MIRA INFORM REPORT
|
Report Date : |
10.10.2012 |
IDENTIFICATION DETAILS
|
Name : |
xiamen
huarong industry co., ltd. |
|
|
|
|
Registered Office : |
Room 404, No. 27 East Gugong
Road, Siming District Xiamen,
Fujian Province 361000 PR |
|
|
|
|
Country : |
China |
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|
|
Financials (as on) : |
31.12.2011 |
|
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|
|
Date of Incorporation : |
12.07.2004 |
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Com. Reg. No.: |
350200200003658 |
|
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Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
Development and management; processing metal products,
bathroom facilities, garment, shoes & hats, textiles |
|
|
|
|
No. of Employees : |
32 |
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
and address
xiamen huarong industry co., ltd.
room 404,
no. 27 east gugong road, siming district
xiamen,
fujian PROVINCE 361000 PR CHINA
TEL: 86
(0) 592-5353015/3188666
FAX: 86
(0) 592-5353022
EXECUTIVE
SUMMARY
Date of Registration : july 12, 2004
REGISTRATION NO. : 350200200003658
LEGAL FORM :
Limited liabilities company
REGISTERED CAPITAL : cny 180,000,000
staff : 32
BUSINESS CATEGORY : TRADING
Revenue : CNY 582,728,000 (AS OF DEC. 31, 2011)
EQUITIES : CNY 174,441,000 (AS OF DEC. 31, 2011)
WEBSITE : N/A
E-MAIL : N/A
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : faiRly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.31 = USD 1
Adopted abbreviations (as follows)
SC -
Subject Company (the company inquired by you)
N/A – Not
available
CNY –
China Yuan Ren Min Bi
OPERATIONAL
TREND & GENERAL REPUTATION
This section aims at indicating the relative positions of SC
in respect of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be determined
LEGAL STATUS & HISTORY
***Note: SC’s correct name should be
the heading one, instead of the given name- XIAMEN HURONG INDUSTRY CO LTD.
SC was
established as a limited liabilities company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 350200200003658 on
July 12, 2004.
SC’s Organization Code Certificate
No.: 76171519-0
SC’s Tax No.: 350203761715190
SC’s registered capital: CNY 180,000,000
SC’s paid-in capital: CNY 180,000,000
Registration Change Record:-
No significant changes of SC have
been noted in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Xiamen Huarong Group Co., Ltd. |
95 |
|
Lin Fengbin |
5 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Lin Fengbin |
RECENT DEVELOPMENT
No recent development was found during our checks at
present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Xiamen Huarong Group Co., Ltd.
95
Lin Fengbin
5
u Xiamen
Huarong Group Co., Ltd.
----------------------------------------------
Registration No.:
350200200003051
Legal Form: Limited Liabilities
Company
Registered Capital: CNY
250,000,000
Legal Representative: Li
Xiantong
Web: www.hr-group.cn
MANAGEMENT
Lin
Fengbin, Legal
Representative, Chairman and General Manager
----------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 30
Ø
ID# 350582198207185531
Ø Qualification:
University
Ø Working
experience (s):
At present, working in SC as
legal representative, chairman and general manager
BUSINESS OPERATION
SC’s registered business scope
includes real estate development and management; processing metal
products, bathroom facilities, garment, shoes & hats, textiles, mechanical
and electrical products; wholesaling and retailing hardware, grocery, arts
& crafts, mechanical & electric equipment, and minerals; importing and
exporting various commodities and technology; purchasing and selling
unprocessed grain, and purchasing other agricultural products & byproducts,
and marine products.
SC is
mainly engaged in international trade.
SC’s
products mainly include: garment, etc.
SC sources its materials 100% from domestic market, mainly Fujian. SC sells 60% of its products in domestic market, and 40% to overseas market, mainly U.S.A., Southeast Asia, etc.
The
buying terms of SC include Check, T/T and Credit of 30-60 days. The payment
terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Customer:
=============
G Stone International Inc.
Alac
International Inc.
Bernard's
Seafood Co., Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 32 staff
at present.
SC
rents an area as its operating office, but the detailed information is unknown.
RELATED COMPANY
Xiamen Huarong International Logistics Co., Ltd.
Xiamen Huarong Pawn Co., Ltd.
Xiamen Huarong Import & Export Co., Ltd.
Huarong (Xiamen) Leasing & Renting Co., Ltd.
PAYMENT
Overall payment appraisal:
( ) Excellent ( )
Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.
BANKING
The bank information of SC is not filed in local SAIC.
FINANCIALS
Balance Sheet
|
Unit:
CNY’000 |
As of Dec. 31, 2010 |
As of Dec. 31, 2011 |
|
100,752 |
322,116 |
|
|
Notes receivable |
0 |
0 |
|
Accounts
receivable |
12,650 |
234,306 |
|
Advances
to suppliers |
109,759 |
212,697 |
|
Other
receivable |
105,701 |
135,221 |
|
Subsidy
receivable |
29,517 |
24,991 |
|
Inventory |
3,810 |
8,497 |
|
Non-current
assets within one year |
0 |
0 |
|
Other
current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
assets |
362,189 |
937,828 |
|
Long-term
investment |
75,050 |
75,050 |
|
Fixed
assets |
124 |
117 |
|
Construction
in progress |
0 |
0 |
|
Intangible
assets |
0 |
0 |
|
Long-term
prepaid expenses |
0 |
163 |
|
Deferred
income tax assets |
0 |
0 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
assets |
437,363 |
1,013,158 |
|
|
============= |
============= |
|
Short-term
loans |
75,000 |
143,577 |
|
Notes
payable |
138,200 |
163,293 |
|
Accounts
payable |
29,194 |
248,457 |
|
Wages
payable |
0 |
0 |
|
Taxes
payable |
-514 |
-782 |
|
Advances
from clients |
21,713 |
20,703 |
|
Other
payable |
1,190 |
263,469 |
|
Other
current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
264,783 |
838,717 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
264,783 |
838,717 |
|
Equities |
172,580 |
174,441 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
437,363 |
1,013,158 |
|
|
============= |
============= |
Income Statement
|
Unit:
CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
Revenue |
448,268 |
582,728 |
|
Cost of sales |
444,143 |
578,440 |
|
Taxes and surcharges |
42 |
160 |
|
Sales expense |
1,658 |
1,106 |
|
Management expense |
1,397 |
1,283 |
|
Finance expense |
5,731 |
-769 |
|
Profit
before tax |
-5,382 |
2,509 |
|
Less:
profit tax |
0 |
0 |
|
-5,382 |
2,509 |
Important
Ratios
=============
|
|
As of Dec. 31, 2010 |
As of Dec. 31, 2011 |
|
*Current
ratio |
1.37 |
1.12 |
|
*Quick
ratio |
1.35 |
1.11 |
|
*Liabilities
to assets |
0.61 |
0.83 |
|
*Net
profit margin (%) |
-1.20 |
0.43 |
|
*Return
on total assets (%) |
-1.23 |
0.25 |
|
*Inventory
/ Revenue ×365 |
4
days |
6
days |
|
*Accounts
receivable/ Revenue ×365 |
11
days |
147
days |
|
*
Revenue/Total assets |
1.02 |
0.58 |
|
*
Cost of sales / Revenue |
0.99 |
0.99 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l The revenue
of SC appears fairly good in its line, and it increased in 2011.
l SC’s
net profit margin is fair in 2010, average in 2011.
l SC’s
return on total assets is fair in 2010, average in 2011.
l
SC’s cost of sales is fairly high,
comparing with its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained
in a normal level in both years.
l
SC’s quick ratio is maintained in a
fairly good level in both years.
l
The inventory of SC is maintained in an
average level.
l
The accounts receivable of SC appears
large in 2011.
l
The short-term loans of SC appear
fairly large in 2011.
l
SC’s revenue is in a fair level,
comparing with the size of its total assets.
LEVERAGE:
FAIR
l
The debt ratio of SC is fairly high in
2011.
l
The risk for SC to go bankrupt is
average.
Overall
financial condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable
financial conditions. The large amount of accounts receivable may be a threat
to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.52.37 |
|
|
1 |
Rs.83.99 |
|
Euro |
1 |
Rs.67.99 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.