MIRA INFORM REPORT
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Report Date : |
14.10.2014 |
IDENTIFICATION DETAILS
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Name : |
LEVI'S STRAUSS COMMERCE (SHANGHAI) LIMITED |
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Registered Office : |
Room 1007 United Plaza, No. 1468 Nanjing West Road, Shanghai 200040
Pr |
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Country : |
China |
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Financials (as on) : |
31.08.2014 |
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Date of Incorporation : |
28.03.2005 |
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Com. Reg. No.: |
310000400418732 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Wholesale and retail of clothing, footwear, eyewear, watches, jewelry,
clothing and raw materials, bags, mobile phone accessories, leather products,
paper products, handbags, toys, textiles, umbrellas, perfumes, bed and
bedding, stationery, key chains, hangers, clothing model, electronic products
and cups; international trade, commission agent; providing related ancillary
services, business information consulting. |
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No of Employees : |
808 |
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 : |
No Complaints |
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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 – June 1, 2014
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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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 |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
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
LEVI'S STRAUSS COMMERCE (SHANGHAI) LIMITED
ROOM 1007 UNITED PLAZA, NO. 1468 NANJING WEST ROAD
SHANGHAI 200040 PR CHINA
TEL: 86 (0) 21-62478828
FAX: 86 (0) 21-62478828
EXECUTIVE
SUMMARY
Date of Registration : march 28, 2005
REGISTRATION NO. : 310000400418732
LEGAL FORM : Wholly foreign-owned enterprise
CHIEF EXECUTIVE :
Arun Kumar Bhardwaj (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : USD 400,000
staff :
808
BUSINESS CATEGORY : TRADING
REVENUE :
CNY 504,687,000 (JAN. 1, 2014 TO AUG. 31, 2014)
EQUITIES :
CNY 99,883,000 (AS OF AUG. 31, 2014)
WEBSITE : www.levi.com.cn
E-MAIL :
chnrecruit@levi.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.13 = 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 wholly foreign-owned
enterprise of PRC with State Administration of Industry & Commerce (SAIC)
under registration No.: 310000400418732
on March 28, 2005.
SC’s Organization Code Certificate No.:
71785478-3
%20LIMITED%20-%20289670%2014-Oct-2014_files/image008.jpg)
SC’s Tax No.: 310106717854783
SC’s registered capital: USD 400,000
SC’s paid-in capital: USD 400,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Legal Representative |
Yeung, Kwok Kuen Sunny |
Arun Kumar Bhardwaj |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
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Name of Shareholder (s) |
% of Shareholding |
|
Levi Strauss (Hong Kong) Limited |
100 |
SC’s Chief Executives:-
|
Position |
Name |
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Legal Representative and Chairman |
Arun Kumar Bhardwaj |
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Director |
Xu Yongzhong |
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Li Chunyan |
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Walter Ettlin |
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Ba Miyuan |
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Yang Lili |
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Supervisor |
Fatima Leung |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Levi Strauss (Hong Kong) Limited 100
==============
Date of Registration: January 24, 1984
Registration No.: 0132646
Legal Form: Private
Status: Live
MANAGEMENT
Arun Kumar
Bhardwaj, Legal Representative and Chairman
-------------------------------------------------------------------------------
Gender: M
Qualification: University
Working experience (s):
At present, working in SC as legal representative and chairman
Director
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Xu Yongzhong
Li Chunyan
Walter Ettlin
Ba Miyuan
Yang Lili
Supervisor
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Fatima Leung
BUSINESS OPERATION
SC’s registered business scope includes wholesale and
retail of clothing, footwear, eyewear, watches, jewelry, clothing and raw materials,
bags, mobile phone accessories, leather products, paper products, handbags,
toys, textiles, umbrellas, perfumes, bed and bedding, stationery, key chains,
hangers, clothing model, electronic products and cups; international trade,
commission agent; providing related ancillary services, business information
consulting.
SC is mainly engaged in selling clothing.
Brand: %20LIMITED%20-%20289670%2014-Oct-2014_files/image009.jpg){kind=small}
SC’s products mainly include: clothing, etc.
SC sources its products 30% from domestic market, and 70% from overseas market. SC sells 100% of its products in domestic market.
The buying terms of SC include T/T, L/C and Credit of 30-60 days. The
payment terms of SC include T/T and Credit of 30-60 days.
*Major Suppliers:
=============
Comercializadora Internacional Jeans S.A.
Kaltex Apparel Sa De CV
Staff &
Office:
--------------------------
SC is known to have approx. 808
staff at present.
SC rents an area as its operating office, but the detailed information
is unknown.
RELATED COMPANY
SC is known to
have 16 branches at present, and the following are the major ones,
Levi’s Strauss Commerce (Shanghai) Ltd. Shenyang Branch
Levi’s Strauss Commerce (Shanghai) Ltd. Guangzhou Branch
Levi’s Strauss Commerce (Shanghai) Ltd. Beijing Branch
Levi’s Strauss Commerce (Shanghai) Ltd. Chengdu Branch
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
The bank information of SC is not filed in SAIC.
FINANCIALS
Financial Summary
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Unit: CNY’000 |
As
of Aug. 31, 2014 |
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Current assets |
375,886 |
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Long term investment |
0 |
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Fixed assets |
14,483 |
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Intangible assets |
87 |
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Other assets |
27,083 |
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Total assets |
417,539 |
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Current liabilities |
317,656 |
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Non-current liabilities |
0 |
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Total liabilities |
317,656 |
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Equities |
99,883 |
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Unit: CNY’000 |
Jan.
1, 2014 to Aug. 31, 2014 |
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Revenue |
504,687 |
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Cost of sales |
219,897 |
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Profit before tax |
62,347 |
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Less: profit tax |
15,585 |
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Profits |
46,762 |
Important Ratios
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As
of Aug. 31, 2014 |
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*Current ratio |
1.18 |
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*Liabilities to assets |
0.76 |
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*Net profit margin (%) |
9.27 |
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*Return on total assets (%) |
11.20 |
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*Revenue / Total assets |
1.21 |
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*Cost of sales / Revenue |
0.44 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
The revenue of SC appears fairly good in its line.
SC’s net profit margin is fairly good.
SC’s return on total assets is fairly good.
SC’s cost of sales is low, comparing with its revenue.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s revenue is in an average level, 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: Fairly Good.
CONCLUSIONS
SC is considered medium-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.25 |
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|
1 |
Rs.98.68 |
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Euro |
1 |
Rs.77.60 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
TPT |
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 |
-- |
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.