MIRA INFORM REPORT
|
Report Date : |
04.06.2013 |
IDENTIFICATION DETAILS
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Name : |
SHANDONG HENGJI NEW
MATERIALS Co., Ltd. |
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Registered Office : |
South of Chuangye Road, East of Kanghui Road, High-Tech Development Zone,
Feicheng, Taian, Shandong Province,
271600 |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
21.01.2011 |
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Com. Reg. No.: |
370983200010784 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in manufacturing and selling steel products. |
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No. of Employees : |
300 |
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 |
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Insignificant |
A1 |
|
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
SHANDONG HENGJI NEW MATERIALS Co., Ltd.
SOUTH OF CHUANGYE ROAD, EAST OF KANGHUI ROAD,
High-Tech Development Zone, FEICHENG, Taian, shandong PROVINCE, 271600 PR CHINA
TEL: 86 (0) 538-3391077/3391788/3391066
FAX: 86 (0) 538-3391111/3391066
EXECUTIVE SUMMARY
INCORPORATION DATE :
JAN. 21, 2011
REGISTRATION NO. :
370983200010784
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE :
MR. SUN GUOQIANG (CHAIRMAN)
STAFF STRENGTH :
300
REGISTERED CAPITAL : CNY 50,000,000
BUSINESS LINE :
MANUFACTURING & SELLING
TURNOVER :
CNY 94,290,000 (AS OF DECEMBER 31, 2012)
EQUITIES :
CNY 16,090,000 (AS OF DECEMBER 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIR
OPERATIONAL TREND : FAIR
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.13= 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 One-person Limited Liability Company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Jan. 21, 2011, and has been under present
ownership since 2012.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders
contribute its registered capital jointly. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to extent of its total assets. The characteristics of this form
of co. are as follows: Upon
the establishment of the co., an investment certificate is issued to the
each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital for
a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have pre-exemption right to
purchase shares of the co. offered for sale by the other shareholders and
to subscribe for the newly increased registered capital of the co.
SC’s registered business scope includes general freight business.
Manufacturing and selling of new energy-saving, high corrosion resistant
composite steel, selling of steel. (with permit if needed).
SC is mainly engaged in manufacturing and selling steel products.
Mr. Sun Guoqiang is the legal representative, chairman and general
manager of SC.
SC is known to have approx. 300 employees at present.
SC is currently operating at the above stated address, and this address houses
its operating office and factory in the development zone of Feicheng. Our
checks reveal that SC owns the total premise about 133,000 square meters.
http://www.hengji-steel.com/
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
E-mail: sale@hengji-steel.com
Changes of its registered
information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2012 |
Registered capital |
CNY 40,000,000 |
Present amount |
|
Legal representative |
Sun Guowang |
Present one |
|
|
Legal form |
One-person Limited Liability Company |
Present one |
|
|
Shareholders & % of shareholding |
Beijing Dongfang Taiyue Investment Holding Co., Ltd. 100% |
Present one |
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Beijing Dongfang Taiyue Investment Holding Co., Ltd. 70
Sun Guoqiang 30
Beijing Dongfang Taiyue Investment Holding Co., Ltd.
------------------------------------------------------------------
Registration No.: 110108012916357
Legal form: Limited Liabilities Company
Incorporation Date: Jun. 2, 2010
Chairman: Sun Guowang
Registered Capital: CNY 10,000,000
Legal Representative, Chairman and General
Manager:
Mr. Sun Guoqiang is currently responsible for the overall management of
SC.
Working Experience(s):
At present Working in SC as legal representative,
chairman and general manager.
Supervisor:
Xin Xianjun
SC is mainly engaged in manufacturing and selling steel products.
SC’s products mainly include: Galvanized Aluminum, Color-coated Sheet, Finished Galvanized Sheet, etc.
SC sources its materials 100% from domestic market. SC sells 60% of its products in domestic market, and 40% to overseas market.
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.
Note: SC’s management
declined to release its major clients and suppliers.
SC is not known to have any subsidiary at present.
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 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.
SC declined to release its banking details.
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31,
2012 |
|
Cash & bank |
34,290 |
|
Inventory |
23,120 |
|
Accounts receivable |
11,160 |
|
Short-term investment |
0 |
|
Advances to suppliers |
0 |
|
Notes receivable |
190 |
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Other receivables |
5,790 |
|
Prepaid expenses |
0 |
|
|
------------------ |
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Current assets |
74,550 |
|
Fixed assets net value |
23,320 |
|
Long term investment |
0 |
|
Projects under construction |
276,210 |
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Intangible assets |
0 |
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Deferred assets |
0 |
|
|
------------------ |
|
Total assets |
374,080 |
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|
============= |
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Short loans |
14,200 |
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Notes payable |
58,000 |
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Accounts payable |
3,720 |
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Advances from clients |
5,970 |
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Accrued payroll |
840 |
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Welfares payable |
0 |
|
Taxes payable |
-16,150 |
|
Other accounts payable |
250,630 |
|
Other current liabilities |
1,280 |
|
|
------------------ |
|
Current liabilities |
318,490 |
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Long term liabilities |
39,500 |
|
|
------------------ |
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Total liabilities |
357,990 |
|
Equities |
16,090 |
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|
------------------ |
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Total liabilities & equities |
374,080 |
|
|
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2012 |
|
Turnover |
94,290 |
|
Cost of goods sold |
106,100 |
|
Taxes and additional of main operation |
0 |
|
Sales expense |
7,950 |
|
Management expense |
10,880 |
|
Finance expense |
3,250 |
|
Non-operating expense |
20 |
|
Profit before tax |
-33,910 |
|
Less: profit tax |
0 |
|
Profits |
-33,910 |
Important Ratios
=============
|
|
as of Dec. 31,
2012 |
|
*Current ratio |
0.23 |
|
*Quick ratio |
0.16 |
|
*Liabilities to assets |
0.96 |
|
*Net profit margin (%) |
-35.96 |
|
*Return on total assets (%) |
-9.06 |
|
*Inventory /Turnover ×365 |
89 days |
|
*Accounts receivable/Turnover ×365 |
43 days |
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*Turnover/Total assets |
0.25 |
|
* Cost of goods sold/Turnover |
1.13 |
PROFITABILITY:
FAIR
The turnover of SC appears average in its line.
SC’s net profit margin is poor.
SC’s return on total assets is fair.
SC’s cost of goods sold is high, comparing with its turnover.
LIQUIDITY: POOR
The current ratio of SC is poor.
SC’s quick ratio is poor.
SC’s inventory is average in 2012.
SC’s account receivable is average in 2012.
SC’s short loan is fairly large in 2012.
SC’s turnover is in a poor level, comparing with the size of its total
assets.
LEVERAGE: FAIR
The debt ratio of SC is high.
The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Fair
SC is considered medium-sized in its line with fair financial
conditions. The large amount of short loan could be a threat to SC’s financial
conditions. Taking into consideration of SC’s general performance and
development history, we would rate SC as an above average credit risk company.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.56.50 |
|
|
1 |
Rs.86.00 |
|
Euro |
1 |
Rs.73.68 |
INFORMATION DETAILS
|
Report Prepared
by : |
SMN |
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.