MIRA INFORM REPORT
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Report Date : |
14.09.2013 |
IDENTIFICATION DETAILS
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Name : |
SHANGHAI SMEC ENTERPRISE CO., LTD. |
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Registered Office : |
RM. |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
16.09.1992 |
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Com. Reg. No.: |
310115400004096 |
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Legal Form : |
Chinese-Foreign
Equity Joint Venture Enterprise |
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Line of Business : |
Import and export goods and
technology. |
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No. of Employees : |
33 |
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 |
|
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 and address
SHANGHAI SMEC ENTERPRISE CO., LTD.
RM.
NO. 268 SOUTH ZHONGSHAN ROAD, SHANGHAI 200010 PR CHINA
TEL: 86 (0) 21-51171632/51171562/51156622
FAX: 86 (0) 21-51171630
EXECUTIVE SUMMARY
Date of Registration : SEPTEMBER 16, 1992
REGISTRATION NO. : 310115400004096
LEGAL FORM : CHINESE-FOREIGN
EQUITY JOINT VENTURE ENTERPRISE
CHIEF
EXECUTIVE :
Yong Yaxun (LEGAL REPRESENTATIVE)
REGISTERED
CAPITAL : usd 2,600,000
staff :
33
BUSINESS
CATEGORY : storage & TRADING
Revenue :
CNY 30,510,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 25,400,000 (AS OF DEC. 31,
2012)
WEBSITE :
N/A
E-MAIL :
smecet@smec.net
PAYMENT :
AVERAGE
MARKET
CONDITION :
AVERAGE
FINANCIAL
CONDITION : fairly
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
Not yet be determined
LEGAL STATUS & HISTORY
SC was established as a
Chinese-foreign equity joint venture enterprise of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.: 310115400004096 on September 16, 1992.
SC’s
Organization Code Certificate No.: 60725460-5
SC’s
registered capital: usd
2,600,000
SC’s
paid-in capital: usd
2,600,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Registration No. |
300642 |
310115400004096 |
Current Co search indicates
SC’s shareholders & chief executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Shanghai Electric International
Economic & Trading Co., Ltd. |
75 |
|
Hong Kong Yadeng Investment Co., Ltd. |
25 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Yong Yaxun |
|
General Manager |
Wang Rong |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Shanghai Electric International
Economic & Trading Co., Ltd. 75
Hong Kong Yadeng Investment Co.,
Ltd. 25
Shanghai Electric International
Economic & Trading Co., Ltd.
=========================
Shanghai Electric International Economic & Trading Co., Ltd. (SEIC), a key company affiliated to Shanghai Electric Group Co., Ltd. (SEGC), specializes in international trade and investment.
SEIC possesses comprehensive function of international trade, including the import and export of mechanic and electric products, processing trade, transfer trade and service trade.
Registration No.: 310106000052274
Legal Form: One-Person Limited Liability Company
Chief Executive: Mr. Chen Jiaming (Chairman)
Registered Capital: CNY
350,000,000
Tel: +86 21 51156622
Fax: +86 21 51154999
Email: smec@smec.net
Web: www.smec.net
MANAGEMENT
Yong Yaxun, Legal Representative and Chairman
----------------------------------------------------------------------------
Gender: M
Age:
Qualification: University
Working experience (s):
From 1992 to present, working in SC as legal representative and chairman
Wang Rong, General Manager
------------------------------------------------
Gender: M
Age:
Qualification: University
Working experience (s):
At present, working in SC as general manager
BUSINESS OPERATION
SC’s registered business scope includes processing and assembling electromechanical products, international trade, trade in the zone and acting as a trade agent; import and export goods and technology (excluding distribution and the items prohibited by the state); storage in the zone; and operating relate plants and offices.
SC is mainly engaged in storage and importing & exporting business.
SC’s products mainly include:
electromechanical products and chemicals.
SC sources its materials 98% from domestic market, and 2% from overseas market, mainly Europe. SC sells 48% of its products in domestic market, and 52% 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.
*Major Customers:
==============
Mid Mountain Materials Inc.
Chidaca Int-L Canada Inc.
Staff & Office:
--------------------------
SC is known to
have approx. 33 staff at
present.
SC rents an area as its operating office, but the detailed information is unknown.
RELATED COMPANY
SC is not known to have any subsidiary at present.
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
Basic Bank:
Industrial & Commercial Bank
of China Shanghai Waigaoqiao Free Trade Zone Sub-branch
AC#: 1001279909016200958
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
13,970 |
17,650 |
|
|
Notes receivable |
0 |
0 |
|
Accounts receivable |
200 |
260 |
|
Advances to suppliers |
1,050 |
1,830 |
|
Other receivable |
170 |
410 |
|
Inventory |
0 |
0 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
15,390 |
20,150 |
|
Fixed assets |
8,640 |
8,220 |
|
Construction in progress |
0 |
0 |
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Intangible assets |
4,960 |
4,810 |
|
Deferred income tax assets |
0 |
0 |
|
Other non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
28,990 |
33,180 |
|
|
============= |
============= |
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Short-term loans |
0 |
0 |
|
Accounts payable |
80 |
930 |
|
Accrued payroll |
2,270 |
2,620 |
|
Advances from clients |
1,080 |
3,050 |
|
Other payable |
300 |
760 |
|
Other current liabilities |
300 |
420 |
|
|
------------------ |
------------------ |
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Current liabilities |
4,030 |
7,780 |
|
Non-current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Total liabilities |
4,030 |
7,780 |
|
Equities |
24,960 |
25,400 |
|
|
------------------ |
------------------ |
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Total liabilities & equities |
28,990 |
33,180 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
Revenue |
18,310 |
30,510 |
|
Cost of sales |
5,300 |
14,653 |
|
Taxes and surcharges |
670 |
530 |
|
Sales expense |
7,160 |
9,820 |
|
Management expense |
4,850 |
5,030 |
|
Finance expense |
-40 |
60 |
|
Profit before tax |
370 |
440 |
|
Less: profit tax |
250 |
0 |
|
120 |
440 |
Important Ratios
=============
|
|
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
*Current ratio |
3.82 |
2.59 |
|
*Quick ratio |
3.82 |
2.59 |
|
*Liabilities to assets |
0.14 |
0.37 |
|
*Net profit margin (%) |
0.66 |
1.44 |
|
*Return on total assets (%) |
0.41 |
1.33 |
|
*Inventory / Revenue ×365 |
-- |
-- |
|
*Accounts receivable/ Revenue ×365 |
4 days |
4 days |
|
* Revenue/Total assets |
0.63 |
0.92 |
|
* Cost of sales / Revenue |
0.29 |
0.48 |
FINANCIAL COMMENTS
PROFITABILITY: AVERAGE
The revenue of SC appears average in its line.
SC’s net profit margin is average in both years.
SC’s return on total assets is average in both years.
SC’s cost of sales is low, comparing with its revenue.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a fairly good level.
SC’s quick ratio is maintained in a fairly good level.
SC has no inventory in both years.
The accounts receivable of SC appears small.
SC has no short-term loans in both years.
SC’s revenue is in a fair level, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
The debt ratio of SC is low.
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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.79 |
|
|
1 |
Rs.100.70 |
|
Euro |
1 |
Rs.84.67 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
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.