MIRA INFORM REPORT
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Report No. : |
327045 |
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Report Date : |
17.06.2015 |
IDENTIFICATION DETAILS
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Name : |
KUNMING SINOBRIGHT (GROUP) CO., LTD. |
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Registered Office : |
No. 1 Dongfeng West Road, Kunming, Yunnan Province 650021
Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
30.11.1992 |
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Com. Reg. No.: |
530100000007025 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject is engaged in domestic trade, supplying and
selling of commodities; international trade; parking service; property
management; shopping mall management; counter lease & site lease, enterprise
marketing consultation; E-commerce platform operation and construction
management; the following is limited to operate by SX’s branches-cultural
entertainment, hospitality, catering services, and daily department store
chain management. |
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No. of Employee : |
4,080 |
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 : |
Good |
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Payment Behaviour : |
Regular |
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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
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
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. 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 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. In 2014 China agreed to begin limiting carbon dioxide emissions by 2030. China implemented several economic reforms in 2014, including legislation allowing local governments to issue bonds, further opening several state-owned enterprises to private investment, loosening the one-child policy, passing harsher pollution fines, and cutting administrative red tape.
|
Source
: CIA |
Company
name and address
KUNMING SINOBRIGHT
(GROUP) CO., LTD.
NO. 1 DONGFENG WEST ROAD, KUNMING, YUNNAN PROVINCE 650021 PR CHINA
TEL: 86 (0) 871-65383010/65626688
FAX: 86 (0) 871-66019366/65626688
***Note: The (No.
99, Dongfeng West Road, Kunming City, Yunan Province) was the former one.
EXECUTIVE
SUMMARY
Date of Registration : november 30, 1992
REGISTRATION NO. : 530100000007025
LEGAL FORM : SHARES LIMITED COMPANY
REGISTERED CAPITAL :
CNY
169,872,040
staff : 4,080
BUSINESS CATEGORY :
manufacturing & trading
Revenue : CNY 1,640,196,000 (CONSOLIDATED, AS OF DEC. 31, 2014)
EQUITIES : CNY 1,271,575,000 (CONSOLIDATED, AS OF DEC. 31, 2014)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT : REgular
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND :
fairly STEADY
GENERAL REPUTATION : average
EXCHANGE RATE : CNY 6.20 = 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 shares limited company
of PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 530100000007025 on November 30, 1992.
SC’s Organization Code Certificate
No.: 21657550-8
%20CO.,%20LTD.%20-%20327045%2017-Jun-2015_files/image006.jpg)
SC’s registered capital: CNY 169,872,040
SC’s paid-in capital: CNY 169,872,040
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) (As of April 23, 2015) |
% of Shareholding |
|
Tibet Taihe Xianji Investment & Management Co., Ltd. |
19.15 |
|
Beijing Hezhao Jiusheng Investment
Co., Ltd. |
9.79 |
|
Kunming Handing Century Enterprise Management Co., Ltd. |
9.58 |
|
Western China Economic Development Co.,
Ltd. |
8.9 |
|
Ningbo Zijin Heda Investment &
Management Center (Limited Partnership) |
8.51 |
|
Southwest Commerce Building
Co., Ltd. |
6.41 |
|
Tonglu Yantai Investment &
Management Partnership Enterprise (Limited Partnership) |
4.68 |
|
Ningbo Jiucan Investment &
Management Partnership Enterprise (Limited Partnership) |
4.26 |
|
Tibet Shengju Investment Co., Ltd. |
4.04 |
|
Ningbo Kunzheng Investment
Center (Limited Partnership) |
3.83 |
|
Other Shareholders |
20.85 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
He Daofeng |
|
General Manager |
Tang Yirong |
|
Director |
Qin Ling |
|
Chen Liping |
|
|
Li Shishan |
|
|
Li Shoushuang |
|
|
Du Guangyuan |
|
|
Yao Ning |
|
|
Supervisor |
Cui Jie |
|
Zhang Min |
|
|
Zhang Zhen |
|
|
Lin Jiyun |
|
|
Chen Jing |
RECENT
DEVELOPMENT
SC is a listed company in Shenzhen Stock Exchange Market
with the code of 000560.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
(As of April 23, 2015)
-----------------------------
Tibet Taihe Xianji Investment &
Management Co., Ltd. 19.15
Beijing Hezhao Jiusheng Investment Co., Ltd. 9.79
Kunming Handing Century Enterprise
Management Co., Ltd. 9.58
Western China Economic Development Co., Ltd. 8.9
Ningbo Zijin Heda Investment &
Management Center (Limited Partnership) 8.51
Southwest Commerce Building Co., Ltd. 6.41
Tonglu Yantai Investment & Management
Partnership Enterprise (Limited Partnership) 4.68
Ningbo Jiucan Investment & Management
Partnership Enterprise
(Limited Partnership) 4.26
Tibet Shengju Investment Co., Ltd. 4.04
Ningbo Kunzheng Investment Center (Limited
Partnership) 3.83
Other Shareholders 20.85
Tibet Taihe Xianji Investment &
Management Co., Ltd.
--------------------------------------------------------
Registration No.: 540195200000589
Legal Form: Limited Liabilities Company
Registered Capital: CNY 100,000,000
Legal Representative: Xie Yong
Beijing Hezhao Jiusheng Investment Co., Ltd.
--------------------------------------------------------
Registration No.: 110105017870923
Legal Form: One-person Limited Liabilities
Company
Registered Capital: CNY 1,000,000
Legal Representative: He Daofeng
Kunming Handing Century Enterprise
Management Co., Ltd.
---------------------------------------------------------
Registration No.: 530100100406402
Legal Form: One-person Limited Liabilities
Company
Registered Capital: CNY 1,000,000
Legal Representative: He Daofeng
Western China Economic Development Co., Ltd.
------------------------------------------------------------
Registration No.: 110000005047316
Legal Form: Limited Liabilities Company
Registered Capital: CNY 78,000,000
Legal Representative: He Daofeng
Ningbo Zijin Heda Investment &
Management Center (Limited Partnership)
----------------------------------------------------------------
Registration No.: 330206000234491
Southwest Commerce Building Co., Ltd.
-------------------------------------------------
Registration No.: 530100000002027
Legal Form: Shares Limited Company
Registered Capital: CNY 119,880,000
Legal Representative: He Daofeng
Tonglu Yantai Investment & Management
Partnership Enterprise (Limited Partnership)
-----------------------------------------------------
Registration No.: 330122000101488
Ningbo Jiucan Investment & Management
Partnership Enterprise (Limited Partnership)
--------------------------------------------------------
Registration No.: 330206000234346
Tibet Shengju Investment Co., Ltd.
------------------------------------------
Registration No.: 540195200000644
Legal Form: 540195200000644
Registered Capital: CNY 5,000,000
Legal Representative: Jiang Dongling
Ningbo Kunzheng Investment Center (Limited
Partnership)
----------------------------------------------
Registration No.: 330206000234354
MANAGEMENT
He Daofeng, Legal Representative and Chairman
---------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 59
Ø Qualification:
Master's Degree
Ø Working experience
(s):
At, working in SC as legal
representative and chairman
Also working in
Beijing Hezhao Jiusheng Investment Co., Ltd., Kunming Handing Century
Enterprise Management Co., Ltd., Western China Economic Development Co., Ltd.,
and Southwest Commerce Building Co., Ltd. as legal representative
Tang
Yirong , General Manager
----------------------------------------------------
Ø Gender: F
Ø Age: 43
Ø Qualification: EMBA
Ø Working experience
(s):
At, working in SC as general manager
Director
-----------
Qin Ling
Chen Liping
Li Shishan
Li Shoushuang
Du Guangyuan
Yao Ning
Supervisor
--------------
Cui Jie
Zhang Min
Zhang Zhen
Lin Jiyun
Chen Jing
BUSINESS
OPERATION
SC’s registered business scope includes domestic trade, supplying and
selling of commodities; international trade; parking service; property management;
shopping mall management; counter lease & site lease, enterprise marketing
consultation; E-commerce platform operation and construction management; the
following is limited to operate by SX’s branches-cultural entertainment,
hospitality, catering services, and daily department store chain management.
SC is
mainly engaged in domestic trade, supplying and selling of commodities; international
trade; parking service; property management; shopping mall management; counter
lease & site lease, enterprise marketing consultation; E-commerce platform
operation and construction management.
SC sources its products 80% from domestic market, and 20%
from overseas market. SC sells 35% of its products in domestic market and 65% 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.
Staff & Office:
--------------------------
SC is
known to have approx. 4,080
staff at present.
SC
owns an area as its operating office and factory, but the detailed information
is unknown.
RELATED
COMPANY
SC is
known to have the following subsidiaries,
------------------------------------------------------------
Kunming Sinobright Commerce Co., Ltd.
Kunming Sinobright (Group) Supermarket Co., Ltd.
Kunming Yeya Lake Travel Service Co., Ltd.
Kunming Sinobright Real Estate Development & Operation
Co., Ltd.
Kunming Sinobright Jiayoubaobei Trade Co., Ltd.
Kunming Sinobright (Group) Home Appliances Co., Ltd.
Kunming Sinobright Group Yeya Lake Real Estate Development
Co., Ltd.
Kunming Xinghui Yicai Trade Co., Ltd.
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’s suppliers
declined to make any comments.
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 local SAIC.
FINANCIALS
Consolidated Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
357,028 |
324,759 |
|
|
Accounts
receivable |
33,901 |
32,364 |
|
Notes receivable |
1,560 |
89 |
|
Advances to
suppliers |
63,595 |
31,445 |
|
Interest
receivable |
594 |
715 |
|
Other receivable |
405,510 |
475,169 |
|
Inventory |
1,878,635 |
1,430,064 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
2,740,823 |
2,294,605 |
|
Long-term
investments |
193,563 |
231,068 |
|
Long-term
receivable |
0 |
0 |
|
Investment
Property |
1,416,151 |
1,233,810 |
|
Fixed assets |
260,002 |
587,366 |
|
Construction in
progress |
13,535 |
4,561 |
|
Project
materials |
0 |
0 |
|
Intangible
assets |
4,438 |
5,320 |
|
Goodwill |
2,632 |
2,632 |
|
Long-term
deferred expense |
126,757 |
18,648 |
|
Deferred income
tax assets |
45,593 |
93,214 |
|
Other non-current
assets |
11,343 |
11,337 |
|
|
------------------ |
------------------ |
|
Total assets |
4,814,837 |
4,482,561 |
|
|
============= |
============= |
|
Short-term loans |
334,500 |
465,000 |
|
Notes payable |
121,670 |
83,090 |
|
Accounts payable |
584,985 |
480,492 |
|
Payroll payable |
6,298 |
5,973 |
|
Taxes payable |
111,978 |
145,638 |
|
Interest payable |
3,084 |
3,027 |
|
Dividends
payable |
4,028 |
4,354 |
|
Advances from
clients |
464,060 |
487,907 |
|
Other payable |
541,451 |
333,900 |
|
Other current
liabilities |
84,301 |
194,350 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
2,256,355 |
2,203,731 |
|
Non-current
liabilities |
1,333,005 |
1,007,255 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
3,589,360 |
3,210,986 |
|
Equities |
1,225,477 |
1,271,575 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
4,814,837 |
4,482,561 |
|
|
============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
As
of Dec. 31, 2014 |
|
Revenue |
1,791,138 |
1,640,196 |
|
Cost of sales |
1,118,559 |
1,032,558 |
|
Business Taxes and Surcharges |
75,174 |
78,726 |
|
Sales expense |
204,470 |
142,588 |
|
Management expense |
216,162 |
225,108 |
|
Finance expense |
102,302 |
121,825 |
|
Asset impairment loss |
-1,629 |
2,811 |
|
Investment
income |
26,145 |
48,790 |
|
Non-operating
income |
10,484 |
5,243 |
|
Non-operating expense |
7,127 |
2,475 |
|
Profit before
tax |
122,694 |
103,718 |
|
Less: profit tax |
28,832 |
14,276 |
|
93,862 |
89,442 |
Important Ratios
=============
|
|
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
*Current ratio |
1.21 |
1.04 |
|
*Quick ratio |
0.38 |
0.39 |
|
*Liabilities
to assets |
0.75 |
0.72 |
|
*Net profit
margin (%) |
5.24 |
5.45 |
|
*Return on
total assets (%) |
1.95 |
2.00 |
|
*Inventory /
Revenue ×365 |
383 days |
319 days |
|
*Accounts
receivable/ Revenue ×365 |
7 days |
8 days |
|
*Revenue/Total
assets |
0.37 |
0.37 |
|
*Cost of sales
/ Revenue |
0.62 |
0.63 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
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 average.
l
SC’s cost of goods sold is low, comparing with its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears large.
l
The accounts receivable of SC appears small.
l
The short-term loans of SC appear average.
l
SC’s revenue is in a
fair level, comparing with the size of its total assets.
LEVERAGE:
FAIRLY GOOD
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered large-sized in its line with
fairly stable financial conditions. The large
amount of inventory could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.15 |
|
|
1 |
Rs.100.04 |
|
Euro |
1 |
Rs.72.27 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
|
|
|
|
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.