MIRA
INFORM REPORT
|
Report Date : |
23.10.2012 |
IDENTIFICATION DETAILS
|
Name : |
HENGFENG FRESH PRODUCE CO., LTD. |
|
|
Registered Office : |
East Section Of South Ring Road, Juye County, Heze, Shandong Province, 274900 Pr |
|
|
|
|
|
|
Country : |
|
|
|
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
|
|
Date of Incorporation : |
20.06.2005 |
|
|
|
|
|
|
Com. Reg. No.: |
371724228009982 |
|
|
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
|
|
Line of Business : |
Processing and selling fruits and vegetables |
|
|
|
|
|
|
No. of Employees : |
100 |
|
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 (31.03.2011) |
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
HENGFENG FRESH PRODUCE CO.,
LTD.
EAST SECTION of
south ring ROAD, JUYE COUNTY,
HEZE, SHANDONG PROVINCE,
274900 PR CHINA
TEL: 86 (0) 530-8275988/8275366 FAX: 86 (0) 530-8191288
EXECUTIVE SUMMARY
INCORPORATION DATE : JUN. 20, 2005
REGISTRATION NO. : 371724228009982
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
100
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE :
processing
TURNOVER :
CNY 47,560,000 (AS OF DEC. 31,
2011)
EQUITIES :
CNY 6,470,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.25 = 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
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 Jun. 20, 2005.
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 fruits and vegetables.
SC is mainly
engaged in processing and selling fruits and vegetables.
Mr. Li Chengxiu has
been legal representative, chairman and general manager of SC since 2005.
SC is known
to have approx. 100 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 Juye County. Our checks
reveal that SC owns the total premise about 2,500 square meters.
http://www.hengfengfresh.com The design is professional and the content is
well organized. At present it is in English version.
Email: director@hengfengfresh.com
SC has got Certificate GB11/82557, etc.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Li Chengxiu 70
Li Haixia
30
l
Legal Representative, Chairman and
General Manager:
Mr. Li Chengxiu , born in 1974, with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 2005 to present Working in SC as chairman, legal
representative and general manager.
l
Supervisor:
Li Haixia
SC is mainly
engaged in processing and selling fruits and vegetables.
SC’s products
mainly include fruits and vegetables.
SC sources its materials 100% from domestic
market. SC sells 10% of its products in domestic market and 90% to overseas
market, mainly America, Europe and Southeast Asia.
The buying terms of SC include Check, T/T 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 main clients and suppliers.
The
subsidiary information of SC is unknown.
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
Unit: CNY’000
|
|
as
of Dec. 31, 2010 |
as
of Dec. 31, 2011 |
|
Cash & bank |
2,760 |
4,070 |
|
Inventory |
4,710 |
8,590 |
|
Accounts
receivable |
13,490 |
16,400 |
|
Advances to
suppliers |
1,380 |
1,710 |
|
Other
receivables |
1,080 |
1,730 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
23,420 |
32,500 |
|
Fixed assets net
value |
3,420 |
3,360 |
|
Long term
investment |
0 |
5,800 |
|
Project under
construction |
30 |
710 |
|
Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
26,870 |
42,370 |
|
|
============= |
============= |
|
Short loans |
7,000 |
17,000 |
|
Accounts payable |
3,100 |
3,810 |
|
Other payable |
11,700 |
14,850 |
|
Taxes payable |
-660 |
-120 |
|
Advances from
clients |
0 |
0 |
|
Other current
liabilities |
720 |
360 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
21,860 |
35,900 |
|
Long term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total liabilities |
21,860 |
35,900 |
|
Equities |
5,010 |
6,470 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
26,870 |
42,370 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2010 |
as of Dec. 31,
2011 |
|
Turnover |
56,320 |
47,560 |
|
Cost of goods
sold |
51,850 |
39,600 |
|
Sales expense |
1,520 |
2,130 |
|
Management expense |
1,860 |
3,030 |
|
Finance expense |
1,630 |
1,990 |
|
Profit before tax |
690 |
1,470 |
|
Less: profit tax |
0 |
0 |
|
Profits |
690 |
1,470 |
Important Ratios
=============
|
|
as
of Dec. 31, 2010 |
as
of Dec. 31, 2011 |
|
*Current ratio |
1.07 |
0.91 |
|
*Quick ratio |
0.86 |
0.67 |
|
*Liabilities
to assets |
0.81 |
0.85 |
|
*Net profit
margin (%) |
1.23 |
3.09 |
|
*Return on
total assets (%) |
2.57 |
3.47 |
|
*Inventory
/Turnover ×365 |
31 days |
66 days |
|
*Accounts
receivable/Turnover ×365 |
88 days |
126 days |
|
*Turnover/Total
assets |
2.10 |
1.12 |
|
* Cost of
goods sold/Turnover |
0.92 |
0.83 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average but it decreased
in 2011.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is fairly high in 2010 and
average in 2011, comparing with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a normal
level in 2010 but in a fair level in 2011.
l
SC’s quick ratio is maintained in a normal level in
2010 but in a fair level in 2011.
l
The inventory of SC appears average.
l
The account receivable of SC appears fairly large.
l
The short-term loan of SC appears fairly large.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
SC is considered medium-sized in its line with fairly stable financial conditions.
The large amount of account receivable and short-term loan could be a threat to
SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.67 |
|
|
1 |
Rs.86.05 |
|
Euro |
1 |
Rs.70.07 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.