MIRA INFORM REPORT
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Report No. : |
342784 |
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Report Date : |
30.09.2015 |
IDENTIFICATION DETAILS
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Name : |
SHANGHAI GENERAL DIAMOND
CO., LTD. |
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Registered Office : |
Room A305, Shanghai Diamond Exchange Center Building, No. 1701, Century Boulevard, Pudong New Area, 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 : |
18.03.2008 |
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Com. Reg. No.: |
310115001061358 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Subject is engaged in selling jewellery, importing and exporting goods
and technology. (with permit if needed) |
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No. of Employees : |
2 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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) |
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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 & address
SHANGHAI GENERAL DIAMOND CO., LTD.
ROOM A305, SHANGHAI DIAMOND EXCHANGE CENTER BUILDING, NO. 1701, CENTURY
BOULEVARD, PUDONG NEW AREA, SHANGHAI, 200122 PR CHINA
TEL: 86
(0) 21-61003269/65222888-8043 FAX:
86 (0) 21-65402263
EXECUTIVE
SUMMARY
INCORPORATION DATE :
MARCH 18, 2008
REGISTRATION NO. :
310115001061358
REGISTERED LEGAL FORM :
LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MS. FENG YANG (CHAIRMAN)
STAFF STRENGTH : 2
REGISTERED CAPITAL :
CNY 1,500,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 93,430,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 3,170,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE :
UP TO USD 20,000 (PERIODICAL REVIEW)
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.3885=USD 1 AS OF
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: We dialed the given number 86-21
SC was registered as a one-person
limited liability company at local Administration for Industry &
Commerce (AIC-The official body of issuing and renewing business license) on
March 18, 2008 and later was changed into current ownership.
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 selling
jewellery, importing and exporting goods and technology. (with permit if
needed)
SC is mainly engaged in selling jewellery.
Ms. Feng Yang is the legal representative and chairman of SC at present.
SC is known to have approx. 2 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, but SC’s accountant refused to release
the gross area.
www.shftco.com
It belongs to Shanghai Foreign Trade Enterprises Co., Ltd. The design is
professional and the content is well organized. At present it is in English and
Chinese versions.
Email: generaldiamond@126.com;
sacgem@sacgem.com
Changes of its
registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Legal form |
One-person Limited Liability Company |
Present one |
|
Legal representative |
Feng Yang |
Sun Guohao |
|
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Shareholders & % of shareholding |
Shanghai Arts & Crafts Gem & Jewellery Imp. & Exp. Co.,
Ltd. 100% |
Shanghai Foreign Trade Enterprises Co., Ltd. 90% Wang Yuqing and other 12 individuals 10% |
|
|
2014-6-23 |
Shareholders & % of shareholding |
Shanghai Foreign Trade Enterprises Co., Ltd. 90% Wang Yuqing and other 12 individuals 10% |
Present ones |
|
2015-9-22 |
Legal representative |
Sun Guohao |
Present one |
Organization Code: 672687650
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of shareholdings
Shanghai Foreign Trade Enterprises Co., Ltd. 90
Huang Yi and other 11 individuals 10
Shanghai Foreign Trade Enterprises Co., Ltd.
-------------------------------------------------------
Established in 1988, Shanghai Foreign Trade Enterprises Co., Ltd. covers
a wide range of sectors, including import & export trade, company
investment、real-estate
operation、warehouse
management, etc.
Reg. No.: 310104000019293
Legal representative: Gao Wenwei
Incorporation date: March 1, 1988
Tel: 86-21-62307070
Fax: 86-21-62322997
Email: trade@shftco.com
Web: www.shftco.com
Add:
Legal Representative and Chairman:
Ms. Feng Yang is currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC
as legal representative and chairman
Also working Shanghai Arts & Crafts Gem & Jewellery Imp. &
Exp. Co., Ltd. as legal representative, etc.
Directors:
Chen Ling
Lu Xingying
Supervisors:
Mao Yunchang
Wang Yuqing
SC is mainly engaged in selling jewellery.
SC’s products mainly include: jewellery.
SC sources its materials 20% from domestic markets, and 80% from
overseas markets. SC sells 85% of its products in domestic market, and 15% to
overseas markets.
The buying terms of SC include Check, L/C, T/T
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 refused to release its major suppliers and clients.
Shanghai Gloves & Headwear Import & Export
Co., Ltd.
-----------------------------------------------------------
Reg. No.: 310115000800623
Legal representative: Sun Guohao
Incorporation date:
Shanghai Arts & Crafts Gem & Jewellery Imp. & Exp. Co., Ltd.
-------------------------------------------------------------
Reg. No.:
310115000317949
Legal
representative: Ms. Feng Yang
Incorporation
date:
Shanghai Jili Jewelry Co., Ltd.
-------------------------------------------
Reg.
No.: 310000400001639
Legal
representative: Chen Shengze
Incorporation
date:
Shanghai Eastern Resources Arts & Crafts
Co., Ltd.
--------------------------------------------------
Reg. No.: 310115000756466
Legal representative: Ji Mingping
Incorporation date:
Shanghai Art Craft & Daily Articles Imp. Exp. Co.,
Ltd.
---------------------------------------------------
Reg. No.: 310115000594439
Legal representative: Ji Mingping
Incorporation date:
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 its bank details.
Balance Sheet
Unit: CNY’000
|
|
As of Dec. 31, 2014 |
As of Dec. 31, 2013 |
|
Cash & bank |
900 |
980 |
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Inventory |
14,200 |
5,440 |
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Accounts receivable |
10,310 |
9,750 |
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Other accounts receivable |
60 |
410 |
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|
----------------- |
------------------ |
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Current assets |
25,470 |
16,580 |
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Fixed assets net value |
0 |
0 |
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----------------- |
------------------ |
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Total assets |
16,580 |
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|
============ |
============= |
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Short loans |
0 |
0 |
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Accounts payable |
16,660 |
12,640 |
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Advances from clients |
4,150 |
0 |
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Taxes payable |
-510 |
0 |
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Other accounts payable |
2,000 |
500 |
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----------------- |
------------------ |
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Current liabilities |
22,300 |
13,140 |
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Long-term liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total liabilities |
22,300 |
13,140 |
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Equities |
3,170 |
3,440 |
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------------------ |
------------------ |
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Total liabilities & equities |
25,470 |
16,580 |
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============== |
============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31, 2014 |
As of Dec. 31, 2013 |
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Turnover |
93,430 |
46,870 |
|
Cost of goods sold |
103,020 |
52,990 |
|
Sales expense |
420 |
140 |
|
Management expense |
30 |
40 |
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Finance expense |
690 |
-680 |
|
Subsidy income |
11,530 |
6,350 |
|
Assets impairment loss |
0 |
-30 |
|
Profit before tax |
800 |
760 |
|
200 |
190 |
|
|
Profits |
600 |
570 |
Important Ratios
=============
|
|
As of Dec. 31, 2014 |
As of Dec. 31, 2013 |
|
*Current ratio |
1.14 |
1.26 |
|
*Quick ratio |
0.51 |
0.85 |
|
*Liabilities to assets |
0.88 |
0.79 |
|
*Net profit margin (%) |
0.64 |
1.22 |
|
*Return on total assets (%) |
2.36 |
3.44 |
|
*Inventory /Turnover ×365 |
56 days |
42 days |
|
*Accounts receivable/Turnover ×365 |
41 days |
76 days |
|
*Turnover/Total assets |
3.67 |
2.83 |
|
* Cost of goods sold/Turnover |
1.10 |
1.13 |
PROFITABILITY:
AVERAGE
The turnover of SC appears average in its line in both years, and it increased
in 2014.
SC’s net profit margin appears average.
SC’s return on total assets appears average.
SC’s cost of goods sold is high, comparing with its turnover.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a normal level in 2013, but fair
in 2014.
SC’s quick ratio is maintained in a normal level in 2013, but fair in
2014.
The inventory of SC appears average in 2013, but fairly large in 2014.
The accounts receivable of SC appears fairly large in both years.
SC has no short-term loan in both years.
SC’s turnover is in an average level in 2013 and fairly good in 2014,
comparing with the size of its total assets.
LEVERAGE: FAIR
The debt ratio of SC is fairly high in 2013, but high in 2014.
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fairly Stable
SC is considered small-sized in its line with fairly stable financial
conditions. The large amount of inventory could be a threat to SC’s financial
condition. Taking into consideration of SC’s general performance and operation
size.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.18 |
|
|
1 |
Rs.100.46 |
|
Euro |
1 |
Rs.74.61 |
INFORMATION DETAILS
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Analysis Done by
: |
KIN |
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Report Prepared
by : |
TPT |
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 |
|
|
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 |
|
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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.