MIRA INFORM REPORT
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Report Date : |
29.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
HAINING RURAL CREDIT COOPERATIVES UNION |
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Registered Office : |
No. 225 Haichang Road, Haining, Zhejiang Province 314400 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
23.06.1988 |
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Com. Reg. No.: |
330481000017296 |
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Legal Form : |
Shares Jointly Owned Enterprise |
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Line of Business : |
Subject is
engaged in absorbing public deposits; short-term, medium-term and long-term
loans; domestic settlement; acceptance & discount; acting to issue, cash,
government bond underwriting; sales of government bonds & financial
bonds; inter-bank borrowing; handling receipts & payments and insurance
agents; foreign exchange business, etc. |
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No. of Employees : |
759 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
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 – March 31st 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
|
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 & address
HAINING RURAL CREDIT COOPERATIVES
UNION
no. 225 haichang road, haining, ZHEJIANG
PROVINCE 314400 PR CHINA
TEL: 86 (0) 573-87032144
FAX: 86 (0) 573-87032144
EXECUTIVE SUMMARY
Date of Registration : june 23, 1988
REGISTRATION NO. : 330481000017296
LEGAL FORM : Shares jointly owned enterprise
CHIEF EXECUTIVE : sun weiguo (LEGAL
REPRESENTATIVE)
REGISTERED CAPITAL :
CNY 311,960,800
staff : 759
BUSINESS CATEGORY :
FINANCIAL SERVICE
Revenue : CNY 1,410,635,000 (AS OF DEC. 31, 2012)
EQUITIES : CNY 1,740,580,000 (AS OF DEC. 31, 2012)
WEBSITE : www.zjhnrb.com
E-MAIL :
N/A
PAYMENT : AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : FAIRly steady
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
SC was
established as shares jointly owned enterprise of PRC with
State Administration of Industry & Commerce (SAIC) under registration No.: 330481000017296 on June 23, 1988.
SC’s Organization Code Certificate No.:
14670732-4
SC’s Tax No.: 330481146707324
SC’s registered capital: CNY 311,960,800
SC’s paid-in capital: CNY 311,960,800
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 |
|
Zhang Xiangying and Other 1841
Individuals |
37.63 |
|
Haining Sideli Textile Co., Ltd.
and Other 97 Companies |
22.48 |
|
Haining XinGuangYang Opto
Electronics Co., Ltd. |
0.51 |
|
Zhejiang Zhonghai Construction
Group Co., Ltd. |
0.51 |
|
Haining Lide Real Estate
Development Co., Ltd. |
0.43 |
|
Other Shareholders |
38.44 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Director-General |
Sun
Weiguo |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name
%
of Shareholding
Zhang Xiangying and Other 1841
Individuals 37.63
Haining Sideli Textile Co., Ltd.
and Other 97 Companies 22.48
Haining XinGuangYang Opto
Electronics Co., Ltd. 0.51
Zhejiang Zhonghai Construction
Group Co., Ltd. 0.51
Haining Lide Real Estate Development
Co., Ltd. 0.43
Other Shareholders 38.44
MANAGEMENT
Sun
Weiguo, Legal
Representative and Director-General
-------------------------------------------------------------------------------------
Ø
Gender: M
Ø
ID# 330419197105222815
Ø
Age: 42
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal representative and
director-general
BUSINESS OPERATION
SC’s
registered business scope includes absorbing public deposits; short-term, medium-term
and long-term loans; domestic settlement; acceptance & discount; acting to
issue, cash, government bond underwriting; sales of government bonds &
financial bonds; inter-bank borrowing; handling receipts & payments and
insurance agents; foreign exchange business; and other business approved by
China Banking Regulatory Agencies.
SC is mainly
engaged in absorbing public deposits; short-term, medium-term and long-term
loans; domestic settlement; acceptance & discount; acting to issue, cash,
government bond underwriting; sales of government bonds & financial bonds;
inter-bank borrowing; handling receipts & payments and insurance agents;
foreign exchange business, etc.
SC’s services
mainly include:
Absorbing public
deposits
Short-term,
medium-term and long-term loans
Domestic
settlement
Acceptance &
discount
Etc.
Staff & Office:
--------------------------
SC is
known to have approx. 759 staff
at present.
SC owns an area as
its operating office, but the detailed information is unknown.
RELATED COMPANY
SC is
known to have the following branches,
· Haining Rural Credit Cooperatives Union Xu Village Credit Union Lianhang Branch
· Haining Rural Credit Cooperatives Union South City Credit Union Development Zone Branch
· Haining Rural Credit Cooperatives Union North City Credit Union Taoyuan Branch
· Haining Rural Credit Cooperatives Union Xieqiao Credit Union Luotang Branch
· Haining Rural Credit Cooperatives Union Yanguan Credit Union Guodian Branch
· Haining Rural Credit Cooperatives Union Dingqiao Credit Union Huanggang Branch
· Haining Rural Credit Cooperatives Union Maqiao Credit Union Jinghua Branch
· Haining Rural Credit Cooperatives Union Huangwan Credit Union Jianshan Branch
Etc.
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: Not available.
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:
Bank
of China Haining Sub-branch
AC#:
860014954108023001
CITIC
Bank Haining Sub-branch
AC#:
7333110186400000174
Bank
of Communications Haining Sub-branch
AC#:
296069010018000239619
Agricultural
Bank of China Haining Sub-branch
AC#:
350101040033385
The
People’s Bank of China Haining Sub-branch
AC#:
21800005001
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
156,835 |
159,688 |
|
|
Due from Central Bank |
2,644,170 |
3,573,222 |
|
Due from banks |
2,022,399 |
2,175,437 |
|
Call loan to
banks |
62,000 |
62,000 |
|
Short-term loans |
10,612,624 |
11,951,306 |
|
Account
receivable |
39,131 |
43,690 |
|
Other
receivable |
38,155 |
22,550 |
|
Buying
back the sale of securities |
790,000 |
1,593,500 |
|
Long-term
loans and investment due within one year |
180,000 |
150,000 |
|
Other current
assets |
43,491 |
13,186 |
|
|
------------------ |
------------------ |
|
Current assets |
16,588,805 |
19,744,579 |
|
Medium and
long-term loans |
1,093,272 |
956,292 |
|
Overdue loan |
-471,100 |
-669,896 |
|
Long-term
investment |
1,191,920 |
1,230,380 |
|
Fixed assets |
106,558 |
110,568 |
|
Construction in
progress |
20,618 |
80,585 |
|
Intangible
assets |
37,949 |
36,847 |
|
Deferred assets |
2,671 |
2,934 |
|
Deferred tax
assets |
135,329 |
171,647 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
18,706,022 |
21,663,936 |
|
|
============= |
============= |
|
Short-term
deposit |
1,675,028 |
1,735,733 |
|
Short-term
savings deposit |
2,786,545 |
3,117,011 |
|
Fiscal deposit |
181,553 |
69,419 |
|
Due to banks |
6,194 |
5,025 |
|
Short-term Bond |
8,198 |
4,210 |
|
Drafts and
telegraphic transfers payable |
21,416 |
11,295 |
|
Outward
remittance |
4,442 |
30,328 |
|
Accounts payable |
287,041 |
443,307 |
|
Other payable |
10,803 |
8,148 |
|
Salaries payable |
31,627 |
34,500 |
|
Taxes payable |
105,885 |
111,526 |
|
Profits payable |
19 |
20 |
|
Long-term
liabilities due within one year |
7,977,969 |
9,538,718 |
|
Other current
liabilities |
53 |
32 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
13,096,773 |
15,109,272 |
|
Non-current
liabilities |
4,109,788 |
4,814,084 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
17,206,561 |
19,923,356 |
|
Equities |
1,499,461 |
1,740,580 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
18,706,022 |
21,663,936 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Revenue |
1,183,678 |
1,410,635 |
|
Revenue charges |
763,290 |
981,837 |
|
Taxes and surcharges |
29,923 |
34,695 |
|
Non-operating
income |
3,468 |
545 |
|
Non-operating expense |
8,884 |
9,164 |
|
Profit before
tax |
378,719 |
378,237 |
|
Less: profit tax |
88,066 |
100,634 |
|
290,653 |
277,603 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
1.27 |
1.31 |
|
*Quick ratio |
-- |
-- |
|
*Liabilities
to assets |
0.92 |
0.92 |
|
*Net profit
margin (%) |
24.56 |
19.68 |
|
*Return on
total assets (%) |
1.55 |
1.28 |
|
*Inventory /
Revenue ×365 |
-- |
-- |
|
*Accounts
receivable/ Revenue ×365 |
13 days |
12 days |
|
*Revenue/Total
assets |
0.06 |
0.07 |
|
*Cost of sales
/ Revenue |
-- |
-- |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l The revenue of SC
appears fairly good in its line, and it increased in 2012.
l SC’s net profit
margin is fairly good.
l SC’s return on
total assets is average.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’s revenue is in a fair
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 average.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered medium-sized in its line with fairly good
financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.74 |
|
UK Pound |
1 |
Rs.84.17 |
|
Euro |
1 |
Rs.72.03 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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.