MIRA
INFORM REPORT
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Report Date : |
13.08.2007 |
IDENTIFICATION DETAILS
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Name : |
HANGZHOU HETD INDUSTRY CO., LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
25.12.1996 |
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Com. Reg. No.: |
3301002001950 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject 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 30,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
COMPANY NAME &
ADDRESS
HANGZHOU HETD INDUSTRY CO., LTD.
NO.8
TEL: 86 (0) 571-81958088
FAX: 86 (0) 571-81958068
EXECUTIVE SUMMARY
INCORPORATION DATE : december 25, 1996
REGISTRATION NO. : 3301002001950
REGISTERED LEGAL FORM : Limited
liabilities company
CHIEF EXECUTIVE :
MR. lou shuijin (CHAIRMAN)
STAFF STRENGTH :
12
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE :
trading
TURNOVER :
CNY 22,550,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 4,930,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : average
FINANCIAL CONDITION : FAIRLY stable
OPERATIONAL TREND : fairly steady
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY7.56 = US$1 AS OF 2007-8-9
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 limited liabilities company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on December 25, 1996.
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 wholesaling and retailing metal
products, standard machinery, power tools, chemical products and raw materials,
electronic products, operating and acting as an agent of importing and
exporting various kinds of commodities and technology, excluding the goods
forbidden by the government.
SC is mainly engaged in international trade.
Mr. Lou Shuijin has been chairman of SC since 1996.
SC owns about 12 staff at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the industrial zone of Hangzhou. Our checks
reveal that SC rents the total premise about 200 square meters.
http://www.hetd.com.cn The design is
professional and the content is well organized. At present the web site is both
in Chinese and English versions.
E-mail: hetd@mail.hz.zj.cn
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Lou Shuijin 90
Du Yuying 10
Chairman and General Manager:
Mr. Lou Shuijin, 44 years old with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1996 to present Working
in SC as chairman and general manager.
SC is mainly engaged in international trade.
SC’s products mainly include: machinery products, metal products.
SC sources its materials 100% from domestic market, mainly
The buying terms of SC include Check, T/T and Credit of 30 days. The
payment terms of SC include T/T, L/C and Credit of 30 days.
*Major Suppliers:
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Shijiazhuang Sprocket General Factory
SC is known to have a subsidiary at present:
Hangzhou Hetd Machinery Co., Ltd.
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#：800123800118091001
Relationship:
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
100 |
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Inventory |
310 |
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Accounts receivable |
2,010 |
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Other Accounts receivable |
7,160 |
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To be apportioned expense |
0 |
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Other current assets |
180 |
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Current assets |
9,760 |
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Fixed assets net value |
520 |
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Projects under construction |
0 |
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Long term investment |
2,130 |
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Other assets |
-320 |
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Total assets |
12,090 |
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Short loans |
3,000 |
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Accounts payable |
2,860 |
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Other Accounts payable |
960 |
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Withdraw the expenses in advance |
0 |
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Other current liabilities |
340 |
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Current liabilities |
7,160 |
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Long term liabilities |
0 |
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Other liabilities |
0 |
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Total liabilities |
7,160 |
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Equities |
4,930 |
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Total liabilities & equities |
12,090 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
22,550 |
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Cost of goods sold |
20,920 |
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Sales expense |
870 |
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Management expense |
380 |
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Finance expense |
330 |
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Profit before tax |
-60 |
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Less: profit tax |
0 |
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Profits |
-60 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 1.36
*Quick ratio 1.32
*Liabilities to assets 0.59
*Net profit margin (%) -0.27
*Return on total assets (%) -0.50
*Inventory /Turnover ×365 5 days
*Accounts receivable/Turnover ×365 33 days
*Turnover/Total assets 1.87
* Cost of goods sold/Turnover 0.93
PROFITABILITY: FAIR
The turnover of SC appears fairly good in its line.
SC’s net profit margin is fair.
SC’s return on total assets is fair.
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 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 small-sized in its line with fairly stable financial
conditions. A credit line up to USD 30,000
would appear to be within SC’s capacities upon a periodical review basis.
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%)