MIRA INFORM REPORT
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Report Date : |
25.01.2014 |
IDENTIFICATION DETAILS
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Name : |
HUAFANG COMPANY LIMITED |
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Registered Office : |
No. 819, |
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Country : |
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Financials (as on) : |
30.09.2013 |
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Date of Incorporation : |
03.09.1999 |
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Com. Reg. No.: |
370000018037457 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Engaged in manufacturing and selling heating power; manufacturing and
selling electric power; fashioning chemical fiber & textiles and dyeing,
manufacturing, processing and selling cotton & fiber products, garments,
costume; purchasing and selling cotton; technological development, consultant
and transfer of new products; selling electromechanical devices; storage;
importing and exporting business; selling coal cinder and coal ash,
manufacturing and selling concrete and fly ash brick (with permit if needed). |
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No. of Employees : |
3,000 (approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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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 – September 30, 2013
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Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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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 & address
HUAFANG COMPANY LIMITED
NO. 819, HUANGHE 2ND ROAD,
BINZHOU,
SHANDONG PROVINCE, 256617 PR CHINA
TEL: 86 (0) 543-3288507 FAX: 86 (0) 543-3288555
EXECUTIVE SUMMARY
INCORPORATION DATE : SEP. 3, 1999
REGISTRATION NO. : 370000018037457
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
CHIEF EXECUTIVE :
MR. WANG LIMIN (CHAIRMAN)
STAFF STRENGTH :
3,000
REGISTERED CAPITAL : CNY 319,800,000
BUSINESS LINE :
MANUFACTURING, PROCESSING & TRADING
TURNOVER :
CNY 1,595,926,000 (CONSOLIDATED, JAN.
1 TO SEP. 30, 2013)
EQUITIES :
CNY 429,467,000 (CONSOLIDATED, AS OF SEP. 30, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : WELL-KNOWN
EXCHANGE RATE :
CNY 6.0515=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 Ren Min Bi
Note: SC’s correct name shall be the heading one instead of the given one (Huagang Company Limited). And the given telephone number (86 0 543-3288255) belongs to Shandong Binzhou Printing and Dyeing Group Co., Ltd.
SC is also known as Huafang Joint Stock Co., Ltd. and Huafang Limited Company.
SC was registered as a shares limited company at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on Sep. 3, 1999.
Company Status: Shares limited co. This form of business in PR
China is defined as a legal person. Its registered capital is divided into
shares of equal par value and the co. raises capital by issuing share
certificates by promotion or by public offer. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its debts
only to the extent of its total assets. The co has independent property of
legal person and enjoys property rights of legal person. The characteristics of the shares limited co. are as
follows: The establishment of the co.
requires at least two promoters and no more than 200, half of whom shall be domiciled
in The minimum registered capital
of a co. is CNY 5M. while that of the co. with foreign investment is CNY
5M. The total capital of a co. which propose to apply for publicly listed
must be no less than CNY 30M. The board of directors must
consist of five to nineteen directors. If the co. raises capital by public
offer, the promoters must not subscribe less than 35% of the total shares.
the promoters’ shares are restricted to transfer- within one year of the
offer. A
state-owned enterprise that is restructured into a shares limited co. must
comply with the conditions & requirements specified under the law &
administrative rule.
SC’s registered business scope includes manufacturing
and selling heating power; manufacturing and selling electric power; fashioning
chemical fiber & textiles and dyeing, manufacturing, processing and selling
cotton & fiber products, garments, costume; purchasing and selling cotton;
technological development, consultant and transfer of new products; selling
electromechanical devices; storage; importing and exporting business; selling
coal cinder and coal ash, manufacturing and selling concrete and fly ash
brick (with permit if needed).
SC is mainly engaged in manufacturing, processing and selling textile products.
Mr. Wang Limin is legal representative, chairman and general manager of SC at present.
SC is known to have approx. 3,000 employees at present.
SC is currently operating at the above stated address, and this address houses its operating office and factory in the industrial zone of Binzhou. Our checks reveal that SC owns the total premise about 150,000 square meters.
http://www.hfgf.cn The design is professional and the content is
well organized. At present it is in both Chinese and English versions.
Email: postmaster@hfgf.cn
SC is a listed company in Shanghai Stock Exchange Market with the code
of 600448.
SC has got ISO 14001 Certificate, etc.
Changes
of its registered information:
|
Date of change |
Item |
Before the
change |
After the change |
|
Unknown |
Registered No. |
3700001803745 |
Present one |
|
2012-1 |
Legal representative |
Du Shuming |
Present one |
Subject passed the annual inspection of 2012 with Administration for Industry & Commerce.
Organization Code: 706385950
See below for SC as executive party (defendant).
|
Executed Party |
SC |
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Court |
Bincheng District People's Court |
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Date
of Case |
2008-10-14 |
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Case Number |
(2008) 00341 |
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Claim
Amount |
RMB 7,000 |
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Case
Status |
Completed |
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Executed Party |
SC |
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Court |
Bincheng District People's Court |
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Date
of Case |
2007-7-13 |
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Case Number |
(2007) 00165 |
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Claim
Amount |
RMB 400 |
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Case
Status |
Completed |
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Executed Party |
SC |
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Court |
Bincheng District People's Court |
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Date
of Case |
2007-7-5 |
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Case Number |
(2007) 00162 |
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Claim
Amount |
RMB 8,000 |
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Case
Status |
Completed |
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Executed Party |
SC |
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Court |
Bincheng District People's Court |
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Date
of Case |
2007-6-7 |
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Case Number |
(2007) 00108 |
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Claim
Amount |
RMB 177,008 |
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Case
Status |
Completed |
Remark: Due to the lack of information, we are unable to provide the cause of
action, judgment or other information.
MAIN SHAREHOLDERS: (As of Sep. 30, 2013)
Name %
of shareholdings
Shandong Binzhou Printing and Dyeing Group
Co., Ltd. 20.82
Huida Asset Trust Co., Ltd. 7.55
Vocation International Certified Public Accountants
Co., Ltd.
(Special
General Partnership) 2.13
China Cinda Asset Management Co., Ltd. 2.11
China Great Wall Asset Management
Corporation 2.1
Neijiang
State-owned Assets Operation & Management Co., Ltd.
Agricultural Bank of China Limited 0.95
Chongqing
Changlong Industry Group Co., Ltd. 0.74
Huacheng Investment Management Co., Ltd. 0.64
Xiong Weihong 0.58
Other shareholders 61.33
Shandong Binzhou Printing and Dyeing Group
Co., Ltd.
========================================
Reg. No.: 371600018004683
Add: No. 819 Huanghe 2nd Road,
Binzhou, Shandong Province
Tel: 86 (0) 543-3288255
Fax: 86 (0) 543-3288555
Legal
representative, Chairman and General Manager:
Mr. Wang Limin, born in 1963 with university education. He is currently responsible for the overall management of SC.
Working
Experience(s):
From Jan., 2012 to present Working in SC as legal representative and chairman
From 2008 to present Working in SC as general manager
Also working in Binzhou Huafang Property Co., Ltd., Shanghai Yingnong Textile Co., Ltd., Binzhou Huafang Investment Co., Ltd., Binzhou Qicai Net Technology Co., Ltd. and Shandong Binzhou Tianhong Thermoelectricity Co., Ltd. as legal representative
Vice general
managers:
Li Fengming
Ju Liyan
Zhao Yuzhong
Yan Yingshan
Liu Shuichao
Etc.
SC
is mainly engaged in manufacturing, processing and selling textile products.
SC’s products mainly include:
Home textiles
series
Fabric series
Cotton prints
series
Bedding series
Clothes series
New fiber series
Import product
SC sources its
materials 80% from domestic market, and 20% from overseas market. SC sells 30%
of its products in domestic market, and 70% to overseas market, mainly
Southeast Asian countries.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
*Major Supplier:
============
Shandong Binzhou Printing and Dyeing Group
Co., Ltd.
*Major Client:
===========
Profitlink International Trading Limited
(Hong Kong)
SC
is known to have the following subsidiaries at present:
Binzhou Huafang Property Co., Ltd.
Binzhou Huafang Property Management Service Co.,
Ltd.
Shanghai Yingnong Textile Co., Ltd.
Binzhou Huafang Investment Co., Ltd.
Binzhou Qicai Net Technology Co., Ltd. (literal
translation)
Shandong Binzhou Tianhong Thermoelectricity Co.,
Ltd. (literal translation)
Shandong Binzhou Tianhong Heating Power Co., Ltd. (literal translation)
Etc.
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 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.
Industrial and
Commercial Bank of China
AC#:
1613003509022153112
Relationship:
Normal.
Consolidated
Balance Sheet
Unit: CNY’000
|
|
As of Sep. 30,
2013 |
As
of Dec. 31, 2012 |
|
Cash & bank |
226,335 |
228,917 |
|
Notes receivable |
0 |
0 |
|
Inventory |
413,819 |
369,228 |
|
Accounts
receivable |
88,324 |
97,264 |
|
Advances to
suppliers |
74,050 |
82,803 |
|
Other accounts
receivable |
37,036 |
25,560 |
|
Other current
assets |
26,075 |
26,157 |
|
|
------------------ |
------------------ |
|
Current assets |
865,639 |
829,929 |
|
Fixed assets net
value |
441,060 |
478,044 |
|
Disposal of
fixed assets |
-164 |
0 |
|
Project under
construction |
83,398 |
50,071 |
|
Long-term
investments |
0 |
0 |
|
Intangible
assets |
29,040 |
28,402 |
|
Other assets |
7,792 |
8,377 |
|
Deferred assets |
126 |
126 |
|
|
------------------ |
------------------ |
|
Total assets |
1,426,891 |
1,394,949 |
|
|
============= |
============= |
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Short loans |
437,541 |
411,500 |
|
Notes payable |
209,500 |
187,002 |
|
Accounts payable |
163,098 |
216,278 |
|
Advances from
clients |
38,628 |
65,705 |
|
Accrued payroll |
2,034 |
2,486 |
|
Taxes payable |
618 |
1,568 |
|
Other accounts
payable |
52,550 |
94,837 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
903,969 |
979,376 |
|
Long term
liabilities |
93,455 |
10,950 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
997,424 |
990,326 |
|
Equities |
429,467 |
404,623 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
1,426,891 |
1,394,949 |
|
|
============= |
============= |
Consolidated
Income Statement
Unit: CNY’000
|
|
Jan. 1 to Sep.
30, 2013 |
As of Dec. 31,
2012 |
|
Turnover |
1,595,926 |
2,153,768 |
|
Cost of goods sold |
1,479,315 |
1,977,651 |
|
Taxes and additional of main operation |
3,649 |
9,990 |
|
Sales expense |
27,166 |
36,815 |
|
Management expense |
39,917 |
52,121 |
|
Finance expense |
34,939 |
38,821 |
|
Investment
income |
36 |
-13,637 |
|
Assets impairment loss |
-787 |
11,685 |
|
Non-operation
income |
2,284 |
17,135 |
|
Non-operation expenses |
117 |
21,961 |
|
Profit before
tax |
13,930 |
8,222 |
|
0 |
307 |
|
|
Profits |
13,930 |
7,915 |
Important
Ratios
=============
|
|
As of Sep. 30,
2013 |
As
of Dec. 31, 2012 |
|
*Current ratio |
0.96 |
0.85 |
|
*Quick ratio |
0.50 |
0.47 |
|
*Liabilities
to assets |
0.70 |
0.71 |
|
*Net profit
margin (%) |
0.87 |
0.37 |
|
*Return on
total assets (%) |
0.98 |
0.57 |
|
*Inventory
/Turnover ×365 |
/ |
63 days |
|
*Accounts
receivable/Turnover ×365 |
/ |
16 days |
|
*Turnover/Total
assets |
1.12 |
1.54 |
|
* Cost of
goods sold/Turnover |
0.93 |
0.92 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears good in its line.
l
SC’s net profit margin appears average.
l
SC’s return on total assets appears average.
l
SC’s cost of goods sold is fairly high, comparing
with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears fairly large.
l
The accounts receivable of SC appears average.
l
The short-term loan of SC appears large.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable
SC is considered large-sized in its line with fairly stable financial
conditions. The large amount of inventory and short-term loan would be a threat
to SC’s financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.18 |
|
UK Pound |
1 |
Rs.103.38 |
|
Euro |
1 |
Rs.85.09 |
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.