MIRA
INFORM REPORT
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Report Date : |
17.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
HANGZHOU
HUANGSHUN INDUSTRIAL CORPORATION |
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Registered Office : |
9/F, Qiushi Building, No.6 Jiaogong Road, Hangzhou, Zhejiang Province, 310007 Pr |
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Country : |
China |
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Date of Incorporation : |
22.09.1999 |
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Com. Reg. No.: |
3301842005595 |
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Legal Form : |
Limited Liabilities Company |
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 100,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
HANGZHOU HUANGSHUN
INDUSTRIAL CORPORATION
9/F, QIUSHI BUILDING, NO.6 JIAOGONG ROAD,
HANGZHOU,
ZHEJIANG PROVINCE, 310007 PR CHINA
TEL: 0086-571-88210301 FAX:
0086-571-88219603
EXECUTIVE SUMMARY
INCORPORATION DATE :
SEP. 22, 1999
REGISTRATION NO. :
3301842005595
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MR. WANG FENGXIAN (CHAIRMAN)
STAFF STRENGTH :
40
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 349,280,000 (AS OF DEC. 31,
2007)
EQUITIES :
CNY 9,340,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO
USD 100,000
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.81450 = USD 1
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
Note: Instead of the given name, SC’s complete name should
be the heading one.
SC was registered as a limited liabilities co. at local Administration for Industry
& Commerce (AIC - The official body of issuing and renewing business
license) on Sep. 22, 1999.
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 selling rubber and plastic
products, stationery, toys, instruments and meters, general merchandise,
glassworks, mechanical and electrical products, native & animal
by-products, textiles, shoes and hats, travel products, chemical materials and
products (excluding dangerous articles), machines, arts and crafts (excluding
gold and silver) and silk garments; selling coal (validity period as of 19th
February 2009); importing and exporting commodities and
technologies, excluding export commodities limited or
prohibited by the state, processing with imported materials, processing with
imported samples, assemblying with imported parts, and compensation trade in agreement;
counter trade & transit trade; other legitimate
projects needed no approval (with permit if needed).
SC is mainly
engaged in importing and exporting business.
Mr. Wang Fengxian
is legal representative and chairman of SC at present.
SC is known to have approx. 40 employees at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Hangzhou. Our checks reveal that SC
owns the total premise about 320 square meters.
SC is not known to host website of its own at present.
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Wang Fengxian 55.4
Li Qiang 24
Shen Jiakui 13.2
Jiang Haoliang 4
Chen Yi 3.4
l
Legal representative and chairman:
Mr. Wang Fengxian, about 54 years old with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as chairman and legal representative.
l
General manager:
Mr. Li Qiang, born in 1951, with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
At present Working
in SC as general manager.
SC is mainly engaged
in importing and exporting business.
SC’s products mainly include: rubber and plastic products, stationeries,
toys, textiles, garments.
SC sources its merchandises 30% from the overseas market and 70% from
domestic market. SC sells 30% of its merchandises 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, T/T, L/C, and Credit of 30-60 days.
*Major Suppliers*
=============
Hangzhou Shunrong Tourism Articles Co., Ltd.
*Major Customers*
==============
Skellerup Ltd. (New Zealand)
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’s suppliers
declined to make any comments.
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 Hangzhou Yuhang District Sub-branch
AC#79718100013725
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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as
of Dec. 31, 2007 |
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Cash & bank |
6,050 |
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Bills receivable |
0 |
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Accounts
receivable |
8,480 |
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Other
receivables |
640 |
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Advances to
suppliers |
15,520 |
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Inventory |
500 |
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Prepaid expenses |
70 |
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Subsidies
receivable |
7,390 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
38,650 |
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Fixed assets |
5,490 |
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Fixed assets net
value |
5,490 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
0 |
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------------------ |
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Total assets |
44,140 |
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============= |
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Short loans |
12,920 |
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Bills payable |
250 |
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Accounts payable |
8,480 |
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Welfare payable |
90 |
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Advances from
clients |
12,750 |
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Accrued payroll |
0 |
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Tax payable |
50 |
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Other payable |
260 |
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Surcharge payable |
0 |
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Other current
liabilities |
0 |
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------------------ |
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Current
liabilities |
34,800 |
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Long term
liabilities |
0 |
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------------------ |
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Total
liabilities |
34,800 |
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Equities |
9,340 |
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------------------ |
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Total
liabilities & equities |
44,140 |
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============= |
Income Statement
Unit: CNY’000
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as of Dec. 31, 2007 |
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Turnover |
349,280 |
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Cost of goods
sold |
308,000 |
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Sales expense |
34,850 |
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Management expense |
5,320 |
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Finance expense |
760 |
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Subsidy income |
180 |
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Profit before
tax |
320 |
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Less: profit tax |
100 |
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Profits |
220 |
Important Ratios
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as
of Dec. 31, 2007 |
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*Current ratio |
1.11 |
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*Quick ratio |
1.10 |
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*Liabilities
to assets |
0.79 |
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*Net profit
margin (%) |
0.06 |
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*Return on
total assets (%) |
0.50 |
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*Inventory
/Turnover ×365 |
1 day |
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*Accounts
receivable/Turnover ×365 |
9 days |
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*Turnover/Total
assets |
7.91 |
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* Cost of
goods sold/Turnover |
0.88 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory conversion period of SC appears average.
l
The accounts receivable of SC appears average.
l
SC’s short-term loan appears large.
l
SC’s turnover is in a fairly good level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is fairly high.
l
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. The large amount of short loans could be a threat to SC’s financial
condition. A credit line up to USD 100,000 would appear to be within SC’s
capacities.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.43.17 |
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UK Pound |
1 |
Rs.86.46 |
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Euro |
1 |
Rs.68.68 |
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. |
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%)