MIRA
INFORM REPORT
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Report Date : |
12.09.2014 |
IDENTIFICATION DETAILS
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Name : |
SHANGHAI EAST
BEST FOREIGN TRADE CO., LTD. |
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Registered Office : |
13/F, No. 258-268, |
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Country : |
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Financials (as on) : |
31.07.2013 |
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Date of Incorporation : |
28.08.2008 |
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Com. Reg. No.: |
310104000418761 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Import and export of goods and technology; selling textiles, clothing,
daily necessities, leather products, wood products, bamboo products, process
planning products, handicrafts, paper products, culture, sports goods,
fitness equipment, a class of medical equipment, mineral products (except
special control), building materials, chemical products (except dangerous
goods), machinery equipment, hardware, electronic products; enterprise
registration agency, economic information consultation. (with permit if needed) |
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No. of Employees |
75 |
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
|
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.
|
Source
: CIA |
Company name and address
SHANGHAI EAST BEST FOREIGN TRADE CO., LTD.
13/F, NO.
258-268, ZHAOJIABANG ROAD, SHANGHAI 200031 PR CHINA
TEL: 86 (0)
21-64333000/64330633
FAX: 86 (0)
21-64743340
EXECUTIVE SUMMARY
Date of Registration : AUGUST 28, 2008
REGISTRATION NO. : 310104000418761
LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE :
GAO WENWEI (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 7,000,000
staff :
75
BUSINESS CATEGORY : trading
REVENUE :
CNY 461,521,000 (JAN. 1 2013 TO
JUL. 31, 2013)
EQUITIES :
CNY 18,648,000 (AS OF JUL. 31, 2013)
WEBSITE : www.shforeign.com
E-MAIL :
sales@shasft.com
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : Fairly
Steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.15 = 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.: 310104000418761 on August 28, 2008.
SC’s Organization Code Certificate No.:
67935803-2
SC’s registered capital: CNY 7,000,000
SC’s paid-in capital: CNY 7,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
|
Legal Representative |
Xia Xiping |
Gao Wenwei |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Shanghai Foreign Trade Enterprises Co., Ltd. |
50.00 |
|
Sun Dunming |
5.01 |
|
Zhang Yan |
3.13 |
|
Chen Ruilin |
2.51 |
|
Pan Wei |
2.51 |
|
Xu Jianhua |
2.51 |
|
Huang Chamei |
2.00 |
|
Tang Bin |
2.00 |
|
Sang Xiaping |
2.00 |
|
Xue Yanming |
2.00 |
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Other individuals |
26.33 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Gao Wenwei |
|
General Manager and Director |
Sun Dunming |
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Deputy General Manager and Director |
Pan Wei |
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Director |
Mao Yunchang |
|
Gao Hong |
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|
Chen Ruilin |
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Supervisor |
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|
Lu Xingying |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Shanghai Foreign Trade Enterprises Co., Ltd. 50.00
Sun Dunming 5.01
Zhang Yan 3.13
Chen Ruilin 2.51
Pan Wei 2.51
Xu Jianhua 2.51
Huang Chamei 2.00
Tang Bin 2.00
Sang Xiaping 2.00
Xue Yanming 2.00
Other individuals 26.33
Shanghai Foreign Trade Enterprises Co., Ltd.
====================================
Registration No.: 310104000019293
Date of Registration: March 1, 1988
Legal Representative: Gao Wenwei
Registered Capital: CNY 26,400,000
Add: 14/F, No. 258-268 Zhaojiabang Road, Shanghai
Tel: 86-21-64333000
Fax: 86-21-64373111
Email: infor@shasft.com
MANAGEMENT
Gao Wenwei, Legal
Representative and Chairman
----------------------------------------------------------------------------
Gender: M
Qualification: University
Working experience
(s):
From 2010 to present, working in SC as legal representative and chairman
Also working in Shanghai Foreign Trade Enterprises Co., Ltd. and
Shanghai Foreign Trade Enterprises Pudong Co., Ltd. as legal representative and
chairman
Sun Dunming,
General Manager and Director
-----------------------------------------------------------------------
Gender: M
Qualification: University
Working experience
(s):
At present, working in SC as general manager and director
Pan Wei, Deputy
General Manager and Director
-----------------------------------------------------------------------
Gender: M
Qualification: University
Working experience
(s):
At present, working in SC as deputy general manager and director
Director
-----------
Mao Yunchang
Gao Hong
Chen Ruilin
Supervisor
--------------
Lu Xingying
BUSINESS OPERATION
SC’s registered business scope includes import and export of goods and
technology; selling textiles, clothing, daily necessities, leather products,
wood products, bamboo products, process planning products, handicrafts, paper
products, culture, sports goods, fitness equipment, a class of medical
equipment, mineral products (except special control), building materials,
chemical products (except dangerous goods), machinery equipment, hardware,
electronic products; enterprise registration agency, economic information
consultation. (with permit if needed)
SC is mainly engaged in international trade.
SC’s products mainly include: textiles, clothing, daily necessities,
leather products, wood products, bamboo products, etc.
SC sources its products 90% from domestic market, and 10% from overseas
markets. SC sells 10% of its products in domestic market, and 90% to overseas
market, mainly U.S.A., Southeast Asia, Europe and America.
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:
==============
Charlotte Russe Inc.
Affordable Deals Inc.
Foster Andrew & Co. Inc.
Dk Selections LLC.
Contract Pharmacal Corp.
A&C Corporation
Staff &
Office:
--------------------------
SC is known to have approx. 75
staff at present.
SC rents an area as its operating office, but the detailed information
is unknown.
RELATED COMPANY
According to the
above website www.shforeign.com
Shanghai World Expo (Group) Co., Ltd
Shanghai East Best International Service Trade (Group) Co., Ltd.
Shanghai East Best International Business Development Co., Ltd.
Shanghai Foreign Trade Enterprises Pu Dong Co., Ltd.
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 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 SAIC.
FINANCIALS
Balance Sheet
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Unit: CNY’000 |
As of Jul. 31,
2013 |
|
29,354 |
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Accounts receivable |
78,615 |
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Advances to suppliers |
126,538 |
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Other receivable |
248,184 |
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Inventory |
194,265 |
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Non-current assets within one year |
0 |
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Other current assets |
7,422 |
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------------------ |
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Current assets |
684,378 |
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Fixed assets |
827 |
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Financial assets available for sale |
0 |
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Long-term prepaid expenses |
0 |
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Deferred income tax assets |
0 |
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Other non-current assets |
276 |
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------------------ |
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Total assets |
685,481 |
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============= |
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Short-term loans |
0 |
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Notes payable |
30,450 |
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Accounts payable |
173,872 |
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Advances from clients |
248,681 |
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Other payable |
135,748 |
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Other current liabilities |
78,082 |
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------------------ |
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Current liabilities |
666,833 |
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Non-current liabilities |
0 |
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Total liabilities |
666,833 |
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Equities |
18,648 |
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------------------ |
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Total liabilities & equities |
685,481 |
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|
============= |
Income Statement
|
Unit: CNY’000 |
Jan. 1 2013 to
Jul. 31, 2013 |
|
Revenue |
461,521 |
|
Cost of sales |
449,675 |
|
Sales expense |
6,652 |
|
Management expense |
4,721 |
|
Finance expense |
-242 |
|
Profit before tax |
694 |
|
Less: profit tax |
105 |
|
589 |
Important Ratios
=============
|
|
As of Jul. 31,
2013 |
|
*Current ratio |
1.03 |
|
*Quick ratio |
0.73 |
|
*Liabilities to assets |
0.97 |
|
*Net profit margin (%) |
0.13 |
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*Return on total assets (%) |
0.09 |
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*Inventory / Revenue ×210 |
89 days |
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*Accounts receivable/ Revenue ×210 |
36 days |
|
* Revenue/Total assets |
0.67 |
|
* Cost of sales / Revenue |
0.97 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears fairly good in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of sales is fairly high, comparing with its revenue.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a fair level.
The inventory of SC appears fairly large.
The accounts receivable of SC is maintained in an average level.
SC has no short-term loans.
SC’s revenue is in a fair level, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
The debt ratio of SC is fairly high.
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.60.92 |
|
UK Pound |
1 |
Rs.98.66 |
|
Euro |
1 |
Rs.78.34 |
INFORMATION DETAILS
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Analysis Done by
: |
SUM |
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Report Prepared
by : |
SDA |
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 |
|
|
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 |
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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.