MIRA INFORM REPORT
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Report Date : |
27.05.2013 |
IDENTIFICATION DETAILS
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Name : |
HEBEI HARMONY AMINO ACID CO., LTD. |
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Registered Office : |
Room 23d, East Building, Fuyuan Mansion, No. 260-1, Heping
East Road, Chang’an District, Shijiazhuang City, Hebei Province, 050000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
26.06.2007 |
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Com. Reg. No.: |
130100000116249 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Selling Chemical Products |
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No. of Employees : |
8 |
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
HEBEI HARMONY AMINO ACID CO., LTD.
ROOM 23D, EAST BUILDING, FUYUAN MANSION, NO.
260-1, HEPING EAST ROAD, CHANG’AN DISTRICT, SHIJIAZHUANG CITY, HEBEI PROVINCE,
050000 PR CHINA
TEL: 86 (0)
311-86041110/86046166 FAX: 86(0)
311-86041112
EXECUTIVE SUMMARY
INCORPORATION DATE : JUN. 26, 2007
REGISTRATION NO. : 130100000116249
REGISTERED LEGAL FORM : ONE-PERSON LIMITED LIABILITY COMPANY
STAFF STRENGTH :
8
REGISTERED CAPITAL : CNY 3,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 36,710,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY
4,070,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.1304
= 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
SC was registered as a one-person
limited liability company at local Administration for Industry &
Commerce (AIC - The official body of issuing and renewing business license) on
Jun. 26, 2007.
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 selling chemical products(excluding precursor
chemicals), chemical raw materials (excluding precursor chemicals); import and export
of goods and technologies (with permit if needed).
SC is mainly
engaged in selling chemical products.
Mr. Wu Jingbo has
been legal representative, chairman and general manager of SC since 2007.
SC is known to
have approx. 8 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Shijiazhuang. Our checks reveal that
SC rents the total premise about 150 square meters.
www.aminoacid-chem.com
The website belongs to SC’s related company - Shijiazhuang Shixing Amino Acid
Co., Ltd. The design is professional and the content is well organized. At
present the web site is in both Chinese and English versions.
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
Wu Jingbo 100
l Legal
representative, chairman and general manager:
Mr. Wu Jingbo is currently responsible for the overall
management of SC.
Working Experience(s):
From 2007 to present Working in SC as legal
representative, chairman and general manager.
Also working in Shijiazhuang Shixing
Amino Acid Co., Ltd. as legal representative.
SC is mainly
engaged in selling chemical products.
SC’s products
mainly include: all kinds of amino acid products.
SC sources its materials 100% from domestic
market. SC sells 50% of its products in domestic market and 50% to overseas
market, mainly to Vietnam and Japan.
The buying terms of SC include T/T and Credit of 30-60 days. The payment
terms of SC include T/T, L/C and Credit of 30-60 days.
Major Supplier
===========
Yuanshi Hongsheng Chemical Co., Ltd.
Major Customer
============
Sinochem Ningbo Ltd.
Shijiazhuang Shixing Amino Acid Co., Ltd.
Registration number: 130182000008193
Legal representative: Wu Jingbo
Registered capital: CNY 6,800,000
Legal form: Limited Liabilities Company
Incorporation date: July 7, 1997
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’s supplier
declined to make any commends.
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.
China CITIC Bank
AC#:
7241110182100056021
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
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as
of Dec. 31, 2011 |
as
of Dec. 31, 2012 |
||
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Cash & bank |
330 |
70 |
||
|
3,380 |
3,860 |
|||
|
650 |
100 |
|||
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Advances to
suppliers |
1,770 |
3,600 |
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A receivable tax
rebate of export |
1,730 |
840 |
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Other
receivables |
440 |
270 |
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Other current
assets |
0 |
30 |
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------------------ |
------------------ |
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8,300 |
8,770 |
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Fixed assets net value |
110 |
60 |
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Projects under construction |
0 |
0 |
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Long term investment |
0 |
0 |
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Intangible assets |
130 |
130 |
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Other assets |
30 |
10 |
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------------------ |
------------------ |
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8,570 |
8,970 |
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============= |
============= |
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Short loans |
0 |
0 |
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Notes payable |
0 |
0 |
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Accounts payable |
3,880 |
5,010 |
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Advances from
clients |
1,150 |
1,860 |
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Taxes payable |
-700 |
-1,930 |
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Other payable |
840 |
-40 |
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Welfare expenses
payable |
0 |
0 |
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Other current
liabilities |
0 |
0 |
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------------------ |
------------------ |
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5,170 |
4,900 |
|||
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Long term
liabilities |
0 |
0 |
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------------------ |
------------------ |
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5,170 |
4,900 |
|||
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Equities |
3,400 |
4,070 |
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------------------ |
------------------ |
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Total
liabilities & equities |
8,570 |
8,970 |
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============= |
============= |
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Income Statement
Unit: CNY’000
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As
of Dec. 31, 2012 |
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Turnover |
36,710 |
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Cost of goods sold |
34,470 |
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Taxes and additional of main operation |
10 |
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Sales expense |
820 |
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Management expense |
1,010 |
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Finance expense |
-50 |
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Less: Other operation expense |
20 |
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Profit before tax |
430 |
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Less: profit tax |
110 |
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Profits |
320 |
Important Ratios
=============
|
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as
of Dec. 31, 2011 |
as
of Dec. 31, 2012 |
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*Current ratio |
1.61 |
1.79 |
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*Quick ratio |
0.95 |
1.00 |
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*Liabilities
to assets |
0.60 |
0.55 |
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*Net profit
margin (%) |
- |
0.87 |
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*Return on
total assets (%) |
- |
3.57 |
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*Inventory
/Turnover ×365 |
- |
38days |
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*Accounts
receivable/Turnover ×365 |
- |
1day |
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*Turnover/Total
assets |
- |
4.09 |
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* Cost of
goods sold/Turnover |
- |
0.94 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in 2012.
l
SC’s net profit margin is average in 2012.
l
SC’s return on total assets is average in 2012.
l
SC’s cost of goods sold is fairly high, comparing with
its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in both years.
l
SC’s quick ratio is maintained in a normal level in
both years.
l
The inventory of SC appears average in both years.
l
The accounts receivable of SC appears average in
both years.
l
SC has no short-term loan in both years.
l
SC’s turnover is in a fairly good level in 2012,
comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average in both years.
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 a development history of 6
years.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.61 |
|
|
1 |
Rs.83.98 |
|
Euro |
1 |
Rs.71.94 |
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 |
|
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.