MIRA
INFORM REPORT
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Report Date : |
01.08.2007 |
IDENTIFICATION DETAILS
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Name : |
HEBEI LIGHT INDUSTRIAL PRODUCTS IMPORT & EXPORT GROUP
CO., LTD. |
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Registered Office : |
No.26 |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
25.12.1998 |
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Com. Reg. No.: |
1300001001078 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Company is engaged in international trade |
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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Maximum Credit Limit : |
USD 300,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
COMPANY NAME &
ADDRESS
HEBEI LIGHT INDUSTRIAL PRODUCTS IMPORT & EXPORT GROUP CO., LTD.
No.26
TEL: 86 (0) 311-87732008
FAX: 86 (0) 311-87732009
EXECUTIVE SUMMARY
INCORPORATION DATE : december 25, 1998
REGISTRATION NO. : 1300001001078
REGISTERED LEGAL FORM : Shares
limited company
CHIEF EXECUTIVE :
MR. sun xinqiang (CHAIRMAN)
STAFF STRENGTH :
65
REGISTERED CAPITAL : CNY 37,500,000
BUSINESS LINE :
INTERNATIONAL TRADE
TURNOVER :
CNY 283,040,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 51,030,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY7.57 = US$1 AS OF 2007-7-31
Adopted
abbreviations:
ANS - amount not stated
NS - not stated SC - subject
company (the company inquired by you)
NA - not available
CNY -
SC was registered as a shares limited company at
Company Status: Shares limited co. This form of business in PR China is defined as a legal
person. Its registered capital is divided into shares of equal par value
and the co. raises capital by issuing share certificates by promotion or by
public offer. Shareholders bear limited liability to the extent of
shareholding, and the co. is liable for its debts only to the extent of its
total assets. The characteristics of the shares limited co. are as follows: The establishment of the co. requires at least five
promoters and at least three of them must be PR- China controlled legal persons.
Natural person can not be allowed to serve as promoters. The minimum registered capital of a co. is CNY 10M. while
that of the co. with foreign investment is CNY30M. The total capital of a
co. which propose to apply for publicly listed must not less than CNY50M. The board of directors must consist of an odd number of
five to nineteen directors. If the co. raises capital by public offer, the promoters
must not subscribe less than 35% of the total shares. the promoters’ shares
are restricted to transfer- within three years of the offer. Directors can
not transfer the shares they hold in the co. during their terms of office. A state-owned enterprise that is restructured into a shares
limited co. must comply with the conditions & requirements specified
under the law & administrative rule.
SC’s registered business scope includes importing and
exporting commodities and technologies and acting as an agent for it, excluding
the goods forbidden by the government, processing with imported materials,
processing with imported samples, assembling with imported parts, and
compensation trade in agreement, barter trade & transiting trade.
SC is mainly engaged in international trade.
Mr. Sun Xinqiang has been chairman of SC since 1998.
SC owns about 65 staff at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the commercial zone of Shijiazhuang. Our checks
reveal that SC owns the total premise about 1,000 square meters.
http://www.china-heli.com The
design is professional and the content is well organized. At present the web
site is only in English version.
E-mail: heli@heinfo.net
SC’s former registered name was Hebei Light
Industrial Products Import & Export Co., Ltd., and it was changed into Hebei
Light Industrial Products Import and Export Group Co., Ltd. in October 2006.
SC has obtained the certificate of ISO9001.
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Hebei Shenglun Import & Export Group Corporation 1.33
Shijiazhuang Kangtai Clothing Co., Ltd. 1.33
Hebei Medicines & Health Products Import & Export Corporation 1.33
Shareholder’s Union of Staff 96.01
======================================
Hebei Shenglun Import & Export Group Corporation
Add:
Tel: 86 311 8618609
Chairman and General Manager:
Mr. Sun Xinqiang , in his 50’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1998 to present Working
in SC as chairman and general manager.
Vice General Manager:
Ms. Pan Lei , in her 30’s with university education. She is currently
responsible for the daily management of SC.
Working Experience(s):
From 2005 to present Working
in SC as vice general manager.
SC is mainly engaged in international trade.
SC’s products mainly include: houseware, shoes and hats, everyday metal
products, cutlery and kitchenware, textile and garments, bags and leather
goods, building materials, toys, plastic products, stationery, paper products,
protective clothing, sporting goods, home electrical appliances.
SC sources its materials 80% from domestic market, and 20% from overseas
market, mainly
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Supplier:
==============
Shijiazhuang Kangtai Clothing Co., Ltd.
SC is not known to have any subsidiary at present.
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
AC#：310093000109200531
Relationship:
Balance Sheet
Unit: CNY’000
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as
of Dec. 31, 2005 |
as
of Dec. 31, 2006 |
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Cash & bank |
19,230 |
15,730 |
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Inventory |
1,010 |
5,720 |
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Accounts receivable |
36,650 |
16,370 |
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Other Accounts receivable |
41,080 |
33,520 |
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To be apportioned expense |
120 |
0 |
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Other current assets |
27,610 |
37,990 |
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Current assets |
125,700 |
109,330 |
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Fixed assets net value |
13,040 |
14,050 |
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Projects under construction |
0 |
0 |
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Long term investment |
3,900 |
4,530 |
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Other assets |
460 |
2,180 |
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Total assets |
143,100 |
130,090 |
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Short loans |
28,000 |
19,000 |
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Accounts payable |
27,550 |
30,120 |
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Other Accounts payable |
34,400 |
10,540 |
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Withdraw the expenses in advance |
1,920 |
0 |
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Other current liabilities |
12,860 |
19,400 |
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Current liabilities |
104,730 |
79,060 |
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Long term liabilities |
0 |
0 |
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Other liabilities |
-10,940 |
0 |
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Total liabilities |
93,790 |
79,060 |
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Equities |
49,310 |
51,030 |
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Total liabilities & equities |
143,100 |
130,090 |
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Income Statement
Unit: CNY’000
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as
of Dec. 31, 2005 |
as
of Dec. 31, 2006 |
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Turnover |
279,870 |
283,040 |
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Cost of goods sold |
254,630 |
243,650 |
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Sales expense |
0 |
0 |
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Management expense |
23,740 |
35,650 |
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Finance expense |
1,930 |
1,600 |
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Profit before tax |
-15,410 |
2,130 |
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Less: profit tax |
8,900 |
0 |
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Profits |
-24,310 |
2,130 |
Important Ratios
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2005 |
2006 |
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*Current ratio |
1.20 |
1.38 |
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*Quick ratio |
1.19 |
1.31 |
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*Liabilities to assets |
0.66 |
0.61 |
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*Net profit margin (%) |
-8.69 |
0.75 |
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*Return on total assets (%) |
-16.99 |
1.64 |
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*Inventory /Turnover ×365 |
1day |
7days |
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*Accounts receivable/Turnover ×365 |
48days |
21days |
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*Turnover/Total assets |
1.96 |
2.18 |
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* Cost of goods sold/Turnover |
0.91 |
0.86 |
PROFITABILITY: AVERAGE
The turnover of SC appears fairly good in its line.
SC’s net profit margin is fairly poor in 2005, but it increased to an
acceptable level in 2006.
SC’s return on total assets is fairly poor in 2005, but it increased to
an acceptable level in 2006.
SC’s cost of goods sold is average, 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 fairly good level.
The inventory of SC is maintained in an average level.
The accounts receivable of SC is maintained in an acceptable level.
SC’s short-term loan appears fairly large.
SC’s turnover is in an acceptable level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
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. A credit line up to USD 300,000 would appear to be within SC’s
capacities.
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 |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
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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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)