3decades

MIRA INFORM REPORT

Report No. :	507237
Report Date :	09.05.2018

IDENTIFICATION DETAILS

Name :	SHANGHAI ASIAN DEVELOPMENT PROSPEROUS IMPORT AND EXPORT CO., LTD.

Registered Office :	8/F, 9/f & 16/F, Indus. & comm. Building, No. 45 Yan’an East Road, Huangpu District, Shanghai, 200002 Pr

Country :	China

Financials (as on) :	31.12.2015

Date of Incorporation :	20.12.2004

Credibility Code :	913101097702131688

Legal Form :	Limited Liabilities Company

Line of Business :	Subject registered business scope includes importing and exporting commodities and technology, commercial consultant; ocean, airway and railway international freight forwarding; civil air transport sales agency, selling edible agricultural products, cosmetics, daily goods, electronic products, building materials, wire and cable, hardware, automobile and motorcycle accessories, stationery, photographic equipment, glass products, machinery and equipment, craft gifts, furniture, toys, musical instruments, plastic products, flowers, metal products, mineral products, medical equipment, communication equipment and related products, computer, software and accessory equipment, food additives, wholesale of chemical products (excluding hazardous chemicals, MCC, fireworks, explosives for civilian use, precursor chemicals), selling cars; wholesaling (non physical form) of pre packaged foods (including delicatessen and braised food, refrigerated food); dairy products (including infant formula milk powder); wholesale of alcoholic products and dangerous chemicals (rental storage facility) (with permit). (with permits if needed).

No. of Employees :	47

RATING & COMMENTS

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

MIRA’s Rating :

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

Status :	Satisfactory

Payment Behaviour :	Slow but Correct

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

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

China

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

Company summery

SHANGHAI ASIAN DEVELOPMENT PROSPEROUS IMPORT AND EXPORT CO., LTD.

8/F, 9/f & 16/F, INDUS. & COMM. BUILDING, NO. 45 YAN’AN EAST ROAD,

HUANGPU DISTRICT, SHANGHAI, 200002 PR CHINA

TEL: 86 (0) 21-63374404/63374629 FAX: 86 (0) 21-63374402

EXECUTIVE SUMMARY

INCORPORATION DATE : DECEMBER 20, 2004

Credibility Code : 913101097702131688

REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY

CHIEF EXECUTIVE : MS. WANG HONG (legal representative)

STAFF STRENGTH : 47

REGISTERED CAPITAL : CNY 10,000,000

BUSINESS LINE : TRADING

TURNOVER : CNY 778,280,000 (AS OF DEC. 31, 2015)

EQUITIES : CNY 25,490,000 (AS OF DEC. 31, 2015)

PAYMENT : SLOW BUT CORRECT

MARKET CONDITION : COMPETITIVE

FINANCIAL CONDITION : fairly STABLE (AS OF YEAR 2015)

OPERATIONAL TREND : STEADY (AS OF YEAR 2015)

GENERAL REPUTATION : AVERAGE

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 ADP Trade Co., Ltd.

SC was registered as a limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on December 20, 2004.

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 and technology, commercial consultant; ocean, airway and railway international freight forwarding; civil air transport sales agency, selling edible agricultural products, cosmetics, daily goods, electronic products, building materials, wire and cable, hardware, automobile and motorcycle accessories, stationery, photographic equipment, glass products, machinery and equipment, craft gifts, furniture, toys, musical instruments, plastic products, flowers, metal products, mineral products, medical equipment, communication equipment and related products, computer, software and accessory equipment, food additives, wholesale of chemical products (excluding hazardous chemicals, MCC, fireworks, explosives for civilian use, precursor chemicals), selling cars; wholesaling (non physical form) of pre packaged foods (including delicatessen and braised food, refrigerated food); dairy products (including infant formula milk powder); wholesale of alcoholic products and dangerous chemicals (rental storage facility) (with permit). (with permits if needed).

SC is mainly engaged in trading of various kinds of products.

Ms. Wang Hong has been legal representative and chairman of SC since 2004.

SC is known to have approx. 47 employees at present.

SC is currently operating at the above stated address, and this address houses its operating office and head office in the commercial zone of Shanghai. Our checks reveal that SC rents the total premise but the detailed information of the premise is unspecified.

http://www.adpsh.com The design is professional and the content is well organized. At present it is in Chinese, English and Japanese versions.

E-mail: marketing@adpsh.com

Changes of its registered information:

Date of change	Item	Before the change	After the change
2006-01	Registered capital	CNY 5,000,000	CNY 10,000,000
2006-01	Shareholders and % of Shareholdings	Shanghai Asian Development International Transportation Pudong Co., Ltd. 60% Wang Hong 40%	Shanghai Asian Development International Transportation Pudong Co., Ltd. 30% Wang Hong 20% Lao Yusheng 30% Fang Weiming 20%
2006-10	Registered capital	CNY 10,000,000	CNY 7,000,000
2006-10	Shareholders and % of Shareholdings	Shanghai Asian Development International Transportation Pudong Co., Ltd. 30% Wang Hong 20% Lao Yusheng 30% Fang Weiming 20%	Wang Hong 28.6% Lao Yusheng 42.8% Fang Weiming 28.6%
2007-01	Registered capital	CNY 7,000,000	CNY 10,000,000
2007-01	Shareholders and % of Shareholdings	Wang Hong 28.6% Lao Yusheng 42.8% Fang Weiming 28.6%	Wang Hong 20% Lao Yusheng 60% Fang Weiming 20%
2008-03	Shareholders and % of Shareholdings	Wang Hong 王红 20% Lao Yusheng 劳渝声60% Fang Weiming 方伟明 20%	Lao Yusheng 40% Wang Hong 15% Fang Weiming 15% Yao Jun 10% Zheng Xingping 4% Du Jimei 4% Zhou Yu 1% Ge Lan 1% Xiang Junhong 1% Dong Yanzheng 1% Shi Jizheng 1% Other 11 individuals 7%
Unknown	Shareholders and % of Shareholdings	Lao Yusheng 40% Wang Hong 15% Fang Weiming 15% Yao Jun 10% Zheng Xingping 4% Du Jimei 4% Zhou Yu 1% Ge Lan 1% Xiang Junhong 1% Dong Yanzheng 1% Shi Jizheng 1% Other 11 individuals 7%	Lao Yusheng 40% Wang Hong 19.5% Yao Jun 12% Zheng Xingping 12% Dong Yanzheng 2% Shi Jizheng 1.5% Zhao Li’na 1.5% Zhou Yu 1.5% Deng Yiwu 1% Wan Pengcheng 1% Other 13 individuals 8%
2014-5-23	Shareholders and % of Shareholdings	Lao Yusheng 40% Wang Hong 19.5% Yao Jun 12% Zheng Xingping 12% Dong Yanzheng 2% Shi Jizheng 1.5% Zhao Li’na 1.5% Zhou Yu 1.5% Deng Yiwu 1% Wan Pengcheng 1% Other 13 individuals 8%	Lao Yusheng 40% Zheng Xingping 24% Wang Hong 17% Ye Yang 4% Shi Jizheng 4% Zhou Yu 3% Zhu Nan 2% Wan Pengcheng 2% Du Zhen’er 2% Fang Xiaoyan 1% Yang Zhizhuang 1%
2014-08-12	Shareholders and % of Shareholdings	Lao Yusheng 40% Zheng Xingping 24% Wang Hong 17% Ye Yang 4% Shi Jizheng 4% Zhou Yu 3% Zhu Nan 2% Wan Pengcheng 2% Du Zhen’er 2% Fang Xiaoyan 1% Yang Zhizhuang 1%	Present ones

HS Code: 3109915087

Import/ Export License Number: 3100770213168

For the past two years there is no record of litigation.

MAIN SHAREHOLDERS:

Name % of shareholdings

Mr. Lao Yusheng 40

Mr. Zheng Xingping 24

Ms. Wang Hong 20

Ms. Shi Jizheng 4

Ms. Ye Yang 4

Mr. Wan Pengcheng 2

Ms. Du Zhen’er 2

Ms. Zhu Nan 2

Mr. Fang Xiaoyan 1

Ms. Yang Zhizhuang 1

Legal representative and chairman:

Ms. Wang Hong, ID# 31010619580523****, born in 1958, with university education. She is currently responsible for the overall management of SC.

Working Experience(s):

From 2004 to present Working in SC as chairman and legal representative.

Also working in Shanghai ADP International Trade Co., Ltd., Shanghai Yadong International Logistic Co., Ltd. and Shanghai ADP International Logistic Co., Ltd. as legal representative.

Vice General Manager and Director:

Mr. Zheng Xingping, born in 1983, he is currently responsible for the daily management of SC.

Working Experience(s):

At present Working in SC as vice general manager and director;

Also working in Shanghai Yayu Supply Chain Management Co., Ltd. as legal representative; working in Shanghai Asian Development Prosperous Import And Export Co., Ltd. Huangpu Branch as principal.

*Officials:

=======

Name Title

Mr. Lao Yusheng Director

Mr. Chen Zhongwei Supervisor

SC is mainly engaged in trading of various kinds of products.

SC’s products mainly include: mechanical equipment, Industrial products, Wood, Electrical product, Daily necessities, Food and Wine products, Energy saving and Environment Protection Product, Family Craftworks, Resource Products, etc.

SC sources its materials 70% from domestic market, and 30% from overseas market, mainly Southeast Asia. SC sells 30% of its products in domestic market, and 70% 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 employee refused to release its major customers or suppliers.

Industry code: 5100

Industry name: Wholesale Industry

The gross domestic product of China in 2016 which is 74,412.72 billion that is increased 6.7% than previous year.

Catch0(11-23-09-14-46)

According to National Bureau of Statistics data released, at the end of 2015, there are 91,819 wholesale enterprises in China. In 2015, total assets of wholesale industry was 18119.854 billion Yuan, and increased by 2.81% compared with 2014; total liabilities was 13201.39 billion Yuan, and increased by 1.42% compared with 2014; main business income was 35848.13 billion Yuan, and declined by 7.45% compared with 2014; main business profit was 2237.612 billion Yuan, and declined by 1.49% compared with 2014.

Catch4932(01-11-09-03-29)

Shanghai ADP International Trade Co., Ltd.

==============================

Credibility Code: 91310000697245998B

Incorporation Date: 2009-11-18

Legal representative: Wang Hong

Shanghai Asian Development Int`l Trans Pu Dong Co., Ltd.

===========================================

Credibility Code: 913101091322317085

Incorporation Date: 1994-10-14

Legal representative: Lao Yusheng

Web: http://www.adp.com.cn/

Shanghai Yadong International Logistic Co., Ltd.

===================================

Credibility Code: 91310113775759442K

Incorporation Date: 2005-05-25

Legal representative: Wang Hong

Shanghai ADP International Logistic Co., Ltd.

=================================

Credibility Code: 91310000794549803A

Incorporation Date: 2006-12-11

Legal representative: Wang Hong

Etc.

SC is known to invest in the following company:

Shanghai Yayu Supply Chain Management Co., Ltd. (In Chinese Pinyin)

===================================

Credibility Code: 91310000332408715W

Incorporation Date: 2014-09-03

Legal representative: Zheng Xingping

Branch

Shanghai Asian Development Prosperous Import And Export Co., Ltd. Huangpu Branch

===================================

Credibility Code: 91310101MA1FP1KK2E

Incorporation Date: 2016-2-3

Principal: Zheng Xingping

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.

China Merchants Bank Shanghai Branch Dongdaming Sub-branch

AC#: 212581712210001

Relationship: Normal

Balance Sheet

Unit: CNY’000

	As of Dec. 31, 2015
Cash & bank	23,870
Inventory	56,650
Accounts receivable	21,430
Advances to suppliers	71,690
Other accounts receivable	19,670
Other current assets	0
	------------------
Current assets	193,310
Fixed assets net value	200
Long term investment	100
Intangible and other assets	0
	------------------
Total assets	193,610
	=============
Short loans	100
Accounts payable	33,580
Advances from clients	133,740
Accrued payroll	80
Taxes payable	650
Other accounts payable	-30
Other current liabilities	0
	------------------
Current liabilities	168,120
Long-term liabilities	0
	------------------
Total liabilities	168,120
Equities	25,490
	------------------
Total liabilities & equities	193,610
	=============

Income Statement

Unit: CNY’000

	As of Dec. 31, 2015
Turnover	778,280
Cost of goods sold	750,940
Taxes and additional of main operation	450
Sales expense	10,650
Management expense	8,550
Finance expense	1,600
Investment income	-420
Non-operating income	150
Non-operating expense	0
Profit before tax	5,820
Less: profit tax	1,450
Profits	4,370

Note: We did not find SC’s latest financial reports.

Important Ratios

=============

	As of Dec. 31, 2015
*Current ratio	1.15
*Quick ratio	0.81
*Liabilities to assets	0.87
*Net profit margin (%)	0.56
*Return on total assets (%)	2.26
*Inventory /Turnover ×365	27 days
*Accounts receivable/Turnover ×365	11 days
*Turnover/Total assets	4.02
* Cost of goods sold/Turnover	0.96

PROFITABILITY: AVERAGE

The turnover of SC appears fairly good in its line.

SC’s net profit margin appears average.

SC’s return on total assets appears average.

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.

SC’s quick ratio is maintained in a normal level.

The inventory of SC appears average.

The accounts receivable of SC appears average.

SC’s short-term loan is small in 2015.

SC’s turnover is in a fairly good level, comparing with the size of its total assets.

LEVERAGE: FAIR

The debt ratio of SC is high.

The risk for SC to go bankrupt is average.

Overall financial condition of the SC: Fairly stable (AS OF YEAR 2015)

SC is considered medium-sized in its line with a development history of 14 years.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 67.08
UK Pound	1	INR 91.14
Euro	1	INR 80.01
CNY	1	INR 10.56

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

INFORMATION DETAILS

Analysis Done by :	DIV

Report Prepared by :	TRU

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.