MIRA
INFORM REPORT
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Report Date : |
22.04.2013 |
IDENTIFICATION DETAILS
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Name : |
HEBEI ZHUFENG STONE CO., LTD. |
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Registered Office : |
Yihezhuang, Nanhuan Road, Yi County Hebei Province 074200
Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
26.05.1997 |
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Com. Reg. No.: |
130633000002082 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Subject engaged in processing and selling stone products |
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No. of Employees : |
70 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Small Company |
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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 (31.03.2011) |
Current Rating (30.06.2012) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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 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 and address
HEBEI ZHUFENG STONE CO., LTD.
YIHEZHUANG, NANHUAN ROAD, YI COUNTY
HEBEI PROVINCE 074200 PR CHINA
TEL: 86 (0) 312-8851666/8851588
FAX: 86 (0) 312-8851999
EXECUTIVE SUMMARY
Date of Registration : may 26, 1997
REGISTRATION NO. : 130633000002082
LEGAL FORM : Limited Liability Company
REGISTERED CAPITAL : CNY 10,000,000
staff :
70
BUSINESS CATEGORY : PROCESSING
Revenue :
CNY 18,200,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 10,143,000 (AS OF DEC. 31, 2012)
WEBSITE : www.zhufengslate.com
E-MAIL :
zhufengstone@gmail.com
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : ORDINARY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.18 = 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
SC was established
as a limited liabilities company of PRC with State Administration of Industry
& Commerce (SAIC) under registration No.: 130633000002082
on May 26, 1997.
SC’s Organization Code Certificate No.:
71588856-8
SC’s registered capital: CNY 10,000,000
SC’s paid-in capital: CNY 10,000,000
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 |
|
Wang Shulan |
44 |
|
Zhang Yingjie |
46 |
|
Zhang Pengfei |
10 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and
General Manager |
Zhang Yingjie |
|
Director/Supervisor |
Wang Shulan |
|
Zhang Pengfei |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Wang Shulan
ID# 132421196506280122 44
Zhang Yingjie
ID# 132421196804040124 46
Zhang Pengfei
ID# 130633198907286832 10
MANAGEMENT
Zhang Yingjie , Legal Representative, Chairman and General
Manager
-------------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 45
Ø
ID# 132421196804040124
Ø
Qualification:
University
Ø
Working
experience (s):
From 1997 to present, working in SC as legal
representative, chairman and general manager
Director/Supervisor
--------------------------
Wang Shulan
Zhang Pengfei
BUSINESS OPERATION
SC’s registered business scope includes processing and
selling natural stone, stone products, international trade.
SC is mainly
engaged in processing and selling stone products.
Brand: ZF
SC’s products
mainly include: wall stone, stone panel, irregular random stone, mosaic,
stepping stone, etc.
SC sources its materials 100% from domestic market, mainly Hebei. SC sells 70% of its products in domestic market, and 30% to overseas market, mainly USA, Europe, Mid East, 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 Customers:
==============
Firmenich Chemical
Mfg Center
Realstone Systems
LLC.
Staff & Office:
--------------------------
SC is known
to have approx. 70 staff at
present.
SC rents an area
as its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
SC
is not known to have any subsidiary at present.
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
Basic Bank:
Bank
of China
AC#: N/a
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
6,858 |
1,132 |
|
|
Accounts
receivable |
2,986 |
2,924 |
|
Advances to
suppliers |
0 |
0 |
|
Other receivable |
0 |
0 |
|
Inventory |
17 |
6,092 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
9,861 |
10,148 |
|
Fixed assets |
303 |
223 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
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Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
10,164 |
10,371 |
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|
============= |
============= |
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Short-term loans |
0 |
0 |
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Accounts payable |
0 |
0 |
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Wages payable |
0 |
183 |
|
Taxes payable |
48 |
27 |
|
Advances from
clients |
0 |
0 |
|
Other payable |
0 |
18 |
|
Other current
liabilities |
17 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
65 |
228 |
|
Non-current
liabilities |
0 |
0 |
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|
------------------ |
------------------ |
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Total
liabilities |
65 |
228 |
|
Equities |
10,099 |
10,143 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
10,164 |
10,371 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Revenue |
13,071 |
18,200 |
|
Cost of sales |
11,276 |
16,199 |
|
Taxes and surcharges |
21 |
27 |
|
Sales expense |
1,232 |
1,506 |
|
Management expense |
353 |
335 |
|
Finance expense |
138 |
72 |
|
Profit before
tax |
51 |
56 |
|
Less: profit tax |
12 |
12 |
|
Profits |
39 |
44 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
151.71 |
44.51 |
|
*Quick ratio |
151.45 |
17.79 |
|
*Liabilities
to assets |
0.01 |
0.02 |
|
*Net profit
margin (%) |
0.30 |
0.24 |
|
*Return on
total assets (%) |
0.38 |
0.42 |
|
*Inventory /
Revenue ×365 |
1 day |
123 days |
|
*Accounts
receivable/ Revenue ×365 |
84 days |
59 days |
|
*
Revenue/Total assets |
1.29 |
1.75 |
|
* Cost of
sales / Revenue |
0.86 |
0.89 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears average in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of sales is average, comparing with its
revenue.
LIQUIDITY: FAIRLY
GOOD
l
The current ratio of SC is maintained in a good
level.
l
SC’s quick ratio is maintained in a good level.
l
The inventory of SC appears large in 2012.
l
The accounts receivable of SC is maintained in an
average level.
l
SC has no short-term loans in both years.
l
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered small-sized in its line with fairly stable financial
conditions. The large amount of inventory may be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.03 |
|
|
1 |
Rs.82.43 |
|
Euro |
1 |
Rs.70.49 |
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.