MIRA INFORM REPORT
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Report No. : |
340847 |
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Report Date : |
16.09.2015 |
IDENTIFICATION DETAILS
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Name : |
SHANGHAI FOREVER CHEMICAL CO., LTD. |
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Registered Office : |
Room 302, Block B, Tomson Center, No. 188, Zhangyang Road, Pudong New Zone, Shanghai, 200122 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
22.10.2003 |
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Com. Reg. No.: |
310115000797396 |
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Legal Form : |
Limited Liabilities Co |
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Line of Business : |
Subject is engaged in selling chemical
products and materials. |
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No. of Employees : |
35 |
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
|
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
|
Source
: CIA |
Company
name and address
shanghai forEver chemical co., ltd.
room 302, BLOCK B, tomson center, no. 188, zhangyang
road,
pudong new zone, shanghai, 200122 PR CHINA
TEL: 86 (0) 21-58878028/ 58760862
FAX: 86 (0) 21-58760027
EXECUTIVE
SUMMARY
INCORPORATION
DATE : OCT. 22,
2003
REGISTRATION
NO. :
310115000797396
REGISTERED
LEGAL FORM : LIMITED LIABILITIES CO.
CHIEF
EXECUTIVE :
MS. DONG QINGDI (CHAIRMAN)
STAFF STRENGTH :
35
REGISTERED
CAPITAL : CNY 3,500,000
BUSINESS
LINE :
TRADING
TURNOVER :
CNY 117,490,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 13,140,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL
CONDITION : FAIRLY
STABLE
OPERATIONAL
TREND : STEADY
GENERAL
REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.21
Adopted abbreviations:
ANS
- amount not stated
NS
- not stated
SC
- subject company (the company inquired by you)
NA
- not available
CNY
- China Yuan Renminbi
Note:
SC’s complete name should be the heading one.
SC
was registered as a limited liabilities co. at local Administration for
Industry & Commerce (AIC - The official body of issuing and renewing
business license) on Oct. 22, 2003.
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 importing and exporting commodities &
technology, excluding the items prohibited by the state; selling chemical
materials (excluding hazardous
chemicals), automobile & motorbike components, textiles,
electromechanical products, metal materials, groceries, hardware, and
handicrafts; and relevant business and consultation. (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 selling chemical products and materials.
Ms.
Dong Qingdi has been legal representative and chairman of SC since 2003.
SC is
known to have approx. 35 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. Our checks reveal that SC
rents the total premise about 150 square meters.
http://www.forever-chem.net
The design is professional and the content is well organized. At present it is
both in Chinese and English versions.
E-mail: xgx_steven@hotmail.com
Changes of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2011-7 |
Registration no. |
3101152015433 |
present one |
Organization
Code: 755708605
For
the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name Investment
amount (CNY’0000) % of
Shareholding
Dong
Qingdi 171.50 49
Huang
Zhiyong 152.25 43.5
Qian
Hua 26.25 7.5
Legal representative and chairman:
Ms.
Dong Qingdi, in her
Working
Experience(s):
From
2003 to present Working in SC as legal
representative and chairman
General manager:
Ms.
Qian Hua , in her 30’s with university education. She is currently responsible
for the daily management of SC.
Working
Experience(s):
At
present Working in SC as general
manager
Supervisor:
Huang
Zhiyong
SC
is mainly engaged in selling chemical products and materials.
SC’s
products mainly include:
Pesticides:
·Insecticides: Lambda-Cyhalothrin, Cypermethrin, Bifenthrin
·Fungicides: Carbendazim, Penconazole, Tebuconazole
·Herbicides: Pretilachlor, Clodinafop-Propargyl, Bromacil
Intermediates:
CCMP,
TFP ACID, Bifenthric Alcohol, Clodinafop-Progargyl intermediates, Pretilachlor intermediates
Packing Products:
COEX
Bottles, HDPE Bottles, PET Bottles
Glass
Lined Equipments
Glass
Lined Equipments, Reactors, Containers, Condensors, Columns
Solar Engineer Products
Solar
Cell, Panel, Water Heater, Thin-Film Solar Module, Power System
Imported
Products
CMAC,
MPB, 1,2-Pentanediol
Trademarks & patents
Registration
no.: 4849548
Registration
date:
Trademark
design: 
SC
sources its materials 90% from domestic market, and 10% from overseas market.
SC sells 50% in domestic market, and 50% to overseas market.
The
buying terms of SC include T/T, L/C, Check and Credit of 30-60 days. The
payment terms of SC include T/T, L/C, Check and Credit of 30-60 days.
Note:
SC refused to release its major clients and suppliers.
Kunshan
Dadi Packaging Material Co., Ltd.
-------------------------------------
Reg.
no.: 320583000094141
Legal
representative: Li Youjiang
Incorporation
date:
Tel:
+86-512-57862598
Fax:
+86-512-57862596
Email:
Lyj1jrb@hotmail.com
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.
Bank
of China Shanghai Tianmu Middle Road Sub-branch
AC#：441659232012
Relationship:
Normal.
Balance Sheet
Unit:
CNY’000
|
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As of Dec. 31, 2014 |
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Cash & bank |
11,070 |
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Inventory |
25,650 |
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Accounts receivable |
-5,970 |
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Other Accounts receivable |
530 |
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Advances to suppliers |
0 |
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Other current assets |
960 |
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------------------ |
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Current assets |
32,240 |
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Fixed assets net value |
730 |
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Projects under construction |
0 |
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Long term investment |
0 |
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Other assets |
0 |
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------------------ |
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Total assets |
32,970 |
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============= |
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Short loans |
2,000 |
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Accounts payable |
6,030 |
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Notes payable |
4,600 |
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Advance from clients |
0 |
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Taxes payable |
-1,700 |
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Other Accounts payable |
8,900 |
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Other current liabilities |
0 |
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------------------ |
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Current liabilities |
19,830 |
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Other liabilities |
0 |
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------------------ |
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Total liabilities |
19,830 |
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Equities |
13,140 |
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------------------ |
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Total liabilities & equities |
32,970 |
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============= |
Income Statement
Unit:
CNY’000
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As of Dec. 31, 2014 |
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Turnover |
117,490 |
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Cost of goods sold |
106,800 |
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Taxes and additional of main operation |
140 |
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Sales expense |
3,300 |
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Management expense |
5,300 |
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Finance expense |
660 |
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Non-operating income |
0 |
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Non-operating expense |
10 |
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Subsidy income |
20 |
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Profit before tax |
1,430 |
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Less: profit tax |
210 |
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Profits |
1,220 |
Important Ratios
=============
|
|
As of Dec. 31, 2014 |
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*Current ratio |
1.63 |
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*Quick ratio |
0.33 |
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*Liabilities to assets |
0.60 |
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*Net profit margin (%) |
1.04 |
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*Return on total assets (%) |
3.70 |
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*Inventory /Turnover ×365 |
80 days |
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*Accounts receivable/Turnover ×365 |
/ |
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*Turnover/Total assets |
3.56 |
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* Cost of goods sold/Turnover |
0.91 |
PROFITABILITY: AVERAGE
The
turnover of SC appears fairly good in its line.
SC’s
net profit margin is average in 2014.
SC’s
return on total assets is average in 2014.
SC’s
cost of goods sold is fairly high, comparing with its turnover.
LIQUIDITY: AVERAGE
The
current ratio of SC is maintained in a normal level in 2014.
SC’s
quick ratio is maintained in a poor level in 2014.
The
inventory of SC appears large in 2014.
SC’s
short-term loan is in an average level.
SC’s
turnover is in a fairly good level, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
The
debt ratio of SC is average in 2014.
The
risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
SC
is considered medium-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.66.44 |
|
UK Pound |
1 |
Rs.102.41 |
|
Euro |
1 |
Rs.75.05 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
TRU |
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.