MIRA
INFORM REPORT
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Report Date : |
06.12.2013 |
IDENTIFICATION DETAILS
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Name : |
HIERSUN INDUSTRIAL CO., LTD. |
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Registered Office : |
Building CN06 & CN07, Legend Creative Industrial Park, No. 1 Eastern Balizhuang, Chaoyang District, Beijing, 100025 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
04.09.2007 |
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Com. Reg. No.: |
110117010473997 |
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Legal Form : |
Shares limited co. |
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Line of Business : |
Subject is engaged in selling jewelry |
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No. of Employees : |
855 |
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 : |
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 – 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 and address
HIERSUN INDUSTRIAL
CO., LTD.
BUILDING CN06 & CN07, LEGEND CREATIVE INDUSTRIAL PARK, NO. 1 EASTERN BALIZHUANG, CHAOYANG DISTRICT, BEIJING, 100025 PR CHINA
TEL: 86 (0) 10-58792145 / 58792102
FAX: 86 (0) 10- 58792140
EXECUTIVE SUMMARY
INCORPORATION DATE : Sep. 4, 2007
REGISTRATION NO. : 110117010473997
REGISTERED LEGAL FORM : Shares limited co.
CHIEF EXECUTIVE : MR. li houlin (CHAIRMAN)
STAFF STRENGTH : 855
REGISTERED CAPITAL : CNY 100,000,000
BUSINESS LINE : selling
TURNOVER : cny 851,780,000 (Consolidated, AS OF dec. 31, 2012)
EQUITIES : cny 658,330,000 (Consolidated, AS OF dec. 31, 2012)
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.0938 = 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
Note: The given name Hiersun is SC’s complete name in abbreviation.
SC’s complete name and correct operating address should be the heading ones,
and the (
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 Sep. 4, 2007.
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 jewelry, arts and crafts, daily necessities, flowers, clothing, electronic equipment, chemical products (excluding dangerous chemicals, a class of precursor chemicals); importing and exporting commodities and technology, import and export agent; technology development, transfer, technical services; wedding services.
SC is mainly engaged in selling jewelry, etc.
Mr. Li Houlin is legal representative and chairman of SC at present.
SC is known to have approx. 855 employees at present.
SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Beijing. The detailed information of the area is unspecified.
http://www.hiersun.com/ The design is professional and the content is well organized. At present it is in Chinese and English versions.
Email: shuo_feng@hiersun.com
Changes of its registered information:
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Date of change |
Item |
Before the change |
After the change |
|
2013 |
Company’s name |
Beijing Hiersun Xili Co., Ltd. |
Hiersun Industrial Co., Ltd. |
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Shanghai Zhonglu Industrial Co., Ltd. 2.05
Beijing Oriental Chengrui Investment Consultants Co., Ltd. (literal translation 13.00
Beijing Hiersun Zheng Long Economy & Trade Co., Ltd. 59.53
Tianjin Hongshan Capital Investment Fund Center (Limited Partnership) (literal translation) 18.45
Li Houlin 6.97
Beijing Hiersun Zheng Long Economy & Trade Co., Ltd.
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Its former Chinese name was
Registration no.: 110117005602432
Registered capital: CNY 30,000,000
Legal representative: Li Houlin
Tianjin Hongshan Capital Investment Fund Center (Limited Partnership) (literal translation)
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Registration no.: 120192000024720
Registered capital: CNY 772,200,100
Legal representative
and chairman:
Mr. Li Houlin , born in 1973. 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 Beijing Hiersun Zheng Long Economy & Trade Co., Ltd. as legal representative, and in Hiersun Industrial Co., Ltd. Beijing Chaoyang No. 2 Branch, Hiersun Industrial Co., Ltd. Beijing Chaoyang No. 1 Branch, etc. as principal.
General manager:
Mr. Li Weisen is currently responsible for the daily management of SC.
Working Experience(s):
At present Working in SC as general manager.
Directors:
Li Xiaodong
Hu Jie
Supervisor:
Wang Ying
SC is mainly engaged in selling jewelry, etc.
SC’s products mainly include: jewelry.
SC sources its materials 100% from domestic market. SC sells 100% of its products in domestic market.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The payment terms of SC include T/T and Credit of 30-60 days.
Note: SC’s management refused to release its main suppliers and clients.
Subsidiaries:
Harbin Hengxin Tianhao Economic and Trade Co., Ltd. (in Chinese pinyin)
Shanghai Hiersun Yilin Diamond Co., Ltd. (in Chinese pinyin)
Beijing Huahengte Economic and Trade Co., Ltd. (in Chinese pinyin)
Branches:
Hiersun Industrial Co., Ltd. Beijing Changping No. 1 Branch
Hiersun Industrial Co., Ltd. Beijing Chaoyang No. 8 Branch
Hiersun Industrial Co., Ltd. Beijing Chaoyang No. 2 Branch
Hiersun Industrial Co., Ltd. Beijing Chaoyang No. 9 Branch
Hiersun Industrial Co., Ltd. Beijing Chaoyang No. 6 Branch
Hiersun Industrial Co., Ltd. Beijing Chaoyang No. 7 Branch
Hiersun Industrial Co., Ltd. Beijing Chaoyang No. 3 Branch
Hiersun Industrial Co., Ltd. Beijing Chaoyang No. 4 Branch
Hiersun Industrial Co., Ltd. Beijing Chaoyang No. 1 Branch
Hiersun Industrial Co., Ltd. Shenzhen No. 2 Branch
Hiersun Industrial Co., Ltd. Shenzhen No. 1 Branch
Hiersun Industrial Co., Ltd. Shenzhen No. 3 Branch
Etc.
Hiersun Industrial Co., Ltd. Shenzhen Products Center
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Add:
Tel: 0755-22932266
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 declined to release its banking details.
Consolidated Balance Sheet
Unit: CNY’000
Consolidated Income Statement
Unit: CNY’000
Important Ratios
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As of Dec. 31, 2012 |
As of Dec. 31, 2011 |
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*Current ratio |
2.84 |
3.32 |
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*Quick ratio |
1.39 |
1.04 |
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*Liabilities to assets |
0.39 |
0.40 |
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*Net profit margin (%) |
13.47 |
12.64 |
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*Return on total assets (%) |
10.71 |
9.94 |
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*Inventory /Turnover ×365 |
225 days |
306 days |
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*Accounts receivable/Turnover ×365 |
14 days |
35 days |
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*Turnover/Total assets |
0.80 |
0.79 |
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* Cost of goods sold/Turnover |
0.58 |
0.59 |
PROFITABILITY: FAIRLY GOOD
The turnover of SC appears fairly good in its line.
SC’s net profit margin is good.
SC’s return on total assets is fairly good.
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a fairly good level.
SC’s quick ratio is maintained in a normal level.
The inventory of SC appears large.
The accounts receivable of SC appears average.
The short loan of SC appears fairly large in both years.
SC’s turnover is in a fair level, comparing with the size of its total assets.
LEVERAGE: FAIRLY GOOD
The debt ratio of SC is low.
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fairly stable.
SC is considered large-sized in its line with fairly stable financial conditions. The large amount of inventory and short loans could be a threat to SC’s financial condition.
DIAMOND INDUSTRY – INDIA
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From time immemorial, India is well known in the world as the birthplace
for diamonds. It is difficult to trace the origin of diamonds but history
says that in the remote past, diamonds were mined only in India. Diamond production
in India can be traced back to almost 8th Century B.C. India,
in fact, remained undisputed leader till 18th Century when Brazilian
fields were discovered in 1725 followed by emergence of S. Africa, Russia and
Australia.
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The achievement of the Indian diamond industry was possible only due to
combination of the manufacturing skills of the Indian workforce and the
untiring and unflagging efforts of the Indian diamantaires, supported by
progressive Government policies.
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The area of study of family owned diamond businesses derives its
importance from the huge conglomerate of family run organizations which operate
in the diamond industry since many generations.
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Some of the basic traits of family run business enterprises include spirit
of entrepreneurship, mutual trust lowers transaction costs, small, nimble and
quick to react, information as a source of advantage and philanthropy.
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Family owned diamond businesses need to improve on many fronts including
higher standard of corporate governance, long-term performance – focused
strategies, modern management and technology.
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Utmost caution is to be exercised while dealing with some medium and
large diamond traders which are usually engaged in fictitious import – export,
inter-company transactions, financially assisted by banks. In the process,
several public sector banks lost several hundred million rupees. They mostly
diverted borrowed money for diamond business into real estate and capital
markets.
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Excerpts from Times of India dated 30th October 2010 is as
under –
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Gem & Jewellery Export Promotion Council in its statistical data has
shown the export of polished diamonds to have increase by 28 % in February
2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012,
India exported $ 1.84 billion worth of polished diamonds in February 2013. A
senior executive of GJEPC said, “Export of cut and polished diamonds started
falling month-wise after the imposition of 2 % of import duty on the polished
diamonds. But February, 2013 has given a new ray of hope to the industry as the
export of polished diamonds has actually increased by 28 %. It means the
industry is on the track of recovery and round tripping of diamonds has
stopped completely.” Demand has started coming from the US, the UK, Japan and
China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.
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The banking sector has started exercising restraint while following
prudent risk management norms when lending money to gems and jewellery sector.
This follows the implementation of Basel III accord – a global voluntary
regulatory standard on bank capital adequacy, stress testing and market
liquidity.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.69 |
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1 |
Rs.101.08 |
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Euro |
1 |
Rs.84.07 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
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 |
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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 |
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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 |
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41-55 |
Ba |
Overall operation
is considered normal. Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<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.