MIRA INFORM REPORT
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Report Date : |
17.10.2011 |
IDENTIFICATION DETAILS
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Name : |
HEBEI RENQIU FOREIGN ECONOMIC TRADE
CORPORATION |
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Registered Office : |
No. 3, Jianshe Middle Road, Renqiu, Hebei Province 062550 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
10.06.1991 |
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Com. Reg. No.: |
130982100002392 |
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Legal Form : |
State-Owned Enterprise |
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Line of Business : |
Importing and
Exporting Electronics and Textiles |
RATING & COMMENTS
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MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
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 – September 30th, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
China |
a2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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 |
Company name & address
HEBEI RENQIU FOREIGN ECONOMIC TRADE CORPORATION
NO. 3, JIANSHE MIDDLE
ROAD, RENQIU
HEBEI PROVINCE 062550
PR CHINA
TEL: 86 (0)
317-2268260/2985522
FAX: 86 (0)
317-2223277/2603716
EXECUTIVE SUMMARY
Date of Registration : JUNE 10, 1991
REGISTRATION NO. : 130982100002392
LEGAL FORM : STATE-OWNED
ENTERPRISE
REGISTERED CAPITAL : CNY 23,283,000
staff : 8
BUSINESS CATEGORY : TRADING
Revenue :
CNY 72,707,000 (AS OF DEC. 31,
2010)
EQUITIES :
CNY 23,588,000 (AS OF DEC. 31, 2010)
WEBSITE : www.rqftc.com
E-MAIL :
songer2217302@vip.163.com
PAYMENT : AVERAGE
Recommended Credit Limit: UP TO USD
200,000
MARKET CONDITION : average
FINANCIAL CONDITION : stable
OPERATIONAL TREND : ORDINARY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.37 = USD 1
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 a state-owned enterprise of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.: 130982100002392 on June 10, 1991.
SC’s Organization Code Certificate
No.: 109577065
SC’s registered capital: CNY
23,283,000
SC’s paid-in capital: CNY
23,283,000
Registration Change Record:
|
Date |
Change
of Contents |
Before the change |
After the change |
|
-- |
Registration No. |
1309821400292 |
130982100002392 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Renqiu Business Affairs Bureau |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman,
and General Manager |
Zhang Guoli |
|
Deputy General Manager |
Ha Shaofeng |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Renqiu Business Affairs Bureau 100
MANAGEMENT
Zhang Guoli , 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
Ha Shaofeng, Deputy General Manager
---------------------------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as deputy general manager
BUSINESS OPERATION
SC’s registered
business scope includes importing and exporting
commodities and technologies, excluding 16 kinds of export commodities under state-unified operation and 14 kinds of import
commodities operated by the state-designated companies; processing with
imported materials, processing with imported samples, assembling with imported
parts, and compensation trade in agreement; counter trade & transit trade.
SC is mainly
engaged in importing and exporting electronics and textiles.
SC’s products mainly include:
· Motor tricycle
· Sprocket
· CO2 Gas Shielded Welding Torch
· Satellite antenna
· Electrical equipment fittings and communication apparatus
· Producing base of plastic molding
· Producing base of aluminum alloy, lead mould shaping material
· Production of wire and cable
· Carbon brush
· Glass fiber and window gauze
Etc.
SC sources its materials 100% from domestic market. SC sells 10% of its products in domestic market, and 90% to
overseas market,
mainly India and Iraq.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include Check, T/T, L/C and Credit of 30 days.
*Major Partners:
=============
· Renqiu Chengcheng Automobile Motor Manufacturing Co., Ltd.
· Renqiu Guangming Electrical Carbon Co., Ltd.
· Renqiu Sanwei Antenna Co., Ltd.
· Renqiu Lidaer Power Industry Co., Ltd.
Staff & Office:
--------------------------
SC is known
to have approx. 8 staff at present.
SC owns an area as
its operating office of approx. 100 sq. meters at the heading address.
RELATED COMPANY
SC is
known to have an office at present:
Hebei Renqiu Foreign Economic
Trade Corporation Tianjin Office
Address:
No. 303-305, Unit 1, No. 7, Zhigu Park, Dazhigu, Hedong District, Tianjin
Tel: 86
022-24383480
Fax: 86
022-24149571
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
Basic Bank:
Bank of China
AC#:
72809405908091001
FINANCIAL data
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
3,312 |
2,258 |
|
|
Accounts
receivable |
428 |
3,556 |
|
Advances to
suppliers |
0 |
0 |
|
Other receivable |
436 |
5,907 |
|
Inventory |
1,934 |
306 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
695 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
6,805 |
12,027 |
|
Fixed assets |
18,092 |
18,068 |
|
Construction in
progress |
0 |
0 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
24,897 |
30,095 |
|
|
============= |
============= |
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Short-term loans |
0 |
0 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
840 |
4,428 |
|
Wages payable |
65 |
0 |
|
Tax payable |
0 |
-78 |
|
Other payable |
346 |
2,157 |
|
Accrued expenses |
96 |
0 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
1,347 |
6,507 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total liabilities |
1,347 |
6,507 |
|
Equities |
23,550 |
23,588 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
24,897 |
30,095 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2009 |
As of Dec. 31,
2010 |
|
Revenue |
62,604 |
72,707 |
|
Cost of sales |
60,301 |
69,426 |
|
Sales expense |
1,825 |
2,090 |
|
Management expense |
169 |
619 |
|
Finance expense |
168 |
396 |
|
Profit before tax |
106 |
167 |
|
Less: profit tax |
19 |
39 |
|
87 |
128 |
Important Ratios
=============
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
*Current ratio |
5.05 |
1.85 |
|
*Quick ratio |
3.62 |
1.80 |
|
*Liabilities
to assets |
0.05 |
0.22 |
|
*Net profit
margin (%) |
0.14 |
0.18 |
|
*Return on
total assets (%) |
0.35 |
0.43 |
|
*Inventory /
Revenue ×365 |
12 days |
2 days |
|
*Accounts
receivable/ Revenue ×365 |
3 days |
18 days |
|
*
Revenue/Total assets |
2.51 |
2.42 |
|
* Cost of sales
/ Revenue |
0.96 |
0.95 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears average, and it was
rising 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, comparing
with its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a normal
level in 2010.
l
SC’s quick ratio is maintained in a fairly good
level in 2010.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
SC has no short-term loan in both years.
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
CONCLUSIONS
SC is considered small-sized in its line with
stable financial conditions. A credit line up to USD 200,000 would appear to be within SC’s capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.07 |
|
UK Pound |
1 |
Rs.77.42 |
|
Euro |
1 |
Rs.67.72 |
RATING EXPLANATIONS
|
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 |
|
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 |
|
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 |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
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 |
|
---- |
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.