MIRA INFORM REPORT
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Report No. : |
309641 |
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Report Date : |
27.02.2015 |
IDENTIFICATION DETAILS
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Name : |
ALPHA3 COVERING MATERIAL (SHANGHAI) LIMITED |
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Registered Office : |
5# Workshop, No. 385 Dongxing Road, Songjiang District Shanghai 201613 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
12.11.2007 |
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Com. Reg. No.: |
310000400548330 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Subject is engaged in manufacturing and
selling covering material. |
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No. of Employee : |
88 |
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 – 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
ALPHA3 COVERING
MATERIAL (SHANGHAI) LIMITED
5# WORKSHOP, NO. 385 DONGXING ROAD, SONGJIANG DISTRICT
SHANGHAI 201613 PR CHINA
TEL: 86 (0) 21-51871185
FAX: 86 (0) 21-57747773
EXECUTIVE
SUMMARY
Date of Registration : november 12, 2007
REGISTRATION NO. : 310000400548330
LEGAL FORM : Wholly foreign-owned enterprise
REGISTERED CAPITAL :
usd 1,050,000
staff : 88
BUSINESS CATEGORY :
MANUFACTURING & TRADING
Revenue :
CNY 137,850,000 (AS OF DEC. 31,
2014)
EQUITIES :
CNY 32,940,000 (AS OF DEC. 31, 2014)
WEBSITE : www.alpha3.com.cn
E-MAIL :
linda@alpha3.com.cn
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : stable
OPERATIONAL TREND :
fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.25 = USD 1
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.: 310000400548330 on November 12, 2007.
SC’s Organization Code Certificate
No.: 66778188-8
%20LIMITED%20-%20309641%2027-Feb-2015_files/image006.jpg)
SC’s Tax No.: 310227667781888
SC’s registered capital: usd 1,050,000
SC’s paid-in capital: usd 1,050,000
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 |
|
Alpha 3 Asia Limited (Hong
Kong) |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Huang
Shujiao |
|
General Manager |
Li
Jidong |
|
Supervisor |
Xiao
Zhenzhen |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Alpha 3 Asia Limited (Hong Kong) 100
Date of Registration: June 22, 2007
Registration No.: 1143394
Legal Form: Private
Status: Live
MANAGEMENT
Huang
Shujiao Legal
Representative and Chairman
Ø
Gender: M
Ø Qualification:
University
Ø Working experience
(s):
At
present, working in SC as legal representative and chairman
Li Jidong
, General Manager
Ø
Gender: M
Ø Qualification:
University
Ø Working experience
(s):
At
present, working in SC as general manager, also working in Shenzhen Alpha3 Covering
Material Co., Ltd. and Alpha3 Covering
Material (Beijing) Limited as legal representative
Supervisor
Xiao Zhenzhen
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing and
processing embossed paper, PU leather embossing, flocking paper, binding cloth
and other covering material; selling its owned products.
SC is
mainly engaged in manufacturing and selling covering material.
Brand: ALPHA
SC’s
products mainly include: svepa thermo PU, etc.
SC sources its materials 100% from domestic market, mainly Shanghai. SC sells 60% of its products in domestic market, and 40% to overseas market, mainly USA, 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:
Quad Graphics
Colombia S.A
Ecological Fibers
Inc.
Staff & Office:
SC is
known to have approx. 88
staff at present.
SC rents an area as
its operating office and factory, but the detailed information is unknown.
RELATED
COMPANY
Shenzhen Alpha3 Covering Material Co., Ltd.
Alpha3
Covering Material (Beijing) Limited
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:
China
Construction Bank Songjiang Dongkai Sub-branch
AC#:
31001937717050003101
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2014 |
|
15,900 |
|
|
Notes receivable |
0 |
|
Accounts
receivable |
18,180 |
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Advances to
suppliers |
0 |
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Other receivable |
1,450 |
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Inventory |
6,660 |
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Non-current
assets within one year |
0 |
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Other current
assets |
3,880 |
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|
------------------ |
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Current assets |
46,070 |
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Fixed assets |
5,920 |
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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 |
0 |
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------------------ |
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Total assets |
51,990 |
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|
============= |
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Short-term loans |
0 |
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Notes payable |
0 |
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Accounts payable |
14,070 |
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Advances from
clients |
3,640 |
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Other payable |
0 |
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Other current
liabilities |
1,340 |
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|
------------------ |
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Current
liabilities |
19,050 |
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Non-current liabilities |
0 |
|
|
------------------ |
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Total
liabilities |
19,050 |
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Equities |
32,940 |
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|
------------------ |
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Total
liabilities & equities |
51,990 |
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|
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2014 |
|
Revenue |
137,850 |
|
Cost of sales |
114,160 |
|
Sales expense |
2,610 |
|
Management expense |
6,150 |
|
Finance expense |
-50 |
|
Profit before
tax |
14,080 |
|
Less: profit tax |
3,520 |
|
10,560 |
Important Ratios
|
|
As
of Dec. 31, 2014 |
|
*Current ratio |
2.42 |
|
*Quick ratio |
2.07 |
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*Liabilities
to assets |
0.37 |
|
*Net profit
margin (%) |
7.66 |
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*Return on
total assets (%) |
20.31 |
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*Inventory /
Revenue ×365 |
18 days |
|
*Accounts
receivable/ Revenue ×365 |
49 days |
|
*Revenue/Total
assets |
2.65 |
|
*Cost of sales
/ Revenue |
0.83 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIRLY GOOD
l The revenue of SC appears fairly good in its line.
l SC’s net profit
margin is fairly good.
l SC’s return on
total assets is fairly good.
l
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a fairly
good level.
l
SC’s quick ratio is maintained in a fairly good
level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
SC has no short-term loans.
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 low.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
CONCLUSIONS
SC is considered small-sized in its line with
stable financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.94 |
|
|
1 |
Rs.96.24 |
|
Euro |
1 |
Rs.70.39 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
ASH |
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.