MIRA INFORM REPORT
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Report No. : |
353770 |
|
Report Date : |
15.12.2015 |
IDENTIFICATION DETAILS
|
Name : |
SOJITZ (SHANGHAI) CO., LTD. |
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|
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Registered Office : |
7/F Garden Square, No. 968 West Beijing Road, Jingan District Shanghai
200041 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
28.07.1993 |
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Com. Reg. No.: |
310115400012342 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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|
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Line of Business : |
Subject includes international
trade in Free Trade Zone, Trade between enterprise in Free Trade Zone, trade agent;
storage and commercial simple processing in FTZ; trade information advisory
service; wholesaling, importing and exporting mineral products, metal and
metal products, precious metal and products, chemical products and raw
materials, synthetic resin, rubber and products, wood and wood products,
paper and raw materials, building materials, garments and daily necessaries,
textiles and textile materials, electrometrical equipment and hardware,
household appliances, electronic communication equipment and spare parts,
stationary and sports device, computer software and electronic products,
native products, agricultural and animal products, food and beverage. |
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No. of Employee : |
120 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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.
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 2014 stood as the largest economy in the world, surpassing the US for the
first time in modern history. Still, China's per capita income is below the
world average.
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. In 2014 the People’s Bank
of China (PBOC) doubled the daily trading band within which the RMB is
permitted to fluctuate.
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 2014 more than 274 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. In 2014 China agreed to begin
limiting carbon dioxide emissions by 2030. China also implemented several
economic reforms in 2014, including passing legislation to allow local
governments to issue bonds, opening several state-owned enterprises to further
private investment, loosening the one-child policy, passing harsher pollution
fines, and cutting administrative red tape.
|
Source
: CIA |
COMPANY
NAME AND ADDRESS
SOJITZ (SHANGHAI) CO., LTD.
7/F GARDEN SQUARE,
NO. 968 WEST BEIJING ROAD, JINGAN DISTRICT
SHANGHAI 200041 PR
CHINA
TEL: 86 (0)
21-31311111/31311169
FAX: 86 (0)
21-31311171
EXECUTIVE
SUMMARY
Date
of Registration : JULY
28, 1993
REGISTRATION
NO. :
310115400012342
LEGAL
FORM : WHOLLY FOREIGN-OWNED ENTERPRISE
REGISTERED
CAPITAL : USD 18,000,000
staff :
120
BUSINESS
CATEGORY : TRADING
Revenue :
CNY 2,791,475,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 155,032,000 (AS OF DEC. 31, 2014)
WEBSITE : N/A
E-MAIL :
chen.qiong@sojitz.com
PAYMENT
:
AVERAGE
MARKET
CONDITION :
COMPETITIVE
FINANCIAL
CONDITION : stable
OPERATIONAL
TREND : fairly STEADY
GENERAL
REPUTATION : AVERAGE
EXCHANGE
RATE : CNY
6.42 = USD 1 AS
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.: 310115400012342 on July
28, 1993.
SC’s Organization Code Certificate No.: 60723250-2
%20CO.,%20LTD.%20-%20353770%2015-Dec-2015_files/image008.jpg)
SC’s registered capital: USD 18,000,000
SC’s paid-in capital: USD 18,000,000
Registration
Change Record:-
|
Date |
Change of
Contents |
Before the
change |
After the
change |
|
2004-1 |
Company Name |
Nichimen Shanghai Ltd. |
Sojitz (Shanghai) Co., Ltd. |
|
Registered Capital |
USD 12,000,000 |
USD 17,000,000 |
|
|
|
Legal Representative |
Datian Yishi |
Kawasaki Kazuhiko |
|
2009 |
Registered Capital |
USD 17,000,000 |
USD 18,000,000 |
|
-- |
Registered No. |
367697 |
310115400012342 |
|
Legal
Representative |
Kawasaki Kazuhiko |
Ono Shigeru |
|
|
|
Legal
Representative |
Ono Shigeru |
Goto Masao |
Current Co
search indicates SC’s shareholders & chief executives are as follows:-
|
Name of
Shareholder (s) |
% of
Shareholding |
|
(Japan) Sojitz
Corporation |
38.89 |
|
(Japan) Sojitz
(China) Co., Ltd. |
61.11 |
SC’s Chief
Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Goto Masao |
|
Director |
Murasaki Nobuo |
|
Tamura Yoshihiro |
|
|
Supervisor |
Maesono Satoshi |
RECENT
DEVELOPMENT
No recent
development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
(Japan) Sojitz Corporation 38.89
(Japan) Sojitz (China) Co., Ltd. 61.11
%20CO.,%20LTD.%20-%20353770%2015-Dec-2015_files/image007.gif){kind=small}
Sojitz Corporation
----------------------------
Web: www.sojitz.com
Add: 1-20 Akasaka 6-chome, Minato-ku. Tokyo, 107-8655, Japan
Phone: +81-3-5520-5000
Fax: +81-3-5520-2390
Sojitz (China) Co., Ltd.
----------------------------------
Address: 19th Floor, Fortune Building, No. 5 Dong San Huan Bei Lu,
Chaoyang District, Beijing
Tel: 86-10-5732-2500
Fax: 86-10-6590-9144
MANAGEMENT
Goto Masao, Legal
Representative and Chairman
------------------------------------------------------------------------------
Ø Gender: M
Ø Nationality: Japan
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal
representative and chairman
Director
-----------
Murasaki Nobuo
Tamura Yoshihiro
Supervisor
--------------
Maesono Satoshi
BUSINESS
OPERATION
SC’s registered business scope includes international
trade in Free Trade Zone, Trade between enterprise in Free Trade Zone, trade
agent; storage and commercial simple processing in FTZ; trade information
advisory service; wholesaling, importing and exporting mineral products, metal
and metal products, precious metal and products, chemical products and raw
materials, synthetic resin, rubber and products, wood and wood products, paper
and raw materials, building materials, garments and daily necessaries, textiles
and textile materials, electrometrical equipment and hardware, household
appliances, electronic communication equipment and spare parts, stationary and
sports device, computer software and electronic products, native products,
agricultural and animal products, food and beverage. (with permit if needed) .
SC is mainly engaged in international trade.
SC’s products mainly include: synthetic
resin, chemical products, food
SC sources the products 70% from domestic market, and 30% from overseas
market. SC sells 70% of its products in domestic market, and 30% to overseas
market, mainly USA, Europe, Mid East, Southeast Asia, etc.
The buying terms of SC include Check, T/T
and Credit of 30-60 days. The payment terms of SC include T/T, L/C and Credit
of 30-60 days.
*Major Customers:
==============
Ichikoh Mitsuba Inc.
Comercializadora Internacional Abarcol S.A.
K&H Pacific Inc.
Staff
& Office:
--------------------------
SC is known to have approx. 120 staff at present.
SC rents an area as its operating office,
but the detailed information is unknown.
RELATED
COMPANY
Sojitz (Dalian) Co., Ltd.
Sojitz (Guangzhou) Co., Ltd.
Sojitz (Tianjin) Co., Ltd.
SC is known to have a
branch at present:
Sojitz (Shanghai) Co., Ltd. Jing’an 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 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
Basic Bank:
Agricultural Bank
of China Shanghai Branch
AC#:
03399508015013084
FINANCIALS
Financial Summary
|
Unit: CNY’000 |
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
Current assets |
736,226 |
733,520 |
932,880 |
|
Long term
investment |
0 |
0 |
0 |
|
Fixed assets |
1,828 |
589 |
661 |
|
Intangible assets |
0 |
0 |
0 |
|
Other assets |
4,210 |
4,212 |
3,710 |
|
|
------------- |
------------- |
------------- |
|
Total assets |
742,264 |
738,321 |
937,251 |
|
|
------------- |
------------- |
------------- |
|
Current liabilities |
586,599 |
580,128 |
782,219 |
|
Long term liabilities |
0 |
0 |
0 |
|
|
------------- |
------------- |
------------- |
|
Total liabilities |
586,599 |
580,128 |
782,219 |
|
Equities |
155,665 |
158,193 |
155,032 |
|
|
------------- |
------------- |
------------- |
|
Revenue |
2,270,067 |
2,473,743 |
2,791,475 |
|
Cost of sales |
2,108,085 |
2,295,837 |
2,610,447 |
|
Profit before tax |
19,607 |
33,871 |
24,550 |
|
Less: profit tax |
5,222 |
8,978 |
6,447 |
|
Profits |
14,385 |
24,893 |
18,103 |
Important Ratios
=============
|
|
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
*Current ratio |
1.26 |
1.26 |
1.19 |
|
*Liabilities
to assets |
0.79 |
0.79 |
0.83 |
|
*Net profit
margin (%) |
0.63 |
1.01 |
0.65 |
|
*Return on
total assets (%) |
1.94 |
3.37 |
1.93 |
|
*Revenue/Total
assets |
3.06 |
3.35 |
2.98 |
|
*Cost of sales
/ Revenue |
0.93 |
0.93 |
0.94 |
FINANCIAL
COMMENTS
PROFITABILITY: AVERAGE
l
The
revenue of SC appears fairly 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 fairly high, comparing
with its revenue.
LIQUIDITY: AVERAGE
l The current ratio of SC is maintained in a
normal level.
l SC’s revenue is in an average level,
comparing with the size of its total assets.
LEVERAGE: AVERAGE
l The debt ratio of SC is average.
l The risk for SC to go bankrupt is average.
Overall financial condition of the SC:
Stable.
CONCLUSIONS
SC is considered
medium-sized in its line with stable financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.99 |
|
|
1 |
Rs.101.78 |
|
Euro |
1 |
Rs.73.47 |
|
CNY |
1 |
Rs.10.38 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
ANK |
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.