MIRA INFORM REPORT
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Report Date : |
14.05.2013 |
IDENTIFICATION DETAILS
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Name : |
HANGZHOU CHUANGYUAN FEATHER CO., LTD. |
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Registered Office : |
No. 2 Sanying Road, Suoqian Industrial Zone, Xiaoshan District
Hangzhou, Zhejiang Province 311203 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
06.12.2000 |
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Com. Reg. No.: |
330100400013637 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
manufacturing and selling feather, down, down products, etc. |
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No. of Employees : |
350 |
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
|
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.
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Source : CIA |
Company Address
Hangzhou
Chuangyuan Feather Co., Ltd.
no. 2 sanying road, suoqian industrial zone,
xiaoshan district
hangzhou, zhejiang province 311203 PR CHINA
TEL: 86 (0) 571-82776910/82777188
FAX: 86 (0) 571-82772520
EXECUTIVE SUMMARY
Date of Registration : december 6, 2000
REGISTRATION NO. : 330100400013637
LEGAL FORM : Chinese-foreign equity joint venture
enterprise
CHIEF EXECUTIVE : fu weidong (LEGAL
REPRESENTATIVE)
REGISTERED CAPITAL :
usd 580,000
staff : 350
BUSINESS CATEGORY :
manufacturing & trading
Revenue : CNY 130,520,000 (AS OF DEC. 31, 2012)
EQUITIES : CNY 14,200,000 (AS OF DEC. 31, 2012)
WEBSITE : www.cyfeather.com
E-MAIL :
jefferyluo@eblan.cn
PAYMENT : AVERAGE
MARKET CONDITION :
average
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND :
ORDINARY
GENERAL REPUTATION : average
EXCHANGE RATE : CNY 6.15 = 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
LEGAL STATUS & HISTORY
***Note: SC’s detailed address should be the
heading one, while the (Miaojia Village, Suoqian Town, Xiaoshan Zone, Hangzhou)
is SC’s registered one.
SC was
established as a Chinese-foreign equity joint venture enterprise of PRC with
State Administration of Industry & Commerce (SAIC) under registration No.: 330100400013637 on December
6, 2000.
SC’s Organization Code Certificate
No.: 72527236-1
SC’s registered capital: USD 580,000
SC’s paid-in capital: USD 580,000
Registration Change Record:-
No significant changes of SC have
been noted in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Shen Haigen |
75 |
|
Zuoluotuo.Yabolu Co., Ltd.
(Russia) (Literal Translation) |
25 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman
and General Manager |
Fu Weidong |
|
Director |
Shen Haigen |
|
Supervisor |
Jin Guotian |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name
%
of Shareholding
Shen Haigen 75
Zuoluotuo.Yabolu Co., Ltd. (Russia) (Literal
Translation) 25
MANAGEMENT
Fu
Weidong, Legal
Representative, Chairman and General Manager
---------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
ID# 330121570107201
Ø
Age: 56
Ø Working experience
(s):
At present, working in SC as legal
representative, chairman and general manager
Shen
Haigen, Director
----------------------------------------
Ø
Gender: M
Ø
ID# 330121630618661
Ø
Age: 50
Jin Guotian, Supervisor
-------------------------------------------
Ø
Gender: M
Ø
ID# 110101550802453
Ø
Age: 58
BUSINESS OPERATION
SC’s registered business scope includes manufacturing
feather, down, down products & clothing, bedding items, and sewing machine
parts; and selling its products.
SC is
mainly engaged in manufacturing and selling feather, down, down products, etc.
SC’s products
mainly include:
Quilt
Wool
blanket
Pillow
Cushion
Feather
Down
Etc.
SC sources its materials 100% from domestic
market. SC sells 60% of its products in domestic market, and 40% to overseas
market, mainly Southeast Asia, etc.
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.
Staff & Office:
--------------------------
SC is
known to have approx. 350 staff
at present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
SC is known to have a
subsidiary at present,
Hangzhou
Chuangxian Textile Co., Ltd.
Registration
No.: 330181000081399
Date
of Registration: June 21, 2005
Legal
Form: Limited Liabilities Company
Registered
Capital: CNY 8,000,000
Legal
Representative: Shen Xuegen
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
Industrial and Commercial Bank of China
AC#: 6222021202008330582
FINANCIALS
Balance Sheet
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Unit: CNY’000 |
As
of Dec. 31, 2012 |
|
23,580 |
|
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Notes receivable |
0 |
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Accounts
receivable |
12,590 |
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Advances to
suppliers |
0 |
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Other receivable |
29,740 |
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Inventory |
15,760 |
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Non-current
assets within one year |
0 |
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Other current
assets |
7,200 |
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------------------ |
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Current assets |
88,870 |
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Fixed assets |
12,100 |
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Construction in
progress |
0 |
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Intangible
assets |
0 |
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Long-term
investment |
1,600 |
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Deferred income
tax assets |
0 |
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Other
non-current assets |
0 |
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------------------ |
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Total assets |
102,570 |
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============= |
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Short-term loans |
0 |
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Notes payable |
0 |
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Accounts payable |
36,510 |
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Welfares payable |
0 |
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Taxes payable |
0 |
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Advances from
clients |
0 |
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Other payable |
24,890 |
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Other current
liabilities |
26,970 |
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------------------ |
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Current
liabilities |
88,370 |
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Non-current
liabilities |
0 |
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------------------ |
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Total
liabilities |
88,370 |
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Equities |
14,200 |
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------------------ |
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Total
liabilities & equities |
102,570 |
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============= |
Income Statement
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Unit: CNY’000 |
As of Dec. 31,
2012 |
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Revenue |
130,520 |
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Cost of sales |
114,100 |
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Sales expense |
8,680 |
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Management expense |
540 |
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Finance expense |
2,570 |
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Profit before
tax |
2,260 |
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Less: profit tax |
560 |
|
1,700 |
Important Ratios
=============
|
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As of Dec. 31, 2012 |
|
*Current ratio |
1.01 |
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*Quick ratio |
0.83 |
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*Liabilities
to assets |
0.86 |
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*Net profit
margin (%) |
1.30 |
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*Return on
total assets (%) |
1.66 |
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*Inventory /
Revenue ×365 |
45 days |
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*Accounts
receivable / Revenue ×365 |
36 days |
|
* Revenue /
Total assets |
1.27 |
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* Cost of
sales / Revenue |
0.87 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l The revenue 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 sales is average, comparing with its revenue.
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 appears average.
l
The accounts receivable of SC appears average.
l
SC has no short-term loans.
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
FAIR
l
The debt ratio of SC is fairly high.
l
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.54.92 |
|
UK Pound |
1 |
Rs.84.44 |
|
Euro |
1 |
Rs.71.32 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
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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.