MIRA
INFORM REPORT
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Report No. : |
343299 |
|
Report Date : |
10.10.2015 |
IDENTIFICATION DETAILS
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Name : |
HANWA TRADING (SHANGHAI) cO., lTD. |
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|
|
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Registered Office : |
16/F, SMEG Plaza, 1386 Hong Qiao Road, Changning District, Shanghai 200336 Pr |
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|
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Country : |
China |
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|
|
|
Financials (as on) : |
31.12.2014 |
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|
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Date of Incorporation : |
03.07.1995 |
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|
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Com. Reg. No.: |
310115400029420 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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|
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Line of Business : |
Subject is mainly engaged in trading
different kinds of products, products mainly include: machine tool equipment,
lubricating oil, lubricating oil additives, chemical products, metal ores and
concentrates, plastics and its products, rubber and rubber products. |
|
|
|
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No. of Employees : |
50 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
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|
|
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Payment Behaviour : |
Slow but correct |
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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
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
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.
|
Source
: CIA |
Company Name and address
HANWA TRADING (SHANGHAI) cO., lTD.
16/F,
SMEG Plaza, 1386 Hong Qiao Road, ChangNing District,
Shanghai
200336 PR CHINA
TEL:
86 (0) 21-62375270/62375260 FAX:
86 (0) 21-62375282
EXECUTIVE SUMMARY
INCORPORATION DATE : JULY 3, 1995
REGISTRATION NO. : 310115400029420
REGISTERED LEGAL
FORM : WHOLLY FOREIGN-OWNED ENTERPRISE
STAFF STRENGTH : 50
REGISTERED CAPITAL :
USD 2,500,000
BUSINESS LINE : TRADING
TURNOVER : CNY
1,041,421,000 [AS OF
EQUITIES :
CNY 19,103,000 [AS OF
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION
: FAIRLY STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.3467 =
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
%20CO.,%20LTD.%20-%20343299%2010-Oct-2015_files/image017.gif){kind=small}
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).
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 entrusted by the parent company and its authorized
management of Chinese domestic and foreign enterprises, to provide the
following services: investment management decision-making, marketing services,
financial operations and financial management, technical support and research
and development, information services, employee training and management;
undertake shared services within the group and service outsourcing of offshore
company; engaged in wholesale, commission agency (excluding auction), import
and export of machine tool equipment, wood (excluding logs), lubricating oil,
lubricating oil additives, chemical products (excluding hazardous chemicals,
specialty chemicals, precursor chemicals) , food, metal ores and concentrates,
plastics and its products, rubber and rubber products, paper products, textile
materials, textile products, base metals and their products, non-ferrous metals
and their products, electrical equipment and parts, parts and accessories which
used in construction equipment, automotive parts and accessories, toys, games
and parts and accessories, and provide related services; international trade,
entrepot trade in the region, trade and trade agency in the region among
enterprises; warehousing and commercial simple processing in the region; trade
consulting and merchandise display. (excluding auction) (with permit if needed)
SC is mainly engaged in trading different
kinds of products.
Matsubara Keiji has been legal
representative and chairman of SC since 2014.
SC is known to have approx. 50 employees at
present.
SC is currently operating at the above stated
address, and this address houses its operating office in the commercial zone of
Shanghai. SC’s employee refused to release the detailed information of the
premise.
%20CO.,%20LTD.%20-%20343299%2010-Oct-2015_files/image002.gif){kind=small}
https://www.hanwa.co.jp/ The website belongs to HANWA Co., Ltd., and
it includes the introduction about SC and its related companies. The design is
professional and the content is well organized. At present it is in both
Japanese and English versions.
Email: fanwenqin@hanwa.co.jp
%20CO.,%20LTD.%20-%20343299%2010-Oct-2015_files/image003.gif){kind=small}
Changes of its registered
information:
|
Date of change |
Item |
Before the
change |
After the
change |
|
Unknown |
Company’s Chinese
name |
阪和贸易（上海）有限公司 |
阪和（上海）管理有限公司 |
|
|
Legal
representative |
Toyoda Masataka |
Matsubara Keiji |
Note: SC changed
its Chinese name, while its English name remains the same.
Organization Code:
60732348X
Tax Registration
Certificate No.: 3101416073248X
%20CO.,%20LTD.%20-%20343299%2010-Oct-2015_files/image004.gif){kind=small}
There is no record
of litigation till now.
%20CO.,%20LTD.%20-%20343299%2010-Oct-2015_files/image005.gif){kind=small}
MAIN SHAREHOLDERS:
Name %
of Shareholding
HANWA Co., Ltd. (Japan) 100
|
Company name |
HANWA Co., Ltd. |
|
Chairman |
Shuji Kita |
|
President |
Hironari Furukawa |
|
Date established |
April 1, 1947 |
|
Paid-in capital |
45.6 billion |
|
Number of employees |
1,161 (consolidated: 2,610) *As of March
31, 2014 |
|
Line of business |
Domestic
and Import-Export business in: |
|
Stock exchange listings |
First Section of the Tokyo Stock Exchange |
%20CO.,%20LTD.%20-%20343299%2010-Oct-2015_files/image006.gif){kind=small}
l
Legal
Representative and Chairman:
Matsubara Keiji is currently responsible for the overall management of
SC.
Working Experience(s):
From 2014 to present Working in SC as
legal representative and chairman.
l
Directors:
Ogasawara Akihiko
Ebihara Hiroshi
Hatanaka Yasushi
%20CO.,%20LTD.%20-%20343299%2010-Oct-2015_files/image007.gif){kind=small}
SC is mainly engaged in trading different
kinds of products.
SC’s products mainly include: machine tool equipment, lubricating oil,
lubricating oil additives, chemical products, metal ores and concentrates,
plastics and its products, rubber and rubber products, etc.
SC sources its materials 60% from domestic market, and 40% from overseas
market. SC sells 50% of its products in domestic market, and 50% to overseas
market.
The buying terms of
SC include Check, L/C, T/T and Credit of 30-60 days. The payment terms of SC
include Check, L/C, T/T and Credit of 30-60 days.
Note: SC’s management refused to release its main
suppliers and clients.
%20CO.,%20LTD.%20-%20343299%2010-Oct-2015_files/image008.gif){kind=small}
According to https://www.hanwa.co.jp/
Overseas Facilities of HANWA Co., Ltd.
(Japan):
Hanwa (Dalian) Co., Ltd.
======================
Registration no.: 210200400060038
Registered capital: USD 2,100,000
Incorporation date:
Tel: 86-411-8-368-6954
Fax: 86-411-8-368-6934
Hanwa (Qingdao) Co., Ltd.
======================
Registration no.: 370200410009177
Registered capital: USD 1,000,000
Incorporation date:
Tel: 86-532-8-577-9990
Fax: 86-532-8-577-9630
Hanwa (Beijing) Co., Ltd.
======================
Registration no.: 110000450188925
Registered capital: USD 5,000,000
Incorporation
date:
Tel:
86-10-6590-8333
Fax:
86-10-6590-8340
Etc.
SC is known to
invest in the following companies:
Wuhan Fubohe Transportation
Facilities Ltd.
===================================
Registration no.:
420100400010936
Principal: Yamada Hiroaki
Incorporation date:
Wuhan Fubohe
Transportation Facilities Ltd.
===================================
Registration no.:
310000400549791
Principal: Kuchiishi Takatoshi
Incorporation date:
Branch:
Hanwa Trading
(Shanghai) Co., Ltd. Changning Branch
====================================
Registration no.:
310115500071359
Principal: Matsubara Keiji
Incorporation date:
Hanwa Trading
(Shanghai) Co., Ltd. Wuhan Branch
====================================
Registration no.:
420100500006130
Principal: Kinoshita Tadakazu
Incorporation date:
Hanwa Trading
(Shanghai) Co., Ltd. Chongqing Branch
====================================
Registration no.:
500000500004798
Principal: Kinoshita Tadakazu
Incorporation date:
Etc.
%20CO.,%20LTD.%20-%20343299%2010-Oct-2015_files/image009.gif){kind=small}
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.
%20CO.,%20LTD.%20-%20343299%2010-Oct-2015_files/image010.gif){kind=small}
ICBC
Relationship:
Normal
%20CO.,%20LTD.%20-%20343299%2010-Oct-2015_files/image018.gif){kind=small}
Summary
Unit: CNY’000
|
|
As of Dec.
31, 2014 |
|
Total
assets |
326,364 |
|
|
============= |
|
Total
liabilities |
307,261 |
|
Equities |
19,103 |
|
|
-------------------- |
|
Total
liabilities & equities |
326,364 |
|
|
============= |
Unit: CNY
|
|
As of Dec.
31, 2014 |
|
Turnover |
1,041,421 |
|
Profit
before tax |
1,993 |
|
Profits |
1,960 |
Note: SC’s
detailed financial reports were not found during our checks with local AIC.
Important
Ratios
=============
|
|
As of Dec. 31, 2014 |
|
*Current ratio |
/ |
|
*Quick ratio |
/ |
|
*Liabilities to assets |
0.94 |
|
*Net profit margin (%) |
0.02 |
|
*Return on total assets (%) |
0.06 |
|
*Inventory /Turnover ×365 |
/ |
|
*Accounts receivable/Turnover ×365 |
/ |
|
*Turnover/Total assets |
3.19 |
|
* Cost of goods sold/Turnover |
/ |
%20CO.,%20LTD.%20-%20343299%2010-Oct-2015_files/image019.gif){kind=small}
PROFITABILITY: AVERAGE
l The turnover of SC appears good in its line.
l SC’s net profit margin is average.
l SC’s return on total assets is average.
l SC’s turnover is in a fairly good level, comparing
with the size of its total assets.
LEVERAGE: FAIR
l The debt ratio of SC is high.
l The risk for SC to go bankrupt is average.
Overall financial condition of the SC:
FAIRLY STABLE
%20CO.,%20LTD.%20-%20343299%2010-Oct-2015_files/image020.gif){kind=small}
SC is considered
medium-sized in its line with 20 years operation history.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.78 |
|
|
1 |
Rs.99.54 |
|
Euro |
1 |
Rs.73.08 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
|
|
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Report Prepared by
: |
NIT |
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.