MIRA
INFORM REPORT
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Report Date : |
29.05.2014 |
IDENTIFICATION DETAILS
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Name : |
Shining
Life Co., Ltd. |
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Formerly Known As : |
Jinhua
Shining Life Rhinestone Co., Ltd |
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Registered Office : |
3rd
Floor 10# 8 Building Xingzhong Market, Yiwu, Zhejiang Province 322000 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
17.07.2007 |
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Com. Reg. No.: |
330703000000661 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and selling rhinestone jewelry, crystal crafts, clothing,
bedding, bags and leather; importing and exporting commodities and
technology.) |
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No. of Employees |
50 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
|
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 |
|
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
Shining Life Co., Ltd.
(also
known as: Jinhua Shining Life Rhinestone Co., Ltd.)
3rd
Floor 10# 8 Building Xingzhong Market
yiwu,
zhejiang province 322000 PR CHINA
TEL: 86
(0) 579-85549114/82980102
FAX: 86
(0) 579-85549124
***Note: The
building number for SC’s sales center should be the heading one.
EXECUTIVE SUMMARY
Date of Registration : july 17, 2007
REGISTRATION NO. : 330703000000661
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL :
cny 3,000,000
staff : 50
BUSINESS CATEGORY :
manufacturing & trading
Revenue : CNY 22,770,000 (AS OF DEC. 31, 2013)
EQUITIES : CNY 950,000 (AS OF DEC. 31, 2013)
WEBSITE : www.saiao.cc
E-MAIL :
ceo@shininglife.net
PAYMENT : AVERAGE
MARKET CONDITION :
FAIR
FINANCIAL CONDITION :
FAIR
OPERATIONAL TREND : ORDINARY
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 a limited liabilities company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 330703000000661 on July 17,
2007.
SC’s Organization Code Certificate
No.: 66515297-3
SC’s registered capital: cny 3,000,000
SC’s paid-in capital: cny 3,000,000
Registration Change Record:-
No significant changes of SC have
been noted in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Lin Xiaoling |
51 |
|
Chen
Zhaoming |
49 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman
and General Manager |
Lin Xiaoling |
|
Supervisor |
Chen
Zhaoming |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Lin Xiaoling 51
Chen Zhaoming 49
MANAGEMENT
Lin
Xiaoling, Legal
Representative, Chairman and General Manager
---------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Working
experience (s):
At present, working in SC as legal representative, chairman
and general manager
Also
working in Hunan Saiao Silicon Industry Limited Liability Company, Yiwu Shidian
Imports and Exports Co., Ltd., and Zhejiang Ourui Handwork Co., Ltd. as legal
representative
Chen Zhaoming, Supervisor
------------------------------------------------
Ø
Gender: M
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and
selling rhinestone jewelry, crystal crafts, clothing, bedding, bags and
leather; importing and exporting commodities and technology.)
SC is
mainly engaged in manufacturing and selling rhinestone jewelry.
SC’s
products mainly include: rhinestone jewelry.
SC sources its materials 100% from domestic
market. SC sells 65% of its products in domestic market, and 35% to overseas
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, L/C and Credit of 30-60 days.
Staff & Office:
--------------------------
SC is
known to have approx. 50 staff
at present.
SC rents an area
as its operating office, but the detailed information is unknown.
***Note:
SC’s factory locates in No. 268 Changchun West Road, Jindong Economic
Development Zone, Zhejiang Province.
RELATED COMPANY
Hunan Saiao Silicon Industry Limited Liability Company
Registration
No.: 430700000028300
Date
of Registration: June 3, 2011
Legal
Form: Shares Limited Company
Registered
Capital: CNY 42,000,000
Legal
Representative: Lin Xiaoling
Yiwu
Shidian Imports and Exports Co., Ltd.
Registration
No.: 330782000140751
Date
of Registration: April 20, 2010
Legal
Form: Limited Liabilities Company
Registered
Capital: CNY 500,000
Legal
Representative: Lin Xiaoling
Zhejiang
Ourui Handwork Co., Ltd.
Registration
No.: 330700400006651
Date
of Registration: August 2, 2004
Legal
Form: Chinese-foreign equity joint venture enterprise
Registered
Capital: USD 5,000,000
Legal
Representative: Lin Xiaoling
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 local SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2013 |
|
740 |
|
|
Notes receivable |
0 |
|
Accounts receivable |
2,580 |
|
Advances to
suppliers |
0 |
|
Other receivable |
-340 |
|
Inventory |
5,630 |
|
Non-current
assets within one year |
0 |
|
Other current
assets |
2,390 |
|
|
------------------ |
|
Current assets |
11,000 |
|
Fixed assets |
5,840 |
|
Construction in
progress |
0 |
|
Intangible
assets |
0 |
|
Long-term
investment |
26,600 |
|
Deferred income
tax assets |
0 |
|
Other
non-current assets |
10 |
|
|
------------------ |
|
Total assets |
43,450 |
|
|
============= |
|
Short-term loans |
17,990 |
|
Notes payable |
0 |
|
Accounts payable |
4,700 |
|
Welfares payable |
0 |
|
Taxes payable |
0 |
|
Advances from
clients |
0 |
|
Other payable |
4,520 |
|
Other current
liabilities |
290 |
|
|
------------------ |
|
Current
liabilities |
27,500 |
|
Non-current liabilities |
15,000 |
|
|
------------------ |
|
Total
liabilities |
42,500 |
|
Equities |
950 |
|
|
------------------ |
|
Total
liabilities & equities |
43,450 |
|
|
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
|
Revenue |
22,770 |
|
Cost of sales |
20,000 |
|
Sales expense |
30 |
|
Management expense |
500 |
|
Finance expense |
2,590 |
|
Profit before
tax |
-150 |
|
Less: profit tax |
0 |
|
-150 |
Important Ratios
=============
|
|
As of Dec. 31, 2013 |
|
*Current ratio |
0.40 |
|
*Quick ratio |
0.20 |
|
*Liabilities
to assets |
0.98 |
|
*Net profit
margin (%) |
-0.66 |
|
*Return on
total assets (%) |
-0.35 |
|
*Inventory /
Revenue ×365 |
91 days |
|
*Accounts
receivable / Revenue ×365 |
42 days |
|
*Revenue /
Total assets |
0.52 |
|
*Cost of sales
/ Revenue |
0.88 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
l
The revenue of SC appears
average in its line.
l
SC’s net profit margin is fair.
l
SC’s return on total assets is fair.
l
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears average.
l
The short-term loans of SC appear large.
l
SC’s revenue is in a
fair 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 above average.
Overall financial
condition of the SC: Fair.
CONCLUSIONS
SC is considered small-sized in its line with fair financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.07 |
|
|
1 |
Rs.99.20 |
|
Euro |
1 |
Rs.80.53 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
PDT |
RATING EXPLANATIONS
|
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 |
|
|
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.