MIRA
INFORM REPORT
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Report Date : |
20.07.2012 |
IDENTIFICATION DETAILS
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Name : |
HANG CHEONG TRADING
CO., LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2008 |
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Date of Incorporation : |
31.03.2006 |
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Com. Reg. No.: |
440684000005314 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Engaged in international trade mainly include wheelchairs, armrests
and other products for the handicapped, machinery, yarn, textile products,
etc. |
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No. of Employees : |
5 |
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 |
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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 – March 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
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 and address
HANG CHEONG TRADING CO., LTD.
nO. 211 YANJIANG
ROAD, GAOMING DISTRICT, FOSHAN,
GUANGDONG province,
528500 PR China
TEL: 86 (0)
757-88227881 FAX: 86 (0)
757-88220182
EXECUTIVE SUMMARY
INCORPORATION DATE : mar. 31, 2006
REGISTRATION NO. : 440684000005314
REGISTERED LEGAL FORM : Limited Liability Company
STAFF STRENGTH :
5
REGISTERED CAPITAL : cny 1,000,000
BUSINESS LINE :
tradING
TURNOVER :
CNY 18,086,000 (AS OF DEC. 31, 2008)
EQUITIES :
CNY 994,000 (AS OF DEC. 31, 2008)
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.37 = 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 one-person limited liability company at local Administration for Industry
& Commerce (AIC - The official body of issuing and renewing business
license) on Mar. 31, 2006 and later was changed into present legal form.
Company Status: Limited
Liability Company 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 domestic trade, importing and exporting commodities and
technologies (excluding the items prohibited by the laws and administrative
regulations, with permit if needed).
SC is mainly
engaged in international trade.
Mr. He Jile has been the legal representative and
chairman of SC since Feb., 2008.
SC is known
to have approx. 5 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Foshan. SC’s accountant refused to
release any information about its premise.
SC is not known to host website of its own at present.
Changes of its
registered information:
|
Date of change |
Items |
Before the change |
After the change |
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Registered capital |
CNY 300,000 |
CNY 1,000,000 |
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Legal representative |
He Xinmei |
He Jile |
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Registered no. |
4406081000039 |
440684000005314 |
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Shareholders |
He Xinmei 100% |
He Jile 100% |
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Unknown |
Registered legal form |
One-person limited liability company |
Present one |
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Shareholders |
He Jile 100% |
Present ones |
MAIN SHAREHOLDERS:
Name % of Shareholding
He Jile 90
He Guoxing
10
l
Legal representative and Chairman:
Mr. He Jile , ID#: 440684198312270439, born in 1983 with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From Feb., 2008 to
present Working in SC
as legal representative and chairman
Supervisor:
……………
Guan Shaomin
SC is mainly
engaged in international trade.
SC’s products
mainly include: wheelchairs, armrests and other products for the handicapped, machinery,
yarn, textile products, etc.
SC sources its merchandise 10% from overseas
market and 90% from domestic market. SC sells 95% of its products to overseas
market and 5% in domestic market.
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 major clients and suppliers.
According to SC’s employee, SC has a related company in Hong Kong:
Company Name: HANG CHEONG TEXTILE INDUSTRIAL LIMITED
CR No.: 1258957
Date of Incorporation: 23-JUL-2008
Legal Form: Private
Status: Live
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
Foshan Gaoming Sub-branch
AC# 880556088108099001
Relationship:
Normal
Balance Sheet
Unit: CNY’000
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as of Dec. 31,
2007 |
as of Dec. 31,
2008 |
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Cash & bank |
142 |
185 |
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Inventory |
0 |
0 |
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Accounts
receivable |
0 |
0 |
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Other
receivables |
649 |
708 |
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Allowance
receivable |
386 |
575 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
1,177 |
1,468 |
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Fixed assets net
value |
10 |
7 |
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Other assets |
49 |
37 |
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------------------ |
------------------ |
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Total assets |
1,236 |
1,512 |
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============= |
============= |
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Short loans |
0 |
0 |
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Accounts payable |
-3,678 |
-3,154 |
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Advances from
customers |
3,755 |
3,543 |
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Welfare payable |
7 |
0 |
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Tax payable |
0 |
-1 |
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Other payable |
146 |
130 |
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Other Current
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current
liabilities |
230 |
518 |
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Long term
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
230 |
518 |
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Shareholders
equities |
1,006 |
994 |
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------------------ |
------------------ |
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Total
liabilities & equities |
1,236 |
1,512 |
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============= |
============= |
Income Statement
Unit: CNY’000
|
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as of Dec. 31,
2007 |
as of Dec. 31,
2008 |
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Turnover |
10,937 |
18,086 |
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Cost of goods
sold |
10,767 |
17,773 |
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Sales expense |
0 |
0 |
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Management expense |
247 |
700 |
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Finance expense |
-104 |
-382 |
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Profit before
tax |
27 |
-5 |
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Less: profit tax |
0 |
0 |
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Net profit |
27 |
-5 |
Note: SC’s latest financial reports can not be find
in local AIC.
Important Ratios
=============
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as of Dec. 31,
2007 |
as of Dec. 31,
2008 |
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*Current ratio |
5.12 |
2.83 |
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*Quick ratio |
5.12 |
2.83 |
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*Liabilities
to assets |
0.19 |
0.34 |
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*Net profit
margin (%) |
0.25 |
-0.03 |
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*Return on
total assets (%) |
2.18 |
-0.33 |
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*Inventory
/Turnover ×365 |
/ |
/ |
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*Accounts
receivable/Turnover ×365 |
/ |
/ |
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*Turnover/Total
assets |
8.85 |
11.96 |
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*Cost of goods
sold/Turnover |
0.98 |
0.98 |
PROFITABILITY:
FAIR
l
The turnover of SC appears average in its line in
both two years.
l
SC’s net profit margin is average in 2007 but fair
in 2008.
l
SC’s return on total assets is average in 2007 but
fair in 2008.
l
SC’s cost of goods sold is high in both two years,
comparing with the size of its turnover.
LIQUIDITY: FAIRLY
GOOD
l
The current ratio of SC is maintained in a fairly
good level in both two years.
l
SC’s quick ratio is maintained in a fairly good in
both two years.
l
SC has no inventory in both two years.
l
SC has no accounts receivable in both two years.
l
SC has no short-term loan in both two years.
l
SC’s turnover is in a fairly good level in both two
years, 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: Fairly stable.
SC is considered small-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.38 |
|
|
1 |
Rs.86.75 |
|
Euro |
1 |
Rs.68.06 |
INFORMATION DETAILS
|
Report Prepared
by : |
PRL |
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 |
-- |
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.