MIRA INFORM REPORT
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Report No. : |
351164 |
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Report Date : |
27.11.2015 |
IDENTIFICATION DETAILS
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Name : |
SHANTOU YINGYE CRAFT CO., LTD. |
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Registered Office : |
Middle Of Hezhong Road, Haojiang District, Shantou, Guangdong Province, 515071pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
11.01.1991 |
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Com. Reg. No.: |
440506000003652 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing handbags, clothes, artifacts (excluding gold and silver ornaments); selling
stationery supplies; exporting own products; importing production machinery,
components and raw materials. |
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No. of Employee : |
100 [Approximately] |
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 – March 31, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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.
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 for the first time
in modern history. Still, China's per capita income is below the world average.
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
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 also 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.
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Source
: CIA |
Company
name and address
SHANTOU YINGYE
CRAFT CO., LTD.
MIDDLE OF HEZHONG ROAD, HAOJIANG DISTRICT, SHANTOU,
GUANGDONG PROVINCE, 515071PR CHINA
TEL: 86 (0) 754-87370568/87365000 FAX: n/a
EXECUTIVE
SUMMARY
INCORPORATION DATE : JANUARY 11, 1991
REGISTRATION NO. : 440506000003652
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE : MR. QIU HEZHEN (EXECUTIVE director)
STAFF STRENGTH : [APPROXIMATELY] 100
REGISTERED CAPITAL : CNY
5,000,000
BUSINESS LINE :
MANUFACTURING AND TRADING
TURNOVER : CNY 36,420,000
[AS OF
EQUITIES : CNY 12,910,000
[AS OF
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION :
STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.3891 = 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
SC was registered as a limited liabilities company at local
Administration for Industry & Commerce (The official body of issuing and
renewing business license) on Jan. 11, 1991.
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 manufacturing handbags, clothes,
artifacts (excluding gold and silver
ornaments); selling stationery supplies; exporting own products; importing
production machinery, components and raw materials (with permit if needed).
SC is mainly engaged in manufacturing and selling handbags, purses,
luggage and concerning components.
Mr. Qiu Hezhen is legal representative, executive director and general
manager of SC at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the industrial zone of Shantou. SC’s
management declined to release detailed information of the premise.
SC is known to have approx. 100 employees at present.
SC is not known to host its own website at present.
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
Tax registration no.: 440506193027268
Organization code: 193027268
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name % of Shareholding
Qiu Hezhen 90
Qiu Huafeng 10
Legal
Representative, Executive Director and general manager:
Mr. Qiu Hezhen is currently
responsible for the overall management of SC.
Working
Experience(s):
At present Working in SC as
legal representative, executive director and general manager.
Supervisor:
Qiu Huafeng
SC is mainly engaged in manufacturing and selling handbags, purses,
luggage and concerning components.
SC’s products mainly include: handbags, purses, cosmetic bags
SC sources its materials 100% from domestic market. SC sells 10% of its
products to domestic market and 90% 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’s management declined to release its major suppliers and
clients.
Trademark & Patents
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Registration No. |
6645850 |
4147740 |
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Registration Date |
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Trademark Design |
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SC is not known to have any related companies.
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.
SC’s management declined to release the bank information of SC.
Balance Sheet
Unit: CNY’000
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AS OF Dec. 31, 2014 |
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Cash & bank |
7,030 |
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Inventory |
2,360 |
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Accounts receivable |
1,500 |
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Advanced payment |
120 |
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Cover deficit by state subsidies of
receivable |
660 |
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Other receivables |
40 |
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-------------------- |
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Current assets |
11,710 |
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Long term investment |
0 |
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Fixed assets net
value |
4,890 |
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Intangible assets |
970 |
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Total assets |
17,570 |
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============= |
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Short-term loan |
0 |
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Accounts payable |
1,490 |
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Deposit received |
2,580 |
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Accrued wages |
570 |
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Taxes payable |
20 |
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Current liabilities |
4,660 |
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Long term liabilities |
0 |
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---------------------- |
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Total liabilities |
4,660 |
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Equities |
12,910 |
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------------------------ |
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Total liabilities
& equities |
17,570 |
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=============== |
Income
Statement
Unit: CNY’000
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AS OF Dec. 31, 2014 |
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Turnover |
36,420 |
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Cost of goods sold |
30,540 |
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Taxes and additional of main operation |
250 |
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Sales expense |
2,510 |
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Management expense |
2,410 |
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Finance expense |
90 |
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Asset impairment loss |
0 |
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Income from changes in fair value |
0 |
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Subsidize revenue |
80 |
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Investment income |
0 |
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Non-operating income |
0 |
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Non-operating expenses |
20 |
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Profit before tax |
680 |
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Less: profit tax |
160 |
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Profits |
520 |
Important
Ratios
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AS OF Dec. 31, 2014 |
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*Current ratio |
2.51 |
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*Quick ratio |
2.01 |
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*Liabilities to assets |
0.27 |
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*Net profit margin (%) |
1.43 |
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*Return on total assets (%) |
2.96 |
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*Inventory /Turnover ×365 |
24 days |
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*Accounts receivable/Turnover ×365 |
15 days |
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*Turnover/Total assets |
2.07 |
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* Cost of goods sold/Turnover |
0.84 |
PROFITABILITY:
AVERAGE
The turnover of SC appears average in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIRLY
GOOD
The current ratio of SC is good.
SC’s quick ratio is good.
The inventory of SC appears average.
The accounts receivable of SC appears average.
SC has no short-term loan in 2014.
SC’s turnover is in an average level in 2014, comparing with the size of
its total assets.
LEVERAGE: FAIRLY
GOOD
The debt ratio of SC is low.
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Stable.
SC is considered large-sized in its line with stable financial condition.
Taking into consideration of SC’s operating size as well as market conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.66.55 |
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|
1 |
Rs.100.64 |
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Euro |
1 |
Rs.70.70 |
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CNY |
1 |
Rs. 10.43 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
TRI |
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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 |
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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.