MIRA
INFORM REPORT
|
Report Date : |
20.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
SHANGHAI
HONGHAO CHEMICALS CO., LTD. |
|
|
|
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Registered Office : |
Room 1102,
Building C, Zhongronghengrui Mansion No. 560 Zhangyang Road, Pudong New Area,
Shanghai 200122 Pr |
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|
Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
19.07.2006 |
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Com. Reg. No.: |
310115000961045 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in exporting chemical products. |
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No. of Employees : |
10 |
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 : |
Moderate |
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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 – March, 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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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 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
SHANGHAI HONGHAO CHEMICALS CO., LTD.
(TRADE NAME:
FOODING GROUP LIMITED)
ROOM 1102,
BUILDING C, ZHONGRONGHENGRUI MANSION NO. 560 ZHANGYANG ROAD, PUDONG NEW AREA,
SHANGHAI 200122 PR CHINA
TEL: 86 (0)
21-50321522/50321520
FAX: 86 (0)
21-51069122
EXECUTIVE SUMMARY
Date of Registration : JULY 19, 2006
REGISTRATION NO. : 310115000961045
LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE :
LI FENG (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : cny 1,000,000
staff :
10
BUSINESS CATEGORY : trading
Revenue :
CNY 29,262,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 2,529,000 (AS OF DEC. 31, 2012)
WEBSITE : www.foodchem.com
E-MAIL :
info@Foodchem.com
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : ORDINARY
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
Not yet be determined
LEGAL
STATUS & HISTORY
***Note: SC’s name
should be the above stated one, Fooding group Limited (the given name) is SC’s
related company registered in Hong Kong, and however, SC always uses this name
as its trade name.
SC was established as a limited liabilities company of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.:
310115000961045 on July 19, 2006.
SC’s Organization Code Certificate No.:
79145080-8
SC’s Tax No.: 310115791450808
SC’s registered capital: cny 1,000,000
SC’s paid-in capital: cny 1,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Registered No. |
3101152027485 |
310115000961045 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Li Feng |
80 |
|
Chen Aijun |
20 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Li Feng |
|
Supervisor |
Chen Aijun |
RECENT
DEVELOPMENT
SC has got the certificate ISO9001.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Li Feng 80
Chen Aijun 20
MANAGEMENT
Li Feng, Legal
Representative, Chairman and General Manager
--------------------------------------------------------------------------------------------
Gender: M
Age:
Qualification: University
Working experience (s):
From 2006 to present, working in SC as legal representative, chairman
and general manager
Supervisor
---------------
Chen Aijun
BUSINESS
OPERATION
SC’s registered business scope includes selling chemical products and
raw materials (excluding dangerous products), hardware, building materials,
household appliances, textiles, daily necessities, rubber products, plastic
products, computers and accessories, electronic products, telecommunications equipment,
wood and wood products; import and export of goods and technology; “four core
services” within the field of computer science technology; business advisory,
investment advisory (except brokers); cargo agent (with permit if needed).
SC is mainly engaged in exporting chemical products.
SC’s products mainly include:
Thickeners
Sweeteners
Vitamins
Preservatives
Antioxidants
Wheat series
Soybean series
Acidity regulators
Flavorings
Nutrition enhancers
Phosphate
Emulsifier
Dietary
SC sources its materials 100% from domestic market. SC sells 100% of its
products 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.
*Major Customers:
==============
Constant America Inc.
Raw Deal Inc.
Staff &
Office:
--------------------------
SC is known to have approx. 10
staff at present.
SC rents an area as its operating office of approx. 200 sq. meters at
the heading address.
RELATED
COMPANY
Fooding Group Limited (Hong Kong)
---------------------------------------------
Date of Registration: December 9, 2006
CR No.: 1094094
Legal Form: Private
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:
Bank of China Shanghai Pudong Branch
AC#: 446859216711
China Minsheng Banking Corp., Ltd. Shanghai Dongfang Road Sub-branch
AC#: 0230014170000660
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
536 |
2,560 |
4,854 |
|
|
Accounts receivable |
0 |
0 |
0 |
|
Advances to suppliers |
1,426 |
2,570 |
5,051 |
|
Other receivable |
71 |
70 |
62 |
|
Inventory |
1,241 |
1,310 |
5,244 |
|
Non-current assets within one year |
0 |
0 |
0 |
|
Other current assets |
201 |
130 |
133 |
|
|
------------------ |
------------------ |
------------------ |
|
Current assets |
3,475 |
6,640 |
15,344 |
|
Fixed assets |
21 |
10 |
4 |
|
Construction in progress |
0 |
0 |
0 |
|
Long-term prepaid expenses |
0 |
0 |
0 |
|
Deferred income tax assets |
0 |
0 |
0 |
|
Other non-current assets |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Total assets |
3,496 |
6,650 |
15,348 |
|
|
============= |
============= |
============= |
|
Short-term loans |
0 |
0 |
0 |
|
Notes payable |
0 |
0 |
0 |
|
Accounts payable |
0 |
0 |
0 |
|
Taxes payable |
208 |
-220 |
-406 |
|
Advances from clients |
1,686 |
2,960 |
3,724 |
|
Other payable |
2,514 |
6,490 |
9,351 |
|
Other current liabilities |
583 |
0 |
150 |
|
|
------------------ |
------------------ |
------------------ |
|
Current liabilities |
4,991 |
9,230 |
12,819 |
|
Non-current liabilities |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities |
4,991 |
9,230 |
12,819 |
|
Equities |
-1,495 |
-2,580 |
2,529 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities & equities |
3,496 |
6,650 |
15,348 |
|
|
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2010 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Revenue |
9,812 |
19,210 |
29,262 |
|
Cost of sales |
8,908 |
17,160 |
25,458 |
|
Taxes and surcharges |
0 |
0 |
0 |
|
Sales expense |
1,278 |
1,780 |
1,835 |
|
Management expense |
778 |
1,300 |
962 |
|
Finance expense |
25 |
50 |
6 |
|
Profit before tax |
-1,178 |
-1,080 |
1,001 |
|
Less: profit tax |
0 |
0 |
0 |
|
-1,178 |
-1,080 |
1,001 |
Important Ratios
=============
|
|
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
*Current ratio |
0.70 |
0.72 |
1.20 |
|
*Quick ratio |
0.45 |
0.58 |
0.79 |
|
*Liabilities to assets |
1.43 |
1.39 |
0.84 |
|
*Net profit margin (%) |
-12.01 |
-5.62 |
3.42 |
|
*Return on total assets (%) |
-33.70 |
-16.24 |
6.52 |
|
*Inventory / Revenue ×365 |
47 days |
25 days |
66 days |
|
*Accounts receivable/ Revenue ×365 |
-- |
-- |
-- |
|
* Revenue/Total assets |
2.81 |
2.89 |
1.91 |
|
* Cost of sales / Revenue |
0.91 |
0.89 |
0.87 |
FINANCIAL
COMMENTS
PROFITABILITY: AVERAGE
The revenue of SC appears average, it was rising in 2012.
SC’s net profit margin is average in 2012.
SC’s return on total assets is fairly good in 2012.
SC’s cost of goods sold is average, comparing with its revenue.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level in 2012.
SC’s quick ratio is maintained in a normal level in 2012.
The inventory of SC is maintained in an average level.
SC has no accounts receivable in three years.
SC has no short-term loans in three years.
SC’s revenue is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average in 2012.
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.58.74 |
|
|
1 |
Rs.91.99 |
|
Euro |
1 |
Rs.78.70 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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.