MIRA
INFORM REPORT
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Report Date : |
12.12.2013 |
IDENTIFICATION DETAILS
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Name : |
Guangzhou
Haonan Pipe Equipment Co., Ltd. |
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Registered Office : |
Room 530, No. 2886 Huangpu East
Road, Huangpu District, Guangzhou,
Guangdong Province 510715 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
10.06.2010 |
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Com. Reg. No.: |
440112000035230 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject includes selling and installing plumbing pipe fittings,
hardware fittings, metal parts, pumps, valves, heat exchangers for special
equipment, mechanical seals, general machinery & spare parts, papermaking
equipment spare parts, and steel materials; and repairing mechanical and
electrical equipment. |
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No. of Employees : |
6 |
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 : |
Moderate |
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Payment Behaviour : |
Slow |
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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) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
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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
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Source : CIA |
Company name and address
Guangzhou Haonan Pipe Equipment
Co., Ltd.
room 530,
no. 2886 huangpu east road, huangpu district
guangzhou,
guangdong PROVINCE 510715 PR CHINA
TEL: 86
(0) 20-82245981
FAX: 86
(0) 20-82367395
EXECUTIVE SUMMARY
Date of Registration : june 10, 2010
REGISTRATION NO. : 440112000035230
LEGAL FORM :
Limited liabilities company
REGISTERED CAPITAL :
CNY 500,000
staff : 6
BUSINESS CATEGORY :
TRADING
Revenue : CNY 602,000 (AS OF DEC. 31, 2012)
EQUITIES : CNY 169,000 (AS OF DEC. 31, 2012)
WEBSITE : www.gzhaonan.com
E-MAIL : gzhaonan08@163.com
PAYMENT : AVERAGE
MARKET CONDITION : FAIR
FINANCIAL CONDITION : fair
OPERATIONAL TREND : FAIR
GENERAL REPUTATION : FAIR
EXCHANGE RATE : CNY 6.10 = USD
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.: 440112000035230 on June 10, 2010.
SC’s Organization Code Certificate
No.: 55668019-5
SC’s Tax No.: 440100556680195
SC’s registered capital: CNY 500,000
SC’s paid-in capital: CNY 500,000
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 |
|
Liu Shuhua |
70 |
|
Mei Guorong |
30 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman,
and General Manager |
Liu Shuhua |
|
Supervisor |
Mei Guorong |
RECENT DEVELOPMENT
No recent development was found during our checks at
present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Liu Shuhua
70
Mei Guorong
30
MANAGEMENT
Liu
Shuhua, Legal
Representative, Chairman and General Manager
---------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
ID# 422130197206062270
Ø
Age: 41
Ø
Qualification: University
Ø
Working experience (s):
At present, working in SC as legal representative, chairman and
general manager
Mei
Guorong, Supervisor
--------------------------------------------
Ø
Gender: M
BUSINESS OPERATION
SC’s registered business scope includes selling and installing
plumbing pipe fittings, hardware fittings, metal parts, pumps, valves, heat
exchangers for special equipment, mechanical seals, general machinery &
spare parts, papermaking equipment spare parts, and steel materials; and
repairing mechanical and electrical equipment.
SC is
mainly engaged in selling pumps, valves, heat exchangers, and mechanical seal
fittings.
SC’s
products mainly include:
Hydraulic
series
Screw
pump parts
Pump
series
Stainless
steel
SC
sources its products 40% from domestic market, and 60% from 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 Check, T/T and Credit of 30-60
days.
Staff & Office:
--------------------------
SC is
known to have approx. 6 staff
at present.
SC
rents an area as its operating office, but the detailed information is unknown.
RELATED COMPANY
SC is not known to have the 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:
Industrial and Commercial Bank of China Dasha Sub-branch
AC#: 3602004619200050378
FINANCIALS
Balance Sheet
|
Unit:
CNY’000 |
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
40 |
19 |
|
|
Notes receivable |
0 |
0 |
|
Accounts
receivable |
143 |
54 |
|
Advances
to suppliers |
0 |
0 |
|
Other
receivable |
251 |
0 |
|
Inventory |
69 |
124 |
|
Deferred
expenses |
0 |
0 |
|
Other
current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current
assets |
503 |
197 |
|
Fixed
assets |
0 |
148 |
|
Construction
in progress |
0 |
0 |
|
Intangible
assets |
0 |
0 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred
income tax assets |
0 |
0 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total
assets |
503 |
345 |
|
|
============= |
============= |
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Short-term
loans |
0 |
0 |
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Notes
payable |
0 |
0 |
|
Accounts
payable |
147 |
113 |
|
Wages
payable |
8 |
12 |
|
Taxes
payable |
1 |
1 |
|
Advances
from clients |
0 |
0 |
|
Other
payable |
0 |
50 |
|
Other
current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Current
liabilities |
156 |
176 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Total
liabilities |
156 |
176 |
|
Equities |
347 |
169 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
503 |
345 |
|
|
============= |
============= |
Income Statement
|
Unit:
CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
Revenue |
836 |
602 |
|
Cost of sales |
738 |
585 |
|
Taxes and surcharges |
0 |
0 |
|
Sales expense |
95 |
85 |
|
Management expense |
64 |
128 |
|
Finance expense |
25 |
4 |
|
Profit
before tax |
-94 |
-201 |
|
Less:
profit tax |
0 |
0 |
|
-94 |
-201 |
Important
Ratios
=============
|
|
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
*Current
ratio |
3.22 |
1.12 |
|
*Quick
ratio |
2.78 |
0.41 |
|
*Liabilities
to assets |
0.31 |
0.51 |
|
*Net
profit margin (%) |
-11.24 |
-33.39 |
|
*Return
on total assets (%) |
-18.69 |
-58.26 |
|
*Inventory
/ Revenue ×365 |
31
days |
76
days |
|
*Accounts
receivable / Revenue ×365 |
63
days |
33
days |
|
*Revenue
/ Total assets |
1.66 |
1.74 |
|
*Cost
of sales / Revenue |
0.88 |
0.97 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
l
The revenue of SC appears fair, and it
decreased in 2012.
l
SC’s net profit margin is poor in both
years.
l
SC’s return on total assets is poor in
both years.
l
SC’s cost of sales is average,
comparing with its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained
in a fairly good level in 2011, normal in 2012.
l
SC’s quick ratio is maintained in a
fairly good level in 2011, fair in 2012.
l
The inventory of SC appears large in
2012.
l
The accounts receivable of SC is maintained
in an average level in 2012.
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 average in both
years.
l
The risk for SC to go bankrupt is above
average.
Overall
financial condition of the SC: Fair.
CONCLUSIONS
SC is considered small-sized in its line with fair 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.61.33 |
|
|
1 |
Rs.100.79 |
|
Euro |
1 |
Rs.84.37 |
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 |
|
-- |
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.