MIRA INFORM REPORT
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Report Date : |
20.06.2014 |
IDENTIFICATION DETAILS
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Name : |
HUBEI DAYA
BIOTECHNOLOGY INC. |
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Registered Office : |
No 109, East Beijing Road, Jingzhou Hubei |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
16.09.2002 |
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Com. Reg. No.: |
421000000008994 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Engaged in
manufacturing and selling food additives, chemical products, biological
bacteria, and paint products as well as importing and exporting commodities
and technology. Subject products ranges include: · Konjac food composite additive · Retention and filtration aid in particle paper · Mixed Congee composite additive · Food-grade hydroxypropyl starch ether |
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No of Employees : |
198
(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 – March 31, 2014
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Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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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 Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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 2013 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 consumption; (b)
facilitating higher-wage job opportunities for the aspiring middle class,
including rural migrants and increasing numbers of college graduates; (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. Debt overhang from its
credit-fueled stimulus program in 2008-10, particularly among local
governments, and soaring property prices challenge policy makers currently.
Their efforts to cool a red-hot property market in 2011 appear to have curbed
inflation, but contributed to slower GDP growth in 2012 and 2013. Slow recovery
in Europe and other key export markets have also retarded growth. 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 fixed investments and exports in the future. However,
China has made only marginal progress toward these rebalancing goals. The new
government of President XI Jinping has signaled a greater willingness to
undertake reforms that focus on China's long-term economic health, including
giving the market a more decisive role in allocating resources.
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Source : CIA |
Company
name & address
Hubei Daya Biotechnology Inc.
no. 1 daya road, Shashi Industrial Park
State-level Economic Development Zone
jingzhou, hubei province 434000 PR CHINA
TEL: 86 (0) 716-4127066
FAX: 86 (0) 716-4127077
***Note: The given address (No 109, East
Beijing Road, Jingzhou Hubei) is the registered one.
EXECUTIVE
SUMMARY
Date
of Registration : september 16,
2002
REGISTRATION
NO. : 421000000008994
LEGAL
FORM : shares limited company
CHIEF EXECUTIVE : xu zhenming (LEGAL
REPRESENTATIVE)
REGISTERED CAPITAL :
cny
30,000,000
staff :
198
BUSINESS CATEGORY :
manufacturing & trading
sales :
CNY 90,180,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 74,330,000 (AS OF DEC. 31, 2013)
WEBSITE : www.hbdaya.cn
E-MAIL : hbdaya@126.com
PAYMENT :
AVERAGE
MARKET CONDITION :
competitive
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
average
EXCHANGE RATE :
CNY 6.21 = 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 a shares
limited company of PRC with State Administration of Industry & Commerce
(SAIC) under registration No.: 421000000008994 on September 16, 2002.
SC’s Organization Code Certificate No.: 74177136-3
SC’s registered capital: CNY 30,000,000
SC’s paid-in capital: CNY 30,000,000
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 |
|
Xu Zhenming |
90 |
|
Wang Yuying |
10 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman
and General Manager |
Xu Zhenming |
|
Supervisor |
Wang Yuying |
RECENT DEVELOPMENT
No recent
development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name
%
of Shareholding
Xu Zhenming 90
Wang Yuying 10
MANAGEMENT
Xu
Zhenming, Legal
Representative, Chairman and General Manager
-----------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø Working experience
(s):
At present, working in SC as legal
representative, chairman and general manager
Wang
Yuying , Supervisor
--------------------------------------------
Ø
Gender: F
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and selling food additives, chemical products,
biological bacteria, and paint products; importing and exporting commodities
and technology.
SC is mainly engaged in manufacturing and selling food additives,
chemical products
SC’s products mainly include:
· Konjac food composite additive
· Retention and filtration aid in particle paper
· Mixed Congee composite additive
· Food-grade hydroxypropyl starch ether
SC sources its materials 100% from domestic market. SC sells 60% of its
products in domestic market, and 40% 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.
Staff & Office:
--------------------------
SC is known to
have approx. 198 staff at
present.
SC owns an area as its operating office and
factory, but the detailed information is unknown.
RELATED COMPANY
SC is not known to have any subsidiary at present.
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
The bank information of SC is not filed in local SAIC.
FINANCIALS
Balance
Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
|
Cash |
5,600 |
360 |
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Notes receivable |
0 |
0 |
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Accounts receivable |
12,320 |
38,470 |
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Advances to suppliers |
0 |
0 |
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Other receivable |
0 |
0 |
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Inventory |
17,640 |
11,670 |
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Prepaid expenses |
0 |
0 |
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Other current assets |
34,580 |
9,540 |
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------------------ |
------------------ |
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Current assets |
70,140 |
60,040 |
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Fixed assets |
8,170 |
112,180 |
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Construction in progress |
26,130 |
140 |
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Intangible assets |
3,710 |
48,920 |
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Long-term prepaid expenses |
0 |
0 |
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Deferred income tax assets |
0 |
0 |
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Other non-current assets |
10,460 |
5,470 |
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------------------ |
------------------ |
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Total assets |
118,610 |
226,750 |
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============= |
============= |
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Short-term loans |
43,000 |
72,000 |
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Notes payable |
0 |
0 |
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Accounts payable |
1,200 |
4,760 |
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Wages payable |
640 |
1,460 |
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Taxes payable |
0 |
0 |
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Advances from clients |
0 |
0 |
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Other payable |
38,940 |
58,120 |
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Accrued expenses |
0 |
0 |
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Other current liabilities |
8,160 |
16,080 |
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------------------ |
------------------ |
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Current liabilities |
91,940 |
152,420 |
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Non-current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total liabilities |
91,940 |
152,420 |
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Equities |
26,670 |
74,330 |
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Total liabilities & equities |
118,610 |
226,750 |
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Income
Statement
|
Unit: CNY’000 |
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
|
Sales |
67,710 |
90,180 |
|
Cost of sales |
44,360 |
51,220 |
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Taxes and surcharges |
340 |
890 |
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Sales expense |
10,400 |
12,410 |
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Management expense |
5,040 |
9,780 |
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Finance expense |
6,480 |
9,280 |
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Investment income |
410 |
0 |
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Non-operating income |
0 |
12,250 |
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Non-operating expense |
270 |
6,640 |
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Profit before tax |
1,220 |
12,200 |
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Less: profit tax |
0 |
0 |
|
Profits |
1,220 |
12,200 |
Important Ratios
=============
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As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
|
*Current ratio |
0.76 |
0.39 |
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*Quick ratio |
0.57 |
0.32 |
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*Liabilities to assets |
0.78 |
0.67 |
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*Net profit margin (%) |
1.80 |
13.53 |
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*Return on total assets (%) |
1.03 |
5.38 |
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*Inventory / Sales ×365 |
96 days |
48 days |
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*Accounts receivable / Sales ×365 |
67 days |
156 days |
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*Sales / Total assets |
0.57 |
0.40 |
|
*Cost of sales / |
0.66 |
0.57 |
FINANCIAL COMMENTS
PROFITABILITY: AVERAGE
l The of SC appears average in its line, and it increased in 2013.
l SC’s net profit margin is average in 2012,
fairly good in 2013.
l SC’s return on total assets is average in
2012, fairly good in 2013.
l
SC’s
cost of sales is average, comparing with its .
LIQUIDITY: FAIR
l
The
current ratio of SC is maintained in a poor level.
l
SC’s
quick ratio is maintained in a fair level.
l
The
inventory of SC appears average.
l
The
accounts receivable of SC appears average.
l
The short-term
loans of SC appear large in 2013.
l
SC’s is in a fair 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.
CONCLUSIONS
SC is
considered medium-sized in its line with fairly stable financial conditions.
The large amount of short-term loans may be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.00 |
|
UK Pound |
1 |
Rs.102.05 |
|
Euro |
1 |
Rs.81.71 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
MNL |
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 |
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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 |
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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 |
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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.