MIRA INFORM REPORT
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Report No. : |
323507 |
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Report Date : |
19.05.2015 |
IDENTIFICATION DETAILS
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Name : |
SHANGHAI CHUN ZU MACHINERY INDUSTRY CO., LTD. |
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Registered Office : |
No. 6639 Jihe Road, Baihe Town, Qingpu District Shanghai 201709 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
07.01.1998 |
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Com. Reg. No.: |
310000400187057 |
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Legal Form : |
Wholly foreign-owned enterprise |
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Line of Business : |
Subject includes
researching, developing and manufacturing fasteners processing machinery and
spare parts, tools, molds, standard hardware; selling its owned products |
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No. of Employees : |
195 |
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. 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.
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Source
: CIA |
Company
name and address
SHANGHAI CHUN ZU
MACHINERY INDUSTRY CO., LTD.
NO. 6639 JIHE ROAD, BAIHE TOWN, QINGPU DISTRICT
SHANGHAI 201709 PR CHINA
TEL: 86 (0) 21-59742888
FAX: 86 (0) 21-59742882
EXECUTIVE
SUMMARY
DATE OF REGISTRATION : JANUARY 7, 1998
REGISTRATION NO. : 310000400187057
LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE
CHIEF EXECUTIVE : SUN DEBIN (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : USD 8,500,000
STAFF : 195
BUSINESS CATEGORY : MANUFACTURING & TRADING
REVENUE : CNY 149,108,000 (AS OF DEC. 31, 2013)
EQUITIES : CNY 164,570,000 (AS OF DEC. 31, 2013)
WEBSITE : WWW.CHUNZU.COM.CN
E-MAIL : CHUNZU@CHUZU.COM.CN
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : 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 wholly foreign-owned enterprise of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 310000400187057 on January 7, 1998.
SC’s Organization Code Certificate No.: 60738388-8
SC’s registered capital: USD 8,500,000
SC’s paid-in capital: USD 8,500,000
Registration Change
Record:
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Date |
Change of Contents |
Before the change |
After the change |
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Registered Capital |
USD 8,000,000 |
USD 8,500,000 |
Current Co search
indicates SC’s shareholders & chief executives are as follows:-
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Name of Shareholder
(s) |
% of Shareholding |
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Laiwangcheng Development Co., Ltd. |
100 |
SC’s Chief
Executives:-
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Position |
Name |
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Legal Representative and Chairman |
Sun Debin |
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General Manager |
Hu Zhanfei |
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Director |
Sun Zhengya |
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Lin Huizheng |
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Wang Jiongfen |
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Li Shihe |
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Sun Mingshen |
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Li Shiren |
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Supervisor |
Chen Qitai |
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Li Minghuang |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name % of Shareholding
Laiwangcheng Development Co., Ltd. 100
MANAGEMENT
Sun Debin Legal
Representative and Chairman
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Gender: M
Qualification: University
Working experience (s):
From 1998 to present, working in SC as legal representative and chairman
Hu Zhanfei General
Manager
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Gender: M
Qualification: University
Working experience (s):
At present, working in SC as general manager
Director
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Sun Zhengyao
Lin Huizheng
Wang Jiongfen
Li Shihe
Sun Mingshen
Li Shiren
Supervisor
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Chen Qitai
Li Minghuang
BUSINESS
OPERATION
SC’s registered business scope includes researching, developing and manufacturing fasteners processing machinery and spare parts, tools, molds, standard hardware; selling its owned products.
SC is mainly engaged in manufacturing and selling machinery and equipment.
Brand: LION
SC’s products mainly include: fasteners processing machinery
SC sources its materials 100% from domestic market, mainly Shanghai. SC sells 70% of its products in domestic market, and 30% to overseas market, mainly USA, Europe, Mid East, Southeast Asia,
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.
Staff & Office:
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SC is known to have approx. 195 staff at present.
SC owns an area as its operating office and factory, but the detailed information is unknown.
RELATED
COMPANY
SC is not known to have any subsidiary at present.
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
The bank information of SC is not filed in SAIC.
FINANCIALS
Financial Summary
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Unit: CNY’000 |
As of Dec. 31, 2013 |
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Total assets |
238,172 |
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Total liabilities |
73,602 |
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Equities |
164,570 |
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Revenue |
149,108 |
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Profit before tax |
13,917 |
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Less: profit tax |
2,088 |
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Profits |
11,829 |
Important Ratios
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As of Dec. 31, 2013 |
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*Liabilities to assets |
0.31 |
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*Net profit margin (%) |
7.93 |
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*Return on total assets (%) |
4.97 |
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* Revenue/Total assets |
0.63 |
FINANCIAL
COMMENTS
PROFITABILITY: FAIRLY
GOOD
- The revenue of SC appears fairly good in its line.
- SC’s net profit margin is fairly good.
- SC’s return on total assets is average.
LIQUIDITY: FAIR
- SC’s revenue is in a fair level, comparing with the size of its total assets.
LEVERAGE: AVERAGE
- The debt ratio of SC is low.
- 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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.63.55 |
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1 |
Rs.99.86 |
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Euro |
1 |
Rs.72.67 |
INFORMATION DETAILS
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Analysis Done by
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SUB |
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Report Prepared
by : |
VNT |
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 |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
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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.