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MIRA INFORM REPORT
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Report No. : |
507187 |
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Report Date : |
09.05.2018 |
IDENTIFICATION DETAILS
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Name : |
SHANGHAI
LEADGO-TECH CO., LTD. |
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Registered Office : |
18 #, No. 1365 East Kangqiao Road, China (Shanghai)
Pilot Free Trade Zone 201319 |
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Country : |
China |
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
29.04.1999 |
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Unified Social Credit Code: |
913100006314627462 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject registered business
scope includes technology development, technology transfer, technology
services, and technology consulting in the fields of aeronautics and
astronautics, new energy, computer; researching, developing and selling
plastic products, rubber products, textiles, synthetic materials and moulds;
manufacturing aeronautical component mould; importing and exporting
commodities and technology. |
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No. of Employees : |
260 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Status : |
Good |
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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
|
Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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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.
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Source
: CIA |
Company
name and address
|
COMPANY NAME |
Shanghai Leadgo-Tech Co., Ltd. |
|
CURRENT ADDRESS/ REGISTERED ADDRESS |
18 #, No. 1365 East Kangqiao
Road, China (Shanghai) Pilot Free Trade Zone 201319 PR China |
|
TEL. NO. |
86 (0)
21-68183116/68183117/68183118 |
|
FAX NO. |
86 (0) 21-68183100 |
EXECUTIVE
SUMMARY
Date of Registration : april 29, 1999
Unified Social Credit Code : 913100006314627462
LEGAL FORM : SHARES
LIMITED COMPANY
REGISTERED CAPITAL : CNY 65,000,000
staff : 260
BUSINESS CATEGORY : manufacturing & trading
Revenue :
CNY 176,986,000 (Consolidated,
AS OF DEC. 31, 2017)
EQUITIES :
CNY 167,045,000 (Consolidated,
AS OF DEC. 31, 2017)
WEBSITE : www.leadgo-tech.com
E-MAIL : n/a
PAYMENT : No Complaints
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
Adopted abbreviations (as follows)
SC -
Subject Company (the company inquired by you)
N/A – Not
available
CNY –
China Yuan Ren Min Bi
OPERATIONAL
TREND & GENERAL REPUTATION
This section aims at indicating the relative positions of SC
in respect of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be determined
LEGAL
STATUS & HISTORY
SC was established as shares limited company of PRC with State Administration of
Industry & Commerce (SAIC) under Unified Social Credit Code: 913100006314627462.
SC’s registered capital: CNY 65,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2016-6-2 |
Company Chinese Name |
|
|
|
Legal Form |
Limited Liabilities Company |
Shares Limited Company |
|
|
2016-6-12 |
Registered Capital |
CNY 50,000,000 |
CNY 65,000,000 |
|
-- |
Registration No./ Unified Social Credit Code |
310225000161293 |
913100006314627462 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Hu Zhongjie |
56.0552 |
|
Cen Chanfang |
37.3702 |
|
Shanghai Ligao Investment Co.,
Ltd. |
6.5746 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman
and General Manager |
Hu Zhongjie |
|
Director |
Liu Jie |
|
Cen Chanfang |
|
|
Deng Pengpeng |
|
|
Yang Fan |
|
|
Supervisor |
Zhang Haibo |
|
Pan Xinxia |
|
|
Luo Jiejun |
RECENT
DEVELOPMENT
SC was listed on the new three board stock market, and the
stock code is 839366.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Hu Zhongjie 56.0552
Cen Chanfang 37.3702
Shanghai Ligao Investment Co.,
Ltd. 6.5746
Shanghai Ligao Investment Co.,
Ltd.
-------------------------------------------
Unified Social Credit Code:
91310115590403407G
Legal Form: Limited Liabilities
Company
Registered Capital: CNY
10,000,000
Legal Representative: Hu Zhongjie
mANAGEMENT
Hu Zhongjie,
Legal Representative, Chairman, and General Manager
-----------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø Qualification:
University
Ø Working
experience (s):
At present, working in SC
as legal representative, chairman, and general manager
Also
working in Shanghai Ligao Investment Co., Ltd. and Ningbo Leadgo Composites
Co., Ltd. as legal representative
Director
-----------
Liu Jie
Cen Chanfang
Deng Pengpeng
Yang Fan
Supervisor
--------------
Zhang Haibo
Pan Xinxia
Luo Jiejun
BUSINESS
OPERATION
SC’s registered business scope
includes technology development, technology transfer, technology
services, and technology consulting in the fields of aeronautics and
astronautics, new energy, computer; researching, developing and selling plastic
products, rubber products, textiles, synthetic materials and moulds;
manufacturing aeronautical component mould; importing and exporting commodities
and technology.
SC is
mainly engaged in manufacturing and selling composite materials
SC’s
products mainly include:
Vacuum
Bagging Film
Release
Film
Sealant
Tape
Peel
Ply
Etc.
Trademark:
SC sources its materials 100%
from domestic market. SC sells 60% of its products in domestic market, and 40%
to overseas market.
The buying
terms of SC include T/T and Credit of 30-60 days. The payment terms of SC
include T/T, L/C and Credit of 30-60 days.
Major
Customer,
---------------------
Lm
Wind Power
Staff & Office:
--------------------
SC is
known to have approx. 260
staff at present.
SC
owns an area as its operating office and factory, but the detailed information
is unknown.
RELATED
COMPANY
Subsidiary,
Ningbo Leadgo Composites Co., Ltd.
------------------------------------
Date of Registration: September 21, 2012
Unified Social Credit Code: 9133020105381135XD
Legal Form:
One-person Limited Liabilities Company
Legal Representative: Hu Zhongjie
PAYMENT
Overall payment appraisal:
( ) Excellent ( )
Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.
BANKING
The bank information of SC is not filed in local SAIC.
FINANCIALS
Consolidated Balance Sheet
|
Unit:
CNY’000 |
As of Dec. 31, 2016 |
As of Dec. 31, 2017 |
|
14,045 |
20,812 |
|
|
Notes
receivable |
13,561 |
15,430 |
|
Accounts
receivable |
89,944 |
84,985 |
|
Advances
to suppliers |
5,518 |
4,621 |
|
Other
receivable |
2,825 |
2,446 |
|
Inventory |
48,030 |
51,011 |
|
Other
current assets |
8,666 |
10,479 |
|
|
------------------ |
------------------ |
|
Current
assets |
182,589 |
189,784 |
|
Fixed
assets |
62,816 |
56,837 |
|
Construction
in progress |
3,981 |
14,467 |
|
Goodwill |
0 |
0 |
|
Intangible
assets |
15,941 |
15,409 |
|
Development
expenditure |
0 |
0 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred
income tax assets |
4,205 |
5,047 |
|
Other
non-current assets |
3,555 |
1,305 |
|
|
------------------ |
------------------ |
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Total
assets |
273,087 |
282,849 |
|
|
============= |
============= |
|
Short-term
loans |
42,400 |
78,179 |
|
Trading
financial liabilities |
0 |
0 |
|
Notes
payable |
2,000 |
12,001 |
|
Accounts
payable |
5,010 |
5,183 |
|
Advances
from clients |
835 |
460 |
|
Payroll
payable |
2,849 |
2,232 |
|
Taxes
payable |
6,536 |
7,351 |
|
Interest
payable |
42 |
0 |
|
Other
payable |
15,838 |
152 |
|
Non-current
liabilities due within one year |
40,000 |
42 |
|
Other
current liabilities |
89 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
115,599 |
105,600 |
|
Non-current
liabilities |
306 |
10,204 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
115,905 |
115,804 |
|
Equities |
157,182 |
167,045 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
273,087 |
282,849 |
|
|
============= |
============= |
Consolidated Income Statement
|
Unit:
CNY’000 |
As
of Dec. 31, 2016 |
As
of Dec. 31, 2017 |
|
Revenue |
180,977 |
176,986 |
|
Cost of sales |
111,153 |
117,817 |
|
Business Taxes and Surcharges |
1,286 |
880 |
|
Sales expense |
14,373 |
11,659 |
|
Management expense |
33,849 |
28,820 |
|
Finance expense |
4,623 |
3,952 |
|
Assets Devaluation |
883 |
855 |
|
Investment
income |
0 |
0 |
|
Non-operating
income |
640 |
2,176 |
|
Non-operating expense |
512 |
7 |
|
Profit
before tax |
13,139 |
15,170 |
|
Less:
profit tax |
2,367 |
1,505 |
|
10,772 |
13,665 |
Important
Ratios
=============
|
|
As of Dec. 31, 2016 |
As of Dec. 31, 2017 |
|
*Current
ratio |
1.58 |
1.80 |
|
*Quick
ratio |
1.16 |
1.31 |
|
*Liabilities
to assets |
0.42 |
0.41 |
|
*Net
profit margin (%) |
5.95 |
7.72 |
|
*Return
on total assets (%) |
3.94 |
4.83 |
|
*Inventory
/ Revenue ×365 |
97
days |
106
days |
|
*Accounts
receivable/ Revenue ×365 |
181
days |
176
days |
|
*Revenue
/ Total assets |
0.66 |
0.63 |
|
*Cost
of sales / Revenue |
0.61 |
0.67 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
l The
revenue of SC appears fairly good in its line.
l SC’s
net profit margin is fairly good.
l SC’s return
on total assets is average.
l
SC’s cost of sales is average,
comparing with its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained
in a normal level.
l
SC’s quick ratio is maintained in a
fairly good level.
l
The inventory of SC appears large.
l
The accounts receivable of SC appears
large.
l
The short-term loans of SC appear
large.
l
SC’s revenue is in a fair level,
comparing with the size of its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is
average.
Overall
financial condition of the SC: Stable.
CONCLUSIONS
SC is considered medium-sized in its line with stable
financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 67.08 |
|
|
1 |
INR 91.14 |
|
Euro |
1 |
INR 80.01 |
|
CNY |
1 |
INR 10.57 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
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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)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.