MIRA
INFORM REPORT
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Report Date : |
02.04.2013 |
IDENTIFICATION DETAILS
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Name : |
MUDANJIANG HENGFENG PAPER CO., LTD. |
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Formerly Known As : |
Mudanjiang Tianyu Co., Ltd. |
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Registered Office : |
No. 11, Hengfeng Road, Yangming District, Mudanjiang, Heilongjiang Province,
157013 Pr |
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Country : |
China |
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Financials (as on) : |
30.06.2012 |
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Date of Incorporation : |
06.03.1994 |
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Com. Reg. No.: |
231000400006905 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
manufacturing and selling paper products |
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No. of Employees : |
2,148 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 : |
Good |
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Payment Behaviour : |
Regular |
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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
|
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
Mudanjiang Hengfeng Paper CO., LTD.
NO. 11, HENGFENG
ROAD, YANGMING DISTRICT,
MUDANJIANG,
HEILONGJIANG PROVINCE, 157013 PR CHINA
TEL: 86 (0)
453-6886623 FAX: 86 (0) 453-6886622
EXECUTIVE SUMMARY
INCORPORATION DATE : MAR. 6, 1994
REGISTRATION NO. : 231000400006905
REGISTERED LEGAL
FORM : SHARES LIMITED COMPANY
STAFF STRENGTH :
2,148
REGISTERED CAPITAL : CNY 231,600,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER :
CNY 662,470,000 (Consolidated, JAN. 1 TO JUNE 30, 2012)
EQUITIES :
CNY 1,352,701,000 (Consolidated, AS OF JUNE 30, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.2414 = 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 Ren Min Bi
SC was registered as a Shares limited co. at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Mar. 6, 1994.
Company Status: Shares limited co. This form of business in PR China
is defined as a legal person. Its registered capital is divided into shares
of equal par value and the co. raises capital by issuing share certificates
by promotion or by public offer. Shareholders bear limited liability to the
extent of shareholding, and the co. is liable for its debts only to the
extent of its total assets. The co has independent property of legal person
and enjoys property rights of legal person. The characteristics of
the shares limited co. are as follows: The establishment of the co.
requires at least two promoters and no more than 200, half of whom shall be domiciled
in The minimum registered capital
of a co. is CNY The board of directors must
consist of five to nineteen directors. If the co. raises capital by public
offer, the promoters must not subscribe less than 35% of the total shares.
the promoters’ shares are restricted to transfer- within one year of the
offer. A
state-owned enterprise that is restructured into a shares limited co. must
comply with the conditions & requirements specified under the law &
administrative rule.
SC’s registered business scope includes manufacturing and selling paper,
paper pulp and paper products; manufacturing and selling paper raw materials;
technical development; design of pulp & paper making process; technical
service; processing, installing and repairing paper-making machinery equipment;
exporting self-made commodities and technologies; importing raw materials,
instruments, machinery equipment, spare parts and technologies needed in
manufacturing and researching.
SC is mainly
engaged in manufacturing and selling paper products.
Mr. Xu Xiang is
the legal representative and chairman of SC at present.
SC is known
to have approx. 2,148 employees at present, including 1,754 production
staff, 104 management staff, 215 technicians, 22 financial staff and 53
salesmen.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Mudanjiang. The detailed
premise information is unknown.
http://www.hengfengpaper.com/
The design is professional and the content is well organized. At present it is
in Chinese and English versions.
E-mail: sh356@hengfengpaper.com
SC was listed in Shanghai Stock Exchange Market with the stock number of
600356.
Changes
of SC’s registered information:
|
Date |
Item |
Before changed |
After changed |
|
1998-7 |
Company name |
Mudanjiang Tianyu Co., Ltd. |
Present one |
|
Unknown |
Registered no. |
2300001101433 |
Present one |
SC has obtained the certificate of ISO9001 Quality Management System and
ISO17025 Laboratory Management System.
MAIN
SHAREHOLDERS: (As of June 30, 2012)
Name %
of Shareholding
Mudanjiang Hengfeng Paper Group Co., Ltd. 31.09
China Access Paper Investment Company
Limited 13.53
Heilongjiang Investment Corporation 2.07
Heilongjiang Chenneng Investment Management
Co., Ltd. (in Chinese Pinyin) 1.92
Bank of Communication-Boshi Xinxing Growth
Stock Securities Investment Fund 1.05
China Foreign Economy &Trade Trust Co.,
Ltd.
- Enjoy the Benefits Positive Strategies No.
3 0.98
Bank of China- Harvest Steady and Open
Securities Investment Fund 0.73
Ping An Life Insurance Company of China,
Ltd.-
Investment-Linked - Individual Insurance
Investment-Linked 0.65
Ping An Property & Casualty Insurance Company
of China, Ltd.-
Investment-type Insurance Products 0.63
Ping An Life Insurance Company of China,
Ltd.-
Investment-Linked - Group Pensions
Enterprising 0.56
Other shareholders 46.79
Mudanjiang Hengfeng Paper Group Co., Ltd.
===============================
Registered capital: CNY 213,500,000
Legal rep.: Xu Xiang
China Access Paper Investment Company
Limited
===================================
Legal rep.: Bo Xiru
Registered capital: USD 1
Legal Representative
and Chairman:
Mr. Xu Xiang, senior engineer, born in 1962, with master’s degree. He is currently responsible for the overall management of SC.
Working
Experience(s):
At present Working in SC as legal representative and chairman.
Also working in Mudanjiang Hengfeng Paper Group Co., Ltd., Hubei Hengfeng Paper Co., Ltd., Mudanjiang Hengfeng Commercial & Trading Co., Ltd. and Mudanjiang Hengfeng International Trade Co., Ltd. as chairman.
Vice Chairman and
General Manager:
Mr. Li Yingchun , born in 1968, with master’s degree, senior economist. He is currently responsible for the daily management of SC.
Working
Experience(s):
At present Working in SC as vice chairman and general manager.
Also working in Mudanjiang Hengfeng Paper Group Co., Ltd. as director, Mudanjiang Hengfeng Commercial & Trading Co., Ltd. as general manager.
Vice General
Managers:
Mr. Pan Quanli, born in 1965, with master’s degree, senior engineer.
Mr. Shi Changjun , born in 1964, with master’s degree, senior engineer.
They are currently responsible for the daily management of SC.
Working
Experience(s):
At present Working in SC as vice general managers.
Also working in Mudanjiang Hengfeng Paper Group Co., Ltd. as directors.
Directors:
Yu Bo
Yang Yuhong
Jiang Zhanju
Bo Xiru
Li Jinsong
Guan Xingjiang
Supervisors:
Liu Shujie
Wang Qingjun
Wang Shigang
SC is mainly
engaged in manufacturing and selling paper products.
SC’s products mainly
include: cigarette paper, tipping base paper, etc.
SC sources its
materials 50% from domestic market, and 50% from the overseas market. SC sells
100% of its products 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 T/T and Credit of 30-60 days.
*Major Clients:
===========
Shandong Tobacco Material Equipment Co.,
Ltd.
China Tobacco Guangdong Industrial Co., Ltd.
Note:
SC declined to release its major suppliers.
SC
is known to have the following subsidiaries:
Hubei Hengfeng Paper Co., Ltd.
======================
Incorporation date: Nov. 28, 2005
Registration no.: 422300000009783
Registered capital: CNY 81,140,000
Legal rep.: Xu Xiang
Mudanjiang Hengfeng Commercial & Trading Co., Ltd.
========================================
Registered capital: CNY 500,000
Legal form: One-person Limited Liability Company
Mudanjiang Hengfeng International Trade Co., Ltd.
=====================================
Registered capital: CNY 2,000,000
Legal form: One-person Limited Liability Company
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 accountant
refused to release the bank details.
Consolidated Balance
Sheet
Unit: CNY’000
|
|
As of June 30, 2012 |
As of Dec. 31, 2011 |
|
Cash & bank |
520,437 |
313,102 |
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Inventory |
352,195 |
311,414 |
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Notes receivable |
136,622 |
145,618 |
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Accounts
receivable |
267,715 |
197,097 |
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Other Accounts receivable |
22,764 |
16,023 |
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Advances to
suppliers |
323,875 |
145,420 |
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Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
1,623,608 |
1,128,674 |
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Fixed assets net
value |
1,128,767 |
953,609 |
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Projects under
construction |
103,792 |
207,658 |
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Project
materials |
4,258 |
0 |
|
Long-term
deferred expenses |
1,062 |
1,163 |
|
Intangible
assets |
32,353 |
32,881 |
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Deferred income
tax assets |
7,682 |
7,179 |
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Other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
2,901,522 |
2,331,164 |
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============= |
============= |
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Short loans |
572,553 |
590,139 |
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Accounts payable |
293,780 |
135,258 |
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Advance from customers |
4,775 |
4,706 |
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Employee payable |
307 |
5,738 |
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Other Accounts
payable |
29,236 |
2,368 |
|
Taxes payable |
1,833 |
5,007 |
|
Interest payable |
-654 |
0 |
|
Non-current
liabilities due within one year |
60,000 |
48,841 |
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Other current liabilities |
0 |
0 |
|
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------------------ |
------------------ |
|
961,830 |
792,057 |
|
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Long term
liabilities |
586,991 |
298,332 |
|
|
------------------ |
------------------ |
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Total
liabilities |
1,548,821 |
1,090,389 |
|
Equities |
1,352,701 |
1,240,775 |
|
|
------------------ |
------------------ |
|
2,901,522 |
2,331,164 |
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Consolidated
Income Statement
Unit: CNY’000
|
|
Jan.
1 to June 30, 2012 |
As of Dec. 31, 2011 |
|
Turnover |
662,470 |
1,327,309 |
|
Cost of goods
sold |
495,741 |
1,000,607 |
|
Taxes and additional
of main operation |
1,679 |
5,808 |
|
Sales expense |
41,694 |
104,060 |
|
Management expense |
37,119 |
68,828 |
|
Finance expense |
18,919 |
31,460 |
|
Impairment of
assets |
2,011 |
1,345 |
|
Non-operating
income |
1,113 |
4,269 |
|
Non-operating expense |
0 |
97 |
|
Profit before
tax |
66,420 |
119,373 |
|
Less: profit tax |
16,336 |
30,632 |
|
Profits |
50,084 |
88,741 |
Important Ratios
=============
|
|
As
of June 30, 2012 |
As
of Dec. 31, 2011 |
|
*Current ratio |
1.69 |
1.42 |
|
*Quick ratio |
1.32 |
1.03 |
|
*Liabilities
to assets |
0.53 |
0.47 |
|
*Net profit
margin (%) |
7.56 |
6.69 |
|
*Return on
total assets (%) |
1.73 |
3.81 |
|
*Inventory
/Turnover ×365 |
/ |
86 days |
|
*Accounts
receivable/Turnover ×365 |
/ |
55 days |
|
*Turnover/Total
assets |
0.23 |
0.57 |
|
* Cost of goods
sold/Turnover |
0.75 |
0.75 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears good 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: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears average.
l
SC’s short-term loan appears fairly large.
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 in 2011 but average in the first half of 2012.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly good.
SC is considered large-sized in its line with fairly good
financial conditions. The large amount of short-term loan could be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.38 |
|
UK Pound |
1 |
Rs.82.32 |
|
Euro |
1 |
Rs.69.54 |
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 |
|
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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.