MIRA INFORM REPORT
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Report Date : |
02.10.2013 |
IDENTIFICATION DETAILS
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Name : |
BEIJING HESHENGDA
INFORMATION SECURITY TECHNOLOGY CO., LTD. |
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Registered Office : |
Room 9a07, Changyin Building, No. 88, Yongding Road, Haidian District,
Beijing, 100039 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
05.01.2004 |
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Com. Reg. No.: |
110108006380411 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in researching and developing information
destruction technologies, and selling destruction equipment. |
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No. of Employees : |
30 |
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.
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Source
: CIA |
Company name and address
BEIJING HESHENGDA INFORMATION SECURITY
TECHNOLOGY CO., LTD.
ROOM
TEL: 86 (0) 10-58895978/ 58895850 FAX:
86 (0) 10-58895978
EXECUTIVE SUMMARY
INCORPORATION DATE : JAN. 5, 2004
REGISTRATION NO. : 110108006380411
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE :
MR. ZHAO LONG (CHAIRMAN)
STAFF STRENGTH :
30
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE :
researching, developing and TRADING
TURNOVER :
CNY 21,970,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 11,060,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.119 = 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 limited liabilities company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Jan. 5, 2004.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders contribute its registered
capital jointly. Shareholders bear limited liability to the extent of
shareholding, and the co. is liable for its debts only to extent of its
total assets. The characteristics of this form of co. are as follows: Upon
the establishment of the co., an investment certificate is issued to the
each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s registered business scope includes technology development,
technology transfer, technical consulting, technology services; computer
technology training; infrastructure software services; application software services;
computer systems services; data processing; computer maintenance; selling
computers, software and ancillary equipment, electronic products, machinery and
equipment, communications equipment, hardware, electrical, chemical products
(excluding dangerous chemicals and a precursor chemicals), stationery, sports
goods, daily necessities; importing and exporting goods and technologies;
import and export agent. (excluding the items not obtained permit) Intellectual
property investment is CNY 3,500,000.
SC is mainly engaged in researching and developing information
destruction technologies, and selling destruction equipment.
Mr. Zhao Long is legal representative, chairman and general manager of
SC at present.
SC is known to have approx. 30 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the commercial zone of Beijing. Our checks
reveal that SC rents the total premise, but SC’s accountant refused to release
the gross area.
http://www.heshengda.com
The design is professional and the content is well organized. At present it is
in Chinese and English versions.
E-mail: mkt@hsd-international.com
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
Honors:
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhao Long 92
Gao Lihong 8
Legal representative, chairman and general manager:
Mr. Zhao Long is currently responsible for the overall management of SC.
Working
Experience(s):
At present Working in SC as
chairman, legal representative and general manager.
Supervisor:
Yuan Shulan
SC is mainly engaged in researching and developing information
destruction technologies, and selling destruction equipment.
Main Products:
>> Shredder & Destroyer
>> Degausser
>> HDD Destroyer
>> Multi-function disintegrator
>> Eco-friendly Incinerator
>> Data Eraser
SC sources its materials 100% from domestic market. SC sells 90% of its
products in domestic market, and 10% to overseas market.
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.
Note: SC’s
management refused to release its main clients and suppliers.
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.
Industrial and Commercial Bank of China Beijing Huanglou Sub-branch
AC#：N/A
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 |
9,620 |
6,500 |
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Inventory |
4,830 |
4,480 |
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Accounts receivable |
1,020 |
2,160 |
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Advances to suppliers |
140 |
310 |
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Prepaid expenses |
30 |
0 |
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Other receivables |
260 |
510 |
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Other current assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
15,900 |
13,960 |
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Long-term investments |
0 |
7,000 |
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Fixed assets net value |
420 |
560 |
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Projects under construction |
0 |
0 |
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Intangible assets |
2,330 |
2,030 |
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Other assets |
0 |
0 |
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------------------ |
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Total assets |
18,650 |
23,550 |
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============= |
============= |
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Short loans |
0 |
0 |
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Accounts payable |
5,380 |
6,570 |
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Advances from customers |
/ |
2,510 |
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Accrued payroll |
/ |
/ |
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Welfare payable |
/ |
/ |
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Taxes payable |
/ |
/ |
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Other accounts payable |
/ |
/ |
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Other current liabilities |
/ |
/ |
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----------------- |
----------------- |
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Current liabilities |
7,130 |
11,940 |
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Long term liabilities |
550 |
550 |
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------------------ |
------------------ |
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Total liabilities |
7,680 |
12,490 |
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Shareholders equities |
10,970 |
11,060 |
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------------------ |
------------------ |
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Total liabilities & equities |
18,650 |
23,550 |
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============= |
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Note: SC’s
accountant refused to release its detailed balance sheet.
Income Statement
Unit: CNY’000
|
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as of Dec. 31, 2011 |
as of Dec. 31, 2012 |
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Turnover |
22,120 |
21,970 |
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Cost of goods sold |
15,580 |
14,740 |
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Taxes and additional of main operation |
60 |
180 |
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Sales expense |
1,270 |
2,600 |
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Management expense |
5,230 |
4,390 |
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Finance expense |
-30 |
-40 |
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Non-operating income |
70 |
0 |
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Non-operating expense |
0 |
0 |
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Profit before tax |
44,300 |
43,840 |
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Less: profit tax |
20 |
10 |
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Net profit |
60 |
90 |
Important Ratios
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as of Dec. 31,
2011 |
as of Dec. 31,
2012 |
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*Current ratio |
2.23 |
1.17 |
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*Quick ratio |
1.55 |
0.79 |
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*Liabilities to assets |
0.41 |
0.53 |
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*Net profit margin (%) |
0.27 |
0.41 |
|
*Return on total assets (%) |
0.32 |
0.38 |
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*Inventory /Turnover ×365 |
80 days |
75 days |
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*Accounts receivable/Turnover ×365 |
17 days |
36 days |
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*Turnover/Total assets |
1.19 |
0.93 |
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* Cost of goods sold/Turnover |
0.70 |
0.67 |
PROFITABILITY:
AVERAGE
The turnover of SC appears average in its line in both years.
SC’s net profit margin is average in both years.
SC’s return on total assets is average in both years.
SC’s cost of goods sold is average in both years, comparing with its
turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level in both years.
SC’s quick ratio is maintained in a normal level in both years.
The inventory of SC appears average in both years.
The accounts payable of SC appears average in both years.
SC has no short-term loan in 2011 and 2012.
SC’s turnover is in an average level in 2011 but fair in 2012, comparing
with the size of its total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is low in 2011 but average in 2012.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
SC is considered medium-sized in its line with stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.35 |
|
|
1 |
Rs.101.20 |
|
Euro |
1 |
Rs.84.54 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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 |
|
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 |
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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.