MIRA INFORM REPORT
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Report Date : |
15.03.2014 |
IDENTIFICATION DETAILS
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Name : |
BEIJING HUIDING LEATHER INDUSTRY CO., LTD. |
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Registered Office : |
No. 35 Yaziqiao Road, Xicheng District, Beijing, 100055 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
01.07.1964 |
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Com. Reg. No.: |
110106002815810 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in manufacturing and sales of leather products |
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No. of Employees : |
65 |
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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Maximum Credit Limit : |
usd 100,000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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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
|
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 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.
|
Source
: CIA |
Company
name and address
Beijing huiding Leather industry
Co., Ltd.
NO. 35 yaziqiao road, xicheng district,
beijing, 100055 PR CHINA
TEL: 86 (0) 10-67624144/67622181/67625393
FAX: 86 (0) 10-67623248
EXECUTIVE
SUMMARY
INCORPORATION DATE : july 1, 1964
REGISTRATION NO. : 110106002815810
REGISTERED LEGAL FORM : Limited liabilities co.
CHIEF EXECUTIVE :
Mr. Li yao (legal
representative)
STAFF STRENGTH :
65
REGISTERED CAPITAL : CNY 10,012,000
BUSINESS LINE :
manufacturing and TRADING
TURNOVER :
CNY 18,120,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 16,280,000 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 100,000
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.1363 = 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
Note: The (No. 3, Songjiazhuang Shunbatiao, Fengtai District,
SC is also known as Beijing Huiding Leather Co., Ltd.
SC was registered as a limited liabilities company at local Administration
for Industry & Commerce (AIC - The official body of issuing and renewing
business license).
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 manufacture of leather clothing,
fur and other leather products; leather business and processing of metal parts.
SC is mainly engaged in manufacturing and sales of leather products.
Mr. Li Yao has been legal representative and chairman of SC since 2012.
SC is known to have approx. 65 employees
at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in Beijing. Detailed premise
information is not available at present.
http://bjhdpy.1688.com/
The design is professional and the content is well organized. At present it is
in Chinese version.
For the past two years there is no record of litigation.
Changes of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
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Company’s name |
Beijing Leather Factory (Literal
translation) |
Present one |
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Legal representative |
Li Gang |
Present one |
Note: SC was restructured on Dec. 27, 2002,
and has been under present legal form since 2002
Subject passed the annual inspection of 2012 with Administration for
Industry & Commerce.
Organization Code: 102165383
MAIN SHAREHOLDERS:
Name Amount
(CNY) % of
Shareholding
Beijing Longda Light Industry Holding Co., Ltd. 8,009,400 80.00
Beijing Handicraft Industry Production
Cooperatives Union (Literal translation) 2,002,600 20.00
Beijing Longda Light Industry Holding Co., Ltd.
===================================
Incorporation Date:
Registration No.: 110000005200027
Registered Legal Form: Sole state-owned enterprise
Registered Capital: CNY 635,319,000
Legal Representative: Li Ding
Website: http://www.elongda.com/
Legal
Representative and Chairman:
Mr. Li Yao is currently responsible for the overall management of SC.
Working
Experience(s):
From 2012 to present Working
in SC as legal representative and chairman.
Vice
Chairman and General Manager:
Mr. Li Tiejing is currently responsible for the daily management of SC.
Working
Experience(s):
At present Working
in SC as vice chairman and general manager.
Also working in Beijing Beige Leather Industry Co., Ltd. as legal
representative.
Directors:
Wang Xiang
Liu Suya
Huo Yongfeng
Rui Lei
Supervisors:
Liu Jianchao
Cao Jihong
SC is mainly engaged in manufacturing and sales of leather products.
SC’s products mainly include: sheep leather, cow leather, raw hides, fur
and other leather products
SC sources its materials 50% from domestic market, and 50% from overseas
market. SC sells 100% of its products in domestic market.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include T/T and Credit of 30-60 days.
Note: SC declined to release its major suppliers and clients.
SC is known to invest in the following companies:
Beijing Beihua Lanbao Geothermal Air Conditioner Manufacturing Co., Ltd.
(In Chinese Pinyin)
====================================================================
Incorporation Date:
Registration No.: 110106003756490
Registered Capital: CNY 1,600,000
Legal Representative: Wang Xiang
Beijing Beige Leather Industry Co., Ltd. (In Chinese Pinyin)
===========================================
Incorporation Date:
Registration No.: 110111005146056
Registered Capital: CNY 8,000,000
Legal Representative: Li Tiejing
Beijing Jinjiyuan Property Management Co., Ltd. (In Chinese Pinyin)
=================================================
Incorporation Date:
Registration No.: 110106001434811
Registered Capital: CNY 500,000
Legal Representative: Xing Baochen
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.
SC’s accountant refused to release the bank details.
Balance
Sheet
Unit: CNY’000
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As
of Dec. 31, 2013 |
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Cash & bank |
6,390 |
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Inventory |
7,710 |
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Accounts receivable |
0 |
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Advances to suppliers |
1,330 |
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Other receivables |
12,830 |
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------------------ |
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Current assets |
28,260 |
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Fixed assets net value |
16,650 |
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Long term investment |
6,550 |
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Deferred tax asset |
350 |
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------------------ |
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Total assets |
51,810 |
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=========== |
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Short loan |
0 |
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Accounts payable |
0 |
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Advances from customers |
340 |
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Taxes payable |
-400 |
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Other accounts payable |
18,090 |
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Current liabilities |
18,030 |
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Long term liabilities |
17,500 |
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Total liabilities |
35,530 |
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Equities |
16,280 |
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Total liabilities & equities |
51,810 |
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Income
Statement
Unit: CNY’000
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As
of Dec. 31, 2013 |
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Turnover |
18,120 |
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Cost of goods sold |
16,610 |
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Taxes and additional of
main operation |
130 |
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Sales expense |
800 |
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Management expense |
2,170 |
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Finance expense |
170 |
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Investment income |
10 |
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Non-operating income |
110 |
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Other operating revenue |
2,200 |
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Other business expense |
350 |
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Profit before tax |
210 |
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Less: profit tax |
50 |
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Profits |
160 |
Important
Ratios
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As
of Dec. 31, 2013 |
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*Current ratio |
1.57 |
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*Quick ratio |
1.14 |
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*Liabilities to assets |
0.69 |
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*Net profit margin (%) |
0.88 |
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*Return on total assets (%) |
0.31 |
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*Inventory /Turnover ×365 |
156 days |
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*Accounts receivable/Turnover ×365 |
/ |
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*Turnover/Total assets |
0.35 |
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* Cost of goods sold/Turnover |
0.92 |
PROFITABILITY:
AVERAGE
·
The turnover of SC appears
average in its line.
·
SC’s net profit margin is average.
·
SC’s return on total assets is average.
·
SC’s cost of goods sold is average.
LIQUIDITY: AVERAGE
·
The current ratio of SC is maintained in a normal
level.
·
SC’s quick ratio is maintained in a normal level.
·
The inventory of SC appears fairly large.
·
SC has no accounts receivable in 2013.
·
SC has no short loans in 2013.
·
SC’s turnover is in a poor 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.
SC is considered small-sized in its line with fairly stable financial
conditions. The large amount of inventory could be a threat to SC’s financial
situation. A credit line up to USD 100,000
would appear to be within SC’s capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.52 |
|
|
1 |
Rs.102.22 |
|
Euro |
1 |
Rs.85.23 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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 |
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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 |
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<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.