MIRA
INFORM REPORT
|
Report Date : |
18.11.2013 |
IDENTIFICATION DETAILS
|
Name : |
HIGH HOPE ZHONGDING CORPORATION |
|
|
|
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Registered Office : |
14th Floor Hongxin Mansion, No. 100 Jianye Road Nanjing, Jiangsu
Province 210004 Pr |
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|
|
|
Country : |
China |
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|
|
Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
15.10.1981 |
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Com. Reg. No.: |
320000000000640 |
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|
Legal Form : |
Shares Limited Company |
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|
|
|
Line of Business : |
Subject is engaged in international trade, investment and management
of its subsidiaries. |
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|
|
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No. of Employees : |
500 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
Payment Behaviour : |
No Complaints |
|
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 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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
HIGH HOPE ZHONGDING CORPORATION
14TH FLOOR HONGXIN MANSION, NO. 100 JIANYE ROAD NANJING, JIANGSU
PROVINCE 210004 PR CHINA
TEL: 86 (0) 25-58006166/84468888
FAX: 86 (0) 25-84209861/84218986
EXECUTIVE SUMMARY
Date of Registration : OCTOBER 15, 1981
REGISTRATION NO. : 320000000000640
LEGAL FORM : SHARES LIMITED
COMPANY
CHIEF EXECUTIVE :
XIE SHAO (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 278,592,600
staff :
500
BUSINESS CATEGORY : TRADE &
INVESTMEnT
REVENUE :
CNY 1,636,304,000 (FROM JAN. 1, 2013 TO JUN. 30, 2013)
EQUITIES :
CNY 822,500,000 (AS OF JUN. 30, 2013)
WEBSITE : www.jslgroup.com
E-MAIL :
jsl@jslgroup.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY GOOD
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : good
EXCHANGE RATE :
CNY 6.10 = 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
Not yet be determined
LEGAL
STATUS & HISTORY
SC was established as a shares
limited company of PRC with State Administration of Industry &
Commerce (SAIC) under registration No.: 320000000000640 on October 15, 1981.
SC’s Organization Code Certificate No.:
13476361-X
SC’s Tax No.: 32010513476361X
SC’s registered capital: CNY 278,592,600
SC’s paid-in capital: CNY 278,592,600
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2002-2 |
Legal Representative |
Yang Yuanfu |
Gu Tianming |
|
2005-11 |
Legal Representative |
Gu Tianming |
Xie Shao |
|
2008-9 |
Registered Capital |
CNY 129,880,000 |
CNY 194,820,000 |
|
2009-7 |
Registered Capital |
CNY 194,820,000 |
CNY 253,266,000 |
|
2010-10 |
Registered Capital |
CNY 253,266,000 |
CNY 278,592,600 |
|
-- |
Chinese Name (English name remains the same) |
|
|
|
Registration No. |
3200001101045 |
320000000000640 |
|
|
Company Name |
Jiangsu Light Industrial Products Import and
Export (Group) Corporation |
High Hope Zhongding Corporation |
|
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Jiangsu Skyrun International Group Co., Ltd. |
74.18 |
|
Changzhou Hongfu Shoes Co., Ltd. |
1.73 |
|
Jiangsu Overseas Group Corporation |
1.39 |
|
Jiangsu Hongchang Printing Co., Ltd. |
1.18 |
|
Jiangsu Hongyu Shoes Co., Ltd. |
0.77 |
|
Jiangsu Dongheng International Group Co., Ltd. |
0.48 |
|
Jiangsu Sainty Corp., Ltd. |
0.45 |
|
Jiangsu Holly Corporation |
0.43 |
|
Jurong Hongbao Toy & Gift Co. Ltd. |
0.24 |
|
Nanjing Leduo Toys Co., Ltd. |
0.19 |
|
Jiangsu Jianglong Industrial Investment Company |
0.18 |
|
Sinotrans Jiangsu Corporation |
0.19 |
|
Yangzhou Jiangsheng Shoes Co., Ltd. |
0.09 |
|
Suqian Shoes Factory |
0.09 |
|
Jiangsu Skyrun Corporation |
0.09 |
|
Jiangsu Baohua Storage & Transport Co., Ltd. |
0.09 |
|
Staff Shares |
18.23 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Xie Shao |
|
General Manager |
Wan Huizhong |
|
Director |
Wang Yi |
|
Teng Xiao |
|
|
Fan Zhongfeng |
|
|
Bi Jinbiao |
|
|
Supervisor |
Yu Hui |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name % of Shareholding
Jiangsu Skyrun International Group Co., Ltd. 74.18
Changzhou Hongfu Shoes Co., Ltd. 1.73
Jiangsu Overseas Group Corporation 1.39
Jiangsu Hongchang Yinwu Co., Ltd. 1.18
Jiangsu Hongyu Shoes Co., Ltd. 0.77
Jiangsu Dongheng International Group Co., Ltd. 0.48
Jiangsu Sainty Corp., Ltd. 0.45
Jiangsu Holly Corporation 0.43
Jurong Hongbao Toy Gift Co. Ltd. 0.24
Nanjing Leduo Toys Co., Ltd. 0.19
Jiangsu Jianglong Industrial Investment Co. 0.18
Sinotrans Jiangsu Corporation 0.19
Yangzhou Jiangsheng Shoes Co., Ltd. 0.09
Suqian Shoes Factory 0.09
Jiangsu Skyrun Corporation 0.09
Jiangsu Baohua Storage & Transport Co., Ltd. 0.09
Staff Shares 18.23
Jiangsu Skyrun International Group Co., Ltd.
------------------------------------
SKYRUN International Group is in the lead in the import and export of
garments, textiles, light industrial products, machinery and electronic
products, animal by-products, etc., in China, it has won a good reputation for
its quality products and professional services in the world market. For many
successive years, SKYRUN has been listed among China’s 500 biggest companies.
SKYRUN owns 14 trading companies, one of which is a listed company, and 50
industrial enterprises, of which, shoes industry, textiles, animal by-products,
toys, etc., have grown into fairly large scales.
MANAGEMENT
Xie Shao, Legal
Representative and Chairman
--------------------------------------------------------------------
Gender: M
Age: 47
ID# 320103196606150510
Qualification: University
Working experience (s):
Before 2005, worked in Jiangsu Skyrun International Group Co., Ltd. as
vice CEO
From 2005 to present, working in SC as legal representative and
chairman
Also working in Jiangsu Skyrun International Group Real Estate Co.,
Ltd., Jiangsu Skyrun Arser Co. Ltd., and Jiangsu Skyrun Construction Co., Ltd.
as legal representative
Wan Huizhong,
General Manager
--------------------------------------------------------
Gender: M
Age: 49
ID# 320114196408070914
Qualification: University
Working experience
(s):
At present, working in SC as general manager
Director
-----------
Wang Yi ID#:
320103196011270513
Teng Xiao ID#:
320103196011010017
Fan Zhongfeng ID#:
320114197303310912
Bi Jinbiao ID#:
340302197207021618
Supervisor
--------------
Yu Hui ID#:
320106196211211621
BUSINESS
OPERATION
SC’s registered business scope includes wholesaling dangerous chemicals
(with permit if needed), wholesaling coal, security investment and industry
investment, self-management and agent all kinds of goods and technology import
and export business, domestic trading, HR training, storage service, selling
fuel oil, fertilizer and steel products, selling non-ferrous metal.
SC is mainly engaged in international trade, investment and management
of its subsidiaries.
The brands of SC mainly include: “Friendly”, “JslToys”, “Tiger”,
“Giraffe”, “Swallow”, “Panda” and “Timon”.
SC’s products mainly include: crafts, T-shirt, toys, stationery and
Stainless steel tableware
SC sources its materials 60% from domestic market, and 40% from Hong
Kong, Europe and U.S.A. SC sells 40% of its products in domestic market, and
60% to overseas market, mainly U.S.A, Europe and Southeast Asia.
The buying terms of SC include T/T, L/C and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Supplier*
--------------------
Jiangsu Skyrun International Group Co., Ltd.
Staff &
Office:
--------------------------
SC is known to have approx. 500
staff at present.
SC owns an area as its operating office, but the detailed information is
unknown.
RELATED
COMPANY
SC is known to
have more than 20 subsidiaries, the following are the major ones:
Jiangsu Jianglong Industry Investment Co., Ltd.
Jiangsu Huatai Securities Co., Ltd.
Jiangsu Hengxin
Real Estate Co., Ltd.
Jiangsu Skyrun International Group Changzhou Friendship Shoes Co., Ltd.
Jilin Guanghua Holding Group Co., Ltd.
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: SC’s suppliers declined to make any
comments.
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 Jiangsu Branch
AC#: N/a
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
As of Jun. 30,
2013 |
|
365,605 |
372,887 |
|
|
Short-term investment |
16,129 |
2,630 |
|
Notes receivable |
50,330 |
44,607 |
|
Accounts receivable |
449,543 |
713,584 |
|
Advances to suppliers |
439 |
393 |
|
Other receivable |
1,540,250 |
1,601,754 |
|
Subsidy receivable |
36,681 |
32,653 |
|
Inventory |
228,057 |
575,608 |
|
Non-current assets within one year |
0 |
0 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
2,687,034 |
3,344,116 |
|
Fixed assets |
96,043 |
93,168 |
|
Available sale
financial assets |
0 |
0 |
|
Long-term receivable |
0 |
0 |
|
Construction in progress |
0 |
0 |
|
Intangible assets |
13,426 |
13,217 |
|
Long-term equity investments |
1,075,676 |
788,593 |
|
Deferred income tax assets |
43,067 |
40,193 |
|
Other non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
3,915,246 |
4,279,287 |
|
|
============= |
============= |
|
Short-term loans |
1,463,605 |
1,309,571 |
|
Notes payable |
247,089 |
256,341 |
|
Accounts payable |
591,185 |
1,091,293 |
|
Accrued payroll |
5,168 |
13,131 |
|
Advances from clients |
402,635 |
151,749 |
|
Interest payable |
0 |
0 |
|
Dividends payable |
12,637 |
8,074 |
|
Taxes payable |
11,017 |
-44,339 |
|
Other payable |
230,863 |
46,402 |
|
Accrued expense |
5,400 |
5,750 |
|
Other current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current liabilities |
2,969,599 |
2,837,972 |
|
Non-current liabilities |
109,748 |
618,815 |
|
|
------------------ |
------------------ |
|
Total liabilities |
3,079,347 |
3,456,787 |
|
Equities |
835,899 |
822,500 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
3,915,246 |
4,279,287 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
From Jan. 1,
2013 to Jun. 30, 2013 |
|
Revenue |
1,636,304 |
|
Cost of sales |
1,555,085 |
|
Taxes and additional of main operations |
2,137 |
|
Sales expense |
55,342 |
|
Management expense |
1,737 |
|
Finance expense |
8,075 |
|
Investment income |
133,418 |
|
Non-operating income |
5,239 |
|
Non-operating expense |
198 |
|
Profit before tax |
120,994 |
|
Less: profit tax |
180 |
|
120,814 |
Important Ratios
=============
|
|
As of Dec. 31,
2012 |
As of Jun. 30,
2013 |
|
*Current ratio |
0.90 |
1.18 |
|
*Quick ratio |
0.83 |
0.98 |
|
*Liabilities to assets |
0.79 |
0.81 |
|
*Net profit margin (%) |
-- |
7.38 |
|
*Return on total assets (%) |
-- |
2.82 |
|
*Inventory / Revenue ×365/180 |
-- |
64 days |
|
*Accounts receivable / Revenue ×365/180 |
-- |
79 days |
|
*Revenue / Total assets |
-- |
0.38 |
|
*Cost of sales / Revenue |
-- |
0.95 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIRLY GOOD
The revenue of SC appears fairly good in its line.
SC’s net profit margin appears fairly good.
SC’s return on total assets appears average.
SC’s cost of sales is fairly high, comparing with its revenue.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a fair level.
SC’s quick ratio is maintained in a normal level.
The inventory of SC appears average.
The accounts receivable of SC appears average.
SC’s short-term loans appear large.
SC’s revenue is in a fair level, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered an old-established business with fairly good financial
conditions. The large amount of short-term loans may be a threat to SC’s
financial condition. Taking into consideration of SC’s development history,
background and operation size
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.06 |
|
|
1 |
Rs.101.15 |
|
Euro |
1 |
Rs.84.95 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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.