MIRA INFORM REPORT
|
Report No. : |
329816 |
|
Report Date : |
04.07.2015 |
IDENTIFICATION DETAILS
|
Name : |
SHANGHAI MAXIM GARMENT ACCESSORIES CO., LTD. |
|
|
|
|
Registered Office : |
No. 639 Hongzhong Road, Minhang District, Shanghai
City, 201103 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
08.07.1994 |
|
|
|
|
Com. Reg. No.: |
310000400085414 |
|
|
|
|
Legal Form : |
Wholly Foreign-Owned Enterprise |
|
|
|
|
Line of Business : |
Subject is engaged in manufacturing and sales of garment accessories |
|
|
|
|
No. of Employee : |
800 |
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 |
|
|
|
|
Payment Behaviour : |
No complaints |
|
|
|
|
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. 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 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 that year... 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 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 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
SHANGHAI MAXIM GARMENT ACCESSORIES CO., LTD.
No.
639 hongzhong road, minhang district,
Shanghai
city, 201103 PR CHINA
TEL: 86 (0)
21-64064227*204/461 FAX: 86 (0)
21-64064243
EXECUTIVE
SUMMARY
INCORPORATION DATE : june 8, 1994
REGISTRATION NO. : 310000400085414
REGISTERED LEGAL FORM : Wholly foreign-owned
enterprise
STAFF STRENGTH :
800
REGISTERED CAPITAL : usd 8,664,000
BUSINESS LINE :
TRADING and manufacturing
TURNOVER :
CNY 421,690,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 203,710,000 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.20 = USD
Adopted abbreviations:
ANS - amount not stated NS - not stated SC - subject company (the company inquired by you)
NA - not available CNY - China Yuan Renminbi
HISTORY
SC was registered as a wholly
foreign-owned enterprise at local Administration for Industry & Commerce
(AIC -The official body of issuing and renewing business license) on June 8, 1994.
Company Status:
Wholly foreign-owned enterprise
This form of
business in PR China is defined as a legal person. It is a limited co.
established within the territories of PR China with capital provided totally by
the foreign investors. More than one foreign investor may jointly invest in a
wholly foreign-owned enterprise. The investing party/parties solely exercise
management, reap profit and bear risks and liabilities by themselves. This form
of companies usually have a limited duration is extendible upon approval of
Examination and Approval Authorities
SC’s registered business scope includes manufacture of garment
accessories; design, manufacture and development of various types of packaging
bags, printed label, woven label, hangtag, stickers, bar code label, arcode
software and hardware; sales of own products, development of apparel
accessories software system; providing
related technical consulting and services (if needed with permit).
SC is mainly engaged in manufacturing and sales of garment accessories.
Mr. Zhai
Suoqiang is legal representative and
chairman of SC at present.
SC is known to
have approx. 800 employees at
present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in Shanghai. Detailed premise information is not
available at present.
WEB
SITE
http://www.maxim-group.com.cn/ The design is
professional and the content is well organized. At present it is in English
version.
LITIGATION
For the past two years there is no record of litigation.
KEY
EVENTS/RECENT DEVELOPMENT
No significant changes were found during our
checks with the local Administration for Industry and Commerce.
Subject passed the
annual inspection of 2012 with Administration for Industry & Commerce.
Organization Code:
607263640
OWNERSHIP/MANAGEMENT
MAIN SHAREHOLDERS:
Name Amount
(USD) % of Shareholding
Zhai Suoqiang (Taiwanese) 2,805,000 32.38
Wu Chenglan (American) 1,507,000 17.39
Zhai Suoling (Taiwanese) 1,507,000 17.39
Zhai Suorong (American) 1,507,000 17.39
Li Chongzhang (Taiwanese) 131,000 1.51
He Weimin (Taiwanese) 99,000 1.15
Wise Century Co., Ltd. (Samoa) 1,108,000 12.79
MANAGEMENT
l Legal Representative
and Chairman:
Mr. Zhai Suoqiang (Taiwanese). He is currently responsible for
the overall management of SC.
Working Experience(s):
At present Working in SC as legal representative and
chairman.
Also working in Zhejiang Maxim Garment
Accessories Co., Ltd. and Shanghai Meixing Packing and Printing Co., Ltd. as
legal representative.
l Director:
Wu Chenglan
Zhai Suoling
Zhai Suorong
Li Chongzhang
He Weimin
l
Supervisor:
Hu Huijun
BUSINESS
OPERATIONS
SC is mainly engaged in manufacturing and sales of garment accessories.
SC’s products
mainly include: woven label, printed label, hang tag and self-adhesive, etc.
SC sources its materials from domestic
market and overseas market. SC sells its products in domestic market, and to
overseas 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 declined to release its major
suppliers and clients.
TRADEMARKS & PATENTS
Registration No.: 10734727
Registration Date: 2013-6-14
Trademark Design: 
Registration No.: 10734823
Registration Date: 2013-6-14
Trademark Design: 
Registration No.: 9431986
Registration Date: 2012-11-21
Trademark Design: 
RELATED
COMPANIES
SC is known to invest in the following companies:
Maxim
Company (H.K.) Limited
CR
No.: 0314722
Company
Type: Private company limited by shares
Date
of Incorporation: 20-Jun.-1991
Active
Status: Live
Zhejiang
Maxim Garment Accessories Co., Ltd.
Incorporation
Date: 2007-04-05
Registration
No.: 330000400000088
Legal
representative: Zhai Suoqiang
Shenzhen
Maxim Packing and Printing Co., Ltd.
Incorporation
Date: 2012-03-22
Registration
No.: 440301106087788
Legal
representative: Li Chongzhang
Shanghai
Meixing Packing and Printing Co., Ltd. (In Chinese Pinyin)
Incorporation
Date: 1994-12-15
Registration
No.: 310000400101720
Legal
representative: Zhai Suoqiang
According to SC’s website:
Maxim
Company (Taiwan) Ltd.
========================
Add:
2/F, No.67, Sung-Chiang Rd., Taipei, Taiwan
Phone:
+886-2-2507 2591
Fax:
+886-2-2507 4031
PAYMENT
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.
BANKING
SC’s accountant
refused to release the bank details.
FINANCIAL
HIGHLIGHTS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2013 |
|
Cash & bank |
103,810 |
|
Inventory |
42,090 |
|
Accounts
receivable |
72,850 |
|
Financial assets
held for trading |
550 |
|
Advances to
suppliers |
1,770 |
|
Other
receivables |
37,480 |
|
Note receivable |
880 |
|
|
------------------ |
|
Current assets |
259,430 |
|
Fixed assets net
value |
33,740 |
|
Long term
investment |
57,930 |
|
Projects under
construction |
1,890 |
|
Long term
prepaid expenses |
1,900 |
|
Intangible and
other assets |
2,350 |
|
|
------------------ |
|
Total assets |
357,240 |
|
|
=========== |
|
Short loan |
0 |
|
Accounts payable |
63,920 |
|
Advances from
customers |
40,120 |
|
Taxes payable |
7,620 |
|
Other accounts
payable |
2,640 |
|
Payroll payable |
8,750 |
|
Non-current
liabilities due within one year |
30,480 |
|
|
------------------ |
|
Current
liabilities |
153,530 |
|
Long term
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
153,530 |
|
Equities |
203,710 |
|
|
------------------ |
|
Total
liabilities & equities |
357,240 |
|
|
=========== |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2013 |
|
Turnover |
421,690 |
|
Cost of goods
sold |
322,510 |
|
Taxes and additional of main operation |
750 |
|
Sales expense |
46,010 |
|
Management expense |
49,640 |
|
Finance expense |
220 |
|
Investment
income |
-30 |
|
Non-operating income |
43,360 |
|
Non-operating expense |
980 |
|
Profit before
tax |
44,910 |
|
Less: profit tax |
6,770 |
|
Profits |
38,140 |
Important
Ratios
=============
|
|
As of Dec. 31, 2013 |
|
*Current ratio
|
1.69 |
|
*Quick ratio |
1.42 |
|
*Liabilities
to assets |
0.43 |
|
*Net profit
margin (%) |
9.04 |
|
*Return on
total assets (%) |
10.68 |
|
*Inventory
/Turnover ×365 |
37 days |
|
*Accounts
receivable/Turnover ×365 |
64 days |
|
*Turnover/Total
assets |
1.18 |
|
* Cost of goods
sold/Turnover |
0.76 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIRLY GOOD
l The turnover 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 good.
l
SC’s cost of goods sold is average.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears average.
l
The accounts receivable of SC is maintained in an
average level.
l
SC has no short loans in 2013.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly good.
REMARKS
SC is considered medium-sized in its line with fairly good financial
conditions
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.40 |
|
|
1 |
Rs.98.94 |
|
Euro |
1 |
Rs.70.33 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
ASH |
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.