MIRA
INFORM REPORT
|
Report Date : |
20.09.2012 |
IDENTIFICATION DETAILS
|
Name : |
SUZHOU HENGXIANG IMPORT & EXPORT CO., LTD. |
|
|
|
|
Registered Office : |
10/F, International Economy And |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
03.01.2000 |
|
|
|
|
Com. Reg. No.: |
320500000034108 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
Importing and exporting
commodities and technologies |
|
|
|
|
No. of Employees : |
92 |
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 – March 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
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
SUZHOU HENGXIANG IMPORT &
EXPORT CO., LTD.
10/F,
INTERNATIONAL ECONOMY AND TRADE BUILDING
NO. 1638
XIHUAN ROAD, SUZHOU, JIANGSU PROVINCE 215004 PR CHINA
TEL: 86 (0) 512-68627966/68622906
FAX: 86
(0) 512-68621176
EXECUTIVE SUMMARY
Date of Registration : JANUARY 3, 2000
REGISTRATION NO. : 320500000034108
LEGAL FORM :
Limited liabilities company
REGISTERED CAPITAL :
CNY 13,880,000
staff : 92
BUSINESS CATEGORY :
trading
Revenue : CNY 1,368,290,000 (AS OF DEC. 31, 2011)
EQUITIES : CNY 27,640,000 (AS OF DEC. 31, 2011)
WEBSITE : www.hengxiang.cn
E-MAIL : hengxiang@heng-xiang.com
PAYMENT : AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.35 = USD
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
SC was established as a limited liabilities company of PRC
with State Administration of Industry & Commerce (SAIC) under registration
No.: 320500000034108 on January 3, 2000.
SC’s Organization Code Certificate
No.: 72444877-5
SC’s registered capital: CNY 13,880,000
SC’s paid-in capital: CNY 13,880,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
|
Registered Capital |
CNY 5,000,000 |
CNY 10,300,000 |
|
|
Registered Capital |
CNY 10,300,000 |
CNY 12,581,500 |
|
-- |
Registration No. |
3205002112716 |
320500000034108 |
|
-- |
Registered Capital |
CNY 12,581,500 |
CNY 13,880,000 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Staff Shareholding Association
of Suzhou Hengxiang Import & Export Co., Ltd. |
29.42 |
|
Suzhou Imp. & Exp. Co.,
Ltd. (Group) |
10.58 |
|
Chen Wendong |
5.71 |
|
Ding Yue |
5.71 |
|
Wei Zhong |
5.71 |
|
Ding Yuan |
4.76 |
|
He Wenzhao |
4.76 |
|
Other 23 individuals |
33.35 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Xu Jiaxiang |
|
Director |
Wei Zhong |
|
He Wenzhao |
|
|
Chen Wendong |
|
|
Jin Xiaoying |
|
|
Ding Yue |
|
|
Ding Yuan |
|
|
Supervisor |
Fang Qing |
|
Gu Liming |
|
|
Shen Yuqian |
|
|
Zheng Aiqin |
|
|
Ni Lijuan |
RECENT
DEVELOPMENT
SC has successfully passed through the auditing of the
quality system (ISO 9002/EN 46002) certified by TUV Product Service. Meanwhile,
SC’s products have passed through the CE (EC-Directive 93/42/EEC) auditing,
including the medical dressings, medical materials and medical devices. SC also
has gained the GSP Certificate issued by Jiang Su Food and Drug Administration,
etc.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Staff Shareholding Association
of Suzhou Hengxiang Import & Export Co., Ltd.
29.42
Suzhou Imp. & Exp. Co., Ltd.
(Group)
10.58
Chen Wendong
5.71
Ding Yue
5.71
Wei Zhon
5.71
Ding Yuan
4.76
He Wenzhao
4.76
Other 23 individuals
33.35
Suzhou Imp. & Exp. Co., Ltd.
(Group)
----------------------------------------------------
Website: www.szieg.com
Address: 18/F, International
Economy and Trade Building, No. 1638 Xihuan Road, Suzhou
Tel: 86-512-68269758
Fax: 86-512-68266960
MANAGEMENT
Xu
Jiaxiang, Legal Representative, Chairman, and General Manager
-----------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
ID# 320502511008053
Ø
Age: 61
Ø
Working experience (s):
At present, working in SC as legal
representative, chairman, and general manager
Director
-----------
Wei Zhong
ID# 110105680721779
He Wenzhao
ID# 310109680818721
Chen Wendong
ID# 320502531021051
Jin Xiaoying ID# 320504631102004
Ding Yue
ID# 320502581111103
Ding Yuan ID# 320504196411030517
Supervisor
-------------
Fang Qing
ID# 320504581012203
Gu Liming ID# 320404197502190611
Shen Yuqian
ID# 320525197303022583
Zheng Aiqin ID# 320504196809192540
Ni Lijuan
ID# 320503196302121544
BUSINESS OPERATION
SC’s registered business scope includes importing and exporting commodities and technologies, excluding items limited or prohibited by the state; processing
with imported materials, processing with imported samples, assemblying with
imported parts, and compensation trade in agreement; counter trade & transit trade; operating medical
instruments of Category I, II,
III; wholesaling Chinese traditional medicine, herbal pieces, Chinese
traditional patent drugs, chemical raw materials, preparation, antibiotics,
biochemical and biological products; selling chemical products (accordance with
license), light industry products, hardware, general merchandise, textiles,
garments and metallic materials; providing products information consultation;
commodities storage.
SC is
mainly engaged in importing and exporting medicines and health products, medical
instruments, chemical raw materials and textiles.
SC’s products mainly include: medical dressing, medical
equipment, surgical blades, disposable syringe, sphygmomanometer, textiles,
etc.
SC sources its products 70% from the domestic market and 30%
from overseas market. SC sells 40% of its products in domestic market, and 60%
to the 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.
*Major Supplier*
--------------------
Henan Hengxiang Medical Devices Co., Ltd.
*Major Customer*
---------------------
Shanghai Baoshi Sew Equipment Factory
Staff & Office:
--------------------------
SC is
known to have approx. 92 staff
at present.
SC
rents an area as its operating office, but the detailed information is unknown.
RELATED COMPANY
*Subsidiary
Company*
----------------------------
Suzhou Hengtai Medicines & Chemical Co., Ltd.
PAYMENT
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’s
suppliers declined to make any comments.
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
Basic Bank:
Bank
of China
AC#: 10107227308091001
FINANCIALS
Balance Sheet
|
Unit:
CNY’000 |
As of Dec. 31, 2011 |
|
41,150 |
|
|
Notes receivable |
0 |
|
Accounts
receivable |
69,500 |
|
Advances
to suppliers |
0 |
|
Other
receivable |
3,480 |
|
Inventory |
36,410 |
|
Non-current
assets within one year |
0 |
|
Other
current assets |
9,930 |
|
|
------------------ |
|
Current
assets |
160,470 |
|
Fixed
assets |
5,330 |
|
Construction
in progress |
0 |
|
Intangible
assets |
0 |
|
Long-term
investment |
0 |
|
Deferred
income tax assets |
0 |
|
Other
non-current assets |
24,760 |
|
|
------------------ |
|
Total
assets |
190,560 |
|
|
============= |
|
Short-term
loans |
10,000 |
|
Notes
payable |
0 |
|
Accounts
payable |
151,530 |
|
Welfares
payable |
0 |
|
Taxes
payable |
0 |
|
Advances
from clients |
0 |
|
Other
payable |
4,470 |
|
Other
current liabilities |
-3,080 |
|
|
------------------ |
|
Current
liabilities |
162,920 |
|
Non-current
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
162,920 |
|
Equities |
27,640 |
|
|
------------------ |
|
Total
liabilities & equities |
190,560 |
|
|
============= |
Income Statement
|
Unit:
CNY’000 |
As
of Dec. 31, 2011 |
|
Revenue |
1,368,290 |
|
Profit
before tax |
7,030 |
|
Less:
profit tax |
1,840 |
|
5,190 |
Important
Ratios
=============
|
|
As of
Dec. 31, 2011 |
|
*Current
ratio |
0.98 |
|
*Quick
ratio |
0.76 |
|
*Liabilities
to assets |
0.85 |
|
*Net
profit margin (%) |
0.38 |
|
*Return
on total assets (%) |
2.72 |
|
*Inventory
/ Revenue ×365 |
10
days |
|
*Accounts
receivable/ Revenue ×365 |
19
days |
|
*
Revenue/Total assets |
7.18 |
|
*
Cost of sales / Revenue |
-- |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears fairly good
in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained
in a fair level.
l
SC’s quick ratio is maintained in a
fair level.
l
The inventory of SC appears average.
l
The accounts receivable of SC is
maintained in an average level.
l
The short-term loans of SC appear
average.
l
SC’s revenue 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.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable
financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.25 |
|
|
1 |
Rs.88.14 |
|
Euro |
1 |
Rs.71.03 |
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.