MIRA
INFORM REPORT
|
Report Date : |
18.08.2014 |
IDENTIFICATION DETAILS
|
Name : |
ITOCHU SHANGHAI LTD. |
|
|
|
|
Registered Office : |
56/F |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
30.06.2014 |
|
|
|
|
Date of Incorporation : |
22.05.1992 |
|
|
|
|
Com. Reg. No.: |
310115400002316 |
|
|
|
|
Legal Form : |
Wholly foreign-owned enterprise |
|
|
|
|
Line of Business : |
Subject is engaged in processing and trade advisory services in
the free trade zone, wholesale and commission agents of pre-packaged foods,
grain products, dairy products, plastic film, chemical fertilizer, steel and
its products, minerals, metals and metal products, chemical products and raw
materials, synthetic resins, natural rubber, rubber and its products, soil
and livestock, timber and timber products, paper and paper, construction
materials, daily necessities, textile raw materials and textile products,
electrical equipment, home appliances, electronic communications equipment
and parts, arts and crafts, medical equipment, providing related ancillary
services, real estate advisory services, trade advisory services,
international trade |
|
|
|
|
No. of Employees |
361 |
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 : |
Satisfactory |
|
Payment Behaviour : |
Slow but correct |
|
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 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
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, growth of the private sector, development of stock markets and a modern banking system, 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 considered important to "economic security," explicitly looking to foster globally competitive industries. After keeping its currency tightly linked to the US dollar for years, in July 2005 China 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 and expanded the daily trading band within which the RMB is permitted to fluctuate. 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 2013 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 consumption; (b) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and increasing numbers of college graduates; (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. Several factors are converging to slow China's growth, including debt overhang from its credit-fueled stimulus program, industrial overcapacity, inefficient allocation of capital by state-owned banks, and the slow recovery of China's trading partners. The government's 12th Five-Year Plan, adopted in March 2011 and reiterated at the Communist Party's "Third Plenum" meeting in November 2013, emphasizes continued economic reforms and the need to increase domestic consumption in order to make the economy less dependent in the future on fixed investments, exports, and heavy industry. However, China has made only marginal progress toward these rebalancing goals. The new government of President XI Jinping has signaled a greater willingness to undertake reforms that focus on China's long-term economic health, including giving the market a more decisive role in allocating resources.
|
Source
: CIA |
Company name and address
ITOCHU SHANGHAI LTD.
56/F SHANGHAI WORLD FINANCIAL CENTER, NO. 100 CENTURY AVENUE
PUDONG NEW AREA, SHANGHAI 200120 PR CHINA
TEL: 86 (0) 21-68776688
FAX: 86 (0) 21-20212135
EXECUTIVE SUMMARY
DATE OF REGISTRATION : MAY 22, 1992
REGISTRATION NO. : 310115400002316
LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE
CHIEF EXECUTIVE : KOSEKI SHUICHI (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : USD 105,100,000
STAFF : 361
BUSINESS CATEGORY : TRADING
REVENUE : CNY 7,707,195,000 (JAN. 1 2014 TO JUN 30, 2014)
EQUITIES : CNY 1,006,864,000 (AS OF JUN 30, 2014)
WEBSITE : N/A
E-MAIL : N/A
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : FAIRLY GOOD
EXCHANGE RATE : CNY 6.16 = 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 wholly foreign-owned enterprise of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 310115400002316 on May 22, 1992.
SC’s Organization Code Certificate No.: 60722738-3
SC’s Tax No.: 310141607227383
SC’s registered capital: usd 105,100,000
SC’s paid-in capital: usd 105,100,000
Registration Change Record:-
No significant changes of SC have been noted in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Itochu China Holding Co., Ltd. |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Koseki Shuichi |
|
General Manager |
Shangtian Mingyu |
|
Director |
Gaojing Yanzhi |
|
Tu Qiaohuang |
|
|
Qi Tenghuang |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name % of Shareholding
Itochu China Holding Co., Ltd. 100
-------------------------------------
Date of Registration: September 8, 1993
Registration No.: 100000400004047
Legal Form: Wholly Foreign-Owned
Chief Executive: Koseki Shuichi
Address: Unit 501, 5/F, No. 2
Tel: 86 (0) 10-65997000/65997052
Fax: 86 (0) 10-65997111
Web: www.itochu.com.cn
MANAGEMENT
Koseki Shuichi Legal Representative and Chairman
----------------------------------------------------------------------------------
Gender: M
Nationality: Japan
Qualification: University
Working experience (s):
At present, working in SC as legal representative and chairman, also working in Itochu China Holding Co., Ltd. as legal representative
Shangtian Mingyu General Manager
---------------------------------------------------------------
Gender: M
Nationality: Japan
Qualification: University
Working experience (s):
From May of 2014 to present, working in SC as general manager
Director
----------
Gaojing Yanzhi
Tu Qiaohuang
Qi Tenghuang
BUSINESS OPERATION
SC’s registered business scope includes international trade and transiting trade in the free trade zone, trade and trade agent between the enterprises in the free trade zone, commercial simple processing and trade advisory services in the free trade zone, wholesale and commission agents of pre-packaged foods, grain products, dairy products, plastic film, chemical fertilizer, steel and its products, minerals, metals and metal products, chemical products and raw materials, synthetic resins, natural rubber, rubber and its products, soil and livestock, timber and timber products, paper and paper, construction materials, daily necessities, textile raw materials and textile products, electrical equipment, home appliances, electronic communications equipment and parts, arts and crafts, medical equipment, providing related ancillary services, real estate advisory services, trade advisory services, international trade.
SC is mainly engaged in international trade.
SC’s products mainly include: sanitary ware, tiles, concrete slab, kitchen products, wood, metal materials, etc.
SC sources its materials 100% from domestic market, mainly Jiangsu. SC sells 75% of its products in domestic market, and 25% to overseas market, mainly U.S.A., Europe, Mid East, Southeast Asia, etc.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Customer:
=============
Itochu Plastics Inc.
Staff & Office:
--------------------------
SC is known to have approx. 361 staff at present.
SC rents an area as its operating office, but the detailed information is unknown.
RELATED COMPANY
SC is known to have 5 branches at present,
Itochu Shanghai Ltd. Pudong New Area Branch
Itochu Shanghai Ltd. Zhangjiagang Free Trade Zone Branch
Itochu Shanghai Ltd. Ningbo Free Trade Zone Branch
Itochu Shanghai Ltd. Wuhan Branch
Itochu Shanghai Ltd. Nanjing Branch
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 SAIC.
FINANCIALS
Financial Summary
|
Unit: CNY’000 |
As of Jun 30, 2014 |
|
Current assets |
3,684,842 |
|
Long term investment |
48,700 |
|
Fixed assets |
2,299 |
|
Intangible assets |
4,016 |
|
|
------------- |
|
Total assets |
3,739,857 |
|
|
------------- |
|
Current liabilities |
2,692,015 |
|
Long term liabilities |
40,978 |
|
|
------------- |
|
Total liabilities |
2,732,993 |
|
Equities |
1,006,864 |
|
|
------------- |
|
Unit: CNY’000 |
Jan. 1, 2014 to Jun 30, 2014 |
|
Revenue |
7,707,195 |
|
Cost of sales |
7,637,768 |
|
Profit before tax |
-27,628 |
|
Less: profit tax |
-6,424 |
|
Profits |
-21,204 |
Important Ratios
=============
|
|
As of Jun 30, 2014 |
|
*Current ratio |
1.37 |
|
*Liabilities to assets |
0.73 |
|
*Net profit margin (%) |
-0.28 |
|
*Return on total assets (%) |
-0.57 |
|
* Revenue/Total assets |
2.06 |
|
* Cost of sales / Revenue |
0.99 |
FINANCIAL COMMENTS
PROFITABILITY: FAIR
The revenue of SC appears fairly good in its line.
SC’s net profit margin is fair.
SC’s return on total assets is fair.
SC’s cost of sales is fairly high, comparing with its revenue.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s revenue is in an average level, comparing with the size of its total assets.
LEVERAGE: FAIRLY GOOD
The debt ratio of SC is average.
The risk for SC to go bankrupt is low
Overall financial condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered large-sized in its line with fairly stable financial conditions. Taking into consideration of SC’s good background.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.06 |
|
|
1 |
Rs.101.84 |
|
Euro |
1 |
Rs.81.56 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUM |
|
|
|
|
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.