MIRA INFORM REPORT
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Report Date : |
06.05.2014 |
IDENTIFICATION DETAILS
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Name : |
SHENZHEN GOLDLEAF JEWELLERY BRAND OPERATION CO., LTD. |
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Registered Office : |
2/F, No. 1 Beili South Road, Luohu District, Shenzhen Guangdong Province 518020 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
25.11.2011 |
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Com. Reg. No.: |
440301105854204 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Subject is engaged in the selling gold and silver jewelry, platinum
jewelry, mosaic jewelry, jade jewelry, gifts and packaging materials; enterprise
management consulting; corporate image planning; supply chain management. |
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No. of Employees : |
130 |
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 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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
SHENZHEN GOLDLEAF JEWELLERY BRAND
OPERATION CO., LTD.
2/F, NO. 1 BEILI SOUTH ROAD,
LUOHU DISTRICT, SHENZHEN
GUANGDONG PROVINCE 518020 PR CHINA
TEL: 86 (0) 755-25151977
FAX: 86 (0) 755-82684551
***Note: According
to the and telephone/fax numbers, we locate SC.
SC’s completed
name should be the above stated one.
EXECUTIVE
SUMMARY
Date of Registration : november 25, 2011
REGISTRATION NO. : 440301105854204
LEGAL FORM : One-person Limited Liability Company
CHIEF EXECUTIVE :
zhou hansheng (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 200,000,000
staff :
130
BUSINESS CATEGORY : TRADING
Revenue :
CNY 377,413,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 171,691,000 (AS OF DEC. 31, 2013)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fair
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.26 = 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 one-person limited liabilities company of PRC with
State Administration of Industry & Commerce (SAIC) under registration No.: 440301105854204 on November 25, 2011.
SC’s Organization Code Certificate No.:
58671635-5
SC’s Tax No.: 440300586716355
SC’s registered capital: CNY 200,000,000
SC’s paid-in capital: CNY 200,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2011-12-31 |
Shareholder (s) |
Guangming Furniture Co., Ltd. |
Shenzhen Goldleaf Jewellery Brand Operation
Co., Ltd. |
|
2013-7-4 |
Company Name |
Shenzhen Goldleaf Jewellery Sales Co., Ltd. |
Shenzhen Goldleaf Jewellery Brand Operation
Co., Ltd. |
|
Legal Representative |
Cheng Jun |
Wang Zhiwei |
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|
2014-4-14 |
Legal Representative |
Wang Zhiwei |
Zhou Hansheng |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Goldleaf Jewelry Co., Ltd. |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Zhou Hansheng |
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General Manager |
Wang Zhiwei |
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Director |
Zou Wei |
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Han Xue |
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Zhao Guowen |
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|
He Xiaomin |
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Supervisor |
Liu Daoren |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Goldleaf Jewelry Co., Ltd. 100
-----------------------------
Date of Registration: February 5, 1996
Registration No.: 230000100000347
Legal Form: Shares Limited Company
Chief Executive: Zhu Yaowen
Registered Capital: CNY 557,130,000
Web: www.goldzb.com
E-mail: jinye000587@163.com
MANAGEMENT
Zhou Hansheng, Legal Representative and Chairman
--------------------------------------------------------------------------------
Gender: M
Qualification: University
Working experience
(s):
From April of 2014 to present, working in SC as legal representative and
chairman, also working in Dongguan Goldleaf Jewellery Co., Ltd. and Shenzhen
Jinchuangyi Gold Jewelry Co., Ltd. as legal representative
Wang Zhiwei,
General Manager
-----------------------------------------------------
Gender: M
Age: 53
Qualification: University
Working experience
(s):
Before, worked in SC and Goldleaf Jewelry Co., Ltd. as legal
representative and chairman
From April of 2014 to present, working in SC as general manager
Director
-----------
Zou Wei
Han Xue
Zhao Guowen
He Xiaomin
Supervisor
--------------
Liu Daoren
BUSINESS OPERATION
SC’s registered business scope includes selling gold and
silver jewelry, platinum jewelry, mosaic jewelry, jade jewelry, gifts and
packaging materials; enterprise management consulting; corporate image
planning; supply chain management.
SC is mainly engaged in selling jewellery.
Brand: GOLDLEAF
SC’s products mainly include: gold and silver jewelry, platinum jewelry,
mosaic jewelry, jade jewelry, etc.
SC sources its materials 80% from domestic market, mainly Guangdong, and 20% from overseas market. SC sells 100% of its products in domestic market.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include T/T and Credit of 30-60 days.
Staff &
Office:
--------------------------
SC is known to have approx. 130
staff at present.
SC owns an area as its operating office, but the detailed information is
unknown.
RELATED COMPANY
Chongqing Goldleaf Jewellery Process and Sales Co., Ltd.
Dongguan Goldleaf Jewellery Co., Ltd.
Goldleaf Jewellery Mining Investment Co., Ltd.
Shenzhen Jinchuangyi Gold Jewelry Co., Ltd.
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 Dec. 31,
2012 |
As of Dec. 31,
2013 |
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Total assets |
236,752 |
260,636 |
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Total liabilities |
55,663 |
88,945 |
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Equities |
181,089 |
171,691 |
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------------- |
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Revenue |
10,121 |
377,413 |
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Profit before tax |
-18,532 |
-9,023 |
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Less: profit tax |
0 |
375 |
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Profits |
-18,532 |
-9,398 |
Important Ratios
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|
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
*Liabilities to assets |
0.24 |
0.34 |
|
*Net profit margin (%) |
-183.10 |
-2.49 |
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*Return on total assets (%) |
-7.83 |
-3.61 |
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* Revenue/Total assets |
0.04 |
1.45 |
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.
LIQUIDITY: AVERAGE
·
SC’s revenue is in an average level in 2013,
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: Fair.
CONCLUSIONS
SC is considered medium-sized in its line with fair financial
conditions.
DIAMOND INDUSTRY – INDIA
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From time immemorial, India is well known in the world
as the birthplace for diamonds. It is difficult to trace the origin of
diamonds but history says that in the remote past, diamonds were mined only in
India. Diamond production in India can be traced back to almost 8th
Century B.C. India, in fact, remained undisputed leader till 18th
Century when Brazilian fields were discovered in 1725 followed by emergence of
S. Africa, Russia and Australia.
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The achievement of the Indian diamond industry was
possible only due to combination of the manufacturing skills of the Indian
workforce and the untiring and unflagging efforts of the Indian diamantaires,
supported by progressive Government policies.
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The area of study of family owned diamond businesses
derives its importance from the huge conglomerate of family run organizations
which operate in the diamond industry since many generations.
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Some of the basic traits of family run business
enterprises include spirit of entrepreneurship, mutual trust lowers transaction
costs, small, nimble and quick to react, information as a source of advantage
and philanthropy.
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Family owned diamond businesses need to improve on
many fronts including higher standard of corporate governance, long-term
performance – focused strategies, modern management and technology.
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Utmost caution is to be exercised while dealing with
some medium and large diamond traders which are usually engaged in fictitious
import – export, inter-company transactions, financially assisted by banks. In
the process, several public sector banks lost several hundred million rupees.
They mostly diverted borrowed money for diamond business into real estate and
capital markets.
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Excerpts from Times of India dated 30th
October 2010 is as under –
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Gem & Jewellery Export Promotion Council in its
statistical data has shown the export of polished diamonds to have increase by
28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in
February, 2012, India exported $ 1.84 billion worth of polished diamonds in
February 2013. A senior executive of GJEPC said, “Export of cut and polished
diamonds started falling month-wise after the imposition of 2 % of import duty
on the polished diamonds. But February, 2013 has given a new ray of hope to the
industry as the export of polished diamonds has actually increased by 28 %. It
means the industry is on the track of recovery and round tripping of
diamonds has stopped completely.” Demand has started coming from the US, the
UK, Japan and China. India’s polished diamond export is expected to cross $ 21
bn in 2013-14.
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The banking sector has started exercising restraint
while following prudent risk management norms when lending money to gems and
jewellery sector. This follows the implementation of Basel III accord – a
global voluntary regulatory standard on bank capital adequacy, stress testing
and market liquidity.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.05 |
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UK Pound |
1 |
Rs.101.32 |
|
Euro |
1 |
Rs.83.34 |
INFORMATION DETAILS
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Analysis Done by
: |
RAS |
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Report Prepared
by : |
NNA |
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 |
|
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.