MIRA INFORM REPORT

 

 

Report Date :

26.05.2012

 

IDENTIFICATION DETAILS

 

Name :

ShenZhen Homei Furniture Co., Ltd

 

 

Registered Office :

3rd Floor, No.221,Gucangxia, Shabo community, Pingshan New Zone, Shenzhen City, Guangdong

 

 

Country :

China

 

 

Financials (as on) :

2010

 

 

Date of Incorporation :

04.08.2009

 

 

Com. Reg. No.:

440307104195384

 

 

Legal Form :

Limited Liabilities Company

 

 

Line of Business :

Manufacture and sales of furnitures

 

 

No. of Employees :

80

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

No complaints

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

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


Company name

 

ShenZhen Homei Furniture Co., Ltd

GTM Reference No.

G120522101

Currency in this report is Chinese Yuan unless otherwise stated.

Exchange Rate: 1 USD=6.33 Chinese Yuan

"--"in this report indicates "unavailable" due to insufficient information or "no comments"

 

 

ORDER INFORMATION

 

name

Shenzhen Homei Forniture Co Ltd.

address

No.2,Gucancxia Shabo Pingshan New Zone Guangdong

tel.

86 755 27809900

fax

86 755 89626538

e-mail

--

website

--

contact person

--

 

Note:

1. The given telephone No. is invalid. Subject's telephone No. is as listed in the report.

2. The given fax No doesn't belong to subject according to its staff.

 

 

EXECUTIVE SUMMARY

 

DATE OF establishment

Aug.4th, 2009

Aic Registration No.

440307104195384

REGISTERED LEGAL FORM

limited liabilities company

REGISTERED CAPITAL

500,000.00

main BUSINESS

Manufacture and sales of furnitures

employees

80

import and export permits

yes

EXCHANGE RATE

1 Usd=6.33CNY (MAY.25rd, 2012)

                    

Registered Address

3rd Floor, No.221,Gucangxia, Shabo community, Pingshan New Zone, Shenzhen City, Guangdong

Zip Code

518118

 

 

Business Address

No.2,Gucangxia, Shabo community, Pingshan New Zone, Shenzhen City, Guangdong

Zip Code

518118

Telephone

86 755 89454858

Fax

86 755 89937848

 

 

SIC Code (China)

2190 manufacture of other furnitures

          

  

REGISTRATION

 

Name (English)

ShenZhen Homei Furniture Co., Ltd

Date of Establishment

Aug.4th, 2009

Registry

Administration Bureau for Industry and Commerce – Shenzhen City

Legal Representative

Kang Qing

AIC Registration Number

440307104195384

Registered Legal Form

limited liabilities company

Registered Capital

500,000.00

Operating Duration

Aug.4th, 2009 to Aug.4th, 2019

Business Scope

Processing and sales of upholstered furnitures (excluding wooden); domestic trading; import and export of commodities and technologies

Changes in Registration

1. May 31st, 2011

Subject's Chinese name was changed from "深圳市美邦创艺家私有限公司" to "深圳市家美家具有限公司".

2. Dec.28th, 2010

Subject's registered address was changed to the current address.

                        

Limited liabilities co.

This form of business in PR China is defined as a legal person. Its registered capital is contributed jointly by at least two shareholders and no more than fifty. 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 listed as follows:

-manufacturing co.                              : RMB 500,000.00

-trading &wholesaling co.                     : RMB 500,000.00

-retailing co.                                       : RMB 300,000.00

-consultancy & service co.                   : RMB 100,000.00

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 50% of the registered capital while contribution by intangible assets must not exceed 20% 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.

 

REGISTRATION INFO: AVAILABLE

FINANCIAL REPORTS: AVAILABLE

    

 

FIELD INVESTIGATION

 

Subject's income comes mainly from sales of leather sofa, sofa bed and related furnitures. Its products are all exported through direct sales to the international furniture sales companies and home accessory stores. The industry of furniture manufacture is an industry with fierce competition. There are a lot of similar enterprises in the local place being subject's competitors. However, as subject has accumulated certain popularity in the international market, its competitiveness is average in the local industry.

As the first cities opened to the world in China and the first special economic zone, Shenzhen City has already developed into the base of Chinese hi-tech industry and the financial and information center of Southern China. Real estate, insurance, brokering service industry etc are also well developed here. With open culture environment and convenient traffic condition, Shenzhen has become a modernized international city. As a domestically invested company dealing with manufacture of furnitures, subject enjoys no favorable policies provided by the local government.

     

 

SHAREHOLDERS AND SHARES

 

As indicated in the following table:

Shareholder

Capital Subscribed

Percentage

Li Xifeng

255,000.00

51%

Kang Ping

245,000.00

49%

Total

500,000.00

100%

                    

                      

AFFILIATE(S)

 

No affiliates of subject company is found after checking.

           

 

MANAGEMENT

 

Name

Kang Qing

Gender

Male

Title

Executive director; general manger

Working experience

Industry experience: more than 10 years;

Management experience: more than 5 years

 

 

Name

Kang Ping

Gender

Female

Title

Supervisor

         

         

NUMBER OF EMPLOYEES

 

Employees: 80

Management Staff: 15

Recent recruitment: Yes

 

Job-hunting websites

Job title

Number

http://www.jjrw.com/company/229063

International trade staff; order supervisor; sampling maker

--

       

       

BANKERS INFORMATION

 

Bank name

Bank of China - Shenzhen Branch

Account No. (CNY)

--

Tel.

86 755 22331155

Comment

The above information is provided by subject's staff, but the bank staff refused to disclose any information.

           

 

OFFICE FACILITIES

 

Geographic Location

No.2,Gucangxia, Shabo community, Pingshan New Zone, Shenzhen City, Guangdong

Area

7,000 square meters

Environment

Industrial zone

Traffic condition

Normal

Purpose

Office; warehouse; plant

Property Ownership

Rented

           

           

WEBSITE

 

Website

No.

           

           

TRADEMARKS/PATENTS       

 

After checking with the Trademark Office of Chinese Administration Bureau of Industry and Commerce and the State Intellectual Office, no trademarks or patents of SC were found.

 

        

MAIN PRODUCTS & SERVICES

 

Main business

Manufacture and sales of furnitures

Products and services

Subject's business covers design, R&D, manufacture and sales. Its major products include sofa related furnitures like leather sofa, cloth sofa, sofa bed etc. It can also process according to the clients' drawings.

Annual production capacity

2,000 sets

Plants and equipments

Cotton filling machine, welding machine, cotton slitting machine etc.

Awards & Honors

No

Certificates / licenses

No

  

 

SALES INFORMATION

Export

100%

Regions

Mundi X Ray Inc; Cosmos Furniture Co. etc

Major overseas clients

Europe, Asia, Mid-east, Australia etc.

Competitors

GALLREY FURNITURE CO. LTD;

SHENZHEN JIAMEIRUI FURNITURE CO. LTD;

GUAGZHOU JUBANG HOUSEHOLD ARTICLES CO. LTD

Payment terms

L/C, T/T

Subject's mainly accepts orders from overseas clients including household supply stores, furniture stores etc. It has developed certain customer network.

The above information was confirmed by SC’s employee on MAY.25th, 2012.

           

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PURCHASE INFORMATION

 

Main Commodities Purchased

Sponge, cotton slitting machines etc.

Number of Major Suppliers

About 5

Region

Domestic: 100%

Import:0 %

Major suppliers

DONGGUAN FANGDE EPE PRODUCT CO. LTD

Main Terms of Payment

Local: Prompt payment; on credit

Subject's materials and equipments are all purchased from local region.

The above information was confirmed by SC’s employee on MAY.25th, 2012.

          

           

CREDIT

Name of supplier

DONGGUAN FANGDE EPE PRODUCT CO. LTD

Main commodities and service supplied

Sponge

Interviewee

Ms Yan (sales department)

Telephone of Interviewee

86 769 88908889

Payment comment

Good

       

 

 

 

 

 

 

 

 

 

LITIGATION RECORDS

Total records

1

 

 

Name of person subject to enforcement

ShenZhen Homei Furniture Co., Ltd

Court

People's Court of Longgang Dist, Shenzhen

File date

Jul.12th, 2010

File No.

(2010) Shen Long Fa Zhi Zi 07315

Amount

5,480.40 CNY

Status

In execution

          

       

 

 

 

 

 

 

OTHER ADVERSE MEDIA INFORMATION

 

N/A           

 

           

FINANCE

 

Subject's financial data is unavailable through the AIC channels. According to subject's manager Mr. Kang, subject's scale is average in the local place. Its annual sales volume of 2011 is higher than 10 million CNY. The products are 100% exported.

 

 

Industry Ratios

 

        

2010

Return on net assets (%)   

6.62

Return on total assets (%)   

2.62

Net profit margin (%)

2.76

Turnover of total assets

0.99

Turnover of current assets  

1.28

Turnover days of account receivable

67.64

Inventory turnover days

69.83

Asset liability ratio (%)

55.23

Current ratio

1.32

Quick ratio

1.03

 

Analysis of financial indicator

The risk of other furniture manufacture industry is not high because the products are necessaries for families. However, due to the short history and limited experience, subject's competitiveness is not high. Moreover, invested by individual shareholders, subject's financing ability and risk resisting ability is weak.

      

 

INDUSTRY PROFILE

 

Industry

SIC Code (China): 2190 manufacture of other funitures

Description: manufacture of upholstered furnitures that are made of resilient materials, soft materials (sponge, foam etc), tighting materials and decoration cloth or textile; manufacture of glass furnitures; other unlisted furnitures

Status Quo & Trend

Wood supply decreasing and price increasing accelerates the boom of other furniture industry. The products are developed toward diversified, personalized and healthy. Comfortable upholstered furnitures are welcomed by the consumers.

As a new subsidiary of furniture industry, other furniture industry is at the stage of fast growing and has great developing potential. However, closely related to real estate industry, under the government controlling policy, the downturn of real estate industry would affect furniture manufacture industry to some extant. From Jan. To Nov.2010, the total sale volume of China's other furniture manufacture industry was56 billion CNY, increasing 27.03% y/y with the total profit increasing 16.86% y/y.

Industry Associations

Name: China National Furniture Association; Guangdong Furniture Association Dalian Furniture Association; Hong Kong Furniture Association etc.

Membership of subject: None.

        

        

GENERAL COMMENTS

 

Established in Aug. 2009 with the registered capital of 500,000 CNY, subject is engaged in manufacture of leather sofa, sofa bes and other related furnitures. It mainly accepts orders from overseas customers (USA, Australia, Europe etc.). With short history, subject's industry experience is limited. Its risk resisting ability and financing ability is weak.

Guangdong Province is a manufacture base of furnitures. The external environment provides certain active factors to subject's development. If subject could expand its domestic market while developing the international market, its sales channels would be greatly widened and the profit margin would certainly increase.

      


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.73

UK Pound

1

Rs.87.26

Euro

1

Rs.69.84

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

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

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

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

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

--

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.