MIRA INFORM REPORT
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Report Date : |
29.03.2013 |
IDENTIFICATION DETAILS
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Name : |
HANGZHOU XIANGSHENG HIGH STRENGTH FIBER MATERIAL INC. |
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Registered Office : |
Industrial Park, Dangshan Town, Xiaoshan District, Hangzhou, Zhejiang Province, 311245 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
29.12.2006 |
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Com. Reg. No.: |
330100000170768 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and selling ultra-high molecular weight polyethylene fibers. |
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No. of Employees : |
200 |
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 : |
Regular |
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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
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Country Name |
Previous Rating (31.03.2011) |
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 and address
Hangzhou Xiangsheng High Strength Fiber Material INC.
INDUSTRIAL PARK, DANGSHAN TOWN, XIAOSHAN
DISTRICT, HANGZHOU, ZHEJIANG PROVINCE, 311245 PR CHINA
TEL: 86 (0)
571-83788790/82534302 FAX: 86 (0) 571-82521885
EXECUTIVE SUMMARY
INCORPORATION DATE : DEC. 29, 2006
REGISTRATION NO. : 330100000170768
REGISTERED LEGAL FORM : Shares limited co.
STAFF STRENGTH :
200
REGISTERED CAPITAL : CNY 31,914,900
BUSINESS LINE :
MANUFACTURING
TURNOVER :
cny 54,130,000 (unaudited, AS OF dec. 31, 2012)
EQUITIES :
cny 65,180,000 (unaudited, AS OF dec. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.2112 = 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 Ren Min Bi
SC was registered as a Shares limited co. at
local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on Dec. 29, 2006.
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 The minimum registered capital
of a co. is CNY 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 ultra-high molecular weight polyethylene fibers;
selling covering yarn, aramid fibers, carbon fibers, polypropylene fibers,
polypropylene mesh fiber, polyacrylonitrile fibers, specialty fibers, textile
raw materials, machinery and equipment and accessories; importing and exporting
commodities and technology (excluding the items prohibited or limited by the
country, with permit if needed).
SC is mainly
engaged in manufacturing and selling ultra-high molecular weight polyethylene
fibers.
Mr. Shen Baixiang
is legal representative, chairman and general manager of SC at present.
SC is known
to have approx. 200 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Hangzhou. Our checks
reveal that SC rents the total premise, but SC’s accountant refused to release
the gross area.
http://www.xstex.cn/
The website belongs to Xiangsheng Group, and it includes the introduction about
SC and its related companies. The design is professional and the content is
well organized. At present it is in Chinese and English versions.
Changes of its registered information:
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Date of change |
Item |
Before the change |
After the change |
|
2012 |
Registered capital |
CNY 30,000,000 |
Present amount |
SC obtained the certificate of ISO9001:2008, ISO14001:2004 and
GB/28001-2001
SC was awarded “Hi-Tech Enterprise”.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Wang Lijun 6.27
Shen Changsheng 6.27
Shen Jianfeng 0.31
Shen Youli 6.27
Shen Youfen 6.27
Yan Huifang 0.63
Shen Guoxiang 6.27
Shen Jixiang 0.63
Suqian Technology Venture Capital Co., Ltd. (literal translation) 6.00
Feng Ming 0.31
Zhejiang Xiangsheng Group Co., Ltd. 60.15
Wang Baichun 0.31
Zhu Baiqing 0.31
Zhejiang Xiangsheng Group Co., Ltd.
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Registration No.: 330181000157196
Legal representative: Shen Baixiang
Registered capital: CNY 158,000,000
Legal form: Limited liabilities company
Incorporation date: May 14, 2002
Zhejiang Xiangsheng Group is located in
Dangshan Town Industrial area, Xiaoshan District, Hangzhou, Zhejiang. The group
is an integrated and professional one that can product Polyester chips,
polyester filament, high-strength polyethylene fiber and viscose staple
fiber and the group also touches
supporting power generation, import and export trade, logistics, environmental
management, real estate, financial investment as well. The group currently has
15 subsidiaries with more than 4,200 employees; six modern production bases
which cover an area of nearly 7,000 acres, the products are selling quite well
in more than ten provinces in China and more than twenty counties abroad in
Europe, the United States and Asia.
Address: Dangshan Industrial Zone, XiaoShan
District, Hangzhou, China
Tel: +86-571-82534277 /82523888 / 82521678
Fax: +86-0571-82523188
Web: http://www.xstex.cn
l Legal
representative, chairman and general manager:
Mr. Shen Baixiang , ID# 330121196307194737, born in 1963, with
university education. He is currently responsible for the overall management of
SC.
Working Experience(s):
At present Working in SC as legal representative, chairman
and general manager.
Also working in Zhejiang
Xiangsheng Group Co., Ltd., Hangzhou Xiangsheng Import & Export Co., Ltd.,
Hangzhou Xiangsheng Real-Estate Co. Ltd., Hangzhou Xiangsheng Color Polyester
Co., Ltd., Hangzhou Xiaoshan Xiangsheng Jacquard Weave Spinning Co., Ltd.,
Hangzhou Xiangsheng Thermoelectricity Co., Ltd., Hangzhou Xiangsheng Textile
Co., Ltd., Jiangsu Xiangsheng High-Tech Materials Stock Co., Ltd. and Jiangsu
Xiangsheng Fuel Supplies Co., Ltd., etc. as legal representative
l Vice chairman:
Mr. Shen Changsheng is currently responsible for the daily
management of SC.
Working Experience(s):
At present Working
in SC as vice chairman.
l Directors:
Lin Jing
Shen Guoxiang
Shen Youfen
Shen Jixiang
l Supervisor:
Bao Jianfeng
SC is mainly
engaged in manufacturing and selling ultra-high molecular weight polyethylene
fibers.
SC’s products
mainly include: UHMWPE Fiber.
SC sources its
materials 100% from domestic market. SC sells 100% of its products in domestic
market.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T and Credit of 30-60 days.
Note: SC’s management refused to release its
main suppliers and clients.
Hangzhou
Xiangsheng Import & Export Co., Ltd.
Hangzhou
Xiangsheng Textile Co., Ltd.
Hangzhou
Xiangsheng Color Polyester Co., Ltd.
Hangzhou
Xiangsheng Thermoelectricity Co., Ltd.
Hangzhou
Xiaoshan Xiangsheng Jacquard Weave Spinning Co., Ltd.
Hangzhou
Xiangsheng Real-Estate Co. Ltd.
Jiangsu
Xiangsheng Viscose Fiber Stock Co., Ltd.
Jiangsu
Xiangsheng High-Tech Materials Stock Co., Ltd
Jiangsu
Xiangsheng Fuel Supplies Co., Ltd.
Etc.
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’s accountant
refused to release the detailed information of the banking.
Balance Sheet
Unit: CNY’000
Income Statement
Unit: CNY’000
Note: The Financial Report for Year 2012 hasn’t
been audited.
Important Ratios
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As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
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*Current ratio |
1.18 |
0.99 |
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*Quick ratio |
0.78 |
0.52 |
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*Liabilities
to assets |
0.49 |
0.40 |
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*Net profit
margin (%) |
/ |
12.30 |
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*Return on
total assets (%) |
/ |
6.15 |
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*Inventory
/Turnover ×365 |
/ |
137 days |
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*Accounts
receivable/Turnover ×365 |
/ |
26 days |
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*Turnover/Total
assets |
/ |
0.50 |
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* Cost of
goods sold/Turnover |
/ |
0.66 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears average in 2012.
l
SC’s net profit margin is fairly good in 2012.
l
SC’s return on total assets is fairly good in 2012.
l
SC’s cost of goods sold is average, comparing with
its turnover in 2012.
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 fair level in
both years.
l
The inventory of SC appears fairly large in both
years.
l
The accounts receivable of SC appears average in
both years.
l
The short loan of SC appears fairly large in both
years.
l
SC’s turnover is in a fair level, comparing with
the size of its total assets in 2012.
LEVERAGE: AVERAGE
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of inventory
and short loans could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.54.39 |
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1 |
Rs.82.32 |
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Euro |
1 |
Rs.69.54 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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.