MIRA INFORM REPORT

 

 

Report Date :

20.02.2014

 

IDENTIFICATION DETAILS

 

Name :

HANGZHOU XIANGSHENG HIGH STRENGTH FIBER MATERIAL INC.

 

 

Registered Office :

Industrial Park, Dangshan Town, Xiaoshan District, Hangzhou Zhejiang Province 311245 Pr

 

 

Country :

China

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

29.12.2006

 

 

Com. Reg. No.:

330100000170768

 

 

Legal Form :

Shares Limited Company

 

 

Line of Business :

Manufacturing ultra-high molecular weight polyethylene fibers; selling covering yarn, aramid fibers, carbon fibers, polypropylene fibers, polypropylene mesh fiber, polyacrylonitrile fibers, specialty fibers, textile raw materials, machinery and equipment and accessories; importing and exporting commodities and technology

 

 

No. of Employees :

197

 

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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

 

HANGZHOU XIANGSHENG HIGH STRENGTH FIBER MATERIAL INC.

INDUSTRIAL PARK, DANGSHAN TOWN, XIAOSHAN DISTRICT, HANGZHOU

ZHEJIANG PROVINCE 311245 PR CHINA

TEL: 86 (0) 571-83522957/83788790/82534302

FAX: 86 (0) 571-82521885

 

 

EXECUTIVE SUMMARY

 

Date of Registration         : DECEMBER 29, 2006

REGISTRATION NO.                  : 330100000170768

LEGAL FORM                           : Shares limited company

CHIEF EXECUTIVE                   : SHEN BAIXIANG (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL : CNY 31,914,900

staff                                      : 197

BUSINESS CATEGORY : MANUFACTURING

Revenue                                : CNY 54,167,000 (AS OF DEC. 31, 2012)

EQUITIES                                 : CNY 63,920,000 (AS OF DEC. 31, 2012)

WEBSITE                                  : N/A

E-MAIL                                     : N/A

PAYMENT                                : AVERAGE

MARKET CONDITION                : COMPETITIVE

FINANCIAL CONDITION             : fairly stable

OPERATIONAL TREND : FAIRLY STEADY

GENERAL REPUTATION           : AVERAGE

EXCHANGE RATE                    : CNY 6.06 = 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.: 330100000170768 on December 29, 2006.

 

SC’s Organization Code Certificate No.: 79666231-6

SC’s Tax No.: 330181796662316

 

SC’s registered capital: CNY 31,914,900

 

SC’s paid-in capital: CNY 31,914,900

 

Registration Change Record:-

 

Date

Change of Contents

Before the change

After the change

2012

Registered capital

CNY 30,000,000

CNY 31,914,900

 

Current Co search indicates SC’s shareholders & chief executives are as follows:-

 

Name of Shareholder (s)

% of Shareholding

Zhejiang Xiangsheng Group Co., Ltd.

60.15

Suqian Technology Venture Capital Co., Ltd.

6.00

Wang Lijun

6.27

Shen Changsheng

6.27

Shen Youli

6.27

Shen Youfen

6.27

Shen Guoxiang

6.27

Yan Huifang

0.63

Shen Jixiang

0.63

Shen Jianfeng

0.31

Feng Ming

0.31

Wang Baichun

0.31

Zhu Baiqing

0.31

 

SC’s Chief Executives:-

 

Position

Name

Legal Representative, Chairman, and General Manager

Shen Baixiang

Vice Chairman

Shen Changsheng

Director

Lin Jing

Shen Guoxiang

Shen Youfen

Shen Jixiang

Supervisor

Bao Jianfeng

 

RECENT DEVELOPMENT

 

No recent development was found during our checks at present.

 

SHAREHOLDER CHART & BACKGROUND

 

Name                                                              % of Shareholding

 

Zhejiang Xiangsheng Group Co., Ltd.                             60.15

 

Suqian Technology Venture Capital Co., Ltd.                  6.00

 

Wang Lijun                                                                    6.27

 

Shen Changsheng                                                         6.27

 

Shen Youli                                                                    6.27

 

Shen Youfen                                                                 6.27

 

Shen Guoxiang                                                 6.27

 

Yan Huifang                                                                  0.63

 

Shen Jixiang                                                                 0.63

 

Shen Jianfeng                                                               0.31

 

Feng Ming                                                                    0.31

 

Wang Baichun                                                               0.31

 

Zhu Baiqing                                                                  0.31

 

 

Zhejiang Xiangsheng Group Co., Ltd.

=============================

Date of Registration: May 14, 2002

Registration No.: 330181000157196

Legal Form: Limited Liabilities Company

Chief Executive: Shen Baixiang

Registered Capital: CNY 158,000,000

 

Zhejiang Xiangsheng Group is located in Dangshan Town Industrial area, Xiaoshan District, Hangzhou, Zhejiang. The group is an integrated and professional one that can product Polyester chips, polyester filament, high-strength polyethylene fiber and viscose staple fiber  and the group also touches supporting power generation, import and export trade, logistics, environmental management, real estate, financial investment as well. The group currently has 15 subsidiaries with more than 4,200 employees; six modern production bases which cover an area of nearly 7,000 acres, the products are selling quite well in more than ten provinces in China and more than twenty counties abroad in Europe, the United States and Asia.

 

Address: Dangshan Industrial Zone, XiaoShan District, Hangzhou, China

Tel: +86-571-82534277 /82523888 / 82521678

Fax: +86-0571-82523188

Web: www.xstex.cn

 

 

MANAGEMENT

 

Shen Baixiang , Legal Representative, Chairman and General Manager

-------------------------------------------------------------------------------------------------------

Gender: M

Age: 51

ID# 330121196307194737

Qualification: University

Working experience (s):

 

At present, working in SC as legal representative, chairman and general manager

Also working in Zhejiang Xiangsheng Group Co., Ltd., Hangzhou Xiangsheng Import & Export Co., Ltd., Hangzhou Xiangsheng Real-Estate Co. Ltd., Hangzhou Xiangsheng Color Polyester Co., Ltd., Hangzhou Xiaoshan Xiangsheng Jacquard Weave Spinning Co., Ltd., Hangzhou Xiangsheng Thermoelectricity Co., Ltd., Hangzhou Xiangsheng Textile Co., Ltd., Jiangsu Xiangsheng High-Tech Materials Stock Co., Ltd. and Jiangsu Xiangsheng Fuel Supplies Co., Ltd., etc. as legal representative

 

 

Shen Changsheng, Vice Chairman

--------------------------------------------------------

Gender: M

Qualification: University

Working experience (s):

 

At present, working in SC as vice chairman

 

 

Director

-----------

Lin Jing

Shen Guoxiang

Shen Youfen

Shen Jixiang

 

 

Supervisor

--------------

Bao Jianfeng

 

 

 

 

BUSINESS OPERATION

 

SC’s registered business scope includes manufacturing ultra-high molecular weight polyethylene fibers; selling covering yarn, aramid fibers, carbon fibers, polypropylene fibers, polypropylene mesh fiber, polyacrylonitrile fibers, specialty fibers, textile raw materials, machinery and equipment and accessories; importing and exporting commodities and technology (excluding the items prohibited or limited by the country, with permit if needed).

 

SC is mainly engaged in manufacturing and selling ultra-high molecular weight polyethylene fibers.

 

SC’s products mainly include: UHMWPE Fiber.

 

SC sources its materials 100% from domestic market. SC sells 100% of its products in domestic market.

 

The buying terms of SC include Check, T/T and Credit of 30-60 days. The payment terms of SC include T/T and Credit of 30-60 days.

 

Staff & Office:

--------------------------

SC is known to have approx. 197 staff at present.

 

SC owns an area as its operating office & factory of approx. 31,000 sq. meters at the heading address.

 

 

RELATED COMPANY

 

Hangzhou Xiangsheng Import & Export Co., Ltd.

 

Hangzhou Xiangsheng Textile Co., Ltd.

 

Hangzhou Xiangsheng Color Polyester Co., Ltd.

 

Hangzhou Xiangsheng Thermoelectricity Co., Ltd.

 

Hangzhou Xiaoshan Xiangsheng Jacquard Weave Spinning Co., Ltd.

 

Hangzhou Xiangsheng Real-Estate Co. Ltd.

 

Jiangsu Xiangsheng Viscose Fiber Stock Co., Ltd.

 

Jiangsu Xiangsheng High-Tech Materials Stock Co., Ltd

 

Jiangsu Xiangsheng Fuel Supplies 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 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:

 

Hangzhou Xiaoshan Dangshan Cooperative Bank

 

AC#: N/a

 

FINANCIALS

 

Balance Sheet

Unit: CNY’000

As of Dec. 31, 2011

As of Dec. 31, 2012

Cash

16,323

9,207

Notes receivable

480

900

Accounts receivable

4,001

4,034

Advances to suppliers

10,864

4,110

Other receivable

4,628

1,172

Inventory

20,718

19,801

Non-current assets within one year

0

0

Other current assets

14

-979

 

------------------

------------------

Current assets

57,028

38,245

Fixed assets

42,238

69,124

Construction in progress

3,545

55

Intangible assets

0

0

Long-term prepaid expenses

0

0

Deferred income tax assets

282

227

Other non-current assets

9

1,325

 

------------------

------------------

Total assets

103,102

108,976

 

=============

=============

Short-term loans

25,000

35,000

Notes payable

0

0

Accounts payable

4,309

6,380

Wages payable

987

1,297

Taxes payable

294

-204

Advances from clients

132

334

Other payable

21,205

936

Other current liabilities

58

77

 

------------------

------------------

Current liabilities

51,985

43,820

Non-current liabilities

1,392

1,236

 

------------------

------------------

Total liabilities

53,377

45,056

Equities

49,725

63,920

 

------------------

------------------

Total liabilities & equities

103,102

108,976

 

=============

=============

 

Income Statement

Unit: CNY’000

As of Dec. 31, 2011

As of Dec. 31, 2012

Revenue

43,278

54,167

     Cost of sales

26,708

35,972

     Taxes and surcharges

214

139

     Sales expense

519

857

     Management expense

4,811

7,096

     Finance expense

2,411

3,052

Non-business income

1,112

357

     Non-business expenditure

2

42

Profit before tax

9,314

7,581

Less: profit tax

1,151

586

Profits

8,163

6,995

 

Important Ratios

=============

 

As of Dec. 31, 2011

As of Dec. 31, 2012

*Current ratio

1.10

0.87

*Quick ratio

0.70

0.42

*Liabilities to assets

0.52

0.41

*Net profit margin (%)

18.86

12.91

*Return on total assets (%)

7.92

6.42

*Inventory / Revenue ×365

175 days

134 days

*Accounts receivable/ Revenue ×365

34 days

28 days

* Revenue/Total assets

0.42

0.50

* Cost of sales / Revenue

0.62

0.66

 

 

FINANCIAL COMMENTS

 

PROFITABILITY: FAIRLY GOOD

The revenue of SC appears average in its line.

SC’s net profit margin is fairly good in both years.

SC’s return on total assets is fairly good in both years.

SC’s cost of sales is average, comparing with its revenue.

 

LIQUIDITY: FAIR

The current ratio of SC is maintained in a fair level.

SC’s quick ratio is maintained in a fair level.

The inventory of SC appears large.

The accounts receivable of SC is maintained in an average level.

The short-term loans of SC 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 Stable.

 

 

CONCLUSIONS

 

SC is considered medium-sized in its line with fairly stable financial conditions. The large amount of inventory and short-term loans may be a threat to SC’s financial condition.


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.12

UK Pound

1

Rs.103.93

Euro

1

Rs.85.17

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.