MIRA
INFORM REPORT
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Report Date : |
09.05.2014 |
IDENTIFICATION DETAILS
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Name : |
SHANGHAI DONPCRANES
co., ltd. |
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Registered Office : |
Room b9, 4/f, Ruixing Business Building, No. 1482, Old
Humin Road, Minhang District, Shanghai,
201108 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
31.08.2009 |
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Com. Reg. No.: |
310226000993623 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in development, technology consulting,
technology services, technology transfer in the field of crane machinery technology,
designing crane machinery, wholesaling and retailing crane machinery
products, machinery parts, electrical equipment and instrumentation,
importing and exporting goods and technologies. |
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No. of Employees : |
10 |
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
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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, 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
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Source
: CIA |
Company name and address
SHANGHAI DONPCRANES co., ltd.
room b9, 4/f, ruixing
Business building,
no. 1482, old humin
road, minhang district,
shanghai, 201108 PR
CHINA
TEL: 86 (0)
21-58898319
FAX: 86 (0) 21-
58898167
EXECUTIVE SUMMARY
INCORPORATION DATE :
AUG. 31, 2009
REGISTRATION NO. : 310226000993623
REGISTERED LEGAL FORM :
LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE :
MR. LI ZHANCHUN (CHAIRMAN)
STAFF STRENGTH :
10
REGISTERED CAPITAL : CNY 15,500,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 8,700,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 15,350,000 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE : CNY 6.2311 = 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 company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Aug. 31, 2009.
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 technology development, technology consulting, technology services, technology transfer in the field of crane machinery technology, designing crane machinery, wholesaling and retailing crane machinery products, machinery parts, electrical equipment and instrumentation, importing and exporting goods and technologies. [with permit if needed]
SC is mainly engaged in selling crane machinery products, machinery parts and others.
Mr. Li Zhanchun has been legal representative, chairman and general manager of SC since 2009.
SC is known to have approx. 10 employees at present.
SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Shanghai. Our checks reveal that SC rents the total premise, but the gross area of the premise is unspecific.
http://www.donpcranes.com The design is professional and the content is well organized. At present it is in English version.
E-mail: DPCRANESjackie@gmail.com
No significant changes were found during our checks with the local Administration for Industry and Commerce.
Organization code: 694156762
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name % of Shareholding
Li Zhanchun 90
Han Junjing 10
Legal representative,
Chairman and General Manager:
Mr. Li Zhanchun is currently responsible for the overall and daily management of SC.
Working Experience(s):
From 2009 to present Working in SC as legal representative, chairman and general manager.
Supervisor:
Han Junjing
SC is mainly engaged in selling crane machinery products, machinery parts and others.
SC’s products mainly include:
Electric Chain Hoist
Electric Wire Rope Hoist
SH Wire Rope Hoist
CD Wire Rope Hoist
Chain Block
Lever Block
Special Application Electric Hoist
Working Station system
KBK
Full Set Crane
Jib Cranes
Lifting Devices
Components
SC sources its merchandise 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.
SC is not known to have any subsidiary at present.
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 Shanghai Dongfang Road Sub-branch
AC#：1001128209000006813
Relationship: Normal.
Balance Sheet
Unit: CNY’000
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as of Dec. 31, 2012 |
as of Dec. 31, 2013 |
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Cash & bank |
3,660 |
5,760 |
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Inventory |
20 |
620 |
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Accounts receivable |
9,380 |
3,600 |
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Advances to suppliers |
0 |
160 |
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Other receivables |
9,180 |
8,610 |
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Other current assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
22,240 |
18,750 |
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Long-term investments |
0 |
0 |
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Fixed assets net value |
50 |
50 |
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Projects under construction |
0 |
0 |
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Intangible assets |
0 |
0 |
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Other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
22,290 |
18,800 |
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============= |
============= |
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Short loans |
0 |
0 |
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Accounts payable |
6,840 |
3,420 |
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Advances from customers |
30 |
0 |
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Employee pay payable |
0 |
0 |
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Taxes payable |
30 |
30 |
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Other accounts payable |
0 |
0 |
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Other current liabilities |
0 |
0 |
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----------------- |
----------------- |
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Current liabilities |
6,900 |
3,450 |
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Long term liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total liabilities |
6,900 |
3,450 |
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Shareholders equities |
15,390 |
15,350 |
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------------------ |
------------------ |
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Total liabilities & equities |
22,290 |
18,800 |
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============= |
Income Statement
Unit: CNY’000
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|
as of Dec. 31, 2013 |
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Turnover |
8,700 |
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Cost of goods sold |
7,390 |
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Taxes and additional of main operation |
0 |
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Sales expense |
40 |
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Management expense |
1,220 |
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Finance expense |
0 |
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Non-operating income |
0 |
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Non-operating expense |
0 |
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Profit before tax |
50 |
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Less: profit tax |
90 |
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Net profit |
-40 |
Important Ratios
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as of Dec. 31, 2012 |
as of Dec. 31, 2013 |
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*Current ratio |
3.22 |
5.43 |
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*Quick ratio |
3.22 |
5.26 |
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*Liabilities to assets |
0.31 |
0.18 |
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*Net profit margin (%) |
/ |
-0.46 |
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*Return on total assets (%) |
/ |
-0.21 |
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*Inventory /Turnover ×365 |
/ |
27 days |
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*Accounts receivable/Turnover ×365 |
/ |
152 days |
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*Turnover/Total assets |
/ |
0.46 |
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* Cost of goods sold/Turnover |
/ |
0.85 |
PROFITABILITY: FAIR
The turnover of SC appears average in its line in 2013.
SC’s net profit margin is fair in 2013.
SC’s return on total assets is fair in 2013.
SC’s cost of goods sold is average in 2013, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a fairly good level in both years.
SC’s quick ratio is maintained in a fairly good level in both years.
The inventory of SC appears small in 2012 but average in 2013.
The accounts receivable of SC appears fairly large in both years.
SC has no short-term loan in 2012 and 2013.
SC’s turnover is in a fair level in 2013, 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.
SC is considered small-sized in its line with fairly stable
financial conditions. The large amount of accounts receivable could be a threat
to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.99 |
|
|
1 |
Rs.101.75 |
|
Euro |
1 |
Rs.83.48 |
INFORMATION DETAILS
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Analysis Done by
: |
RAS |
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Report Prepared
by : |
NIS |
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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to
overcome financial difficulties seems comparatively below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
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.