MIRA
INFORM REPORT
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Report Date : |
28.02.2013 |
IDENTIFICATION DETAILS
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Name : |
XUCHANG HENGYUAN HAIR PRODUCTS, INC. |
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Registered Office : |
Sunshine Avenue, Economic & Technological Development
Zone, Xuchang, Henan Province, 461000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
27.11.2001 |
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Com. Reg. No.: |
411000100009918 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
manufacturing and selling hair products |
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No. of Employees : |
4,000 |
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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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 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 & address
xuchang hengyuan hair products, inc.
SUNSHINE AVENUE,
ECONOMIC & TECHNOLOGICAL DEVELOPMENT ZONE, XUCHANG, HENAN PROVINCE, 461000
PR CHINA
TEL: 86 (0)
374-8316997
FAX: 86 (0)
374-8316988
EXECUTIVE SUMMARY
INCORPORATION DATE : NOV. 27, 2001
REGISTRATION NO. : 411000100009918
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
CHIEF EXECUTIVE : MR. ZHAO JIANSHUAN (CHAIRMAN)
STAFF STRENGTH : 4,000
REGISTERED CAPITAL :
CNY 122,000,000
BUSINESS LINE : MANUFACTURING AND TRADING
TURNOVER :
CNY 660,231,000 (AS OF DEC. 31, 2010)
EQUITIES :
CNY 347,647,000 (AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.23 = 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 China.. Natural person are allowed
to serve as promoters. The
minimum registered capital of a co. is CNY 5M. while that of the co. with
foreign investment is CNY 5M. The total capital of a co. which propose to
apply for publicly listed must be no less than CNY 30M. 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 manufacturing and selling human hair products, wig products, jewelry, other ancillary products, and providing technical services; exporting self-made products; importing machinery and equipment, spare parts, hair products, jewelry raw and auxiliary materials required for the production, processing, research; processing with imported materials, processing with imported samples, assembling with imported parts, and compensation trade in agreement; domestic marketing of all kinds of hair products, the jewelry raw and auxiliary materials. (with permit if needed)
SC is mainly engaged in manufacturing and selling hair products. Mr. Zhao Jianshuan is the legal representative and chairman of SC at present.
SC is known to have approx. 4,000 employees at present.
SC is currently operating at the above stated address, and this address houses its operating office and factory in the economic & technological development zone of Xuchang. SC’s employee refused to release the gross area of the premise.
http://www.hengyuanhair.com.cn/
The
design is professional and the content is well organized. At present it is in
Chinese and English versions.
E-mail: sales@hengyuanhair.com.cn ; info@hengyuanhair.com.cn
Changes of its registered information:
|
Date of change |
Item |
Before the
change |
After the change |
|
2008 |
Registered legal form |
Chinese-foreign
equity joint venture enterprise |
Limited liabilities company |
|
Registration No. |
000275 |
Present one |
|
|
2009 |
Chinese name |
许昌恒源发制品有限公司 |
Present one |
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Registered legal form |
Limited liabilities company |
Present one |
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Registered capital |
CNY 92,000,000 |
CNY 102,000,000 |
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|
Unknown |
Registered capital |
CNY 102,000,000 |
Present amount |
Note: SC changed its Chinese name in 2009, while its English name
remains the same.
SC has obtained ISO9001 Certification, ISO14001 Certification, OHSAS and
ISO8001 Certification.
SC is preparing to be listed in Stock Exchange Market.
MAIN SHAREHOLDERS (as
of Dec. 31, 2010):
Name
%
of Shareholding
Zhao Jianshuan
32.26
Li Hongping
25.99
Chen Yanli
6.47
Shenzhen Nanhai Growth Choice Venture
Investment Partnership
(Limited Partnership) 5.88
Shi Xiaoming
5.19
Other shareholders
24.21
Legal
representative and chairman:
Mr. Zhao Jianshuan, born
in 1968, he is currently responsible for the overall
management of SC.
Working
Experience(s):
At present Working in SC as legal representative and chairman
SC is mainly
engaged in manufacturing and selling hair products.
Main Products:
hair weaving, hair cover, hair toupee, hair accessories, mannequin heads and
others.
SC sources its materials 60%
from domestic market and 40% from oversea market, mainly India. SC sells 2% of
its products in domestic market, and 98% to overseas market, mainly South
America and Africa.
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
suppliers:
………………….
Srinivasa Hair Industrles Company
Indian Hair Industries Company
Arqube Industries (India) Limited
Major Clients:
………………
Shake-N-Go Fashion, Inc.
Hair Zone Inc.
Fashion World Ent. Inc.
SC
is known to invest in the following companies:
Xuchang
Yumei Hair Products Co., Ltd. (in Chinese Pinyin)
………………………………………………………………..
Incorporation
date: Sep. 29, 2005
Legal
representative: Li Qibin
Registration
No.: 411092000002621
Registered
capital: CNY 1,000,000
Ladystar
International Nigeria Limited (Nigeria)
H&Y
France
According to SC’s
website:
Sales
Branch in Guangzhou City
Tel:
020-28335735
Fax:
020-28335736
Email:
gzhou@hengyuanhair.com.cn
H&Y
Hair UK Ltd.
Website:
http://www.hengyuanhair.com.cn/building/index.htm
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’s suppliers
declined to make any comments.
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’s management
declined to release its bank details.
Balance Sheet
Unit: CNY’000
|
|
as
of Dec. 31, 2009 |
as of Dec. 31,
2010 |
|
Cash & bank |
57,115 |
79,790 |
|
Inventory |
134,311 |
322,962 |
|
Accounts
receivable |
118,757 |
150,610 |
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Advances to
supplies |
41,597 |
31,315 |
|
Other
receivables |
4,014 |
4,652 |
|
Other current
assets |
0 |
0 |
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|
------------------ |
------------------ |
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Current assets |
355,794 |
589,329 |
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Fixed assets net
value |
41,659 |
107,832 |
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Projects under
construction |
33,120 |
51,692 |
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Long-term
investments |
805 |
805 |
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Other assets |
4,422 |
24,988 |
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------------------ |
------------------ |
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Total assets |
435,800 |
774,646 |
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============= |
============= |
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Short loans |
99,954 |
324,204 |
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Notes payable |
16,520 |
4,898 |
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Accounts payable |
60,778 |
78,755 |
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Advances from
customers |
243 |
630 |
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Salaries and
welfare payable |
7,828 |
13,705 |
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Taxes payable |
-1,353 |
3,421 |
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Other accounts
payable |
2,489 |
1,386 |
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Other
current liabilities |
0 |
0 |
|
|
----------------- |
----------------- |
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Current
liabilities |
186,459 |
426,999 |
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Long term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Total
liabilities |
186,459 |
426,999 |
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Shareholders
equities |
249,341 |
347,647 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
435,800 |
774,646 |
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============= |
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Income Statement
Unit: CNY’000
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
Turnover |
436,959 |
660,231 |
|
Cost of goods sold |
324,192 |
464,230 |
|
Taxes and additional of main operation |
1,151 |
5,248 |
|
Sales expense |
5,962 |
15,190 |
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Management expense |
17,318 |
54,855 |
|
Finance expense |
6,319 |
19,067 |
|
Asset
impairment loss |
966 |
1,466 |
|
Non-operating income |
2,748 |
13,186 |
|
Non-operating expense |
0 |
561 |
|
Profit before tax |
83,799 |
112,800 |
|
Less: profit tax |
12,351 |
14,495 |
|
Profits |
71,448 |
98,305 |
Note: SC’s
management refused to release SC’s financial information for Yr2011.
Important Ratios
=============
|
|
as
of Dec. 31, 2009 |
as of Dec. 31,
2010 |
|
*Current ratio |
1.91 |
1.38 |
|
*Quick ratio |
1.19 |
0.62 |
|
*Liabilities
to assets |
0.43 |
0.55 |
|
*Net profit
margin (%) |
16.35 |
14.89 |
|
*Return on
total assets (%) |
16.39 |
12.69 |
|
*Inventory
/Turnover ×365 |
113 days |
179 days |
|
*Accounts
receivable/Turnover ×365 |
100 days |
84 days |
|
*Turnover/Total
assets |
1.00 |
0.85 |
|
* Cost of
goods sold/Turnover |
0.74 |
0.70 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line,
and it increased greatly in 2010.
l
SC’s net profit margin is fairy good in both years.
l
SC’s return on total assets is fairy good in both
years.
l
SC’s cost of goods sold is average in both years,
comparing with its turnover.
LIQUIDITY: FAIR
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
2009 but in a fair level in 2010.
l
The inventory of SC appears fairly large in 2009
but large in 2010.
l
The accounts receivable of SC appears fairly large
in both years.
l
The short-term loan of SC appears large in 2010.
l
SC’s turnover is in an average level in 2009 but in
a fair level in 2010, comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is fairly low.
Overall financial
condition of the SC: Fairly stable.
SC is considered large-sized in its line with fairly stable financial
conditions.
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.84 |
|
UK Pound |
1 |
Rs.81.24 |
|
Euro |
1 |
Rs.70.39 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.