MIRA
INFORM REPORT
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Report Date : |
29.12.2014 |
IDENTIFICATION DETAILS
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Name : |
Zhejiang Shenglong
Decoration Material Co., Ltd. |
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Registered Office : |
Guafan, Linglong Economic Development District, Lin’an, |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
19.11.1996 |
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Com. Reg. No.: |
330100400049498 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Processing and selling decorative paper, gravure Jane, melamine plate,
plastic products; importing and exporting the above stated products and
materials (in accordance with the permit) |
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No. of Employee : |
160 |
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 : |
Unknown |
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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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
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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, 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 & address
Zhejiang Shenglong Decoration Material Co.,
Ltd.
Guafan, Linglong ECONOMIC DEVELOPMENT district,
Lin’an,
Zhejiang PROVINCE, 311301 PR CHINA
TEL: 86 (0) 571-63802192/63800072 FAX: 86 (0) 571-63802191
EXECUTIVE SUMMARY
INCORPORATION DATE : NOV. 19, 1996
REGISTRATION NO. : 330100400049498
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE
ENTERPRISE
CHIEF EXECUTIVE :
MR. Sheng yingming (CHAIRMAN)
STAFF STRENGTH :
160
REGISTERED CAPITAL : CNY
20,650,000
BUSINESS LINE :
MANUFACTURING & trading
TURNOVER :
CNY 112,970,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 37,740,000 (AS OF DEC. 31, 2011)
PAYMENT :
unknown
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly STABLE (AS OF DEC. 31, 2011)
OPERATIONAL TREND : STEADY (AS OF DEC. 31, 2011)
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.22 = 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 Nov. 19, 1996 and has been under present ownership since Feb. of
2014.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered business scope includes processing and selling
decorative paper, gravure Jane, melamine plate, plastic products; importing and
exporting the above stated products and materials (in accordance with the
permit)
SC is mainly engaged in manufacturing and selling decorated paper.
Mr. Sheng Yingming has been legal representative and chairman of SC
since 2011.
SC is known to have approx. 160 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the development zone of Lin’an. Our
checks reveal that SC owns the total premise about 50,000 square meters.
http://www.splendecor.com
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
Email: info@splendecor.com
SC has been rewarded as AAA class enterprise, the national key high-tech
enterprise of Zhejiang province, high and new technology enterprise, patent
demonstration enterprises in Zhejiang province, Hangzhou informationization
model enterprise, etc. and has passed the certificate of ISO9001 and ISO14001.
Changes
of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2002-4 |
Registered capital |
CNY 1,200,000 |
CNY 3,800,000 |
|
2002 |
Registered capital |
CNY 3,800,000 |
CNY 5,000,000 |
|
2002-10 |
Registered capital |
CNY 5,000,000 |
CNY 12,800,000 |
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2009-5 |
Legal rep. |
Sheng Yingming (盛英明) |
Wang Jian (王健) |
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2011-11 |
Legal rep. |
Wang Jian (王健) |
Present one |
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2012-11 |
Registered capital |
CNY 12,800,000 |
Present amount |
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2014-2 |
Legal form |
Limited liabilities co. |
Present one |
|
Unknown |
Registered number |
3301852000041 |
330185000015398 |
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Registered number |
330185000015398 |
Present one |
Organization code: 254055191
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name Amount
(CNY) % of Shareholding
Hangzhou Longsheng Investment Co., Ltd. 10,104,000 48.93
Sheng Yingming
ID# 33012419640124XXXX 2,696,000 13.06
Jiang Guoliang
ID# 11010819760825XXXX 619,500 3
Wang Bingqin
ID# 34020419901212XXXX 619,500 3
Yu Zemin
ID# 33012419600104XXXX 413,000 2
Wang Huiyong
ID# 34020419630502XXXX 619,500 3
Splendecor Hong Kong Limited 5,578,500 27.01
Hangzhou Longsheng Investment Co., Ltd.
===============================
Registration no.: 330105000043488
Registered capital: CNY 30,000,000
Legal representative: Sheng Yingming
Splendecor Hong Kong Limited
========================
Registered no.: 1933677
Legal form: Private company limited by shares
Legal representative and chairman:
Mr. Sheng Yingming, ID# 33012419640124XXXX, born in 1964, he is currently
responsible for the overall management of SC.
Working Experience(s):
From 2011 to present Working
in SC as chairman and legal representative.
Also working in Hangzhou Longsheng Investment Co., Ltd. and Hangzhou
Splendor Decoration Material Co., Ltd. as legal representative.
SC is mainly engaged in manufacturing and selling decorated paper.
SC’s products mainly include Melamine Paper, Decorative Paper, Finish
Foil.
SC sources its materials 95% from domestic market, and 5% from overseas
market. SC sells 40% of its products in domestic market, and 60% 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 refused to release its main clients.
*Major Supplier:
============
Zhejiang Hengda Paper Co., Ltd.
Trademark & Patents
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Registration No. |
5720706 |
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Registration Date |
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Trademark Design |
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SC
is known to invest in the following companies:
Hangzhou Splendor Decoration Material Co., Ltd.
====================================
Registration no.: 330100400028889
Registered capital: CNY 20,760,000
Legal representative: Sheng Yingming
Hangzhou Cayoart Co., Ltd. (according to the above website)
============================
Registration no.: 330185000067312
Registered capital: CNY 3,000,000
Legal representative: Wang Huiyong
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: A
trade enquiry currently conducted with SC's supplier(s) reveal the following:
Supplier A
Products sold: Decoration paper
Date account opened: Since 2009
to present
Line of credit: N/A
Terms: Credit of 30-60 days
Average monthly sales: N/A
Current balance: N/A
Rating Key : 3
Any Special Comments: _______________________________________
Payment record keys :
1 = Prompt : Payment made before the credit period expires
2 = As agreed terms : Payment made upon due date
3 = Slightly slow but acceptable : Payment made 5 to 20 days beyond
agreed terms
4 = Slow : Payment made 16 to 45 days beyond agreed terms
5 = Poor : Payment made over 45 days beyond agreed terms
6 = No comment : Account is newly opened & record is not yet
established
Note : In some instances, payment
beyond terms can be the result of disputes over merchandise, lost invoices,
disputed accounts & etc.
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.
Chinese Construction Bank Lin’an Sub-branch
AC#：33001617335050000949
Relationship: Normal
Financial
Summary
===============
Unit: CNY’000
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As of Dec. 31,
2011 |
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Current assets |
71,510 |
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Total assets |
129,910 |
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========= |
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Current liabilities |
92,170 |
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Long term liabilities |
0 |
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-------------- |
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Total liabilities |
92,170 |
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Equities |
37,740 |
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-------------- |
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Total liabilities & equities |
129,910 |
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========= |
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Turnover |
112,970 |
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Cost of goods sold |
85,720 |
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Profit before tax |
11,050 |
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Less: profit tax |
1,660 |
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Profits |
9,390 |
Note:
SC’s management refused to release its latest financial information, and we did
not find SC’s detailed financial reports for Yr 2011.
Important
Ratios
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|
|
2011 |
|
*Current ratio |
0.78 |
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*Quick ratio |
/ |
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*Liabilities to assets |
0.71 |
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*Net profit margin (%) |
8.31 |
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*Return on total assets (%) |
7.23 |
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*Inventory /Turnover ×365 |
/ |
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*Accounts receivable/Turnover ×365 |
/ |
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*Turnover/Total assets |
0.87 |
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* Cost of goods sold/Turnover |
0.76 |
PROFITABILITY:
FAIRLY GOOD
The turnover of SC appears fairly good in its line.
SC’s net profit margin is fairly good.
SC’s return on total assets is fairly good.
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level.
SC’s turnover is in a fair level, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable (As of Dec. 31, 2011).
SC is considered medium-sized in its line with a development history of
18 years. Due to lack of the latest financial status, we are unable to
recommend accurate credit limit for SC. Taking into consideration of SC’s
development history and operation size we would rate SC as an average credit
risk company.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.64 |
|
|
1 |
Rs.98.98 |
|
Euro |
1 |
Rs.77.74 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
TPT |
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 |
|
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 |
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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.