MIRA INFORM REPORT
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Report Date : |
06.05.2014 |
IDENTIFICATION DETAILS
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Name : |
ZHOULIUFU JEWELRY CO., LTD. |
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Formerly Known as : |
Shenzhen Zhouliufu Jewelry
Co., Ltd. |
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Registered Office : |
1-2/F, Building 1, Shihua Shuibei Industrial Zone, Cuizhu
North 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 : |
28.04.2004 |
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Com. Reg. No.: |
440301103413351 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged
in purchasing and selling jade jewelry, aluminum products, platinum inlaid jewelry,
diamond studded jewelry, emerald jewelry and other domestic trade, importing
and exporting goods and technology (excluding the items permitted by laws and
administrative regulations and the State Council before registration);
establishment of industries (specific items to be declared separately). Subject
permit business items: manufacturing and processing gold, platinum,
palladium, K gold, silver jewelry and gem-set jewelry. |
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No of Employees : |
200 (approximately) |
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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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate 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, 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 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. Debt overhang from
its credit-fueled stimulus program in 2008-10, particularly among local
governments, and soaring property prices challenge policy makers currently.
Their efforts to cool a red-hot property market in 2011 appear to have curbed
inflation, but contributed to slower GDP growth in 2012 and 2013. Slow recovery
in Europe and other key export markets have also retarded growth. 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 fixed investments and exports in the future.
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
ZhouLiuFu Jewelry Co., Ltd.
1-2/F, BUILDING 1,
SHIHUA SHUIBEI INDUSTRIAL ZONE, CUIZHU NORTH ROAD, LUOHU DISTRICT, SHENZHEN,
GUANGDONG PROVINCE, 518020 PR CHINA
TEL: 86 (0)
755-25607666-808 FAX: 86 (0) 755-25620074
EXECUTIVE
SUMMARY
INCORPORATION DATE : apr. 28, 2004
REGISTRATION NO. : 440301103413351
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE : MR. LI WEIPENG (CHAIRMAN)
STAFF STRENGTH : 200
REGISTERED CAPITAL : CNY 50,000,000
BUSINESS LINE : MANUFACTURING,
PROCESSING AND TRADING
TURNOVER : CNY 225,710,000 (AS OF DEC. 31,
2013)
EQUITIES : CNY 50,880,000 (AS OF DEC. 31,
2013)
PAYMENT : AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.2596 = 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
Note: SC’s complete name should be the heading one.
SC’s staff didn’t know the given tel. no. “00852-60895497” and fax no. “00852-36458092”.
SC is operating in the heading
address, instead of the given one.
SC was registered as a limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Apr. 28, 2004.
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 general business items: purchasing and selling jade
jewelry, aluminum products, platinum inlaid jewelry, diamond studded jewelry,
emerald jewelry and other domestic trade, importing and exporting goods and
technology (excluding the items permitted by laws and administrative
regulations and the State Council before registration); establishment of
industries (specific items to be declared separately). Permit business items:
manufacturing and processing gold, platinum, palladium, K gold, silver jewelry
and gem-set jewelry.
SC is mainly
engaged in manufacturing, processing and selling
gold, platinum, palladium, K gold, silver jewelry and gem-set jewelry.
Mr. Li
Weipeng is legal representative,
chairman and general manager of SC at present.
SC is known to have approx. 200 employees at
present.
SC is currently operating at the above stated address, and this
address houses its operating office and factory in the industrial zone of
Shenzhen. Our checks reveal that SC rents the total premise, but the gross area of the
premise is unspecific.
http://www.zlf.cn The design is
professional and the content is well organized. At present it is in Chinese
version.
Changes of its
registered information:
|
Date of change |
Item |
Before the
change |
After the change |
|
2005-4-4 |
Shareholders and shareholding |
Chen Chuangjin 50% Li Weipeng 50% |
Li Weizhu 50% Li Weipeng 50% |
|
2006-5-17 |
Legal rep. |
Li Weipeng |
Zhou Zhenrun |
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2008-6-11 |
Zhou Zhenrun |
Li Weipeng |
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Registration no. |
4403012140796 |
Present one |
|
|
2011-6-23 |
Registered capital |
CNY 1,000,000 |
CNY 10,000,000 |
|
2012-3-27 |
Company’s name |
Shenzhen Zhoutianfu Jewelry Co., Ltd. |
Shenzhen Zhouliufu Jewelry Co., Ltd. |
|
2012-6-6 |
Registered capital |
CNY 10,000,000 |
Present amount |
|
2012-7-27 |
Company’s name |
Shenzhen Zhouliufu Jewelry Co., Ltd. |
Present one |
Organization code: 761957253
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Li Weipeng 50
Li Weizhu 50
Legal Representative,
Chairman and General Manager:
Mr. Li Weipeng is currently responsible for
the overall management of SC.
Working
Experience(s):
At present Working in SC as legal
representative, chairman and general manager
Supervisor:
Li Weizhu
SC is mainly
engaged in manufacturing, processing and selling
gold, platinum, palladium, K gold, silver jewelry and gem-set jewelry.
Main Products: gold, platinum, palladium, K gold, silver jewelry and
gem-set jewelry.
SC sources its materials 100%
from domestic market. SC sells 100% of its products in domestic market.
The buying terms of SC include Check, T/T and Credit of
30-60 days. The payment terms of SC include Check, T/T and Credit of 30-60
days.
Note: SC’s management declined to release its customer and supplier
details.
Zhouliufu
Jewelry Limited (Hong Kong)
============================
Incorporation
date: 2010-8-16
Registration
no.: 1493421
Legal
form: Private company limited by shares
Status:
Live
Hongkong Zhou Liu Fu Jewelry Limited
=============================
Incorporation date: 2004-8-23
Registration no.: 0918744
Legal form: Private company limited by shares
Status: Live
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.
Industrial and Commercial Bank of China Shenzhen Luohu Shuibei
Sub-branch
AC#：N/A
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
Cash & bank |
1,160 |
78,170 |
|
Inventory |
177,070 |
243,690 |
|
Accounts
receivable |
7,150 |
1,060 |
|
Advances to
supplies |
50 |
100 |
|
Prepaid expenses |
400 |
160 |
|
Other
receivables |
1,870 |
20,920 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
187,700 |
344,100 |
|
Fixed assets net
value |
580 |
8,690 |
|
Projects under
construction |
0 |
0 |
|
Long-term
investments |
550 |
550 |
|
Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
188,830 |
353,340 |
|
|
============= |
============= |
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Short loans |
53,330 |
76,500 |
|
Notes payable |
0 |
125,000 |
|
Accounts payable |
830 |
7,950 |
|
Advances from
customers |
40 |
40 |
|
Employee pay payable |
430 |
640 |
|
Taxes payable |
-1,220 |
-12,310 |
|
Other payable |
84,840 |
104,640 |
|
Other current
liabilities |
0 |
0 |
|
|
----------------- |
----------------- |
|
Current
liabilities |
138,250 |
302,460 |
|
Long term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
138,250 |
302,460 |
|
Shareholders
equities |
50,580 |
50,880 |
|
|
------------------ |
------------------ |
|
Total liabilities
& equities |
188,830 |
353,340 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31,
2013 |
|
Turnover |
225,710 |
|
Cost of goods sold |
208,940 |
|
Taxes and additional of main operation |
350 |
|
Income from
other operation |
10 |
|
Sales expense |
3,100 |
|
Management expense |
9,260 |
|
Finance expense |
3,620 |
|
Non-operating
income |
40 |
|
Non-operating expense |
110 |
|
Profit before tax |
380 |
|
Less: profit tax |
80 |
|
Net profit |
300 |
Important Ratios
=============
|
|
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
*Current ratio |
1.36 |
1.14 |
|
*Quick ratio |
0.08 |
0.33 |
|
*Liabilities
to assets |
0.73 |
0.86 |
|
*Net profit
margin (%) |
/ |
0.13 |
|
*Return on
total assets (%) |
/ |
0.08 |
|
*Inventory
/Turnover ×365 |
/ |
395 days |
|
*Accounts receivable/Turnover
×365 |
/ |
2 days |
|
*Turnover/Total
assets |
/ |
0.64 |
|
* Cost of
goods sold/Turnover |
/ |
0.93 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in its line
in 2013.
l
SC’s net profit margin is average in 2013.
l
SC’s return on total assets is average in 2013.
l
SC’s cost of goods sold is fairly high in 2013,
comparing with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a normal
level in both years.
l
SC’s quick ratio is maintained in a poor level in
both years.
l
The inventory of SC is maintained in a large level
in both years.
l
The accounts receivable of SC is maintained in an
average level in both years.
l
SC’s short-term loan appears large in 2012 and
2013.
l
SC’s turnover is in a fair level in 2013, comparing
with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is average in 2012 but high in
2013.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of inventory and short
loans could be a threat to SC’s financial condition.
DIAMOND INDUSTRY – INDIA
-
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.
-
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.
-
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.
-
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.
-
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.
-
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.
-
Excerpts from Times of India dated 30th
October 2010 is as under –
-
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.
-
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 |
|
UK Pound |
1 |
Rs.101.32 |
|
Euro |
1 |
Rs.83.34 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
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Report Prepared
by : |
MNL |
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.