MIRA
INFORM REPORT
|
Report Date : |
27.11.2012 |
IDENTIFICATION DETAILS
|
Name : |
HENG COUNTY GOOD YOUNG CO., LTD. |
|
|
|
|
Registered Office : |
Beside 209 National Highway, Xinghua Village, Maling Town, Heng County, Nanning, Guangxi, 530305 Pr |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
06.03.2002 |
|
|
|
|
Com. Reg. No.: |
450100400001461 |
|
|
|
|
Legal Form : |
Wholly foreign-owned enterprise |
|
|
|
|
Line of Business : |
processing and selling tea and coffee |
|
|
|
|
No. of Employees : |
95 employees |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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.
|
Source : CIA |
Company name & address
HENG COUNTY GOOD YOUNG Co., Ltd.
BESIDE 209 NATIONAL HIGHWAY, XINGHUA
VILLAGE, MALING TOWN,
HENG COUNTY, NANNING, GUANGXI, 530305 PR
CHINA
TEL: 86 (0) 771-7434666 FAX: 86 (0) 771-7430558
EXECUTIVE SUMMARY
INCORPORATION DATE : MAR. 6, 2002
REGISTRATION NO. : 450100400001461
REGISTERED LEGAL FORM : wholly foreign-owned enterprise
STAFF STRENGTH : 95
REGISTERED CAPITAL :
USD 1,000,000
BUSINESS LINE : PROCESSING AND TRADING
TURNOVER :
CNY 19,320,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 8,790,000 (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: The interviewed staff of SC didn’t know the given
information “HSBC FRANCE TRADE & SUPPLY CHAIN 110 ESPLANADE GENERAL, E
GAULLE, 92400
SC was registered as a wholly foreign-owned enterprise at
Nanning Municipal Administration for Industry & Commerce (AIC-The official
body of issuing and renewing business license) on Mar. 6, 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 processing and selling tea [(tea, green tea, black tea,
oolong tea, yellow tea, white tea, tea bags); (the pressed tea) (repackaging)];
processing and selling containing tea products and substitute tea [containing
tea products (other classes); substitute tea] [Chinese traditional crafts of
green tea and specialty tea processing (tea, black tea, etc.) except]; roasted
coffee, coffee packaging sales; selling agricultural products (except grain and
oil), essence. (with permit if needed)
SC is mainly
engaged in processing and selling tea and coffee.
Mr. Zhou Wenyu is the
legal representative and chairman of SC at present.
SC is
known to have approx. 95 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Heng County. Our checks
reveal that SC covers an area of 33,330 square
meters.
http://www.goodyoungtea.com/
The
design is professional and the content is well organized. At present it is in
Chinese version.
E-mail: hgy@goodyoungtea.com
Certificates:
…………..
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Casa International Company 100
Note: The nationality of the above
shareholder is unspecified.
Legal
representative and chairman:
Mr. Zhou Wenyu, Taiwanese, 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 processing and selling tea and coffee.
SC’s products mainly include jasmine flower tea, green tea, black tea,
oolong tea, magnolia flower tea, coffee, etc.
SC sources its materials 60% from domestic market and 40%
from overseas market, mainly Southeast Asia. SC sells 20% of its products to
overseas market, and 80% 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.
SC
is not known to have any subsidiary at present.
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 banking information.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
Cash & bank |
30 |
240 |
|
Inventory |
7,720 |
11,390 |
|
Accounts
receivable |
4,510 |
7,390 |
|
Advances to
suppliers |
570 |
1,170 |
|
Notes receivable |
0 |
0 |
|
Other
receivables |
1,460 |
2,440 |
|
Other current
assets |
10 |
30 |
|
|
------------------ |
------------------ |
|
Current assets |
14,300 |
22,660 |
|
Fixed assets net
value |
5,410 |
5,730 |
|
Long term
investment |
0 |
0 |
|
Projects under
construction |
0 |
0 |
|
Intangible and other
assets |
370 |
340 |
|
|
------------------ |
------------------ |
|
Total assets |
20,080 |
28,730 |
|
|
=========== |
=========== |
|
Short loan |
0 |
0 |
|
Accounts payable |
1,410 |
1,940 |
|
Bills payable |
0 |
0 |
|
Advances from
clients |
100 |
820 |
|
Salaries and
welfare payable |
90 |
110 |
|
Taxes payable |
80 |
30 |
|
Other Accounts
payable |
8,680 |
15,770 |
|
Other current
liabilities |
1,280 |
1,270 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
11,640 |
19,940 |
|
Long term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
11,640 |
19,940 |
|
Equities |
8,440 |
8,790 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
20,080 |
28,730 |
|
|
=========== |
=========== |
Income Statement
Unit: CNY’000
|
|
As
of Dec. 31, 2011 |
|
Turnover |
19,320 |
|
Cost of goods sold |
15,440 |
|
Taxes and additional of main operation |
40 |
|
Sales expense |
630 |
|
Management expense |
2,540 |
|
Finance expense |
230 |
|
Non-operating income |
0 |
|
Non-operating expense |
10 |
|
Profit before tax |
400 |
|
Less: profit tax |
50 |
|
Profits |
350 |
Important
Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
1.23 |
1.14 |
|
*Quick ratio |
0.57 |
0.57 |
|
*Liabilities
to assets |
0.58 |
0.69 |
|
*Net profit
margin (%) |
/ |
1.81 |
|
*Return on
total assets (%) |
/ |
1.22 |
|
*Inventory
/Turnover ×365 |
/ |
216 days |
|
*Accounts
receivable/Turnover ×365 |
/ |
140 days |
|
*Turnover/Total
assets |
/ |
0.67 |
|
* Cost of
goods sold/Turnover |
/ |
0.80 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in its line 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 average in 2011,
comparing with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a normal
level in both years.
l
SC’s quick ratio is maintained in a fair level in
both years.
l
The inventory of SC appears large in both years.
l
The accounts receivable of SC appears average in
2010 but fairly large in 2011.
l
There is no short-term loan of SC in both years.
l
SC’s turnover is in a fair level in 2011, comparing
with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average in both years.
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 and accounts receivable
could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.69 |
|
UK Pound |
1 |
Rs.89.20 |
|
Euro |
1 |
Rs.72.10 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.