MIRA INFORM REPORT

Report No. :	504646
Report Date :	24.04.2018

IDENTIFICATION DETAILS

Name :	S-FORTIS INTERNATIONAL LOGISTICS (SHENZHEN) CO., LTD.
Registered Office :	205, Floor 2, Apartment, Block B, Yintian Xifa Industrial Park, Xixiang, Bao'an Dist, Shenzhen City
Country :	China
Financials (as on) :	31.12.2016
Date of Incorporation :	11.12.2006
Unified Social Credit Code:	91440300796612837H
Legal Form :	Limited Liabilities Company
Line of Business :	Subject is mainly engaged in international freight forwarding business, which is carried out by its branch in Dongguan City. The business involves shipping, air freight, bulk LCL, imported and exported cargoes etc. The company has a wide range of clients
No. of Employees :	Not available

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

C

Credit Rating	Explanation	Rating Comments
C	Medium High Risk	Business dealings permissible preferably on secured basis

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	--

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

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
China	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	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. China has implemented reforms in a gradualist fashion, resulting in efficiency gains that have contributed to a more than tenfold increase in GDP since 1978. Reforms began with the phaseout 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 continues to pursue an industrial policy, state support of key sectors, and a restrictive investment regime. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2016 stood as the largest economy in the world, surpassing the US in 2014 for the first time in modern history. China became the world's largest exporter in 2010, and the largest trading nation in 2013. Still, China's per capita income is below the world average.

After keeping its currency tightly linked to the US dollar for years, China in July 2005 moved to an exchange rate system that references a basket of currencies. From mid-2005 to late 2008, the renminbi appreciated more than 20% against the US dollar, but the exchange rate remained virtually pegged to the dollar from the onset of the global financial crisis until June 2010, when Beijing announced it would allow a resumption of gradual liberalization. From 2013 until early 2015, the renminbi (RMB) appreciated roughly 2% against the dollar, but the exchange rate fell 13% from mid-2015 until end-2016 amid strong capital outflows in part stemming from the August 2015 official devaluation; in 2017 the RMB resumed appreciating against the dollar – roughly 7% from end-of-2016 to end-of-2017. From 2013 to 2017, China had one of the fastest growing economies in the world, averaging slightly more than 7% real growth per year. In 2015, the People’s Bank of China announced it would continue to carefully push for full convertibility of the renminbi, after the currency was accepted as part of the IMF’s special drawing rights basket. However, since late 2015 the Chinese Government has strengthened capital controls and oversight of overseas investments to better manage the exchange rate and maintain financial stability.

The Chinese Government faces numerous economic challenges including: (a) reducing its high domestic savings rate and correspondingly low domestic household consumption; (b) managing its high corporate debt burden to maintain financial stability; (c) controlling off-balance sheet local government debt used to finance infrastructure stimulus; (d) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and college graduates, while maintaining competitiveness; (e) dampening speculative investment in the real estate sector without sharply slowing the economy; (f) reducing industrial overcapacity; and (g) raising productivity growth rates through the more efficient allocation of capital and state-support for innovation. Economic development has progressed further in coastal provinces than in the interior, and by 2016 more than 169.3 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of China’s population control policy known as the “one-child policy” - which was relaxed in 2016 to permit all families to have two children - 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 urbanization. The Chinese Government is seeking to add energy production capacity from sources other than coal and oil, focusing on natural gas, nuclear, and clean energy development. In 2016, China ratified the Paris Agreement, a multilateral agreement to combat climate change, and committed to peak its carbon dioxide emissions between 2025 and 2030.

The government's 13th Five-Year Plan, unveiled in March 2016, emphasizes the need to increase innovation and boost domestic consumption to make the economy less dependent on government investment, exports, and heavy industry. However, China has made more progress on subsidizing innovation than rebalancing the economy. Beijing has committed to giving the market a more decisive role in allocating resources, but the Chinese Government’s policies continue to favor state-owned enterprises and emphasize stability. Chinese leaders in 2010 pledged to double China’s GDP by 2020, and the 13th Five Year Plan includes annual economic growth targets of at least 6.5% through 2020 to achieve that goal. 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. Chinese leaders also have undermined some market-oriented reforms by reaffirming the “dominant” role of the state in the economy, a stance that threatens to discourage private initiative and make the economy less efficient over time. The slight acceleration in economic growth in 2017—the first such uptick since 2010—gives Beijing more latitude to pursue its economic reforms, focusing on financial sector deleveraging and its Supply-Side Structural Reform agenda, first announced in late 2015.

Source : CIA

INVESTIGATION RECORD

Name of Interviewee	Ms. Chen
Tel	(86) 13728247985
Investigation Way	Telephone

ORDER DETAILS & INVESTIGATION RESULTS

-	Order Information	Verification
Name(English)	S FORTIS INTERNATIONAL LOGISTICS (SHENZHEN) CO LTD	Inaccurate
Address (English)	ROOM A811 BAI AN CENTER FIRST INTERNATIONAL SIUTH DISTRICT DONGGUAM CITY	Inaccurate business address of subject's Dongguan Branch
Note	Ms. Chen of subject was contacted through "(86) 13728247985". She disclosed subject's business is mainly carried out by S-FORTIS INTERNATIONAL LOGISTICS (SHENZHEN) CO., LTD. DONGGUAN BRANCH and most employees work in Dongguan City. Only a few are in Shenzhen City. Subject's business address in Shenzhen City was obtained from Ms. Chen, but she declined to disclose related fixed-line phone number and fax number, and numbers of employees in Dongguan City and Shenzhen City respectively. Contact information of Dongguan Branch is also provided in this report for reference.
Investigation Note	1. Subject’s fixed-line phone number and fax number are unavailable from various channels. Subject’s staff was contacted but refused to disclose the company’s fixed-line phone number or fax number. Hence only a mobile phone number of subject is provided for client’s reference. 2. Subject’s legal business scope covers import and export business which should be carried out with import and export permit. However, subject’s import and export permit information is unavailable through official channel. Hence its import and export permit provided in the report is “No”.

ABSTRACT

BASIC INFORMATION

Name (English)	S-FORTIS INTERNATIONAL LOGISTICS (SHENZHEN) CO., LTD. (Confirmed by Subject's Employee)
Unified Social Credit Code	91440300796612837H
AIC registration No.	440301103737298
National Organization Code	796612837
Company Status	Operational
Executive	Chen Yaping
Registered Capital	CNY 3,000,000.00
Date of Establishment	2006-12-11
Company Size	Microenterprise
SIC (China)	5821,Freight Forwarding
Import/Export Permit	No

CONTACTS

Mobile	(86)13728247985
E-mail	op01@s-fortis.com
Address	205, Floor 2, Apartment, Block B, Yintian Xifa Industrial Park, Xixiang, Bao'an Dist, Shenzhen City, Guangdong Province(Office)
Address Post code	518102
Ownership	Rented

GENERAL COMMENTS

RISK ANALYSIS

Established in Dec. 2006 with the registered capital of CNY 3,000,000.00, subject is mainly engaged in international freight forwarding business. With long history, the company has accumulated rich industry experience. As a company invested by natural individuals, subject has poor capacity of financing and risk resisting.

According to subject's current financial information, its operating income of 2016 is low. With low net profit margin in 2016, subject has poor profitability. With average turnover of total assets in 2016, SC has average operation capability. Subject’s liabilities to assets ratio of 2016 is higher than 100%, indicating it is in the insolvency state and its debt paying risk is high. Please be noted.

REGISTRATION INFORMATION

REGISTRATION INFORMATION

Unified Social Credit Code	91440300796612837H
AIC registration No.	440301103737298
Date of Establishment	2006-12-11
Registered Address	(Office Space), 205, Floor 2, Apartment, Block B, Yintian Xifa Industrial Park, Xixiang, Bao'an Dist, Shenzhen City
Registry	Market Supervision Administration – Shenzhen City
Legal Representative	Chen Yaping
Legal Form	Limited Liabilities Company
Registered Capital	CNY 3,000,000.00
Paid-in Capital	CNY 3,000,000.00
Latest Year of Annual Report	2016
Operation duration	Perpetual
Business Scope	Air and land international freight forwarder; Design, development and sales of clothing; Domestic business and supply and marketing of material; Import and export of goods and technology.

REGISTRATION CHANGES

-	Date	Item Changed	From	To
1	2012-12-13	Registered address	2703, Building A, Film Building, Guiyuan Road, Luohu Dist, Shenzhen City	(Office Space), 205, Floor 2, Apartment, Block B, Yintian Xifa Industrial Park, Xixiang, Bao'an Dist, Shenzhen City
2	2008-11-27	Registered address	Room 2-501, Water Conservancy Bureau, Jinhu Road, Luohu Dist, Shenzhen City	2703, Building A, Film Building, Guiyuan Road, Luohu Dist, Shenzhen City

SHAREHOLDER INFORMATION

-	Name	% Ownership	Capital Contributed	Currency	Investment Way	Paid-in %	Country
1	Cai Zhipeng	60.00	1,800,000.00	CNY	Capital	100	China
2	Chen Yaping	40.00	1,200,000.00	CNY	Capital	100	China
Total		100.0	3,000,000

ULTIMATE HOLDING

-	Ultimate Shareholder	Investment Way
1	Cai Zhipeng	Capital

English Name	Cai Zhipeng
Country	China
Type	Natural person shareholder
Investment Way	Capital
Note	Cai Zhipeng -->60.00% S-FORTIS INTERNATIONAL LOGISTICS (SHENZHEN) CO., LTD.

BRANCHES

-	Name(English)	Business Status	Executive
1	S-FORTIS INTERNATIONAL LOGISTICS (SHENZHEN) CO., LTD. DONGGUAN BRANCH	Operational	Cai Zhipeng (蔡志鹏)

Name (English)	S-FORTIS INTERNATIONAL LOGISTICS (SHENZHEN) CO., LTD. DONGGUAN BRANCH
Registration No.	441900001623331
Unified Social Credit Code	914419000702991916
Executive	Cai Zhipeng
Affiliate Type	Branch
Legal Form	Branch Company
Business Status	Operational
Address	811, Block A, B&Q Center, Second Phase of Business Center, Nancheng Dist, Dongguan City
Date of Establishment	2013-06-06
Tel	(86 769)23605967
Fax	(86 769)23181900
Business Address	811, Block A, B&Q Center, First International, Nancheng Dist, Dongguan City, Guangdong Province(Office)
Main Business	Air and land international freight forwarder; Design, development and sales of clothing; Domestic business and supply and marketing of material; Import and export of goods and technology.

INVESTMENT IN OTHER COMPANIES

No investment information of subject is searched from database.

MANAGEMENT

LEGAL REPRESENTATIVE

Name	Chen Yaping
Position	Executive Director; General Manager
Gender	Female
Age	34

INVOLVEMENT IN OTHER COMPANIES

No other involvement information of subject's legal representative is searched from database.

MANAGEMENT

-	Name	Position	Gender
1	Chen Yaping	Executive Director; General Manager	Female

DIRECTORS AND SUPERVISORS

-	Name	Position	Gender
1	Chen Yaping	Executive Director; General Manager	Female
2	Cai Zhipeng	Supervisor	Male

JUDICIAL INFORMATION

DEFAULT EXECUTED PARTY

As of the reporting date, no related record about subject is found through below sources:

A. Website of China Court Organization;

B. Websites of local courts of subject's location;

C. Websites of major domestic courts;

SUBJECT AS EXECUTED PARTY

As of the reporting date, no related record about subject is found through below sources:

A. Website of China Court Organization;

B. Websites of local courts of subject's location;

C. Websites of major domestic courts;

CIVIL & COMMERCIAL TRIAL PROCESS

As of the reporting date, no related record about subject is found through below sources:

A. Website of China Court Organization;

B. Websites of local courts of subject's location;

C. Websites of major domestic courts;

CIVIL & COMMERCIAL JUDGMENT DOCUMENT

As of the reporting date, no related record about subject is found through below sources:

A. Website of China Court Organization;

B. Websites of local courts of subject's location;

C. Websites of major domestic courts;

ADMINISTRATIVE ILLEGAL

As of the reporting date, no related record about subject is found through below sources:

A. Website of China Court Organization;

B. Websites of local courts of subject's location;

C. Websites of major domestic courts;

OPERATION INFORMATION

MAIN BUSINESS

Main Business	International freight forwarding business
Products & Service	SC is mainly engaged in international freight forwarding business, which is carried out by its branch in Dongguan City. The business involves shipping, air freight, bulk LCL, imported and exported cargoes etc. The company has a wide range of clients.
OTHER INFORMATION	The company is a member of FIATA and CIFA.

OPERATION FACILITIES

Business Address	205, Floor 2, Apartment, Block B, Yintian Xifa Industrial Park, Xixiang, Bao'an Dist, Shenzhen City, Guangdong Province(Office)
Mobile	(86)13728247985
E-mail	op01@s-fortis.com
Post code	518102
Environment	Major industrial area
Ownership	Rented
Traffic Condition	Convenient

SALES INFORMATION

Region	Products		Customer Type	Number of Customers	Payment Terms	Region	Percentage
Domestic	International freight forwarding business		Electronic factories, electrical appliance factories, furniture factories, traders, etc.	Over 10	Prompt payment, credit payment, etc.	All over China	100
OTHER INFORMATION		SC's business is wholly carried out in China, mainly in the Pearl River Delta Region, the Guangxi Zhuang Autonomous Region, Hunan Province, Hubei Province, Jiangxi Province, Fujian Province, etc. With years of operation, SC has developed certain numbers of clients, including electronic factories, electrical appliance factories, furniture factories, traders, etc.

MAJOR CUSTOMERS

-	Name	Legal Form	Country
1	Dongguan Dongcheng Dongyue Clothing Shop	Individual Owned Entity	China
2	GUANGDONG DONGGUAN ELECTRIC MOTOR CO.,LTD	Limited Liabilities Company	China
3	SOUTH CHINA TIRE & RUBBER CO., LTD.	Limited Liabilities Company	China

Name (English)	Dongguan Dongcheng Dongyue Clothing Shop
Country	China
Legal Form	Individual Owned Entity

Name (English)	GUANGDONG DONGGUAN ELECTRIC MOTOR CO.,LTD
Country	China
Legal Form	Limited Liabilities Company

Name (English)	SOUTH CHINA TIRE & RUBBER CO., LTD.
Country	China
Legal Form	Limited Liabilities Company

PURCHASE INFORMATION

Region	Main Products Purchased		Number of Suppliers	Payment Terms	Region	Percentage
Domestic	Office supplies, business services, etc		Over 10	Prompt payment, credit payment, etc.	Guangdong Province and its surrounding areas	100
OTHER INFORMATION		SC's office supplies, business services, etc. are wholly purchased in China, mainly in Guangdong Province and its surrounding areas. With years of operation, subject has established stable purchasing channels. The suppliers are manufacturers and traders of office supplies, etc. and SC has maintained good cooperation with some of them.

NOTE TO CREDIT RECORD

Note	Subject’s staff was cautious and refused to disclose the suppliers’ names and purchasing information of the company due to business secrecy. The suppliers’ names are unavailable through public channels. Hence no payment records of subject can be provided in the report.

ELECTRICITY CONSUMPTION RECORD

No electricity consumption record of subject can be obtained as the electricity consumer may not be filed with subject's name.

QUALIFICATIONS & TRENDS

EXPORT/IMPORT PERMIT

EXPORT/IMPORT PERMIT

No

EMPLOYEE

OTHER INFORMATION

SC's staff declined to disclose the number of employees.

ADMINISTRATIVE INFORMATION

Ø ADMINISTRATIVE LICENSES & IDENTIFICATIONS

-	License No.	License Name
1	[2016] 85127577	Limited liability company change registration

License No.	[2016] 85127577
License Name	Limited liability company change registration
Issuing date	2016-12-22
Expire date	2099-12-31
Issuing party	Market Supervision Administration – Shenzhen City
License Content	Legal Form: Limited Liabilities Company Address: (Office Space), 205, Floor 2, Apartment, Block B, Yintian Xifa Industrial Park, Xixiang, Bao'an Dist, Shenzhen City Legal Representative: Chen Yaping Date of Establishment: 2006-12-11

Ø ABNORMAL TAX PAYER

As of the reporting date, no related record about subject is found through below sources:

A. Website of Tax Bureau of China;

B. Website of local Tax Bureau of subject's location;

Ø TAX ARREARS LIST

As of the reporting date, no related record about subject is found through below sources:

A. Website of Tax Bureau of China;

B. Website of local Tax Bureau of subject's location;

Ø DEBT ARREARS LIST

As of the reporting date, no related record about subject is found through below sources:

A. Major telecommunication operators of China;

FINANCIAL INFORMATION

DETAILED FINANCIAL INFORMATION (UNIT: CNY 1,000)

Financial Note: Due to the lack of a clear government policy regarding the transparency of enterprise financial information, some financial items might be missing in the financial statements, causing possible inequality between the sum of the provided items and the provided total numbers.

Assets
Year	2016-12-31
Report Type	Annual Report
Statement Type	Individual
Source	AIC
Audited or Not	Unknown
Total Assets	1,821
Liabilities
Year	2016-12-31
Total Liabilities	2,309
Total Owner’s Equity	-488
Total Liabilities and Owner's Equity	1,821

Income Statement
Year	2016-12-31
Operating Income	2,768
Total Profit	15
Income Tax	0
Net Profit	15

IMPORTANT RATIO

Profitability	2016
Return on total assets (%)	0.82
Net profit margin (%)	0.54
Operation capacity	2016
Turnover of total assets	1.52
Solvency	2016
Liabilities to assets ratio (%)	126.80

FINANCIALS & ANALYSIS

Financial Note

1. SC’s financial information of 2015 and detailed financial information of 2016 are unavailable through all available channels. Subject’s staff was contacted but declined to provide relevant financial information. Only subject’s financial summaries of 2016 obtained from AIC source are provided for client’s reference. 2. Subject’s liabilities to assets ratio of 2016 is higher than 100%, indicating it is in the insolvency state and its debt paying risk is high.

INDUSTRY INFORMATION

INDUSTRY CODE

SIC (China)	5821,Freight Forwarding【Major】
ISIC	5229,Other transportation support activities
NACE	52.29,Other transportation support activities

INDUSTRY FINANCIAL AVERAGE

-	2016	Subject	Best(10%)	Average	Worst(10%)
Solvency	Liabilities to Assets Ratio (%)	126.80	50.98	56.74	78.57
	Current ratio	-	1.96	0.99	0.51
	Quick ratio	-	1.51	0.76	0.39
Development Capacity	Yearly Growth of Operating Income (%)	-	14.30	2.50	-14.49
	Yearly Growth of Gross Profit (%)	-	12.46	0.87	-17.55
	Yearly Growth of Total Assets (%)	-	19.15	4.89	-15.10
Profitability	Return on net assets (%)	-	9.46	1.63	-9.34
	Return on total assets (%)	0.82	7.50	1.30	-3.67
	Gross profit margin (%)	-	15.00	3.26	-7.51
Operation Capacity	Turnover of total assets	1.52	1.15	0.43	0.11
	Turnover of current assets	-	3.35	1.41	0.22
	Turnover days of account receivable	-	33.04	104.76	1047.60

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 66.22
UK Pound	1	INR 92.84
Euro	1	INR 81.27
CNY	1	INR 10.52

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	NIS
Report Prepared by :	KET

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.