MIRA
INFORM REPORT
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Report Date : |
13.03.2012 |
IDENTIFICATION DETAILS
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Name : |
HEZE OSCAR HAIR
PRODUCTS CO., LTD. |
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Registered Office : |
Fuchun Economic Development Zone, Juancheng County, Heze, Shandong
Province 274600 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
01.09.2001 |
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Com. Reg. No.: |
371700400001131 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Engaged in Manufacturing and Selling Hair Products |
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No. of Employees : |
850 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 50,000 |
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Status : |
Satisfactory |
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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 30, 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 and address
HEZE OSCAR HAIR PRODUCTS CO., LTD.
FUCHUN ECONOMIC DEVELOPMENT ZONE,
JUANCHENG COUNTY,
HEZE, SHANDONG PROVINCE 274600 PR
CHINA
TEL: 86 (0) 530-2977102 FAX: 86 (0) 530-2977866
EXECUTIVE SUMMARY
INCORPORATION DATE : SEP. 1, 2001
REGISTRATION NO. : 371700400001131
REGISTERED LEGAL FORM : Wholly foreign-owned
enterprise
STAFF STRENGTH :
850
REGISTERED CAPITAL : USD 700,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 197,780,000 (AS OF DEC. 31,
2011)
EQUITIES :
CNY 10,940,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO
USD 50,000 (PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.32= 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 wholly foreign-owned
enterprise at local Administration for Industry & Commerce (AIC - The
official body of issuing and renewing business license) on Sep. 1, 2001.
Company Status: Wholly foreign-owned enterprise This form of business in PR
China is defined as a legal person. It is a limited co. established within
the territories of PR China with capital provided totally by the foreign
investors. More than one foreign investor may jointly invest in a wholly
foreign-owned enterprise. The investing party/parties solely exercise
management, reap profit and bear risks and liabilities by themselves. This
form of companies usually have a limited duration is extendible upon
approval of Examination and Approval Authorities.
SC’s
registered business scope includes manufacturing and selling hair products.
SC is mainly
engaged in manufacturing and selling hair products.
Mr. Piao Shengyu
is legal representative and chairman of SC at present.
SC is known to have
approx. 850 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the development zone of Heze. Our checks reveal that SC owns the total premise about
30,000 square meters.
http://www.oscar-hair.com/ The design is professional and the content is
well organized. At present the web site is only in English version.
E-mail: business@oscar-hair.com
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name % of Shareholding
America Youmian Co., Ltd. (in Chinese
Pinyin) 35.71
(Taiwanese) Yu Shangjun (in Chinese Pinyin) 64.29
l
Legal representative and Chairman:
Mr. Piao Shengyu, American, with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as legal representative and chairman.
SC is mainly
engaged in manufacturing and selling hair products.
SC’s products mainly include hairpiece.
SC sources its
materials 50% from domestic market and 50% from overseas market. SC sells 20%
of its products in domestic market and 80% to overseas 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 declined to release its major suppliers and clients.
According to SC’s website:
Qingdao Office:
Tel: 86-532-66794226
Fax: 86-532-66794335
Email: business@oscar-hair.com
Add: Room 1006, Yingyuan International Business Centre, Chunyang
Road, Chengyang District, Qingdao, China
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
refused to release the bank details.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
Cash & bank |
4,160 |
19,850 |
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Inventory |
19,130 |
19,010 |
|
Bills receivable |
0 |
0 |
|
Accounts
receivable |
11,130 |
10,590 |
|
Advances to
suppliers |
840 |
520 |
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Other
receivables |
30 |
230 |
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Other current
assets |
10 |
10 |
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|
------------------ |
------------------ |
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Current assets |
35,300 |
50,210 |
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Fixed assets net
value |
5,720 |
5,640 |
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Long term
investment |
0 |
0 |
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Projects under
construction |
1,470 |
6,100 |
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Intangible and
other assets |
470 |
460 |
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------------------ |
------------------ |
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Total assets |
42,960 |
62,410 |
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=========== |
=========== |
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Short loan |
4,500 |
23,800 |
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Accounts payable |
14,890 |
18,360 |
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Bills payable |
0 |
0 |
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Advances from
clients |
890 |
0 |
|
Taxes payable |
-130 |
-3,560 |
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Other Accounts
payable |
10,790 |
11,760 |
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Other current
liabilities |
2,650 |
1,110 |
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------------------ |
------------------ |
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Current
liabilities |
33,590 |
51,470 |
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Long term
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
33,590 |
51,470 |
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Equities |
9,370 |
10,940 |
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------------------ |
------------------ |
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Total
liabilities & equities |
42,960 |
62,410 |
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=========== |
=========== |
Income Statement
Unit: CNY’000
|
|
As
of Dec. 31, 2011 |
|
Turnover |
197,780 |
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Cost of goods sold |
190,070 |
|
Sales expense |
1,260 |
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Management expense |
3,240 |
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Finance expense |
1,030 |
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Profit before tax |
2,310 |
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Less: profit tax |
740 |
|
Profits |
1,570 |
Important
Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
1.05 |
0.98 |
|
*Quick ratio |
0.48 |
0.61 |
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*Liabilities
to assets |
0.78 |
0.82 |
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*Net profit
margin (%) |
/ |
0.79 |
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*Return on total
assets (%) |
/ |
2.52 |
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*Inventory
/Turnover ×365 |
/ |
36 days |
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*Accounts
receivable/Turnover ×365 |
/ |
20 days |
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*Turnover/Total
assets |
/ |
3.17 |
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* Cost of
goods sold/Turnover |
/ |
0.96 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in 2011.
l
SC’s net profit margin is average in 2011.
l
SC’s return on total assets is average in 2011.
l
SC’s cost of goods sold is high, comparing with its
turnover in 2011.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a normal
level in 2010 but in a fair level in 2011.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears fairly large.
l
The accounts receivable of SC appears average.
l
The short-term loan of SC appears average in 2010
but large in 2011.
l
SC’s turnover is in a fairly good level, comparing
with the size of its total assets in 2011.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of inventory and short-term loan could be a threat
to SC’s financial condition. A credit line up to USD 50,000 would appear to be
within SC’s capacities upon a periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.94 |
|
|
1 |
Rs.78.25 |
|
Euro |
1 |
Rs.65.39 |
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 |
|
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.