MIRA
INFORM REPORT
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Report Date : |
17.10.2013 |
IDENTIFICATION DETAILS
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Name : |
SHANGHAI YINGZHI INDUSTRIAL CO., LTD |
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Registered Office : |
Rm. 2202, Yuanfu Building, No. 188,
Hongqiao Road, Xuhui District,
Shanghai, 200030 Pr |
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Country : |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
01.03.2005 |
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Com. Reg. No.: |
310120001650111 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
selling of mechanical equipment and plastics |
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No. of Employees : |
04 |
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 : |
Slow but Correct |
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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
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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
Shanghai Yingzhi Industrial Co., Ltd.
rm. 2202, yuanfu
building, no. 188, hongqiao road,
xuhui district,
shanghai, 200030 PR CHINA
TEL: 86 (0) 21-64287631 FAX: 86 (0) 21-64287637
EXECUTIVE SUMMARY
INCORPORATION DATE : mar. 1, 2005
REGISTRATION NO. : 310120001650111
REGISTERED LEGAL
FORM : lIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE :
Ms. zhang xiaoying (CHAIRMAN)
STAFF STRENGTH :
4
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 2,590,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 1,300,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.10 = 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 Mar. 1, 2005.
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 technology development,
technology consultation, technology services and technology transfer in the
field of construction and environmental protection; municipal engineering
construction and environmental engineering construction; interior decoration
design; wholesaling and retailing building materials, decoration materials,
hardware, electronics, wire & cable, instrument, communication equipment,
electro-mechanical equipment, mechanical equipment, vehicle parts, motorcycle
parts, rubber products and plastics; investment information consultation,
commercial information consultation, real estate information consultation,
investment management and import and export of goods and technologies.
SC is mainly
engaged in selling mechanical equipment and plastics.
Ms. Zhang Xiaoying
is legal representative and chairman of SC at present.
SC is known
to have approx. 4 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 information
of the premise is unspecified.
http://shanghaiyingzhi.diytrade.com/
The design is professional and the content is well organized. At present it is
only in Chinese version.
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Zhang Xiaoying 90
Zhang Xiaolu 10
Legal
representative & Chairman:
Ms. Zhang Xiaoying is currently responsible for the overall management
of SC.
Working
Experience(s):
At present Working in SC as legal representative and chairman
Also working in Shanghai Yingzhi Industrial Co., Ltd. Xuhui Branch as principal
SC is mainly
engaged in selling mechanical equipment and plastics.
SC’s products
mainly include: automatic measuring instruments.
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 customer and supplier
details.
SC
is known to have a branch at present:
Shanghai
Yingzhi Industrial Co., Ltd. Xuhui Branch
----------------------------------------------------------------
Registered
no.: 310104000324521
Principal:
Zhang Xiaoying
Date
of incorporation: 2005-08-22
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
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as
of Dec. 31, 2012 |
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Cash & bank |
480 |
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Inventory |
0 |
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Accounts
receivable |
720 |
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Advances to
suppliers |
10 |
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Other
receivables |
40 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
1,250 |
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Fixed assets net
value |
60 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
0 |
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------------------ |
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Total assets |
1,310 |
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============= |
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Short loans |
0 |
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Accounts payable |
0 |
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Other payable |
0 |
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Taxes payable |
10 |
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Other current liabilities |
0 |
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------------------ |
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Current
liabilities |
10 |
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Long term
liabilities |
0 |
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------------------ |
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Total
liabilities |
10 |
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Equities |
1,300 |
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------------------ |
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Total
liabilities & equities |
1,310 |
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============= |
Income Statement
Unit: CNY’000
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as of Dec. 31,
2012 |
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Turnover |
2,590 |
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Cost of goods
sold |
1,790 |
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Sales expense |
170 |
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Management expense |
240 |
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Finance expense |
0 |
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Profit before
tax |
390 |
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Less: profit tax |
0 |
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Profits |
390 |
Important Ratios
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as
of Dec. 31, 2012 |
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*Current ratio |
125 |
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*Quick ratio |
125 |
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*Liabilities
to assets |
0.01 |
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*Net profit
margin (%) |
15.06 |
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*Return on
total assets (%) |
29.77 |
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*Inventory
/Turnover ×365 |
/ |
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*Accounts
receivable/Turnover ×365 |
102 days |
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*Turnover/Total
assets |
1.98 |
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* Cost of
goods sold/Turnover |
0.69 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in its line.
l
SC’s net profit margin is good.
l
SC’s return on total assets is good.
l
SC’s cost of goods sold is average, 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
SC has no inventory in 2012.
l
The accounts receivable of SC appears large in
2012.
l
SC has no short-term loan 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 low.
l
The risk for SC to go bankrupt is average.
Overall financial condition of the SC:
Fairly stable.
SC is considered small-sized in its line with fairly stable financial
conditions. The large amount of accounts receivable could be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.69 |
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UK Pound |
1 |
Rs.98.59 |
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Euro |
1 |
Rs.83.67 |
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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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.