MIRA
INFORM REPORT
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Report Date : |
07.05.2013 |
IDENTIFICATION DETAILS
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Name : |
HUBEI DRAGONMEN MATTRESS CO., LTD. |
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Registered Office : |
No. 99, Tongwu Street, Panjiawan Town, Jiayu County, Xianning City,
Hubei Province, 437200 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
19.11.2010 |
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Com. Reg. No.: |
422322000007882 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Subject is mainly engaged in manufacturing
and selling mattress. |
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No. of Employees : |
60 |
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 : |
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
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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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 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
HUBEI DRAGONMEN MATTRESS CO., LTD.
NO. 99 TONGWU STREET, PANJIAWAN TOWN, JIAYU COUNTY, XIANNING CITY, HUBEI
PROVINCE, 437200 PR CHINA
TEL: 86 (0) 715-6613788 FAX:
86 (0) 715-6611818
EXECUTIVE SUMMARY
INCORPORATION DATE :
NOV. 19, 2010
REGISTRATION NO. :
422322000007882
REGISTERED LEGAL FORM :
ONE-PERSON LIMITED LIABILITY COMPANY
CHIEF EXECUTIVE :
MR. HU ZHIXIONG (CHAIRMAN)
STAFF STRENGTH :
60
REGISTERED CAPITAL : CNY 8,000,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER :
CNY 9,790,000 (AS OF DEC. 31,
2012)
EQUITIES :
CNY 29,160,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.1728 = 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
Note:
SC’s present address “No. 99 Tongwu Street” was formerly named as “No. 1 Tongwu
Street”.
SC was registered as one-person limited liability company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Nov. 19, 2010.
Company Status: One-person Limited Liability Company Single person LLC refers to a
limited liability company set up by only one natural person or legal person
as the single shareholder of it. The minimum registered capital
of Single person LLC is CNY100,000. The shareholder’s capital contributes,
as set out by the articles of associations should be a lump-sum payment in
full. One natural person can only
invest in and set up one limited liability company, which is not permitted
to invest in and set up a new Single person LLC. As to any one-person limited
liability company, the sole-investor nature of the natural person or legal
person shall be indicated in the registration documents of the company and
shall be indicated in the business license thereof as well. The regulation of Single person
LLC should be set up by the shareholder The regulation of Single person
LLC has no shareholder meeting.
SC’s registered business scope includes manufacturing and selling mattress; 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 mattress.
Mr. Hu Zhixiong is the legal representative and chairman of SC at present.
SC is known to have approx. 60 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 Xianning. SC’s employee refused to release the detailed information of the premise.
SC is not known to host website of its own at present.
No significant events or changes were found during our checks with local
AIC.
For the past two years there is no record of litigation.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Hubei Xiongwei Wood Industry Co., Ltd. 100
Registration no.: 422322000002039
Registered capital: CNY 15,880,000
Legal representative: Hu Lifang
Incorporation date:
Add: No. 99 Tongwu Street, Panjiawan Town, Jiayu County, Xianning City, Hubei
Province, 437200 PR China
Tel: 86 (0) 715-6613788
Fax: 86 (0) 715-6611818
Email: sales@hbxwmy.com
Website: http://www.hbxwmy.com/
l
Legal representative and chairman:
Mr. Hu Zhixiong is currently responsible for the overall management of
SC.
Working Experience(s):
At present Working in SC as chairman and legal
representative.
SC is mainly engaged
in manufacturing and selling mattress.
SC’s products mainly include: mattress.
SC sources its materials 30% from domestic market, and 70% from the
overseas market. SC sells 100% of its products in domestic 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, T/T and Credit of 30-60 days.
Note: SC’s management refused to release its main suppliers and clients.
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
|
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As
of Dec. 31, 2012 |
|
Cash & bank |
6,440 |
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Notes receivable |
0 |
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Accounts
receivable |
630 |
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Advances to
suppliers |
2,000 |
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Other
receivables |
16,810 |
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Inventory |
1,200 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
27,080 |
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Fixed assets net
value |
16,410 |
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Projects under
construction |
0 |
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Intangible
assets |
3,520 |
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Long term
investment |
0 |
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Other assets |
0 |
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------------------ |
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Total assets |
47,010 |
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============= |
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Short loans |
17,950 |
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Notes payable |
0 |
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Accounts payable |
0 |
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Advances from
clients |
0 |
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Accrued payroll |
34 |
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Taxes payable |
-140 |
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Other accounts
payable |
0 |
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Surcharge
payable |
6 |
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Other current
liabilities |
0 |
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------------------ |
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Current
liabilities |
17,850 |
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Long term loans |
0 |
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Other
liabilities |
0 |
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------------------ |
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Total
liabilities |
17,850 |
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Equities |
29,160 |
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------------------ |
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Total
liabilities & equities |
47,010 |
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============= |
Income Statement
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Unit: CNY’000 |
as of Dec. 31,
2012 |
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Turnover |
9,790 |
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Cost of goods sold |
7,890 |
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Taxes and additional of main operation |
10 |
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Sales expense |
0 |
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Management expense |
940 |
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Finance expense |
890 |
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Profit before
tax |
58 |
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Less: profit tax |
0 |
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Profits |
58 |
Important Ratios
=============
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as
of Dec. 31, 2012 |
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*Current ratio |
1.52 |
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*Quick ratio |
1.45 |
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*Liabilities to
assets |
0.38 |
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*Net profit
margin (%) |
0.59 |
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*Return on
total assets (%) |
0.12 |
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*Inventory
/Turnover ×365 |
45 days |
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*Accounts
receivable/Turnover ×365 |
24 days |
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*Turnover/Total
assets |
0.21 |
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* Cost of
goods sold/Turnover |
0.81 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is average, comparing with
its turnover.
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
The inventory of
SC is maintained in an average level.
l
The accounts receivable of SC appears average.
l
SC’s short-term loan appears large in 2012.
l
SC’s turnover is in a fair level, comparing with
the size of its total assets.
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 small-sized in its line with fairly stable financial
conditions. The large amount of short
loans could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.95 |
|
|
1 |
Rs.84.03 |
|
Euro |
1 |
Rs.70.72 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIT |
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 |
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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 |
|
-- |
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.