MIRA
INFORM REPORT
|
Report Date : |
20.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
ANHUI NEW FORTUNE FASHION CO.,LTD. |
|
|
|
|
Registered Office : |
Chengguan Industrial Zone, Taihe County, Fuyang Anhui
Province 236600 PR |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
28.09.2011 |
|
|
|
|
Com. Reg. No.: |
341222000028165 |
|
|
|
|
Legal Form : |
Limited Liability Company |
|
|
|
|
Line of Business : |
Subject is engaged in manufacturing and selling hair
products |
|
|
|
|
No. of Employees : |
691 |
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 : |
Satisfactory |
|
Payment Behaviour : |
No complaints |
|
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 |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
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 and address
ANHUI NEW FORTUNE FASHION
CO.,LTD.
CHENGGUAN INDUSTRIAL ZONE, TAIHE COUNTY, FUYANG
ANHUI PROVINCE 236600 PR CHINA
TEL: 86 (0) 558-8665555 / 8661368
FAX: 86 (0) 558-8661212
***Note: SC is also
known as Anhui Fortune Hair Products Co., Ltd.
EXECUTIVE SUMMARY
Date of Registration : september 28, 2011
REGISTRATION NO. : 341222000028165
LEGAL FORM : Limited Liability Company
CHIEF EXECUTIVE : liu lei (LEGAL
REPRESENTATIVE)
REGISTERED CAPITAL :
CNY 80,000,000
staff :
691
BUSINESS CATEGORY :
MANUFACTURING
Revenue :
CNY 220,918,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 154,731,000 (AS OF
DEC. 31, 2012)
WEBSITE : www.xftfs.com
E-MAIL : N/A
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND :
fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.07 = 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.: 341222000028165 on September 28, 2011.
SC’s Organization
Code Certificate No.: 58458255-X
SC’s registered
capital: CNY 80,000,000
As of December 31, 2011,
SC’s paid in capital was CNY 20,000,000, and as of December 31, 2012, SC’s
paid-in capital was CNY
80,000,000.
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 |
|
Liu Lei and other individuals |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Liu Lei |
|
General Manager |
Liu Xian |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Liu Lei and other individuals 100
MANAGEMENT
Liu Lei Legal Representative and Chairman
------------------------------------------------------------------
Gender: M
Age: 45
Qualification: University
Working experience (s):
From 2011 to present, working in SC as legal representative and chairman
Liu Xian, General
Manager
---------------------------------------------
Gender: M
Qualification: University
Working experience (s):
At present, working in SC as general manager
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and selling hair products; purchasing and selling agricultural by-product; operating and acting as an agent of importing and exporting various kinds of commodities and technology.
SC is mainly engaged in manufacturing and selling hair products.
SC’s products mainly include: 100% human hair and synthetic hair products.
SC sources its materials 100% from domestic market, mainly Anhui. SC sells 100% of its products to overseas market, mainly USA, Europe, Southeast Asia, etc.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The payment terms of SC include L/C and Credit of 30-60 days.
*Major Customers:
==============
J.Marle Co.
West Bay Inc.
Staff & Office:
--------------------------
SC is known to have approx. 691 staff at present.
SC owns an area as its operating office & factory of approx. 100,000 sq. meters at the heading address.
RELATED COMPANY
SC is known to have a
subsidiary at present,
Taihe County Furun Hair Products Co., Ltd.
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
The bank information of SC is not filed in SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
1,332 |
875 |
|
|
Notes receivable |
0 |
0 |
|
Accounts receivable |
0 |
85,216 |
|
Advances to suppliers |
0 |
135 |
|
Other receivable |
129 |
8,701 |
|
Inventory |
1,363 |
147,218 |
|
Non-current assets within one year |
0 |
0 |
|
Other current assets |
0 |
23,068 |
|
|
------------------ |
------------------ |
|
Current assets |
2,824 |
265,213 |
|
Long-term investment |
5,000 |
5,000 |
|
Fixed assets |
20,968 |
21,439 |
|
Construction in progress |
3,309 |
20,020 |
|
Intangible assets |
6,544 |
6,438 |
|
Long-term prepaid expenses |
0 |
0 |
|
Deferred assets |
28 |
309 |
|
Other non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
38,673 |
318,419 |
|
|
============= |
============= |
|
Short-term loans |
0 |
85,459 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
3,238 |
54,017 |
|
Wages payable |
42 |
1,220 |
|
Taxes payable |
283 |
777 |
|
Advances from clients |
0 |
520 |
|
Other payable |
15,185 |
21,550 |
|
Other current liabilities |
8 |
145 |
|
|
------------------ |
------------------ |
|
Current liabilities |
18,756 |
163,688 |
|
Non-current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total liabilities |
18,756 |
163,688 |
|
Equities |
19,917 |
154,731 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
38,673 |
318,419 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2012 |
|
Revenue |
220,918 |
|
Cost of sales |
192,216 |
|
Taxes and additional |
37 |
|
Sales expense |
688 |
|
Management expense |
5,496 |
|
Finance expense |
4,827 |
|
Non-business income |
2,151 |
|
Non-business expenditure |
0 |
|
Profit before tax |
19,805 |
|
Less: profit tax |
4,991 |
|
14,814 |
Important Ratios
=============
|
|
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
*Current ratio |
0.15 |
1.62 |
|
*Quick ratio |
0.08 |
0.72 |
|
*Liabilities to assets |
0.48 |
0.51 |
|
*Net profit margin (%) |
-- |
6.71 |
|
*Return on total assets (%) |
-- |
4.65 |
|
*Inventory / Revenue ×365 |
-- |
244 days |
|
*Accounts receivable/ Revenue ×365 |
-- |
141 days |
|
*Revenue/Total assets |
-- |
0.69 |
|
*Cost of sales / Revenue |
-- |
0.87 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears fairly good in its line.
SC’s net profit margin is fairly good.
SC’s return on total assets is fairly good.
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a fair level in 2012.
The inventory of SC appears large in 2012.
The accounts receivable of SC is maintained in an average level.
The short-term loans of SC appear average.
SC’s revenue is in a fair level, comparing with the size of its total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average in both years.
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-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.62.38 |
|
|
1 |
Rs.102.15 |
|
Euro |
1 |
Rs.85.29 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
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.