MIRA
INFORM REPORT
|
Report Date : |
20.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
HANGZHOU HONGHUA DIGITAL TECHNOLOGY STOCK
CO., LTD. |
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Registered Office : |
No. 3911, Binsheng Road, Binjiang District, Hangzhou City, Zhejiang Province 310052 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
10.10.1992 |
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Com. Reg. No.: |
330000400000543 |
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|
Legal Form : |
Shares Limited Company |
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Line of Business : |
digital printing and researching, developing, manufacturing and selling
digital equipment |
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No. of Employees : |
250 |
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 : |
Good |
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Payment Behaviour : |
No Complaints |
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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) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
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High |
B2 |
|
Very High |
C1 |
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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 2012 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 under 8% for 2012. An economic slowdown in Europe
contributed to China's, and is expected to further drag Chinese growth in 2013.
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
HANGZHOU
HONGHUA DIGITAL TECHNOLOGY STOCK CO., LTD.
no. 3911, binsheng
road, binjiang district, hangzhou city,
zhejiang province
310052 PR CHINA
TEL: 86 (0)
571-88866678
FAX: 86 (0)
571-88856333
EXECUTIVE SUMMARY
INCORPORATION DATE : oct. 10, 1992
REGISTRATION NO. : 330000400000543
REGISTERED LEGAL FORM : SHARES LIMITED CO.
STAFF STRENGTH :
250
REGISTERED CAPITAL : CNY 57,000,000
BUSINESS LINE : R&D, MANUFACTURE,
TRADE
TURNOVER :
CNY 368,470,000 (UNaudited, AS OF
DEC. 31, 2012)
EQUITIES :
CNY 323,900,000 (UNaudited, AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY GOOD
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.18= 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 shares
limited co. at Zhejiang Provincial Administration for Industry &
Commerce (AIC - The official body of issuing and renewing business license).
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 developing, manufacturing, and selling computer
software, CAD, MIS, and assorted peripheral hardware equipment; computer plate making;
digital printing; designing, manufacturing, and selling garments.
SC is mainly
engaged in digital printing and researching, developing, manufacturing and
selling digital equipment.
Mr. Hu Yongfeng is
the legal representative and chairman of SC at present.
SC is known to
have approx. 250 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 Hangzhou. Our checks reveal that SC owns the total premise, but SC’s
employee refused to release the gross area of the premise.
http://www.atexco.com/ (formerly written as
the given one www.hzhh.cn), the design is professional
and the content is well organized. At present the web is both in Chinese and
English versions.
E-mail: honghua@atexco.cn ; textile@atexco.cn
SC is preparing to be listed in Stock Exchange Market.
Awards:
Ø
Dec, 2006 wan the title of “High-tech
R&D Center of Zhejiang province”.
Ø
Oct, 2006 SC assume Eleventh National
Five-year Science and Technology Support plan and “The exploitation and
application of High Speed Digital Ink-jet printer” task.
Ø
Aug, 2006 Digital Ink-jet Printer wan
the “First prize of technology” by China Textile Industry Association.
Ø
The project ‘Soft upholster selling ASP
flat roof’ undertaken by company include in the National 863 planning
investigation program passed by Ministry of Science and Technology.
Ø
Mar 2006, wan the certificate of
“Enterprise’s credit rating AAA in
Ø
Aug, 2005, SC digital printing material
was appraised as “China excellence printing material in 05/
Ø
Dec. 2003, the project undertaken by SC
passed appraisal as the international advanced level on main capability, which
is key program of the tenth National Five-year plan.
Ø
Feb, 2003, AT-2000 printing color
separation software wan the title of “Excellence software product in
Ø
Dec, 2002, Rotary Ink-jet Screen
Engraver wan the Second prize of technology advancement of Hangzhou in 2002.
Ø
Dec, 2002 DPM
Ø
Dec, 2002 win the certificate of
“Foreign Invested Enterprises with Advanced Technology”.
Ø
Dec, 2002 DPM
Ø
Nov, 2002, Passed ISO9001:2000
inspection and received certificate from LRQA.
Ø
Nov, 2002, win the certificate of
“High-tech enterprise by Science and Technology of Zhejiang province”.
Ø
Dec, 2001, win the credit certificate
of “Excellence software Exploitation Corporation of Zhejiang province” in 2001.
Ø
Sep, 2002, win the credit certificate
of “The keystone corporation of technology innovation in Hangzhou”.
Ø
Jun, 2002, win the credit certificate
of “Contracts honoring and credits standing units”.
Ø
May, 2002 DPM
Ø
Apr, 2002, win the credit certificate
of “The keystone corporation of technology innovation in Hangzhou”.
Ø
Feb 2002, win the certificate of “Enterprise’s
credit rating AAA in
Ø
Jan, 2002, the project ‘Digital ink-jet
printer’ successfully declared the tenth National Five-year plan.
Ø
Nov, 2001, Rotary ink-jet Engraver
awarded certification with comments of internationally advanced level by the
National Textile Industry Association.
Ø
Sep, 2001, win the National Torch Plan
projects.
Etc.
Changes
of its registered information are as follows:
|
Date
of change |
Item |
Before
the change |
After the change |
|
2008 |
Registered capital |
CNY 32,089,792 |
CNY 57,000,000 |
|
Registration number |
002365 |
330000400000543 |
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name % of Shareholding
Shenzhen Hualian Development &
Investment Co., Ltd. 31.62
Zhejiang Yingyuan Investment Management Co.,
Ltd. (in Chinese pinyin) 4.39
Shanghai Hesheng Arts & Crafts Co., Ltd.
(in Chinese pinyin) 4.39
Harvest Grand Development Limited (Hong
Kong) 28.50
Shanghai Shenpeng Technical Development Co.,
Ltd. 4.64
Beijing Modern Huanyu Ocean Shipping Co.,
Ltd. (literal translation) 2.69
Hangzhou Zhongxin Technology Co., Ltd. (in
Chinese pinyin) 2.69
Zhejiang Silk Group Co., Ltd. 2.69
Shanghai Chibo Electronic Technology Co.,
Ltd. 16.64
Taizhou Ruiyang Litai Fine Technology Co.,
Ltd. (in Chinese pinyin) 1.75
Shenzhen Hualian Development &
Investment Co., Ltd.
-------------------------------------------------------------------
Registration no.:
440301103199039
Registered capital: CNY
63,200,000
Legal representative: Dong
Binggen
Incorporation date:
Harvest Grand Development Limited (Hong
Kong)
----------------------------------------------------------------
CR no.: 0482647
Legal form: Private
Status: Live
Shanghai Chibo Electronic Technology Co.,
Ltd.
-----------------------------------------------------------
Registration no.:
310114000518434
Registered capital: CNY
9,490,000
Legal representative: Hu Xiaolie
Legal
representative and Chairman:
Mr. Hu Yongfeng, ID# 110101196207024072, senior engineer, born in 1962 with university education. 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 Shenzhen Victor Onward Textile Industrial Co., Ltd. as legal representative, chairman and general manager, and in China Union Holdings Ltd. as vice chairman, in Union Developing Group of China, Ltd.as vice president
General Manager:
Mr. Jin Xiaotuan, ID# 330102195606300014, born in 1956 with university education. He is currently responsible for the daily management of SC.
Working
Experience(s):
At present Working in SC as general manager;
Also working in Shanghai Hi-image Digital Technology Co., Ltd. as legal representative
SC is mainly
engaged in digital printing and researching, developing, manufacturing and selling
digital equipment.
SC’s
products mainly include: textile printers, carpet printers, sign & graphic
printers, and software.
SC’s
products and solutions are mainly used in industries like spinning and weaving,
print dye, advertisement, household equipment, and art designing.
SC sources its materials 90% from domestic
market, and 10% from overseas market. SC sells 50% in domestic market, and 50%
to overseas market, mainly America.
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:
============
Shanghai Hi-image Digital Technology Co., Ltd.
Note:
SC refused to release its major clients.
Shenzhen Victor Onward Textile Industrial Co., Ltd.
======================================
Shenzhen Victor Onward Textile Industrial Co., Ltd. listed in Shenzhen
Stock Exchange Market with the stock code 000018 and 200018.
Registration no.: 440301501131182
Registered capital: CNY 169,142,400
Legal representative: Hu Yongfeng
Add: No. 26 Kuipeng Road, Baishigang,
Kuiyong Town, Longgang District, Shenzhen
Tel: 0755-83668425, 0755-83667895
Fax: 0755-83668427
Email: szvo@chinaszvo.com
According
to SC’s website:
====================
Overseas
Distributor List for Digital Textile Printer:
Indonesia:
PT.ANUGERAH.KIMIA.MANDIRIJAYA
Bandung Office
Jl. Bengawan No. 71, Bandung 40114
Attn: Mr. Theo Polana
Tel: 0062 22 7104088 fax 62 22 7104087
Email: akm@bdg.centrin.net.id
Solo Office
Jl Seruni CC17 Solobaru
57552
Tel: 0062 271 622497
Attn: Mr . Budi sukacita
Email: akm_jaya@yahoo.com
India:
North India
Surat office:
Indo Aisa Machines Pvt
Contact person: Mr. Neeraj Duggal
Punjab office:
16, 1st Floor, Old Cloth Market, Katra Ahluwalia, AMRITSAR - 143001 PUNJAB(INDIA)
Ph.:+91-183-2546507
Fax:+91-183-5096
South India
Lords consultancies
18, 2nd Floor, Amarjothi Garden Railway Feeders Road Tirupur - 641
601 India(south India)
91 9791554400
Pakistan
Pakistan Sindh
NSF Engineers Co., Ltd.
Plot# M.II.H 39/3, S.I.T.E Amreli Steel Street, Behind Quality
Godown Shersha Karachi, Pakistan Pakistan
92-21-2560821
All Pakistan except Sindh
Pro Edge Service Co., Ltd.
291-A, Opposite of Punjab College,Main Road Batala
Colony,Faisalabad, Pakistan. 92 300
8668745
Turkey
OZAK INSAAT TUR.MAK.SAN.VE DIS TIC.LTD.STI
Bagdat Caddesi Saglik Apt. No: 6/8 Kat:1 Daire:361030 Kiziltoprak/
Istanbul, Turkey
+90 216 336 3112
Nejat Z. Oztan
Brazil
LINK COMERCIAL IMPORTADORA E EXPORTADORA
Rua Arnoldo Hass, 131-Centro Pomerode-SC-CEP 89107-000
+55 47 9609 5369
Mr. Elias Martins
Overseas
Distributor List for Sign & Graphic Printer:
South India
Chennai Signs Corporation
Add: 135, Pedariyar Koil Street, Chennai-600001, India.
Telefax: 91-44-42053653
Email: Junide@chennaisigns.com
Website: www.chennaisigns.com
SC is known to invest in the following company:
Shanghai Hi-image Digital Technology Co., Ltd.
========================
Registration no.: 310000400293748
Registered capital: CNY 6,000,000
Legal representative: Jin Xiaotuan
Incorporation date:
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.
China Merchants
Bank
AC#：N/A
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
Cash & bank |
79,110 |
156,970 |
|
Inventory |
49,670 |
64,130 |
|
Bills receivable |
13,810 |
7,990 |
|
Accounts
receivable |
40,360 |
38,840 |
|
Other Accounts
receivable |
710 |
1,760 |
|
Advances to
suppliers |
11,430 |
11,520 |
|
Other current
assets |
0 |
10 |
|
|
------------------ |
------------------ |
|
Current assets |
195,090 |
281,220 |
|
Fixed assets net
value |
60,320 |
65,660 |
|
Long-term
investment |
6,770 |
6,770 |
|
Projects under
construction |
0 |
1,070 |
|
Intangible
assets |
7,850 |
7,650 |
|
Deferred tax
assets |
720 |
950 |
|
Investment real
estate |
20,620 |
24,010 |
|
Other assets |
290 |
190 |
|
|
------------------ |
------------------ |
|
Total assets |
291,660 |
387,520 |
|
|
============= |
============= |
|
Short loans |
10,000 |
0 |
|
Accounts payable |
21,330 |
23,800 |
|
Advance from
customers |
16,350 |
17,380 |
|
Accrued payroll |
5,390 |
7,500 |
|
Interest payable |
20 |
40 |
|
Other Accounts
payable |
320 |
720 |
|
Notes payable |
18,810 |
7,830 |
|
Taxes payable |
3,960 |
4,130 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
76,180 |
61,400 |
|
|
Long term
liabilities |
0 |
0 |
|
Other
liabilities |
1,080 |
2,220 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
77,260 |
63,620 |
|
Equities |
214,400 |
323,900 |
|
|
------------------ |
------------------ |
|
291,660 |
387,520 |
|
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
Turnover |
240,380 |
368,470 |
|
Cost of goods sold |
143,980 |
173,590 |
|
Taxes and additional of main
operation |
1,830 |
3,860 |
|
Sales expense |
15,700 |
21,720 |
|
Management expense |
27,280 |
46,700 |
|
Finance expense |
430 |
-1,870 |
|
Assets impairment loss |
900 |
2,260 |
|
Investment
income |
40 |
0 |
|
Non-operating
income |
9,090 |
20,230 |
|
Non-operating expense |
280 |
410 |
|
Profit before
tax |
59,110 |
142,030 |
|
Less: profit tax |
6,610 |
21,130 |
|
Profits |
52,500 |
120,900 |
Note:
The above financial for Yr 2012 have not been audited.
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
2.56 |
4.58 |
|
*Quick ratio |
1.91 |
3.54 |
|
*Liabilities
to assets |
0.26 |
0.16 |
|
*Net profit
margin (%) |
21.84 |
32.81 |
|
*Return on
total assets (%) |
18.00 |
31.20 |
|
*Inventory
/Turnover ×365 |
76 days |
64 days |
|
*Accounts
receivable/Turnover ×365 |
62 days |
39 days |
|
*Turnover/Total
assets |
0.82 |
0.95 |
|
* Cost of
goods sold/Turnover |
0.60 |
0.47 |
PROFITABILITY:
GOOD
l
The turnover of SC appears fairly good in its line,
and it increased greatly in 2012.
l
SC’s net profit margin is good in both years.
l
SC’s return on total assets is good in both years.
l
SC’s cost of goods sold is low, comparing with its
turnover in both years.
LIQUIDITY: FAIRLY
GOOD
l
The current ratio of SC is maintained in a fairly
good level in both years.
l
SC’s quick ratio is maintained in a fairly good
level in both years.
l
The inventory of SC of SC appears average in both
years.
l
The accounts receivable of SC appears average in
both years.
l
There is no short-term loan of SC in 2012.
l
SC’s turnover is in a fair level, comparing with
the size of its total assets in both years.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low in both years.
l
The risk for SC to go bankrupt is fairly low.
Overall financial
condition of the SC: Fairly good.
SC is considered medium-sized in its line with fairly good
financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.03 |
|
UK Pound |
1 |
Rs.82.43 |
|
Euro |
1 |
Rs.70.49 |
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.