MIRA INFORM REPORT
|
Report No. : |
342797 |
|
Report Date : |
01.10.2015 |
IDENTIFICATION DETAILS
|
Name : |
SHANGHAI DRAGON CORPORATION |
|
|
|
|
Registered Office : |
3-4/F, Building A, No. 584, Zhizaoju Road, Shanghai, 200023 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
30.06.2015 |
|
|
|
|
Date of Incorporation : |
30.06.1992 |
|
|
|
|
Com. Reg. No.: |
310000000007778 |
|
|
|
|
Legal Form : |
Shares Limited Company |
|
|
|
|
Line of Business : |
Manufacturing and selling textile; industrial investment; assets
operation and management; domestic trade and retailing (excluding special
items); import and export of goods and technology, excluding items prohibited
and limited by the State; processing with imported materials, processing with
imported samples, assembling with imported parts, and compensation trade in
agreement; counter trade & transit
trade; business consulting; storage; developing and operating real estate;
leasing owner-occupied housing; property management; computer system services
(excluding Internet business). [Any project that needs to be approved by law can
only be carried out after getting approval by relevant authorities.] |
|
|
|
|
No. of Employees : |
168 |
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. 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.
|
Source
: CIA |
Company
Name & address
SHANGHAI DRAGON CORPORATION
3-4/F, BUILDING A, NO. 584, ZHIZAOJU ROAD, SHANGHAI, 200023 PR CHINA
TEL: 86 (0) 21-34061116/63158230 FAX: 86 (0) 21-54666630
EXECUTIVE
SUMMARY
INCORPORATION DATE : JUN. 30, 1992
REGISTRATION NO. : 310000000007778
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
CHIEF EXECUTIVE :
MR. ZHU YONG (CHAIRMAN)
STAFF STRENGTH :
168
REGISTERED CAPITAL : CNY 424,861,597
BUSINESS LINE :
MANUFACTURING
TURNOVER :
cny 1,965,931,000 (Consolidated, JAN. 1 TO Jun. 30, 2015)
EQUITIES :
cny 1,653,435,000 (Consolidated, AS OF Jun. 30, 2015)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : WELL KNOWN
EXCHANGE RATE :
CNY 6.35= 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 Ren Min Bi
Note: SC is also known as Shanghai Dragon (Group) Corporation.
SC was registered as a shares limited company at local Administration
for Industry & Commerce (AIC - The official body of issuing and renewing
business license).
Company Status: Shares limited co. This form of business in PR China
is defined as a legal person. Its registered capital is divided into shares
of equal par value and the co. raises capital by issuing share certificates
by promotion or by public offer. Shareholders bear limited liability to the
extent of shareholding, and the co. is liable for its debts only to the
extent of its total assets. The co has independent property of legal person
and enjoys property rights of legal person. The characteristics of
the shares limited co. are as follows: The establishment of the co.
requires at least two promoters and no more than 200, half of whom shall be domiciled
in The minimum registered capital
of a co. is CNY The board of directors must
consist of five to nineteen directors. If the co.
raises capital by public offer, the promoters must not subscribe less than
35% of the total shares. the promoters’ shares are restricted to transfer-
within one year of the offer. A state-owned enterprise that
is restructured into a shares limited co. must comply with the conditions
& requirements specified under the law & administrative rule.
SC’s registered business scope includes manufacturing and selling
textile; industrial investment; assets operation and management; domestic trade
and retailing (excluding special items); import and export of goods and technology,
excluding items prohibited and limited by the State; processing with imported
materials, processing with imported samples, assembling with imported parts,
and compensation trade in agreement; counter trade &
transit trade; business consulting; storage; developing and operating real
estate; leasing owner-occupied housing; property management; computer system
services (excluding Internet business). [Any project that needs to be approved by law
can only be carried out after getting approval by relevant authorities.]
SC is mainly engaged in manufacturing and selling textiles.
Mr. Zhu Yong is the legal representative and chairman of SC at present.
SC is known to have approx. 168 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the industrial zone of Shanghai. SC’s management
declined to release detailed information of the premise.
http://www.shanghaidragon.com.cn/ The design is professional and the content
is well organized. At present the web site is in Chinese and English versions.
E-Mail: longtou@shanghaidragon.com.cn
SC is a listed company in Shanghai Stock Exchange Market with the code
of 600630.
SC has passed the ISO9001:2000, WRAP Certificate.
SC’s brands (Happiness, Queen, Phoenix, etc.) were awarded “Shanghai
Famous Bands”.
Changes of its
registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Registered no. |
3100001000424 |
Present one |
Organization Code: 132219346
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS: (As of Jun. 30, 2015)
Name %
of Shareholding
Shangtex (Group) Co., Ltd. 30.08
Zhang Zuqiang
张祖强 1.73
China Life Insurance (Group) Company – Traditional- Common Insurance
Products 1.43
Zhang Yanjie 0.63
UBS AG 0.53
Shanghai Nanshanghai Commercial Real Estate Co., Ltd. 0.51
Hongta Securities Co., Ltd. Agreed Repurchase Type Securities Trading
Special Securities Account 0.42
Yan Gencai 0.42
China Guangfa Bank Co., Ltd.- Central European Spirit Growth
Classification Stock Securities Investment Fund 0.36
Agricultural Bank of China – Zhonghai Bonus Mixed Increased Profits
Opened Securities Investment Fund 0.35
Other shareholders 63.54
Shangtex (Group) Co., Ltd.
====================
Reg. no.: 310000000082375
Legal representative: Tong Jisheng
Address: No. 989, Gubei Rd, Shanghai
Email: shangtex@shangtex.biz
Legal representative and Chairman:
Mr. Zhu Yong, born in 1963, senior engineer, with Master’s degree. 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 Shangtex (Group) Co., Ltd. as general manager
General
manager:
Mr. Wang Weimin, born in 1969, senior engineer, with Master’s degree. He
is currently responsible for the daily management of SC.
Working Experience(s):
At present Working
in SC as general manager
Also working in Shanghai Threegun (Group) Co., Ltd. and Shanghai Three
Gun Industry Co., Ltd. as legal representative
Vice
General manager:
Mr. Zhou Ke, born in 1967, economist, with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
At present Working
in SC as vice general manager.
Directors:
Chen Nanliang
Liu Xiaogang
Zhou Jian
Supervisors:
Wu Jianping
Jiang Yuankai
Qian Xiaohong
SC is mainly engaged in manufacturing and selling textiles.
SC’s products mainly include: knitting textile, home textile, apparel.
SC owns a series of brands which is well known in domestic market, such
as “Threegun” and “Mum” knitting underwear, “Conch” shirt and suit, “Minguang”
and “Happiness” bedding, “Bell 414”, and “Queen” towel, “Phoenix” blanket,
etc., among those brands there are 2 China resound trademarks and 8 Shanghai
name brands. Meanwhile, SC possess advanced knitting and ornament research
institutes and predominates large domestic sales network comprised by over 6000
terminals, along with textile exporting network across lots of countries and
regions in 6 continents.
Trademarks &
patents
|
Registration No. |
11074260 |
11074241 |
11074215 |
|
Registration Date |
2014-04-21 |
2014-03-07 |
2014-03-14 |
|
Trademark Design |
|
|
|
SC sources its materials 80% from domestic market, and 20% from the
overseas market. SC sells 50% of its products in domestic market, and 50% to
the 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 T/T, L/C and Credit of 30-60 days.
*Major Clients:
============
Wal-Mart (China) Investment Co., Ltd.
NGS Supermarket (Group) Co., Ltd.
*Major Suppliers:
============
Shanghai Hanyou Network Technology Co., Ltd. (Literal Translation)
Shanghai Huayi Towel Co., Ltd.
*Invested
companies:
Shanghai Threegun (Group) Co., Ltd.
-------------------------------------
Reg. no.: 310000000032355
Legal representative: Wang Weimin
Incorporation date: 1994-11-14
Shanghai Conch Apparel Co., Ltd.
-------------------------------
Reg. no.: 310115000034701
Legal representative: Ding Lei
Incorporation date: 1993-6-17
Shanghai Longtou Home Textile Co., Ltd.
Shanghai Shuanglong Hi-tech Development Co., Ltd. (Literal Translation)
Shanghai Longtou Investment Development Co., Ltd.
Related companies:
Shanghai Three Gun Industry Co., Ltd.
Legal representative: Wang Weimin
Shanghai Three Gun Group Guangzhou Sale Co., Ltd.
Shanghai Three Gun Group Sichuan Sale Co., Ltd.
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’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.
Industrial and Commercial Bank of China Shanghai Branch
Hongqiao Development Zone Sub-branch
AC#: 022427-05911103
Relationship: Normal.
Consolidated
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31,
2014 |
As of June 30,
2015 |
|
Cash & bank |
280,512 |
285,700 |
|
Notes receivable |
31,192 |
14,271 |
|
Inventory |
670,427 |
828,307 |
|
Accounts receivable |
275,719 |
251,084 |
|
Advances to suppliers |
326,846 |
338,167 |
|
Other receivables |
187,769 |
161,906 |
|
Other current assets |
14,324 |
18,280 |
|
|
------------------ |
------------------ |
|
Current assets |
1,786,789 |
1,897,715 |
|
Financial assets available for sale |
2,633 |
3,672 |
|
Fixed assets net value |
332,519 |
318,267 |
|
Long-term investment |
112,092 |
108,934 |
|
Investment real estate |
34,803 |
33,786 |
|
Projects under construction |
7,475 |
17,426 |
|
Intangible assets |
30,736 |
30,265 |
|
Other assets |
235 |
234 |
|
|
------------------ |
------------------ |
|
Total assets |
2,307,282 |
2,410,299 |
|
|
============= |
============= |
|
Short loans |
136,937 |
161,705 |
|
Notes payable |
3,026 |
4,175 |
|
Accounts payable |
207,371 |
217,187 |
|
Other Accounts payable |
40,930 |
61,637 |
|
Advances from clients |
231,160 |
282,061 |
|
Accrued payroll |
10,182 |
679 |
|
Taxes payable |
42,522 |
7,389 |
|
Dividends payable |
1,465 |
20,584 |
|
Interest payable |
194 |
481 |
|
Other current liabilities |
0 |
0 |
|
|
----------------- |
------------------ |
|
Current liabilities |
673,787 |
755,898 |
|
Long term liabilities |
706 |
966 |
|
|
----------------- |
------------------ |
|
Total liabilities |
674,493 |
756,864 |
|
Shareholders equities |
1,632,789 |
1,653,435 |
|
|
----------------- |
------------------ |
|
Total liabilities & equities |
2,307,282 |
2,410,299 |
|
|
============= |
============= |
Consolidated
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2014 |
Jan. 1 - June
30, 2015 |
|
Turnover |
4,127,262 |
1,965,931 |
|
Cost of goods sold |
3,315,169 |
1,548,199 |
|
Taxes and additional of main operation |
16,467 |
5,735 |
|
Sales expense |
520,215 |
266,197 |
|
Management expense |
207,139 |
107,692 |
|
Finance expense |
12,703 |
2,960 |
|
Asset impairment loss |
9,401 |
-1,157 |
|
Investment income |
16,001 |
6,053 |
|
Non-operating income |
20,281 |
9,531 |
|
Non-operating expense |
3,865 |
1,987 |
|
Profit before tax |
78,585 |
49,902 |
|
Less: profit tax |
14,833 |
10,917 |
|
Profits |
63,752 |
38,985 |
Important
Ratios
=============
|
|
As of Dec. 31,
2014 |
As of June 30,
2015 |
|
*Current ratio |
2.65 |
2.51 |
|
*Quick ratio |
1.66 |
1.41 |
|
*Liabilities to assets |
0.29 |
0.31 |
|
*Net profit margin (%) |
1.54 |
1.98 |
|
*Return on total assets (%) |
2.76 |
1.62 |
|
*Inventory /Turnover ×365 |
60 days |
/ |
|
*Accounts receivable/Turnover ×365 |
25 days |
/ |
|
*Turnover/Total assets |
1.79 |
0.82 |
|
* Cost of goods sold/Turnover |
0.80 |
0.79 |
PROFITABILITY:
FAIRLY GOOD
The turnover of SC appears good 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: AVERAGE
The current ratio of SC is maintained in a fairly good level.
SC’s quick ratio is maintained in a normal level.
The inventory of SC appears average.
The accounts receivable of SC appears average.
The short-term loan of SC appears average.
SC’s turnover is in an average level, 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 low.
Overall financial
condition of the SC: Fairly good.
SC is well-known in its industry with fairly good financial conditions.
In view of its operational size, market conditions and background, credit dealings
with SC in favorable terms can be considered.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.74 |
|
|
1 |
Rs.99.53 |
|
Euro |
1 |
Rs.73.80 |
INFORMATION DETAILS
|
Analysis Done by
: |
TRI |
|
|
|
|
Report Prepared
by : |
TPT |
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.