MIRA
INFORM REPORT
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Report Date : |
14.12.2012 |
IDENTIFICATION DETAILS
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Name : |
FOSHAN HUAXING THERMOS CO., LTD. |
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Formerly Known As : |
Nanhai Huaxing Thermos Co., Ltd. |
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Registered Office : |
No. 41 Baiye Avenue, Xiqiao Technology
Industrial Park, Xiqiao Town, Nanhai District, Foshan, Guangdong Province,
528211 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
09.01.2002 |
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Com. Reg. No.: |
440600000009338 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
manufacturing and selling insulation containers |
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No. of Employees : |
200 employees |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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With Financials |
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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 : |
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 – June 30th, 2012
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Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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China |
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 |
china - ECONOMIC OVERVIEW
Since the late 1970s China has moved from a closed, centrally planned
system to a more market-oriented one that plays a major global role - in 2010
China became the world's largest exporter. Reforms began with the phasing out
of collectivized agriculture, and expanded to include the gradual
liberalization of prices, fiscal decentralization, increased autonomy for state
enterprises, creation of a diversified banking system, development of stock
markets, rapid growth of the private sector, and opening to foreign trade and
investment. China has implemented reforms in a gradualist fashion. In recent
years, China has renewed its support for state-owned enterprises in sectors it
considers important to "economic security," explicitly looking to
foster globally competitive national champions. After keeping its currency
tightly linked to the US dollar for years, in July 2005 China revalued its
currency by 2.1% against the US dollar and moved to an exchange rate system
that references a basket of currencies. From mid 2005 to late 2008 cumulative
appreciation of the renminbi against the US dollar was more than 20%, but the
exchange rate remained virtually pegged to the dollar from the onset of the
global financial crisis until June 2010, when Beijing allowed resumption of a
gradual appreciation. The restructuring of the economy and resulting efficiency
gains have contributed to a more than tenfold increase in GDP since 1978.
Measured on a purchasing power parity (PPP) basis that adjusts for price
differences, China in 2010 stood as the second-largest economy in the world
after the US, having surpassed Japan in 2001. The dollar values of China's
agricultural and industrial output each exceed those of the US; China is second
to the US in the value of services it produces. Still, per capita income is
below the world average. The Chinese government faces numerous economic
challenges, including: (a) reducing its high domestic savings rate and
correspondingly low domestic demand; (b) sustaining adequate job growth for
tens of millions of migrants and new entrants to the work force; (c) reducing
corruption and other economic crimes; and (d) containing environmental damage
and social strife related to the economy's rapid transformation. Economic development
has progressed further in coastal provinces than in the interior, and by 2011
more than 250 million migrant workers and their dependents had relocated to
urban areas to find work. One consequence of population control policy is that
China is now one of the most rapidly aging countries in the world.
Deterioration in the environment - notably air pollution, soil erosion, and the
steady fall of the water table, especially in the North - is another long-term
problem. China continues to lose arable land because of erosion and economic
development. The Chinese government is seeking to add energy production
capacity from sources other than coal and oil, focusing on nuclear and
alternative energy development. In 2010-11, China faced high inflation resulting
largely from its credit-fueled stimulus program. Some tightening measures
appear to have controlled inflation, but GDP growth consequently slowed to near
9% for 2011. An economic slowdown in Europe is expected to further drag Chinese
growth in 2012. Debt overhang from the stimulus program, particularly among
local governments, and a property price bubble challenge policy makers
currently. The government's 12th Five-Year Plan, adopted in March 2011,
emphasizes continued economic reforms and the need to increase domestic
consumption in order to make the economy less dependent on exports in the
future. However, China has made only marginal progress toward these rebalancing
goals.
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Source : CIA |
Company name & address
FOSHAN HUAXING THERMOS Co., Ltd.
NO. 41 BAIYE
AVENUE, XIQIAO TECHNOLOGY INDUSTriAL PARK, XIQIAO TOWN, NANHAI DISTRICT,
FOSHAN, GUANGDONG PROVINCE, 528211 PR CHINA
TEL: 86 (0)
757-86858868 FAX: 86 (0)
757-86858511
EXECUTIVE SUMMARY
INCORPORATION DATE : JAN. 9, 2002
REGISTRATION NO. : 440600000009338
REGISTERED LEGAL
FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 200
REGISTERED CAPITAL : CNY 8,000,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 113,572,000 (AS OF DEC. 31, 2010)
EQUITIES : CNY 18,332,000 (AS OF DEC. 31, 2010)
PAYMENT : AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.23 = 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 liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Jan. 9, 2002.
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 processing and manufacturing insulation containers, plastic
products, metal products, electrical products; exporting self-made products and
technology; importing raw and auxiliary materials, instruments, machinery and
equipment, spare parts and technology used for self-production (excluding the
goods prohibited or limited by the country, not separate listed trade).
SC is mainly
engaged in manufacturing and selling insulation containers.
Mr. Tan Yuantian has been legal representative
and chairman of SC since 2002.
SC is known
to have approx. 200 employees at present.
SC
is currently operating at the above stated address,
and this address houses its operating office in the industrial zone of Foshan. Our checks reveal that SC freely uses the total
premise about 20,000 square meters.
http://www.nhhuaxing.com/
The
design is professional and the content is well organized. At present it is in
Chinese and English versions.
E-mail: sales@nhhuaxing.com
Changes
of its registered information:
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Date of change |
Item |
Before the
change |
After the change |
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Company name |
Nanhai Huaxing Thermos Co., Ltd. |
Present one |
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Registration No. |
4406822003605 |
4406041000702 |
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Registered capital |
CNY 3,000,000 |
CNY 5,000,000 |
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Shareholding |
Tan Yuanzhao 15%; Tan Yuantian 85% |
Tan Yuanzhao 10%; Tan Yuantian 90% |
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Shareholders |
Tan Yuanzhao 10%; Tan Yuantian 90% |
Tan Qiqing 10%; Tan Yuantian 90% |
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Registered capital |
CNY 5,000,000 |
Present amount |
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Registration No. |
4406041000702 |
Present one |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Tan Qiqing ID#
440682198603035081 10
Tan Yuantian ID# 440622601224501 90
Legal
representative and chairman:
Mr. Tan Yuantian, ID#
440622601224501, born
in 1960. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2002 to present Working in SC as chairman and legal representative
SC is mainly engaged
in manufacturing and selling insulation containers.
SC’s products mainly include all kinds of
water jug and thermos.
SC sources its materials 100%
from domestic market. SC sells 30% of its products to overseas market and 70%
in domestic market.
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.
SC’s accountant
declined to release its bank details.
Unit: CNY’000
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as of Dec. 31,
2009 |
as of Dec. 31,
2010 |
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Total Liabilities |
10,904 |
13,391 |
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Shareholders equities |
16,858 |
18,332 |
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Total Assets |
27,762 |
31,723 |
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------------------ |
------------------ |
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Turnover |
90,938 |
113,572 |
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Profit before tax |
2,642 |
2,892 |
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Net profit |
1,401 |
1,453 |
Note: we did not find SC’s detailed
financial reports for Yr2009 & Yr2010.
Important
Ratios
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as of Dec. 31,
2009 |
as of Dec. 31,
2010 |
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*Liabilities
to assets |
0.39 |
0.42 |
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*Net profit
margin (%) |
1.54 |
1.28 |
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*Return on
total assets (%) |
5.05 |
4.58 |
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*Turnover/Total
assets |
3.28 |
3.58 |
PROFITABILITY:
FAIRLY GOOD
l The turnover of SC
appears fairly good in its line, and it increased in 2010.
l SC’s net profit margin
is average.
l SC’s return on
total assets is fairly good.
l
SC’s turnover is in a fairly good level, comparing
with the size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: FAIRLY GOOD.
SC is considered medium-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.23 |
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UK Pound |
1 |
Rs.87.53 |
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Euro |
1 |
Rs.70.94 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.