MIRA
INFORM REPORT
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Report Date : |
18.05.2011 |
IDENTIFICATION DETAILS
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Name : |
ANHUI FORTUNE HAIR PRODUCTS Co., Ltd. |
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Registered Office : |
Chengguan Industrial Zone, Taihe County, Fuyang City, Anhui Province,
236600 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
26.01.2005 |
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Com. Reg. No.: |
341222000000135 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and selling different sots of wigs |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 200,000 |
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Status : |
Moderate |
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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 – December 31, 2010
|
Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
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China |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Name and address
ANHUI FORTUNE HAIR PRODUCTS Co., Ltd.
chengguan
industrial zone, taihe county,
fuyang city, anhui
PROVINCE, 236600 PR CHINA
TEL: 86 (0)
558-8665555 FAX: 86 (0) 558-8661212
EXECUTIVE SUMMARY
INCORPORATION DATE : jan. 26, 2005
REGISTRATION NO. : 341222000000135
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
600
REGISTERED CAPITAL : CNY 33,000,000
BUSINESS LINE : MANUFACTURINg
TURNOVER :
CNY 184,840,000 (UNaudited, AS
OF DEC. 31, 2010)
EQUITIES :
CNY 41,580,000 (UNaudited, AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 200,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly
stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.53 = 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
SC was registered as a limited liability company at local Administration
for industry & commerce (AIC - the official body of issuing and renewing
business license) on Jan. 26, 2005.
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 manufacturing and selling human hair; importing and
exporting various kinds of commodities and technology, excluding the goods
forbidden by the government.
SC is mainly
engaged in manufacturing and selling different sots of wigs.
Mr. Liu Lei is legal representative and chairman of SC at
present.
SC is known
to have approx. 600 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Taihe County. Our checks
reveal that SC owns the total premise about 20,000 square meters.
http://www.fortunehair.com
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
SC’s former registration no. was 3421232001199.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Liu Lei
ID # 342123680703423 31.67
Qiao Yong
ID # 370303196603031735 31.67
Liu Xian
ID # 342123197004094238 31.63
Zhang Minggui ID # 512221196806045112 5.03
l
Chairman & Legal Representative:
Mr. Liu Lei , born in 1968 with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as chairman & legal representative.
l
General Manager:
Mr. Liu Xian , born in 1970, 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 manufacturing and selling different sots of wigs.
SC’s products
mainly include wigs.
SC sources its materials 95% from domestic
market, and 5% from overseas market. SC sells 100% of its products to overseas
market, mainly U.S.A.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
Note: SC’s management declined to release its main clients and
suppliers.
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 China Taihe Sub-branch
AC# 4914389058091001
Relationship:
Normal
Balance Sheet
Unit: CNY’000
|
|
as
of Dec. 31, 2009 |
as
of Dec. 31, 2010 |
|
Cash & bank |
6,060 |
4,080 |
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Inventory |
28,980 |
35,290 |
|
Accounts
receivable |
75,900 |
91,400 |
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Advances to
suppliers |
410 |
320 |
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Other
receivables |
140 |
170 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
111,490 |
131,260 |
|
Fixed assets net
value |
13,950 |
15,880 |
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Projects under
construction |
1,170 |
2,000 |
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Long term
investment |
0 |
0 |
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Other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
126,610 |
149,140 |
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|
============= |
============= |
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Short loans |
33,890 |
39,300 |
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Accounts payable |
41,650 |
54,460 |
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Other payable |
16,710 |
17,280 |
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Taxes payable |
-4,910 |
-5,320 |
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Other current liabilities |
840 |
840 |
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------------------ |
------------------ |
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Current
liabilities |
88,180 |
106,560 |
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Long term
liabilities |
0 |
1,000 |
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------------------ |
------------------ |
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Total
liabilities |
88,180 |
107,560 |
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Equities |
38,430 |
41,580 |
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------------------ |
------------------ |
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Total
liabilities & equities |
126,610 |
149,140 |
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============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2009 |
as of Dec. 31,
2010 |
|
Turnover |
162,610 |
184,840 |
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Cost of goods
sold |
153,740 |
173,420 |
|
Sales expense |
900 |
1,680 |
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Management expense |
2,210 |
2,550 |
|
Finance expense |
1,580 |
3,050 |
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Profit before
tax |
4,190 |
4,260 |
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Less: profit tax |
1,050 |
1,070 |
|
Profits |
3,140 |
3,190 |
Note: The above
financial records for year 2010 have not been audited.
Important Ratios
=============
|
|
as
of Dec. 31, 2009 |
as
of Dec. 31, 2010 |
|
*Current ratio |
1.26 |
1.23 |
|
*Quick ratio |
0.94 |
0.90 |
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*Liabilities
to assets |
0.70 |
0.72 |
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*Net profit
margin (%) |
1.93 |
1.73 |
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*Return on
total assets (%) |
2.48 |
2.14 |
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*Inventory
/Turnover ×365 |
65 days |
70 days |
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*Accounts
receivable/Turnover ×365 |
170 days |
180 days |
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*Turnover/Total
assets |
1.28 |
1.24 |
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* Cost of
goods sold/Turnover |
0.95 |
0.94 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in 2009 and
it increased in 2010.
l
SC’s net profit margin is average in both years.
l
SC’s return on total assets is average in both
years.
l
SC’s cost of goods sold is fairly high in both
years, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in both years.
l
SC’s quick ratio is maintained in a normal level in
both years.
l
The inventory of SC is maintained in an average
level in both years.
l
The accounts receivable of SC appears LARGE in both
years.
l
SC’s short-term loan appears fairly large in both
years.
l
SC’s turnover is in an average level in both years,
comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average in both years.
l
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. The large amount of accounts receivable and short loans could be a threat
to SC’s financial condition. The given credit amount would appear to be within
SC’s capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.07 |
|
|
1 |
Rs.72.97 |
|
Euro |
1 |
Rs.63.57 |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
-- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.