MIRA INFORM REPORT
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Report Date : |
21.01.2012 |
IDENTIFICATION DETAILS
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Name : |
QINGDAO HEWANG FOODS CO., LTD. |
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Registered Office : |
Dapu Village, Madian Town, Jiaozhou City, Qingdao,
Shandong Province 266314 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
01.09.2008 |
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Com. Reg. No.: |
370281230005142 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
processing and selling agricultural and sideline products |
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No. of Employees
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30 |
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 1,000 |
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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 |
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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 |
Company name & address
qingdao hewang foods co., ltd.
dapu village, madian
town, jiaozhou city, qingdao
shandong province
266314 PR CHINA
TEL: 86 (0) 532-83228623/83228627
FAX: 86 (0)
532-83228625
EXECUTIVE SUMMARY
Date of Registration : september 1, 2008
REGISTRATION NO. : 370281230005142
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL :
cny 3,000,000
staff : 30
BUSINESS CATEGORY :
processing
Revenue : CNY 14,580,000 (AS OF
DEC. 31, 2011)
EQUITIES : CNY 450,000 (AS OF
DEC. 31, 2011)
WEBSITE : www.hewangfoods.com
E-MAIL :
qdhwsp@126.com
PAYMENT : AVERAGE
Recommended Credit Limit: UP TO USD 1,000 (PERIODICAL REVIEW)
MARKET CONDITION : fair
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : DOWNWARD
GENERAL REPUTATION : fair
EXCHANGE RATE : CNY 6.31 = 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 limited liabilities company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 370281230005142 on September
1, 2008.
SC’s registered capital: cny 3,000,000
SC’s paid-in capital: cny 3,000,000
Registration Change Record:
No significant changes of SC have
been noted in SAIC since its incorporation
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Wang Yong |
90 |
|
Wang Dong |
10 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman,
and General Manager |
Wang Yong |
|
Supervisor |
Wang
Dong |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Wang Yong 90
Wang Dong 10
MANAGEMENT
Wang Yong, Legal Representative, Chairman and General Manager
------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Mobile:
13792839563
Ø
Working
experience (s):
From 2008 to present, working in SC as legal representative, chairman and general manager
Also working in Qingdao Tianhefu Foodstuff Co., Ltd. as legal representative
Wang
Dong, Supervisor
----------------------------------------
Ø
Gender: M
Ø
Qualification:
University
BUSINESS OPERATION
SC’s registered business scope includes processing chilli
and its products, sauce and its products, foodstuff and its products, fruits,
vegetables; goods import and export.
SC is
mainly engaged in processing and selling agricultural and sideline products.
Brand: 
SC’s
products mainly include:
l
Chilii products
l
Soybean Sauce & Paste
l
Sweet Paprika Products
l
Soy Sauce
l
Vinegar
l
Chilli Sauce
SC sources its materials 100% from domestic market,
mainly Shandong. SC sells 100% of its products to overseas market, mainly
Canada, USA, Japan, Korea, Middle East, etc.
The
buying terms of SC include T/T and Credit of 30-60 days. The payment terms of
SC include L/C and Credit of 30-60 days.
*Major local
competitors:
===================
Qingdao Shankun
Foods Co., Ltd.
Qingdao Shunwang
Foods Co., Ltd.
Qingdao Senyuan
Foods Co., Ltd.
Qingdao Boyu Foods
Co., Ltd.
Qingdao Liandahang
Foods Co., Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 30
staff at present.
SC rents an area
as its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
n
Qingdao
Tianhefu Foodstuff Co., Ltd.
----------------------------------------------------
Date of Registration: September 29, 2001
Registration No.: 370281400001790
Legal Form: Wholly
Foreign-Owned Enterprise
Registered Capital: USD 260,000
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
The bank
information of SC is not filed in SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
1,610 |
2,060 |
|
|
Accounts
receivable |
1,560 |
580 |
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Advances to
suppliers |
0 |
0 |
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Other receivable |
310 |
710 |
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Inventory |
290 |
5,360 |
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Non-current
assets within one year |
0 |
0 |
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Other current
assets |
4,380 |
1,780 |
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|
------------------ |
------------------ |
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Current assets |
8,150 |
10,490 |
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Fixed assets |
740 |
760 |
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Intangible
assets |
0 |
0 |
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Long-term
prepaid expenses |
0 |
0 |
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Deferred income
tax assets |
0 |
0 |
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Other
non-current assets |
10 |
10 |
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------------------ |
------------------ |
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Total assets |
8,900 |
11,260 |
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============= |
============= |
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Short-term loans |
0 |
0 |
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Notes payable |
0 |
0 |
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Accounts payable |
130 |
40 |
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Wages payable |
0 |
0 |
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Advances from
clients |
0 |
0 |
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Other payable |
6,260 |
9,690 |
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Other current
liabilities |
130 |
1,070 |
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------------------ |
------------------ |
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Current
liabilities |
6,520 |
10,800 |
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Non-current
liabilities |
10 |
10 |
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------------------ |
------------------ |
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Total
liabilities |
6,530 |
10,810 |
|
Equities |
2,370 |
450 |
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------------------ |
------------------ |
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Total
liabilities & equities |
8,900 |
11,260 |
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============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
|
Revenue |
14,580 |
|
Cost of sales |
14,150 |
|
Sales expense |
590 |
|
Management expense |
800 |
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Finance expense |
770 |
|
Profit before
tax |
-1,950 |
|
Less: profit tax |
0 |
|
-1,950 |
Important Ratios
=============
|
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As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
1.25 |
0.97 |
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*Quick ratio |
1.21 |
0.48 |
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*Liabilities
to assets |
0.73 |
0.96 |
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*Net profit
margin (%) |
-- |
-13.37 |
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*Return on
total assets (%) |
-- |
-17.32 |
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*Inventory /
Revenue ×365 |
-- |
135 days |
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*Accounts
receivable/ Revenue ×365 |
-- |
15 days |
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*
Revenue/Total assets |
-- |
1.29 |
|
* Cost of
sales / Revenue |
-- |
0.97 |
FINANCIAL COMMENTS
PROFITABILITY:
POOR
l
The revenue of SC appears
average in its line in 2011.
l
SC’s net profit margin is poor in 2011.
l
SC’s return on total assets is poor in 2011.
l
SC’s cost of goods sold is high, comparing with its revenue.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a normal level
in 2010, and appears fair in 2011.
l
SC’s quick ratio is maintained in a fairly good
level in 2010, and appears fair in 2011.
l
The inventory of SC appears large.
l
The accounts receivable of SC is maintained in an
average level.
l
SC has no short-term loans in both years.
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
FAIR
l
The debt ratio of SC is high in 2011.
l
The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Fair.
CONCLUSIONS
SC is considered small-sized in its line with fair financial conditions.
The large amount of inventory may be a threat to SC’s financial condition. A credit line at the above amount appears beyond SC’s
capacities, while a credit line up to USD 1,000 is recommended upon a
periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.50.33 |
|
UK Pound |
1 |
Rs.77.97 |
|
Euro |
1 |
Rs.65.07 |
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 |
|
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 |
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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.