MIRA
INFORM REPORT
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Report Date : |
23.11.2012 |
IDENTIFICATION DETAILS
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Name : |
WEIHAI FOLLEA ART CO., LTD. |
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Registered Office : |
No. 177, Torch Road, Hi-Tech Industrial Development Zone, Weihai,
Shandong Province, 264209 Pr China |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
29.03.2002 |
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Com. Reg. No.: |
371000400002405 |
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Legal Form : |
Wholly Foreign-Owned |
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Line of Business : |
manufacturing and selling wig and headdress series products |
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No. of Employees : |
300 employees |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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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 – 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
WEIHAI
FOLLEA ART CO., LTD.
NO. 177, TORCH ROAD, HI-TECH INDUSTRIAL DEVELOPMENT ZONE,
WEIHAI, SHANDONG PROVINCE, 264209 PR CHINA
TEL: 86 (0) 631-5261200 FAX: 86 (0) 631-5261300
EXECUTIVE SUMMARY
INCORPORATION DATE : MAR. 29, 2002
REGISTRATION NO. : 371000400002405
REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE
STAFF STRENGTH : 300
REGISTERED CAPITAL : USD 720,000
BUSINESS LINE :
MANUFACTURING AND TRADING
TURNOVER :
CNY 12,690,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY -1,920,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION :
FAIR
FINANCIAL CONDITION :
POOR
OPERATIONAL TREND :
FAIR
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE : CNY 6.2381=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 Ren Min Bi
Note: SC’s correct name should be the heading one.
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 Mar. 29, 2002.
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 wig and headdress series products, selling self-produced products (the export part excluding license management products).
SC is mainly engaged in manufacturing and selling wig and headdress series products.
Mr. Daniel Hafid is the legal representative, chairman and general manager of SC at present.
SC is known to have approx. 300 employees at present.
SC is currently operating at the above stated address, and this address houses its operating office and factory in the hi-tech industrial development zone of Weihai. Our checks reveal that SC rents the total premise, but the gross area of the premise is unspecific.
http://follea.com The website belongs to Follea. The design is
professional and the content is well organized. At present it is in English
version.
E-mail: chang@follea.com
No significant changes were found during our checks with the local
Administration for Industry and Commerce.
MAIN
SHAREHOLDERS:
Name
%
of shareholdings
Daniel Hafid (American) 100
Legal
Representative, Chairman and General Manager:
Mr. Daniel Hafid , American. He is currently responsible for the overall management of SC.
Working
Experience(s):
At present Working in SC as legal representative, chairman and general manager.
Also working in Weihai Jinuoma Biotechnology Co., Ltd. as legal representative.
SC
is mainly engaged in manufacturing and selling wig and headdress series
products.
SC’s products
mainly include: wig and headdress series products.
SC sources its
materials 100% from overseas market. SC sells 100% of its products to overseas
market.
The buying terms of SC include Check, L/C and Credit of 30-60 days. The
payment terms of SC include Check, L/C and Credit of 30-60 days.
Note:
SC’s management declined to release its major suppliers and clients.
Weihai Jinuoma
Biotechnology Co., Ltd. (in Chinese Pinyin)
============================================
Registration no.: 371000400015410
Legal rep.: Daniel Hafid
Weihai Follea
Biotechnology R & D Co., Ltd.
=================================
Registration no.: 371000400015250
Etc.
According to the website: http://follea.com
USA Toll free: 1 888 4 FOLLEA (1 888 436 5532)
International: +1 310 858 0100
Germany: +49 (0) 89 232 490 120
France: +33 (0) 9 70 44 57 56
UK: +44 (0) 20 8123 1040
Fax: +1 310 858 9199
Email: info@follea.com
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.
Weihai City Commercial Bank Daqiao Sub-branch
AC#N/A
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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as of Dec. 31, 2011 |
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Cash & bank |
450 |
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Inventory |
0 |
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Accounts
receivable |
0 |
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Advances to
suppliers |
180 |
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Other
receivables |
290 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
920 |
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Long-term
investments |
0 |
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Fixed assets net
value |
770 |
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Projects under
construction |
0 |
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Long-term
deferred expenses |
1,150 |
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Intangible
assets |
380 |
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Other assets |
0 |
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------------------ |
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Total assets |
3,220 |
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============= |
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Short loans |
0 |
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Accounts payable |
0 |
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Advances from
customers |
2,910 |
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Accrued Payroll |
0 |
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Taxes payable |
100 |
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Other accounts
payable |
2,130 |
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Other current
liabilities |
0 |
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----------------- |
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Current
liabilities |
5,140 |
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Long term
liabilities |
0 |
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------------------ |
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Total
liabilities |
5,140 |
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Shareholders
equities |
-1,920 |
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------------------ |
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Total
liabilities & equities |
3,220 |
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Income Statement
Unit: CNY’000
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as of Dec. 31, 2011 |
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Turnover |
12,690 |
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Cost of goods
sold |
10,900 |
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Taxes and
additional of main operation |
0 |
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Sales expense |
10 |
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Management expense |
6,410 |
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Finance expense |
-300 |
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Non-operating
income |
0 |
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Non-operating expense |
5,020 |
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Profit before
tax |
-9,350 |
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Less: profit tax |
10 |
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Net profit |
-9,360 |
Important
Ratios
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as
of Dec. 31, 2011 |
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*Current ratio |
0.18 |
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*Quick ratio |
0.18 |
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*Liabilities to assets |
1.60 |
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*Net profit margin (%) |
-73.76 |
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*Return on total assets (%) |
-290.68 |
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*Inventory /Turnover ×365 |
/ |
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*Accounts receivable/Turnover ×365 |
/ |
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*Turnover/Total assets |
3.94 |
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* Cost of goods sold/Turnover |
0.86 |
PROFITABILITY:
POOR
l
The turnover of SC appears average in its line.
l
SC’s net profit margin is poor.
l
SC’s return on total assets is poor.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: POOR
l
The current ratio of SC is maintained in a poor
level.
l
SC’s quick ratio is maintained in a poor level.
l
SC has no inventory in 2011.
l
SC has no accounts receivable in 2011.
l
SC has no short-term loan in 2011.
l
SC’s turnover is in a fairly good level, comparing
with the size of its total assets.
LEVERAGE: POOR
l
The debt ratio of SC is too high.
l
The risk for SC to go bankrupt is high.
Overall financial
condition of the SC: Poor.
SC is considered medium-sized in its line with poor financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.16 |
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UK Pound |
1 |
Rs.88.03 |
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Euro |
1 |
Rs.70.86 |
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.