MIRA INFORM REPORT
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Report Date : |
30.03.2013 |
IDENTIFICATION DETAILS
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Name : |
HANGZHOU JMART FOODS CO., LTD. |
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Registered Office : |
Hongshan Farm, Xiaoshan District,
Hangzhou City, Zhejiang Province, 311234 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
24.05.2002 |
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Com. Reg. No.: |
330181000015077 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Subject engaged in processing and selling food |
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No. of Employees : |
150 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 : |
Usually Correct |
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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 (31.03.2012) |
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.
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Source : CIA |
Company name & address
HANGZHOU JMART FOODS CO., LTD.
HONGSHAN FARM, XIAOSHAN
DISTRICT, HANGZHOU CITY,
ZHEJIANG PROVINCE, 311234 PR
CHINA
TEL: 86 (0) 571-82609399/82609810 FAX: 86 (0) 571-82609977
EXECUTIVE SUMMARY
INCORPORATION DATE :
MAY 24, 2002
REGISTRATION NO. :
330181000015077
REGISTERED LEGAL FORM :
LIMITED LIABILITIES CO.
STAFF STRENGTH : 150
REGISTERED CAPITAL : CNY 10,000,000
BUSINESS LINE :
PROCESSING AND TRADING
TURNOVER :
CNY 65,990,000 (UNaudited, AS OF DEC. 31, 2012)
EQUITIES :
CNY -3,560,000 (UNaudited, AS OF
DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIR
OPERATIONAL TREND :
FAIR
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE : CNY 6.21=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 limited liabilities co. at local
Administration for Industry & Commerce (AIC-The official body of issuing
and renewing business license) on May 24, 2002.
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 processing and
selling frozen vegetables, fresh vegetables, dried vegetables, frozen aquatic
products (shrimp), freeze-dried aquatic products (squid, shrimp), frozen rice
food, smoked meat products; exporting self-made products and technology,
importing self-needed machinery and equipment, spare parts, raw and auxiliary
materials, excluding the goods and technology prohibited or limited by the
country.
SC
is mainly engaged in processing and selling food.
Mr.
Zhu Wenjun is the legal representative
and chairman of SC at present.
SC is known
to have approx. 150 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. SC’s
management declined to release the detailed information of the premise.
http://www.jmart.com.cn/ It can’t
be landed for technical reasons at present.
No significant events or changes were found during our checks with the
local AIC.
MAIN SHAREHOLDERS:
Name %
of shareholdings
Zhu Wenjun
60
Qian Xiuzhen 40
l Legal
Representative and Chairman:
Mr. Zhu Wenjun is currently responsible for the overall management of
SC.
Working Experience(s):
At present Working in SC as legal representative
and chairman
SC
is mainly engaged in processing and selling food.
SC’s products
mainly include: frozen fruits and vegetables, strawberry, blackberry, mulberry,
peach dice, apricot dice, cauliflower, broccoli, pea pods, sugar snap peas, green
beans, green peppers, asparagus, etc.
SC sources its
materials 70% from domestic market, and 30% from overseas markets. SC sells 20%
of its products in domestic market, and 80% to overseas market.
The buying terms of SC include Check, L/C, T/T and Credit of 30-60 days.
The payment terms of SC include Check, L/C, T/T and Credit of 30-60 days.
Note: SC’s management declined to release
its customer and supplier details.
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’s management
declined to release its bank details.
Balance Sheet
Unit: CNY’000
|
|
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Cash & bank |
3,020 |
5,350 |
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Inventory |
42,460 |
44,170 |
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Accounts
receivable |
9,310 |
6,350 |
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Advances to
suppliers |
0 |
0 |
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Other accounts
receivable |
970 |
320 |
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Other current
assets |
70 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
55,830 |
56,190 |
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Fixed assets net
value |
51,650 |
51,470 |
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Project under
construction |
3,940 |
3,940 |
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Intangible
assets |
7,050 |
7,050 |
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Other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
118,470 |
118,650 |
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============= |
============= |
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Short loans |
51,420 |
52,940 |
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Accounts payable |
8,580 |
17,190 |
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Advances from
clients |
0 |
0 |
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Notes payable |
1,090 |
6,340 |
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Accrued payroll |
0 |
0 |
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Taxes payable |
-2,160 |
-1,410 |
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Other accounts
payable |
31,740 |
21,740 |
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Other current
liabilities |
770 |
410 |
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------------------ |
------------------ |
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Current
liabilities |
91,440 |
97,210 |
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Long-term
liabilities |
25,000 |
25,000 |
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------------------ |
------------------ |
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Total
liabilities |
116,440 |
122,210 |
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Equities |
2,030 |
-3,560 |
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|
------------------ |
------------------ |
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Total
liabilities & equities |
118,470 |
118,650 |
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============= |
============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31,
2012 |
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Turnover |
65,990 |
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Cost of goods sold |
61,520 |
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Taxes and additional of main
operation |
80 |
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Sales expense |
1,690 |
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Management expense |
4,180 |
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Finance expense |
7,600 |
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Non-operating
income |
4,030 |
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Non-operating
expense |
610 |
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Profit before
tax |
-5,590 |
|
0 |
|
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Profits |
-5,590 |
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 |
0.61 |
0.58 |
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*Quick ratio |
0.15 |
0.12 |
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*Liabilities
to assets |
0.98 |
1.03 |
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*Net profit
margin (%) |
/ |
-8.47 |
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*Return on
total assets (%) |
/ |
-4.71 |
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*Inventory
/Turnover ×365 |
/ |
245 days |
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*Accounts
receivable/Turnover ×365 |
/ |
36 days |
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*Turnover/Total
assets |
/ |
0.56 |
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* Cost of
goods sold/Turnover |
/ |
0.93 |
PROFITABILITY: FAIR
The turnover of SC appears average in its
line in 2012.
l
SC’s net profit margin is
fair in 2012.
l SC’s return on total assets is fair in 2012.
l SC’s cost of goods sold is fairly high in 2012, comparing with its
turnover.
LIQUIDITY: FAIR
l The current ratio
of SC is maintained in a fair level in both years.
l SC’s quick ratio
is maintained in a poor level in both years.
l The inventory of
SC appears large in both years.
l The accounts
receivable of SC appears average in both years.
l
The short-term loan of SC appears large in both
years.
l SC’s turnover is
in a fair level in 2012, comparing with the size of its total assets.
LEVERAGE: POOR
l The debt ratio of
SC is high in 2011, but too high in 2012.
l 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 inventory and short-term loan could be a threat
to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian
Rupees |
|
US Dollar |
1 |
Rs.54.38 |
|
UK Pound |
1 |
Rs.82.32 |
|
Euro |
1 |
Rs.69.54 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
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 |
|
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 |
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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 |
|
-- |
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.