MIRA
INFORM REPORT
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Report Date : |
26.05.2014 |
IDENTIFICATION DETAILS
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Name : |
SHANGHAI TEXTILE RAW MATERIALS CORPORATION |
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Registered Office : |
No. 652 Changshou Road, Putuo District, Shanghai 200060 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
16.07.1994 |
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Com. Reg. No.: |
310107000112997 |
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Legal Form : |
State-Owned Enterprise |
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Line of Business : |
Subject is engaged in selling textile raw materials & products, chemical fiber raw materials & products, chemical raw materials & products, daily necessities, building materials, wood, steel, livestock products, machinery equipment, communication equipment & the related products, electronic products, hardware, motorcycle & parts, furniture, stationery, flowers, electrical equipment, cosmetics, metal materials & products, mineral products, jewelry; food sales management; retailing liquor; importing & exporting commodities and technology; leasing self-owned housing. |
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No of Employees : |
90 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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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 – September 30, 2013
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Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
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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 & ADDRESS
SHANGHAI TEXTILE RAW
MATERIALS CORPORATION
NO. 652 CHANGSHOU
ROAD, PUTUO DISTRICT, SHANGHAI 200060 PR CHINA
TEL: 86 (0)
21-62771600/62276221/62776229/62760436/62774663
FAX: 86 (0)
21-62770805/62279557
EXECUTIVE SUMMARY
Date of Registration : JUly 16, 1994
REGISTRATION NO. : 310107000112997
LEGAL FORM : State-Owned Enterprise
REGISTERED CAPITAL :
CNY 180,700,000
staff : 90
BUSINESS CATEGORY :
TRADING
Revenue :
CNY 3,923,060,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY
166,020,000 (AS OF DEC. 31, 2013)
WEBSITE : www.shanghaify.com
E-MAIL :
shtrmc@online.sh.cn
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND :
fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.24 = 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 state-owned enterprise of PRC with State Administration of
Industry & Commerce (SAIC) under registration No.: 310107000112997 on July 16, 1994.
SC’s Organization Code Certificate No.:
13290457-0
SC’s registered capital: CNY 180,700,000
SC’s paid-in capital: CNY 180,700,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2010 |
Registration No. |
3101071020782 |
310107000112997 |
|
-- |
Shareholder |
Shangtex Holding (Group) Corporation 100% |
Shangtex Holding Co., Ltd. 100% |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Shangtex Holding Co., Ltd. |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Zheng
Bohua |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Shangtex Holding Co., Ltd. 100
---------------------------------
Date of Registration: December 17, 2001
Registration No.: 310000000082375
Registered Capital: CNY 14,132,345,600
Address: 989 Gubei Road, Shanghai,
P.R.C. 200336
Tel: +86-21-22110288
Fax: +86-21-62090544
E-mail: shangtex@shangtex.biz
Web: www.shangtex.biz
MANAGEMENT
Zheng
Bohua, Legal
Representative, Chairman and General Manager
-----------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 61
Ø
Qualification:
Mater Degree
Ø
Working
experience (s):
From 2005 to present, working in SC as legal representative,
Chairman and general manager
Also working in Shanghai Textile Raw Materials Corporation
Changshou Road Warehouse as principal
BUSINESS OPERATION
SC’s registered business scope includes selling textile
raw materials & products, chemical fiber raw materials & products,
chemical raw materials & products, daily necessities, building materials,
wood, steel, livestock products, machinery equipment, communication equipment
& the related products, electronic products, hardware, motorcycle &
parts, furniture, stationery, flowers, electrical equipment, cosmetics, metal
materials & products, mineral products, jewelry; food sales management;
retailing liquor; importing & exporting commodities and technology; leasing
self-owned housing.
SC is
mainly engaged in selling textile raw materials.
SC’s
products mainly include: cotton, fertilizer, wool
and synthetic fibre, garment, machinery, hardware, electricity, motorcycle,
chemical, dyestuff, food, wood, steel, medical apparatus, etc.
SC sources its products 95% from domestic market, mainly Shanghai, and 5% from overseas market. SC sells 30% of its products in domestic market, and 70% to overseas market, mainly U.S.A. and Europe.
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.
*Major Customers*
----------------------
Ebuy Development Ltd.
Salt and Pepper Clothing Inc.
Chic Choc Shop Inc.
*Major Supplier*
--------------------
Shanghai
Sanmao Enterprise (Group) Co., Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 90
staff at present.
SC owns an area as
its operating office, but the detailed information is unknown.
RELATED COMPANY
SC is known to have the
following subsidiaries,
Jiangsu
Zhonglian- Union Carpet Co., Ltd.
Shanghai
ShenAn Textile Co., Ltd.
Wujiang
Shenda Garment Co., Ltd.
Shanghai
Conch Apparel Co., Ltd.
Shanghai
Textile Raw Materials Corporation Changshou Road Warehouse
Shanghai
Textile Raw Materials Corporation Pudong Company
Etc.
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’s suppliers
declined to make any comments.
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
Basic Bank:
Agricultural
Bank of China Shanghai Branch
AC#:
0333762-00871002828
***Note: SC’s management declined to release
whether it has account in Bank of
China Shanghai Branch.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
247,820 |
118,040 |
191,990 |
|
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Notes receivable |
53,400 |
76,210 |
94,120 |
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Accounts receivable |
96,500 |
78,710 |
32,200 |
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Advances to suppliers |
544,490 |
516,710 |
622,800 |
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Other receivable |
88,520 |
115,010 |
97,070 |
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Inventory |
309,440 |
369,680 |
199,180 |
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Other current assets |
0 |
0 |
0 |
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------------------ |
------------------ |
------------------ |
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Current assets |
1,340,170 |
1,274,360 |
1,237,360 |
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Long-term investment |
40,480 |
37,880 |
39,020 |
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Fixed assets |
36,560 |
46,640 |
70,850 |
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Construction in progress |
3,720 |
20,140 |
1,040 |
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Other non-current assets |
17,630 |
16,410 |
30,160 |
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------------------ |
------------------ |
------------------ |
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Total assets |
1,438,560 |
1,395,430 |
1,378,430 |
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============= |
============= |
============= |
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Short-term loans |
0 |
53,200 |
187,790 |
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Notes payable |
64,060 |
165,760 |
148,110 |
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Accounts payable |
307,250 |
134,430 |
135,670 |
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Wages payable |
7,430 |
890 |
630 |
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Taxes payable |
-2,590 |
-19,380 |
6,410 |
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Advances from clients |
642,310 |
721,880 |
562,780 |
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Other payable |
254,910 |
151,430 |
171,020 |
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Other current liabilities |
0 |
10 |
0 |
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------------------ |
------------------ |
------------------ |
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Current liabilities |
1,273,370 |
1,208,220 |
1,212,410 |
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Non-current liabilities |
0 |
0 |
0 |
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------------------ |
------------------ |
------------------ |
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Total liabilities |
1,273,370 |
1,208,220 |
1,212,410 |
|
Equities |
165,190 |
187,210 |
166,020 |
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------------------ |
------------------ |
------------------ |
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Total liabilities & equities |
1,438,560 |
1,395,430 |
1,378,430 |
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============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
Revenue |
4,151,960 |
3,923,060 |
|
Cost of sales |
4,002,790 |
3,842,620 |
|
Sales expense |
72,550 |
45,000 |
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Management expense |
39,040 |
40,910 |
|
Finance expense |
10,620 |
6,820 |
|
Investment
income |
5,600 |
11,300 |
|
Profit before
tax |
30,310 |
16,310 |
|
Less: profit tax |
8,290 |
7,660 |
|
22,020 |
8,650 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
*Current ratio |
1.05 |
1.05 |
1.02 |
|
*Quick ratio |
0.81 |
0.75 |
0.86 |
|
*Liabilities
to assets |
0.89 |
0.87 |
0.88 |
|
*Net profit
margin (%) |
-- |
0.53 |
0.22 |
|
*Return on
total assets (%) |
-- |
1.58 |
0.63 |
|
*Inventory /
Revenue ×365 |
-- |
33 days |
19 days |
|
*Accounts
receivable/ Revenue ×365 |
-- |
7 days |
3 days |
|
*Revenue/Total
assets |
-- |
2.98 |
2.85 |
|
*Cost of sales
/ Revenue |
-- |
0.96 |
0.98 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears
good in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of sales is high, comparing with its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears average.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’s short-term loans are in an average level.
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
FAIR
l
The debt ratio of SC is high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with
fairly stable financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 58.48 |
|
|
1 |
Rs. 98.67 |
|
Euro |
1 |
Rs. 79.80 |
INFORMATION DETAILS
|
Analysis Done by
: |
RSM |
|
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Report Prepared
by : |
DPT |
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.