MIRA
INFORM REPORT
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Report Date : |
24.11.2012 |
IDENTIFICATION DETAILS
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Name : |
HEBEI FENGCHENG GREEN AGRO PRODUCTS CO., LTD.
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Registered Office : |
High Technology District, |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
24.09.2009 |
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Com. Reg. No.: |
130435000004982 |
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Legal Form : |
Limited
Liabilities Company |
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Line of Business : |
processing and selling agricultural products |
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No. of Employees : |
50 employees |
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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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 – 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
Hebei fengcheng green agro products Co., Ltd.
high technology district,
quzhou county,
handan, hebei
PROVINCE, 057250 PR CHINA
TEL: 86 (0)
310-8711111 FAX: 86 (0) 310-8711000
EXECUTIVE SUMMARY
INCORPORATION DATE : SEPTEMBER 24, 2009
REGISTRATION NO. : 130435000004982
REGISTERED LEGAL
FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
50
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE : processing and selling
TURNOVER : CNY 11,100,000 (AS OF DEC. 31, 2011)
EQUITIES : CNY 11,130,000 (AS OF DEC. 31, 2011)
PAYMENT : AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
6.23 = 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
Note: SC’s correct name should be the heading one.
SC was registered as a Limited Liabilities Company at local Administration for industry & commerce (AIC - the official body of issuing and renewing business license) on Sep. 24, 2009.
Company Status: Limited liabilities co. 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 processing and selling agricultural products; import and export
its products and technology (excluding the products and technology limited by
the state); cultivation and sales of live pig (limited to operate by its
branch).
SC is mainly
engaged in processing and selling agricultural products.
Mr.
Guo Zhaopu is legal representative, chairman and general manager of SC at
present.
SC is known to have approx. 50 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 zone of
Quzhou County. Our checks reveal that SC rents the total premise about 26,000
square meters.
SC is not known to host website of its own at present.
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Guo Zhaopu 40
Ning Liying 20
Guo Zhaojie 20
Luo Shuyin 10
Shen Junling 10
Legal
representative, Chairman and General manager:
Mr. Guo Zhaopu is currently responsible for
the overall management of SC.
Working Experience(s):
At present Working in SC as legal representative, chairman and general manager.
SC is mainly
engaged in processing and selling agricultural products.
SC’s products mainly
include: agricultural products.
SC sources its materials 90%
from domestic market, and 10% from overseas market. SC sells 70% of its
products in domestic market, and 30% 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’s management declined to release its customer and supplier
details.
SC is jointly occupying the heading premise with the following company:
Hebei Tianxu Natural Pigment Co., Ltd.
=============================
Registered
no.: 130435000002101
Legal
representative: Guo Zhaojie
Registered
capital: CNY 5,100,000
Legal
form: Limited Liabilities Company
Date
of incorporation: Sep. 10, 2004
Web:
http://www.hebtx.com
E-mail:
sesu@hebtx.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.
SC’s management
declined to release its bank details.
Balance Sheet (as of Dec. 31, 2011)
Unit: CNY’000
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Cash & bank |
510 |
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Inventory |
6,190 |
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Accounts
receivable |
2,110 |
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Advances to
suppliers |
0 |
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Other
receivables |
440 |
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Other current
assets |
120 |
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Current assets |
9,370 |
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Fixed assets net
value |
7,920 |
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Projects under
construction |
340 |
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Long term
investment |
0 |
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Other assets |
0 |
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Total assets |
17,630 |
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Short loans |
0 |
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Accounts payable |
1,920 |
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Other payable |
2,100 |
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Taxes payable |
0 |
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Accrued payroll |
160 |
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Advances from
clients |
1,930 |
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Other current
liabilities |
390 |
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Current
liabilities |
6,500 |
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Long term
liabilities |
0 |
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Total
liabilities |
6,500 |
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Equities |
11,130 |
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Total
liabilities & equities |
17,630 |
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Income Statement (as of Dec. 31, 2011)
Unit: CNY’000
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Turnover |
11,100 |
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Cost of goods
sold |
8,010 |
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Sales expense |
140 |
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Management expense |
270 |
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Finance expense |
80 |
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Non-operating
expense |
2,000 |
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Profit before
tax |
580 |
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Less: profit tax |
0 |
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Profits |
580 |
Important Ratios
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as
of Dec. 31, 2011 |
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*Current ratio |
1.44 |
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*Quick ratio |
0.49 |
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*Liabilities
to assets |
0.37 |
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*Net profit
margin (%) |
5.23 |
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*Return on
total assets (%) |
3.29 |
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*Inventory
/Turnover ×365 |
204 days |
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*Accounts receivable/Turnover
×365 |
70 days |
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*Turnover/Total
assets |
0.63 |
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* Cost of
goods sold/Turnover |
0.72 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in its line.
l
SC’s net profit margin is fairly good.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears large in 2011.
l
The accounts receivable of SC is maintained in an
average level.
l
SC has no short-term loan in
2011.
l
SC’s turnover is in a fair level, 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. The large amount of inventory could be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.55.34 |
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UK Pound |
1 |
Rs.88.30 |
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Euro |
1 |
Rs.71.37 |
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.