MIRA INFORM REPORT
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Report Date : |
04.06.2013 |
IDENTIFICATION DETAILS
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Name : |
HAINING SIGN-MEDIA TRADE CO., LTD. |
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Registered Office : |
Room A-415, No. 1 Fengshou West Road, Haining Warpknitting
Hall Zhejiang Province 314400 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
20.08.2010 |
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Com. Reg. No.: |
330481000083786 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Wholesaling and retailing textiles, textile raw materials, light box cloth, tarpaulin, other warp knitted fabric, warp knitting cloth products, plastic products, leather products, textile machinery parts, chemical products, hardware, lighting and lighting materials |
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No. of Employees : |
12 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 : |
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) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
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 and address
HAINING SIGN-MEDIA TRADE CO., LTD.
ROOM A-415, NO. 1 FENGSHOU WEST ROAD, HAINING WARPKNITTING HALL
ZHEJIANG PROVINCE 314400 PR CHINA
TEL: 86 (0) 571-87671338/87671668
FAX: 86 (0) 571-87671080
EXECUTIVE SUMMARY
Date of Registration : august 20, 2010
REGISTRATION NO. : 330481000083786
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : CNY 10,500,000
staff :
12
BUSINESS CATEGORY : TRADING
Revenue :
CNY 25,709,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 10,433,000 (AS OF DEC. 31, 2012)
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 6.15 = 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.: 330481000083786
on August 20, 2010.
SC’s Organization Code Certificate No.:
56096468-4
SC’s Tax No.: 330481560964684
SC’s registered capital: CNY 10,500,000
SC’s paid-in capital: CNY 10,500,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2012 |
Registered Capital |
CNY 500,000 |
CNY 10,500,000 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Zhejiang Hongtu Warp Knitting New Material
Co., Ltd. |
90 |
|
Chen Yan |
5 |
|
Yang Yulong |
5 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and
General Manager |
Chen Yan |
|
Supervisor |
Yang Yulong |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Zhejiang Hongtu Warp Knitting New Material
Co., Ltd. 90
Chen Yan 5
Yang Yulong 5
l Zhejiang Hongtu
Warp Knitting New Material Co., Ltd.
------------------------------------------------------------------------
Registration No.: 330400400025029
Date of Registration: September 4, 2003
Legal Form: Chinese-foreign equity joint
venture enterprise
Registered Capital: CNY 37,940,000
Legal Representative: Yang Lijuan
Web: www.hongtu-tex.com
E-mail: alexyangyulong@hotmail.com
Address: DongXi Da Dao, Dingqiao Town,
Haining City, Zhejiang Province P.R. China
Tel: +86-573-87671338/87671088
Fax: +86-573-87671080
MANAGEMENT
Chen Yan , Legal Representative, Chairman and General
Manager
----------------------------------------------------------------------------------------------
Ø
Gender: F
Ø
ID# 330419198204220027
Ø
Age: 31
Ø Qualification:
University
Ø Working experience
(s):
At
present, working in SC as legal representative, chairman and general manager
Yang Yulong , Supervisor
--------------------------------------------
Ø
Gender: F
Ø
ID# 42030319780310255X
Ø
Age: 45
Ø Qualification:
University
BUSINESS OPERATION
SC’s
registered business scope includes wholesaling and retailing textiles, textile
raw materials, light box cloth, tarpaulin, other warp knitted fabric, warp
knitting cloth products, plastic products, leather products, textile machinery
parts, chemical products, hardware, lighting and lighting materials; importing
and exporting commodities and technology.
SC is mainly
engaged in international trade.
SC’s products
mainly include:
Warp Knitting
Fabric
Plain Woven Fabric
SC sources its materials 100% from domestic market. SC sells 84% in domestic market and 16% to overseas market, mainly U.S.A., Southeast Asia, etc.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
*Major Client*
-------------------
Duncan Ticking
Inc.
Staff & Office:
--------------------------
SC is known
to have approx. 12 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:
Agricultural
Bank of China Haining Dingqiao Office
AC#:
352201040006908
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
1,969 |
4,255 |
|
|
Notes receivable |
0 |
0 |
|
Accounts
receivable |
1,485 |
2,464 |
|
Advances to
suppliers |
31 |
13 |
|
Other receivable |
-1,511 |
10,037 |
|
Inventory |
0 |
0 |
|
Deferred
expenses |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
1,974 |
16,769 |
|
Fixed assets |
45 |
28 |
|
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 |
|
|
------------------ |
------------------ |
|
Total assets |
2,019 |
16,797 |
|
|
============= |
============= |
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Short-term loans |
0 |
0 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
1,462 |
5,080 |
|
Wages payable |
0 |
0 |
|
Taxes payable |
-15 |
-18 |
|
Advances from
clients |
47 |
301 |
|
Other payable |
7 |
1,001 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Current
liabilities |
1,501 |
6,364 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
1,501 |
6,364 |
|
Equities |
518 |
10,433 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
2,019 |
16,797 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Revenue |
10,246 |
25,709 |
|
Cost of sales |
9,376 |
24,648 |
|
Taxes and surcharges |
0 |
0 |
|
Sales expense |
570 |
849 |
|
Management expense |
148 |
126 |
|
Finance expense |
91 |
155 |
|
Non-operating
income |
0 |
2 |
|
Non-operating expense |
11 |
14 |
|
Profit before
tax |
50 |
-81 |
|
Less: profit tax |
7 |
0 |
|
43 |
-81 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
1.32 |
2.63 |
|
*Quick ratio |
1.32 |
2.63 |
|
*Liabilities
to assets |
0.74 |
0.38 |
|
*Net profit
margin (%) |
0.42 |
-0.32 |
|
*Return on
total assets (%) |
2.13 |
-0.48 |
|
*Inventory /
Revenue ×365 |
-- |
-- |
|
*Accounts
receivable/ Revenue ×365 |
53 days |
35 days |
|
*
Revenue/Total assets |
5.07 |
1.53 |
|
* Cost of
sales / Revenue |
0.92 |
0.96 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
l The revenue of SC
appears average, and it was rising in 2012.
l SC’s net profit
margin is average in 2011, fair in 2012.
l SC’s return on
total assets is average in 2011, fair in 2012.
l
SC’s cost of sales is fairly high, 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
SC has no inventory.
l
The accounts receivable of SC is maintained in an
average level.
l
SC has no short-term loans.
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 above average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered small-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.56.57 |
|
|
1 |
Rs.86.15 |
|
Euro |
1 |
Rs.73.64 |
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.