MIRA INFORM REPORT
|
Report Date : |
05.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
HEBEI BESTAR COMMERCE AND TRADE CO., LTD. |
|
|
|
|
Registered Office : |
11/F Shennong Building, No. 45 Tangu South Street,
Shijiazhuang Hebei Province 050021 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
07.03.2006 |
|
|
|
|
Com. Reg. No.: |
130100000182418 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
Selling chemical products, hardware, shoes and hats. |
|
|
|
|
No. of Employees : |
16 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Small Company |
|
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 – 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 |
|
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 2010 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 near 9% for 2011. An economic slowdown in Europe is expected to further drag Chinese growth in 2012. 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 BESTAR COMMERCE AND TRADE CO., LTD.
11/F SHENNONG BUILDING, NO. 45 TANGU SOUTH STREET, SHIJIAZHUANG
HEBEI PROVINCE 050021 PR CHINA
TEL: 86 (0) 311-85081825/85081803/85081890
FAX: 86 (0) 311-85081805
EXECUTIVE SUMMARY
Date of Registration : MARCH 7, 2006
REGISTRATION NO. : 130100000182418
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : CNY 10,000,000
staff :
16
BUSINESS CATEGORY : TRADING
Revenue :
CNY 164,060,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY
10,650,000 (AS OF DEC. 31, 2011)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : ORDINARY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.22 = 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.: 130100000182418 on March 7, 2006.
SC’s Organization Code Certificate No.:
78571621-9
SC’s registered capital: CNY 10,000,000
SC’s paid-in capital: CNY 10,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Registration No. |
1301002043070 |
The present one |
|
Shareholder (s) (% of
Shareholding) |
Li Aiqin 70% Zhao Qingguo 30% |
Li Aiqin 70% Zhang Jiachang 30% |
|
|
Legal Representative |
Zhao Qingguo |
Zhang Jiachang |
|
|
2010 |
Registered Capital |
CNY 1,000,000 |
CNY 10,000,000 |
|
2011 |
Legal Representative |
Zhang Jiachang |
Guo Chenhao |
|
Shareholder (s) (% of
Shareholding) |
Li Aiqin 70% Zhang Jiachang 0% |
Guo Chenhao10% Guo Junhui90% |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Guo Chenhao |
10 |
|
Guo Junhui |
90 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General
Manager |
Guo Chenhao |
|
Supervisor |
Guo Junhui |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Guo Chenhao 10
Guo Junhui 90
MANAGEMENT
Guo Chenhao ,
Legal Representative, Chairman and General Manager
------------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø Qualification:
University
Ø Working experience
(s):
From 2011 to present, working in SC as legal
representative, chairman and general manager
Guo Junhui ,
Supervisor
-------------------------------------------
Ø
Gender: M
Ø Qualification:
University
BUSINESS OPERATION
SC’s registered business scope includes selling mechanical equipment,
hardware, household appliances, meters, chemical products (excluding dangerous
articles), textiles, shoes and hats, handicrafts, culture & sports goods; importing
and exporting commodities and technologies , excluding export
commodities limited or prohibited by the state (with permit
if needed).
SC is mainly
engaged in selling chemical products, hardware, shoes and hats.
SC’s products mainly include: farm
chemicals, pesticide, hardware, shoes and hats.
SC sources its merchandises 10% from the overseas market and 90% from
domestic market. SC sells 20% of its merchandises in domestic market, and 80%
to overseas market, mainly Pakistan and India.
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.
*Major Customer:
=============
PAK Ltd. (Pakistan)
*Major Supplier:
=============
Hebei Yetian Agrochemical Co., Ltd.
Staff & Office:
--------------------------
SC is known
to have approx. 16 staff at present.
SC rents an area
as its operating office of approx. 100 sq. meters at the heading address.
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: A trade enquiry currently
conducted with SC's supplier(s) reveal the following:
Supplier
A
Products sold: pesticide,
API
Date account opened: 2006
Line of credit: N/A
Terms: T/T,
Credit of 30-60 days
Average monthly sales: N/A
Current balance: No comments
Rating Key: 3
Any Special Comments: N/a
Payment record keys:
1 = Prompt: Payment made before the credit
period expires
2 = As agreed terms: Payment made upon due
date
3 = Slightly slow but acceptable: Payment
made 5 to 20 days beyond agreed terms
4 = Slow: Payment made 16 to 45 days beyond
agreed terms
5 = Poor: Payment made over 45 days beyond agreed
terms
6
= No comment: Account is newly opened & record is not yet established
Note: In
some instances, payment beyond terms can be the result of disputes over
merchandise, lost invoices, disputed accounts & etc.
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 Shijiazhuang Yudong Sub-branch
AC#:
10417079508091001
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
420 |
980 |
|
|
Accounts
receivable |
11,760 |
38,700 |
|
Advances to
suppliers |
0 |
22,740 |
|
Other receivable |
0 |
6,660 |
|
Inventory |
3,080 |
4,190 |
|
Subsidies
receivable |
5,060 |
5,340 |
|
Other current
assets |
10 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
20,330 |
78,610 |
|
Fixed assets |
30 |
50 |
|
Intangible
assets |
0 |
0 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
20,360 |
78,660 |
|
|
============= |
============= |
|
Short-term loans |
0 |
32,000 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
4,240 |
5,840 |
|
Surcharge
payable |
3,450 |
0 |
|
Taxes payable |
-410 |
50 |
|
Advances from
clients |
0 |
16,510 |
|
Other payable |
2,470 |
13,610 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
9,750 |
68,010 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
9,750 |
68,010 |
|
Equities |
10,610 |
10,650 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
20,360 |
78,660 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
|
Revenue |
120,380 |
164,060 |
|
Cost of sales |
102,860 |
153,480 |
|
Sales expense |
15,280 |
8,260 |
|
Management expense |
1,460 |
1,310 |
|
Finance expense |
670 |
930 |
|
Profit before
tax |
110 |
80 |
|
Less: profit tax |
30 |
40 |
|
80 |
40 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
2.09 |
1.16 |
|
*Quick ratio |
1.77 |
1.09 |
|
*Liabilities
to assets |
0.48 |
0.86 |
|
*Net profit
margin (%) |
0.07 |
0.02 |
|
*Return on
total assets (%) |
0.39 |
0.05 |
|
*Inventory /
Revenue ×365 |
10 days |
10 days |
|
*Accounts
receivable/ Revenue ×365 |
36 days |
87 days |
|
*
Revenue/Total assets |
5.91 |
2.09 |
|
* Cost of
sales / Revenue |
0.85 |
0.94 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC
appears fairly good in its line, and it increased in 2011.
l SC’s net profit
margin is average in both years.
l SC’s return on
total assets is average in both years.
l
SC’s cost of sales is average in 2010 but fairly
high in 2011, comparing with its revenue.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC appears large in
2011.
l
The short-term loans of SC appear large in 2011.
l
SC’s revenue is in a fairly good level, comparing
with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is average in 2010 but high in
2011.
l
The risk for SC to go bankrupt is above 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 accounts receivable and short-term loans may be
a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.52.97 |
|
|
1 |
Rs.83.17 |
|
Euro |
1 |
Rs.72.20 |
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.