MIRA INFORM REPORT
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Report Date : |
10.07.2013 |
IDENTIFICATION DETAILS
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Name : |
HUAFANG COMPANY LIMITED BY SHARES |
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Registered Office : |
No. 819 Huanghe 2nd Road, Binzhou, Shandong Province 256617 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
03.09.1999 |
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Com. Reg. No.: |
370000018037457 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
manufacturing
and selling of textile products |
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No. of Employees : |
2550 |
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 : |
Good |
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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 & address
HUAFANG COMPANY LIMITED BY SHARES
NO. 819 HUANGHE 2ND ROAD, BINZHOU
SHANDONG PROVINCE 256617 PR CHINA
TEL: 86 (0) 543-3288626/3288507
FAX: 86 (0) 543-3288433/3288555
EXECUTIVE SUMMARY
Date of Registration : september 3, 1999
REGISTRATION NO. : 370000018037457
LEGAL FORM : SHARES
LIMITED COmpany
CHIEF EXECUTIVE : WANG LIMIN (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL :
CNY
319,800,000
staff : 2,550
BUSINESS CATEGORY :
manufacturing & trading
Revenue : CNY 2,153,768,000
(Consolidated, AS OF DEC. 31, 2012)
EQUITIES : cny 404,623,000 (Consolidated, AS OF DEC. 31, 2012)
WEBSITE : www.hfgf.cn
E-MAIL :
xxzx@hfyr.cn
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND :
fairly STEADY
GENERAL REPUTATION : average
EXCHANGE RATE : CNY 6.14 = 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
LEGAL
STATUS & HISTORY
SC was
established as a shares limited company of PRC with State Administration of
Industry & Commerce (SAIC) under registration No.: 370000018037457 on September 3,
1999.
SC’s Organization Code Certificate
No.: 70638595-0
SC’s registered capital: CNY
319,800,000
SC’s paid-in capital: CNY
319,800,000
Registration Change Record:-
|
Date |
Change
of Contents |
Before
the change |
After
the change |
|
-- |
Registration No. |
3700001803745 |
370000018037457 |
|
2012-1 |
Legal Representative |
Du Shuming |
Wang Limin |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) (As
of December 31, 2012) |
% of Shareholding |
|
Shandong Binzhou Printing and Dyeing Group
Co., Ltd. |
20.82 |
|
Huida Asset Trust Co., Ltd. |
7.55 |
|
China Great Wall Asset Management
Corporation |
3.15 |
|
Baker Tilly China Certified Public
Accountants |
2.13 |
|
China Cinda Asset Management Co., Ltd. |
2.11 |
|
Guokai Financial Limited Company |
1.90 |
|
Agricultural Bank of China Co., Ltd. |
0.95 |
|
Zheshang Securities Co., Ltd. Customer
Credit Transaction Guarantee Securities Accounts |
0.87 |
|
Liu Hailong |
0.67 |
|
Huacheng Investment Management Co., Ltd. |
0.59 |
|
Other shareholders |
59.26 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Wang
Limin |
|
Deputy General Manager |
Yan
Yingshan |
|
Li
Fengming |
|
|
Zhao
Yuzhong |
|
|
Chen
Baojun |
|
|
Ju
Liyan |
|
|
Luo
Weixin |
|
|
Liu
Shuichao |
|
|
Sheng
Shouxiang |
rECENT
DEVELOPMENT
SC is a listed company in Shanghai Stock Exchange Market
with the code of 600448.
SHAREHOLDER
CHART & BACKGROUND
Name (As
of December 31, 2012) % of
Shareholding
Shandong Binzhou Printing and Dyeing Group
Co., Ltd. 20.82
Huida Asset Trust Co., Ltd. 7.55
China Great Wall Asset Management
Corporation 3.15
Baker Tilly China Certified Public
Accountants 2.13
China Cinda Asset Management Co., Ltd. 2.11
Guokai Financial Limited Company 1.90
Agricultural Bank of China Co., Ltd. 0.95
Zheshang Securities Co., Ltd.
Customer Credit Transaction Guarantee
Securities Accounts 0.87
Liu Hailong 0.67
Huacheng Investment Management Co., Ltd. 0.59
Other shareholders 59.26
l Shandong Binzhou
Printing and Dyeing Group Co., Ltd.
-------------------------------------------
Registration No.: 371600018004683
l China Great Wall
Asset Management Corporation
--------------------------------------------
Web: www.gwamcc.com
l Baker Tilly China
Certified Public Accountants
---------------------------------------------
Web: www.tzcpa.com
l China Cinda Asset
Management Co., Ltd.
----------------------------------------------
Web: www.cinda.com.cn
l Guokai Financial
Limited Company
-----------------------------------------------
Web: www.cdb-capital.com
l Agricultural Bank
of China Co., Ltd.
-------------------------------------------------
E-mail: 95599@abchina.com
Web: www.abchina.com
Address: No. 69 Jianguomen Nei Avenue, Dongcheng District, Beijing
MANAGEMENT
Wang
Limin, Legal
Representative, Chairman, and General Manager
-----------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 50
Ø Qualification: University
Ø Working experience
(s):
From 2012 to present, working in SC as legal representative,
chairman, and general manager
Deputy
General Manager
---------------------------------
Yan Yingshan
Li Fengming
Zhao Yuzhong
Chen Baojun
Ju Liyan
Luo Weixin
Liu Shuichao
Sheng Shouxiang
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing,
processing and selling cotton, woolen textile, knitting and garments; technology
developing, consulting, service and transferring of new products; selling
electromechanical equipment; import and export business; manufacturing,
processing, selling, importing and exporting cotton, wool spinning, dyeing
& printing products.
SC is mainly engaged in manufacturing and selling textile
products.
SC’s products mainly include:
Home textiles
series
Fabric series
Cotton prints
series
Bedding series
Clothes series
New fiber series
Etc.
SC
sources its materials 80% from domestic market, and 20% from overseas market.
SC sells 20% of its products in domestic market, and 80% to overseas market,
mainly Southeast Asia, etc.
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 Supplier*
--------------------
Shandong Binzhou Printing and Dyeing Group
Co., Ltd.
*Major Clients*
-----------------
Profitlink International Trading Limited
(Hong Kong)
Qingdao Jiamu Textile Co., Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 2,550 staff at present.
SC owns an area as its
operating office and factory, but the detailed information is unknown.
RELATED
COMPANY
Subsidiaries:
----------------
·
Binzhou Huafang Property Co., Ltd.
·
Binzhou Huafang
Property Management Service Co., Ltd.
·
Shanghai Yingnong
Textile Co., Ltd.
·
Binzhou Huafang
Investment Co., Ltd.
·
Binzhou Qicai Network
Technology Co., Ltd.
Etc.
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’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.
BANKING
Basic Bank:
Industrial and
Commercial Bank of China
AC#:
1613003509022153112
FINANCIALS
Consolidated Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
205,292 |
228,917 |
|
|
Accounts
receivable |
89,656 |
97,264 |
|
Notes receivable |
1,831 |
0 |
|
Advances to
suppliers |
84,685 |
82,803 |
|
Other receivable |
37,081 |
25,560 |
|
Inventory |
481,803 |
369,228 |
|
Dividend receivable |
0 |
0 |
|
Non-current
assets due within one year |
0 |
0 |
|
Other current
assets |
20,002 |
26,157 |
|
|
------------------ |
------------------ |
|
Current assets |
920,350 |
829,929 |
|
Fixed assets |
557,751 |
478,044 |
|
Construction in progress |
43,836 |
50,071 |
|
Project
materials |
0 |
0 |
|
Intangible
assets |
65,293 |
28,402 |
|
Long-term
investment |
0 |
0 |
|
Long-term
deferred expense |
0 |
0 |
|
Deferred income
tax assets |
67 |
126 |
|
Other
non-current assets |
8,377 |
8,377 |
|
|
------------------ |
------------------ |
|
Total assets |
1,595,674 |
1,394,949 |
|
|
============= |
============= |
|
Short-term loans |
395,569 |
411,500 |
|
Notes payable |
129,920 |
187,002 |
|
Accounts payable |
249,980 |
216,278 |
|
Wages payable |
4,617 |
2,486 |
|
Taxes payable |
-1,224 |
1,568 |
|
Interest payable |
0 |
0 |
|
Dividend payable |
0 |
0 |
|
Advances from
clients |
157,752 |
65,705 |
|
Other payable |
122,924 |
94,837 |
|
Other current
liabilities |
1,571 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
1,061,109 |
979,376 |
|
Non-current
liabilities |
68,635 |
10,950 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
1,129,744 |
990,326 |
|
Equities |
465,930 |
404,623 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
1,595,674 |
1,394,949 |
|
|
============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Revenue |
2,108,746 |
2,153,768 |
|
Cost of sales |
1,999,053 |
1,977,651 |
|
Taxes and surcharges |
3,965 |
9,990 |
|
Sales expense |
36,054 |
36,815 |
|
Management expense |
49,019 |
52,121 |
|
Finance expense |
30,439 |
38,821 |
|
Assets impairment loss |
2,593 |
11,685 |
|
Investment
income |
0 |
-13,637 |
|
Non-operating
income |
28,942 |
17,135 |
|
Non-operating
expense |
970 |
21,961 |
|
Profit before
tax |
15,593 |
8,222 |
|
Less: profit tax |
40 |
306 |
|
15,553 |
7,916 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
*Current ratio |
0.87 |
0.85 |
|
*Quick ratio |
0.41 |
0.47 |
|
*Liabilities
to assets |
0.71 |
0.71 |
|
*Net profit
margin (%) |
0.74 |
0.37 |
|
*Return on
total assets (%) |
0.97 |
0.57 |
|
*Inventory / Revenue
×365 |
84 days |
63 days |
|
*Accounts
receivable / Revenue ×365 |
16 days |
17 days |
|
*Revenue /
Total assets |
1.32 |
1.54 |
|
*Cost of sales
/ Revenue |
0.95 |
0.92 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC appears fairly good in its line in both
years.
l SC’s net profit
margin is average.
l SC’s return on
total assets is average.
l
SC’s cost of sales is fairly high, comparing with
its revenue.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears large.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’s short-term loans appear large.
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.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with
fairly stable financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.75 |
|
UK Pound |
1 |
Rs.89.91 |
|
Euro |
1 |
Rs.77.43 |
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.