MIRA
INFORM REPORT
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Report No. : |
308028 |
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Report Date : |
17.02.2015 |
IDENTIFICATION DETAILS
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Name : |
SHANGHAI JIUHUA IMPORT AND EXPORT CO., LTD. |
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Registered Office : |
Unit 201, Information Tower, No. 1403, Minsheng Road, Pudong New District, Shanghai,
200135 Pr |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
30.01.2008 |
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Com. Reg. No.: |
310115001056042 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Engaged in selling medicine and chemical raw materials |
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No. of Employee : |
9 |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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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 – December 31, 2014
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Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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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 and address
SHANGHAI JIUHUA
IMPORT AND EXPORT CO., LTD.
UNIT 201, INFORMATION
TOWER, NO. 1403, MINSHENG ROAD,
PUDONG NEW
DISTRICT, SHANGHAI, 200135 PR CHINA
TEL: 86 (0)
21-33927737 FAX: 86 (0)
21-33927707
EXECUTIVE SUMMARY
INCORPORATION DATE : JAN. 30, 2008
REGISTRATION NO. : 310115001056042
REGISTERED LEGAL FORM : LIMITED
LIABILITIES CO.
STAFF STRENGTH :
9
REGISTERED CAPITAL : CNY 2,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 15,670,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY -4,980,000 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : FAIR
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.25 = USD 1
ADOPTED
ABBREVIATIONS:
ANS - amount not
stated
NS - not stated
SC - subject company
(the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
Note: The given name Huazhong Pharmaceutical Co., Ltd.
belongs to SC’s related company registered in Hong Kong.
SC was registered as a One-person Limited Liability Company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Jan. 30, 2008 and has been under present
ownership since 2009.
Company Status: Limited
liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders
contribute its registered capital jointly. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to extent of its total assets. The characteristics of this form
of co. are as follows: Upon the establishment of the
co., an investment certificate is issued to the each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s registered
business scope includes selling chemical raw materials and products; selling
Class I medical device; importing and exporting commodities and technology
(with permit if needed).
SC is mainly engaged
in selling medicine and chemical raw materials.
Tang Xiangping has
been legal representative, chairman and general manager of SC since 2014.
SC is known to
have approx. 9 employees at present.
SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Shanghai. The accountant released that SC rents the total premise about 100 square meters.
http://www.hpchuazhong.com It is the website of Huazhong Pharmaceutical
Co., Ltd. The design is professional and the content is well organized. At
present it is in English version.
E-Mail: hpc@hpchuazhong.com
Changes
of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2009 |
Company’s Chinese name |
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|
|
Registered capital |
CNY 1,000,000 |
Present amount |
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Legal form |
One-person Limited Liability Company |
Present one |
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Shareholding |
Shen Jun 100% |
Shen Jun 75% Shen Huayao 25% |
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|
2013-10 |
Company’s name |
Shanghai Shenzhen Huazhong Chemical Co.,
Ltd. |
Present one |
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Legal representative |
Shen Jun |
Present one |
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Shareholding |
Shen Jun 75% Shen Huayao 25% |
Present ones |
For the past two years there is no record of litigation.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Jin Di 1
Tang Xiangping 99
l
Legal representative, chairman and general manager:
Tang Xiangping is currently responsible for
the overall management of SC.
Working
Experience(s):
From 2014
to present Working in SC as legal
representative, chairman and general manager.
l
Supervisor:
Jin Di
SC is mainly
engaged in selling medicine and chemical raw materials.
SC’s products
mainly include: human health, vet products, vitamins, nutrition, etc.
SC sources its materials 99% from domestic
market, and 1% from overseas market. SC sells 90% of its products to overseas
market and 10% in domestic market.
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.
Note: SC’s management refused to release its
main suppliers and clients.
Trademark & Patents
No record
Shenzhen
Huazhong Chemical Co., Ltd.
=============================
Registration
no.: 440301103663780
Registered
capital: CNY 3,000,000
Legal
representative: Shen Jun (沈军)
Add:
Rm. 907 Wensheng Center Wenjin Public Tian Bei 1 Rd., Luohu District, Shenzhen,
China
Tel:
+86 0 755-82033168
Fax:
+86 0 755-82032169
Hua
Zhong Pharmaceutical Company Limited (Hong Kong)
=============================
CR
No.: 0584369
Date of Incorporation: 30-DEC-1996
Company Status: Private company limited by
shares
Active Status: Live
Overall payment appraisal :
( ) Excellent (
) Good (X) Average (
) Fair ( ) Poor
( ) Not yet 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.
Industrial and
Commercial Bank of China
AC#:
1001168009006916221
Relation: Normal
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31,
2012 |
as of Dec. 31,
2013 |
|
Cash & bank |
370 |
90 |
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Inventory |
5,910 |
3,290 |
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Accounts
receivable |
0 |
1,980 |
|
Other
receivables |
2,990 |
990 |
|
Advances to
suppliers |
260 |
340 |
|
Subsidy
receivable |
230 |
0 |
|
Other current
assets |
0 |
1,770 |
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|
------------------ |
------------------ |
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Current assets |
9,760 |
8,460 |
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Fixed assets net
value |
100 |
60 |
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Long-term
investment |
0 |
0 |
|
Intangible and
other assets |
0 |
30 |
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|
------------------ |
------------------ |
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Total assets |
9,860 |
8,550 |
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|
============= |
============= |
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Short loans |
0 |
0 |
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Accounts payable |
6,950 |
7,610 |
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Taxes payable |
-270 |
-170 |
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Advances from
clients |
310 |
0 |
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Other payable |
6,410 |
6,090 |
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Other Current
liabilities |
10 |
0 |
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----------------- |
----------------- |
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Current
liabilities |
13,410 |
13,530 |
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Other Long term
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
13,410 |
13,530 |
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Shareholders
equities |
-3,550 |
-4,980 |
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|
------------------ |
------------------ |
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Total
liabilities & equities |
9,860 |
8,550 |
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============= |
============= |
Income Statement
Unit: CNY’000
|
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as of Dec. 31,
2012 |
as of Dec. 31,
2013 |
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Turnover |
9,630 |
15,670 |
|
Cost of goods
sold |
9,690 |
14,970 |
|
Sales expense |
1,050 |
750 |
|
Management expense |
1,210 |
1,210 |
|
Finance expense |
50 |
160 |
|
Profit before
tax |
-2,370 |
-1,430 |
|
Less: profit tax |
0 |
0 |
|
Net profit |
-2,370 |
-1,430 |
Important Ratios
=============
|
|
as of Dec. 31,
2012 |
as of Dec. 31,
2013 |
|
*Current ratio |
0.73 |
0.63 |
|
*Quick ratio |
0.29 |
0.38 |
|
*Liabilities
to assets |
1.36 |
1.58 |
|
*Net profit
margin (%) |
-24.61 |
-9.13 |
|
*Return on
total assets (%) |
-24.04 |
-16.73 |
|
*Inventory
/Turnover ×365 |
224 days |
77 days |
|
*Accounts
receivable/Turnover ×365 |
/ |
47 days |
|
*Turnover/Total
assets |
0.98 |
1.83 |
|
*Cost of goods
sold/Turnover |
1.01 |
0.96 |
PROFITABILITY:
FAIR
l
The turnover of SC appears average in its line and
it increased in 2013.
l
SC’s net profit margin is poor.
l
SC’s return on total assets is poor.
l
SC’s cost of goods sold is high, comparing with its
turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a poor level.
l
The inventory of SC appears large.
l
The accounts receivable of SC appears average in
2013
l
SC has no short-term loan in both years.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: POOR
l
The debt ratio of SC is too high.
l
The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Fair.
SC is considered small-sized in its line with fair financial conditions.
Credit should be extended under guarantee, and C.O.D. is recommended.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.20 |
|
|
1 |
Rs.96.00 |
|
Euro |
1 |
Rs.71.00 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
ANK |
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 |
|
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.