MIRA
INFORM REPORT
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Report Date : |
04.12.2012 |
IDENTIFICATION DETAILS
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Name : |
ZIBO HENGFU METAL PRODUCTS
CO., LTD. |
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Registered Office : |
North Of |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
18.05.2005 |
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Reg. No.: |
370306228027161 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Manufacturing and selling spring and steel wire. |
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No. of Employees : |
80 |
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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Status : |
Moderate |
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Payment Behaviour : |
Slow but Correct |
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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 – June 30th, 2012
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Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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A2 |
A2 |
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Risk Category |
ECGC
Classification |
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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 |
Since the late 1970s
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Source : CIA |
Company Name and Address
ZIBO HENGFU METAL PRODUCTS CO., LTD.
NORTH OF
TEL: 86
(0) 533-6555666/6559999 FAX:
86 (0) 533-6555777
EXECUTIVE SUMMARY
INCORPORATION DATE : MAY
18, 2005
REGISTRATION NO. :
370306228027161
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MR. LIU CHANGJIANG (CHAIRMAN)
STAFF STRENGTH : 80
REGISTERED CAPITAL : CNY 20,000,000
BUSINESS LINE :
MANUFACTURING AND TRADING
TURNOVER :
CNY 67,990,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 2,370,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIR
OPERATIONAL TREND : FAIR
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.2315=USD 1 AS OF
Adopted
abbreviations:
ANS - amount not stated NS
- not stated SC - subject company (the
company inquired by you)
NA - not available CNY
– China Yuan Ren Min Bi
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 May 18, 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 metal products, machinery equipment and accessories, cold drawn steel
wire, machinery and electronic products (excluding cars), grinding wheel raw
materials, grinding products, insulation materials, refractory materials,
furniture, simmons mattress and accessories, bed core, spring, wire border,
felt, brown silk, coir mattress, plastic products; wholesaling and retailing
steel, stainless steel, metal products, building materials, steel shot, steel
grit, steel cut wire shot, native groceries, chemical products (excluding
precursor, hazardous chemicals), electrical equipment, non-ferrous metal
(excluding precious, rare metal), textiles, non-woven fabrics; importing and
exporting goods (excluding items prohibited by legal, administrative rules and
regulations, and operating the limited items after obtaining the permits);
rental housing.
SC is mainly engaged in manufacturing and selling spring and steel wire.
Mr. Liu Changjiang is the legal representative, chairman and general
manager at present.
SC is known to have approx. 80 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 Zibo. SC’s
management declined to release detailed information of the premise.
http://www.zbhengfu.com
The design is professional and the content is well organized. At present it is
in Chinese and English versions.
E-mail: zibohengfu@yahoo.cn
; selinamattress@gmail.com
Changes of its
registered information are as follows:
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Date of change |
Item |
Before the change |
After the change |
|
2012-2 |
Registered capital |
CNY 10,000,000 |
Present amount |
SC has got the certificates of
Etc.
MAIN SHAREHOLDERS:
Name %
of shareholdings
Liu Changjiang 49
Bian Hui 51
Legal Representative, Chairman and General
Manager:
Mr. Liu Changjiang, born in 1970, with high school education. He is
currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC
as legal representative, chairman and general manager.
SC is mainly engaged in manufacturing and selling spring and steel wire.
SC’s products mainly include: spring
steel wire, bonnell spring, spring unit for mattress, pocket spring mattress,
continuous spring and ceramic fiber blanket/bulk.
SC sources its materials 100% from domestic market. SC sells 70% of its
products in domestic market, and 30% to overseas market, mainly Australia,
Singapore, England, etc.
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 30-60 days.
Note: SC’s
management declined to release its major suppliers and clients.
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.
Zibo Zhoucun District Rural Credit Cooperative Union Xima Road Brach
AC#：90308806320110018255
Relationship: Normal.
Balance Sheet
Unit: CNY’000
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as of Dec. 31, 2010 |
as of Dec. 31, 2011 |
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Cash & bank |
10,670 |
6,580 |
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Inventory |
6,970 |
7,600 |
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Accounts receivable |
5,450 |
7,780 |
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Advances to suppliers |
0 |
0 |
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Other receivables |
120 |
770 |
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Other current assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
23,210 |
22,730 |
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Long-term investments |
1,300 |
1,300 |
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Fixed assets net value |
7,770 |
9,200 |
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Disposal of fixed assets |
0 |
1,000 |
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Projects under construction |
0 |
0 |
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Intangible assets |
0 |
0 |
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Other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
32,280 |
34,230 |
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============= |
============= |
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Short loans |
3,200 |
20,130 |
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Notes payable |
6,000 |
4,000 |
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Accounts payable |
2,850 |
-5,520 |
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Advances from customers |
0 |
0 |
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Accrued Payroll |
0 |
0 |
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Welfare Payable |
0 |
0 |
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Taxes payable |
-260 |
-50 |
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Accrued expenses |
400 |
0 |
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Other accounts payable |
120 |
0 |
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Other current liabilities |
0 |
0 |
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----------------- |
----------------- |
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Current liabilities |
12,310 |
18,560 |
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Long term liabilities |
13,300 |
13,300 |
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------------------ |
------------------ |
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Total liabilities |
25,610 |
31,860 |
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Shareholders equities |
6,670 |
2,370 |
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------------------ |
------------------ |
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Total liabilities & equities |
32,280 |
34,230 |
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============= |
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Income Statement
Unit: CNY’000
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as of Dec. 31, 2011 |
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Turnover |
67,990 |
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Cost of goods sold |
67,060 |
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Taxes and additional of main operation |
30 |
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Sales expense |
1,790 |
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Management expense |
980 |
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Finance expense |
2,240 |
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Non-operating income |
0 |
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Non-operating expense |
0 |
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Profit before tax |
-4,110 |
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Less: profit tax |
0 |
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Net profit |
-4,110 |
Important Ratios
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as of Dec. 31,
2010 |
as of Dec. 31,
2011 |
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*Current ratio |
1.89 |
1.22 |
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*Quick ratio |
1.32 |
0.82 |
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*Liabilities to assets |
0.79 |
0.93 |
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*Net profit margin (%) |
/ |
-6.05 |
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*Return on total assets (%) |
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-12.01 |
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*Inventory /Turnover ×365 |
/ |
41 days |
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*Accounts receivable/Turnover ×365 |
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42 days |
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*Turnover/Total assets |
/ |
1.99 |
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* Cost of goods sold/Turnover |
/ |
0.99 |
PROFITABILITY:
FAIR
The turnover of SC appears average in its line in 2011.
SC’s net profit margin is fair in 2011.
SC’s return on total assets is poor in 2011.
SC’s cost of goods sold is high in 2011, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level in both years.
The quick ratio of SC is maintained in a normal level in both years.
The inventory of SC appears average in both years.
The accounts receivable of SC appears average in both years.
The short-term loan of SC appears average in 2010, but large in 2011.
SC’s turnover is in an average level in 2011, comparing with the size of
its total assets.
LEVERAGE: FAIR
The debt ratio of SC is high in 2011.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair
SC is considered medium-sized in its line with fair financial
conditions. The large amount of short loans could be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.54.56 |
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1 |
Rs.87.45 |
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Euro |
1 |
Rs.71.08 |
INFORMATION DETAILS
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Report
Prepared by : |
SDA |
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 |
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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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.