10.2013 |
IDENTIFICATION DETAILS
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Name : |
FILO COLOUR & CHEMICALS (SHANGHAI) CO.,
LTD. |
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Registered Office : |
Building A8, No. 298, Alley 3509, Hongmei South Road, Minhang
District, Shanghai, 201108 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
05.08.2004 |
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Com. Reg. No.: |
310000400392955 |
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Legal Form : |
Wholly Foreign Owned Enterprise |
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Line of Business : |
selling of pigment, dyestuff, dyeing and printing
auxiliary |
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No. of Employees : |
21 |
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) |
|
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.
|
Source : CIA |
Company name & address
FILO COLOUR & CHEMICALS
(SHANGHAI) CO., LTD.
BUILDING A8, NO. 298, ALLEY 3509, HONGMEI SOUTH ROAD,
MINHANG DISTRICT, SHANGHAI, 201108 PR CHINA
TEL: 86 (0) 21-54402025
FAX: 86 (0) 21-54405363
EXECUTIVE SUMMARY
Date of Registration : AUGust 5, 2004
REGISTRATION NO. : 310000400392955
LEGAL FORM : WHOLLY FOREIGN OWNED ENTERPRISE
CHIEF EXECUTIVE : LI JUNLONG (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL :
USD 1,050,000
staff : 21
BUSINESS CATEGORY : TRADING
Revenue :
CNY 28,561,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 20,604,000 (AS OF DEC. 31, 2012)
WEBSITE : www.filocolor.com
E-MAIL :
shanghai@filocolor.com
PAYMENT : AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : failry stable
OPERATIONAL TREND :
fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.12 = 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 wholly foreign owned enterprise of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.: 310000400392955 on August 5, 2004.
SC’s Organization Code Certificate No.:
76557624-7
%20CO%20,%20LTD%20%20-%20239231%2014-Oct-2013_files/image003.jpg)
SC’s Tax No.: 310112765576247
SC’s Customs Registration No.:
3111941271
SC’s registered capital: USD 1,050,000
SC’s paid-in capital: USD 1,050,000
Registration Change Record:
|
Date |
Change
of Contents |
Before the change |
After the change |
|
2009-2 |
Shareholder (s) (% of
Shareholding) |
Li Junlong 60% Wu Lihua 20% Li Boyi 20% |
Li Junlong 40% Wu Lihua 40% Li Boyi 20% |
Current Co search indicates SC’s shareholders & chief executives
are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Li Junlong (Hong Kong) |
40 |
|
Wu Lihua (Taiwan) |
40 |
|
Li Boyi (Taiwan) |
20 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Li Junlong |
|
General Manager |
Li Boyi |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name
%
of Shareholding
Li Junlong (Hong Kong) 40
Wu Lihua (Taiwan) 40
Li Boyi (Taiwan) 20
MANAGEMENT
Li Junlong , Legal
Representative and Chairman
--------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 66
Ø
Nationality: Hong Kong
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal
representative and chairman
Li Boyi
, General Manager
----------------------------------------------
Ø Gender: M
Ø Age: 34
Ø Nationality: Taiwan
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as general
manager
BUSINESS
OPERATION
SC’s registered business scope includes researching, developing,
processing pigment, dyestuff, dyeing and printing auxiliary,
selling self-made products. (setting up branches for processing) (with permit
if needed).
SC is mainly
engaged in selling pigment, dyestuff, dyeing and printing
auxiliary.
Brand: FCC
SC’s
products mainly include: Reactive dyes, Disperse dyes, Acid dyes, etc.
SC sources its products 80% from domestic market and 20% from the overseas market, mainly Hong Kong. SC sells 100% in domestic market.
The
import & export status of SC in 2012 is as follows,
|
Country |
Amount
of Exports (USD) |
Amount of Imports (USD) |
|
Hong Kong |
-- |
490,000 |
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 and Credit of 30-60 days.
*Major Customer:
=============
Zhejiang Qingfeng Textile & Dyeing Co.,
Ltd.
*Major Supplier:
=============
Taizhou Zhengang Dyestuff Chemical Co., Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 21 staff
at present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
RELATED
COMPANY
· Filo Colour & Chemicals (Wuxi) Co., Ltd.
· Sunny-Chem Colours (HK) Limited
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’s supplier
refused to make any comments.
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
Basic Bank:
Industrial and
Commercial Bank of China Meilong Sub-branch
AC#:
1001715009016212176
First Sino Bank
AC#:
404317-01200011231
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
|
6,321 |
|
|
Notes receivable |
62 |
|
Accounts receivable |
8,302 |
|
Advances to
suppliers |
321 |
|
Other receivable |
74 |
|
Inventory |
9,432 |
|
Non-current
assets within one year |
0 |
|
Other current
assets |
2 |
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|
------------------ |
|
Current assets |
24,514 |
|
Fixed assets |
637 |
|
Long-term prepaid
expenses |
0 |
|
Deferred income
tax assets |
0 |
|
Other
non-current assets |
0 |
|
|
------------------ |
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Total assets |
25,151 |
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|
============= |
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Short-term loans |
0 |
|
Notes payable |
0 |
|
Accounts payable |
3,948 |
|
Advances from
clients |
375 |
|
Other payable |
102 |
|
Other current
liabilities |
122 |
|
|
------------------ |
|
Current
liabilities |
4,547 |
|
Non-current
liabilities |
0 |
|
|
------------------ |
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Total
liabilities |
4,547 |
|
Equities |
20,604 |
|
|
------------------ |
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Total
liabilities & equities |
25,151 |
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|
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
|
Revenue |
28,561 |
|
Cost of sales |
23,784 |
|
Sales expense |
1,139 |
|
Management expense |
2,712 |
|
Finance expense |
-11 |
|
Profit before
tax |
854 |
|
Less: profit tax |
222 |
|
632 |
Important Ratios
=============
|
|
As
of Dec. 31, 2012 |
|
*Current ratio |
5.39 |
|
*Quick ratio |
3.32 |
|
*Liabilities
to assets |
0.18 |
|
*Net profit
margin (%) |
2.21 |
|
*Return on total
assets (%) |
2.51 |
|
*Inventory /
Revenue ×365 |
121 days |
|
*Accounts
receivable/ Revenue ×365 |
107 days |
|
*
Revenue/Total assets |
1.14 |
|
* Cost of
sales / Revenue |
0.83 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC appears average 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 average, comparing with its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a fairly
good level.
l
SC’s quick ratio is maintained in a fairly good
level.
l
The inventory of SC appears large.
l
The accounts receivable of SC appears large.
l
SC has no short-term loans.
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered small-sized in its line with
fairly stable financial conditions. The large amount of inventory and accounts
receivable may be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.16 |
|
UK Pound |
1 |
Rs.97.77 |
|
Euro |
1 |
Rs.82.78 |
INFORMATION DETAILS
|
Report
Prepared by : |
MNL |
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 |
|
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.