MIRA INFORM REPORT
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Report Date : |
30.04.2013 |
IDENTIFICATION DETAILS
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Name : |
HEBEI LONGSHENG METALS & MINERALS CO.,
LTD |
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Registered Office : |
Wukuang Building, No. 448, Heping West Road, Xinhua
District, Shijiazhuang, Hebei Province, 050071
Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
16.11.2004 |
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Com. Reg. No.: |
130100000082744 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
trading of steel, mineral products, raw
materials, hardware
products, agriculture by-products, chemical products,
etc. |
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No. of Employees : |
100 |
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 : |
Satisfactory |
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Payment Behaviour : |
Slow but Correct |
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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 – March 31st 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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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 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
Hebei Longsheng Metals & Minerals Co., Ltd
Wukuang BUILDING,
NO. 448, HEPING WEST ROAD, XINHUA DISTRICT,
SHIJIAZHUANG, HEBEI
PROVINCE, 050071 PR CHINA
TEL: 86 (0)
311-87839061/87812736 FAX: 86 (0) 311-87812685/87839703
EXECUTIVE SUMMARY
INCORPORATION DATE : NOVEMBER 16, 2004
REGISTRATION NO. : 130100000082744
REGISTERED LEGAL
FORM : SHARES LIMITED COMPANY
STAFF STRENGTH :
100
REGISTERED CAPITAL : CNY 50,000,000
BUSINESS LINE : TRADING
TURNOVER : CNY 613,100,000 (AS OF DEC. 31, 2011)
EQUITIES : CNY 36,730,000 (AS OF DEC. 31,
2011)
PAYMENT : AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND :
fairly steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
6.16 = 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 company at local 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 selling steel, mineral products, nonferrous
metal, textile garments, agriculture and by-products, hardware
products, water heating equipment, castings, plastic products and raw materials,
mechanical and electrical equipment; importing and exporting commodities;
selling industrial & agricultural tools, building materials, chemical
products (excluding hazardous
chemicals), textile garments and raw materials; selling of fur. (not engage
in any items prohibited by law and administrative regulations; able to engage
in items that need permit according to the regulation of laws and
administrative regulation, after obtaining the permit from relative authorities).
SC is mainly
engaged in trading of steel, mineral products, raw
materials, hardware
products, agriculture by-products, chemical products, etc.
Mr.
Yao Qi has been legal representative and chairman of SC since 2004.
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 head office in the commercial zone of
Shijiazhuang. Our checks reveal that SC rents the total premise, but SC’s
accountant refused to release the gross area.
http://en.hebeilongsheng.com/
The
design is professional and the content is well organized. At present it is in
English and Chinese versions.
Email: hebeilongsheng@hebwl.com
According to internet sources, SC was previously named as
Hebei Metals & Minerals Import and Export Corporation, whose history starts
from 1974. It has been listed as one of the Top 500 Import and Export
Enterprises by the Ministry of Foreign Economics and Trade of the Peoples
Republic of China since 1989, and leads the export of metal products over the
years in the whole province. In 1999, the company got the awards of Advance
Export Enterprise on Quality and Efficiency of Chinese Foreign Trade and
Economics.
SC has got ISO 9001:2008 System Certificate.
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Yao Qi 30.34
Gao Yongping 12.21
Wang Ru 12.16
Wang Erxiao 8.52
Fan Shundong 8.52
Tian Xinliang 8.30
Xu Yonggang 8.31
Other individuals 11.64
Legal
representative and Chairman:
Mr. Yao Qi, born in 1956. He is currently responsible for
the overall management of SC.
Working
Experience(s):
From 2004 to present Working in SC as chairman and legal representative.
SC is mainly
engaged in trading of steel, mineral products, raw
materials, hardware
products, agriculture by-products, chemical products, etc.
SC’s products mainly include: valves & pipe fitting,
cast-iron products, steel products, wear-resistant material, ferroalloy, wire
mesh, building materials, hardware tools, metallic mineral products, nonmetal
mineral products, Garments, etc.
SC sources its materials 90%
from domestic market, and 10% from overseas market. SC sells 10% of its
products in domestic market, and 90% to 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.
Note:
SC declined to release its major suppliers and clients.
SC
is not known to have any subsidiary at present.
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.
Bank of China
AC#:
0020308091001
Relationship:
Normal
Balance Sheet
Unit: CNY’000
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|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
Cash & bank |
6,680 |
/ |
|
Inventory |
51,040 |
/ |
|
Accounts
receivable |
35,110 |
/ |
|
Advances to
suppliers |
39,980 |
/ |
|
Other receivables |
2,390 |
/ |
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Other current
assets |
16,420 |
/ |
|
|
------------------ |
------------------ |
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Current assets |
151,620 |
164,870 |
|
Fixed assets net
value |
500 |
/ |
|
Long term
investment |
0 |
/ |
|
Projects under
construction |
0 |
/ |
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Intangible and
other assets |
10 |
/ |
|
|
------------------ |
------------------ |
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Total assets |
152,130 |
165,280 |
|
|
=========== |
=========== |
|
Short loan |
10,390 |
/ |
|
Accounts payable |
39,420 |
/ |
|
Bills payable |
0 |
/ |
|
Advances from clients |
12,990 |
/ |
|
Taxes payable |
-2,550 |
/ |
|
Other Accounts
payable |
48,800 |
/ |
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Other current
liabilities |
140 |
/ |
|
|
------------------ |
------------------ |
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Current
liabilities |
109,190 |
128,550 |
|
Long term
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
109,190 |
128,550 |
|
Equities |
42,940 |
36,730 |
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|
------------------ |
------------------ |
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Total
liabilities & equities |
152,130 |
165,280 |
|
|
=========== |
=========== |
Note: SC’s management refused to release the detailed
Balance Sheet for Yr2011.
Income Statement
Unit: CNY’000
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
Turnover |
488,220 |
613,100 |
|
Cost of goods sold |
421,190 |
554,530 |
|
Taxes and additional of main operations |
0 |
1,240 |
|
Other business profit |
0 |
4,660 |
|
Sales expense |
47,000 |
50,450 |
|
Management expense |
14,920 |
16,300 |
|
Finance expense |
1,440 |
2,050 |
|
Other income |
4,020 |
0 |
|
Non-operating income |
0 |
1,150 |
|
Non-operating
expense |
0 |
90 |
|
Profit before tax |
7,690 |
-5,750 |
|
Less: profit tax |
0 |
0 |
|
Profits |
7,690 |
-5,750 |
Important
Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
1.39 |
1.28 |
|
*Quick ratio |
0.92 |
/ |
|
*Liabilities
to assets |
0.72 |
0.78 |
|
*Net profit
margin (%) |
1.58 |
-0.94 |
|
*Return on
total assets (%) |
5.05 |
-3.48 |
|
*Inventory
/Turnover ×365 |
39 days |
/ |
|
*Accounts
receivable/Turnover ×365 |
27 days |
/ |
|
*Turnover/Total
assets |
3.21 |
3.71 |
|
* Cost of
goods sold/Turnover |
0.86 |
0.90 |
PROFITABILITY:
FAIR
l The turnover of SC
appears fairly good in both years, and appears a rising trend.
l SC’s net profit
margin is average in 2010, but fair in 2011.
l SC’s return on
total assets is fairly good in 2010, but fair in 2011.
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 in both years.
l
SC’s quick ratio is maintained in a normal level in
2010.
l
The inventory of SC appears average in 2010.
l
The accounts receivable of SC appears average in
2010.
l
The short-term loan of SC appears average in 2010.
l
SC’s turnover is in a fairly good level in both
years, comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average in 2010, but fairly
high in 2011.
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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.27 |
|
UK Pound |
1 |
Rs.84.23 |
|
Euro |
1 |
Rs.70.90 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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>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.