MIRA INFORM REPORT
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Report Date : |
20.03.2014 |
IDENTIFICATION DETAILS
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Name : |
BEIJING HUIDING LEATHER INDUSTRY CO., LTD. |
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Formerly Known As : |
Beijing Leather
Factory (Literal translation) |
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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 : |
engaged in manufacturing of leather clothing, fur and
other leather products; leather business and processing of metal parts. Subject products
ranges includes sheep leather, cow leather, raw hides, fur and other leather
products |
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No. of Employees |
65 (approximately) |
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 – december 01, 2013
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Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
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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 & 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, Beijing, 100078 PR) is SC’s registered address and previous address.
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 |
|
2002-12-27 |
Company’s name |
Beijing Leather Factory (Literal
translation) |
Present one |
|
2012-12-10 |
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: 1997-12-05
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: 2002-04-16
Registration No.: 110106003756490
Registered Capital: CNY 1,600,000
Legal Representative: Wang Xiang
Beijing
Beige Leather Industry Co., Ltd. (In Chinese Pinyin)
===========================================
Incorporation Date: 1999-01-08
Registration No.: 110111005146056
Registered Capital: CNY 8,000,000
Legal Representative: Li Tiejing
Beijing
Jinjiyuan Property Management Co., Ltd. (In Chinese Pinyin)
=================================================
Incorporation Date: 2000-06-30
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 |
|
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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------------------ |
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Total
liabilities |
35,530 |
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Equities |
16,280 |
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------------------ |
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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
=============
|
|
As
of Dec. 31, 2013 |
|
*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
l The turnover of SC appears average in its line.
l SC’s net profit
margin is average.
l SC’s return on
total assets is average.
l
SC’s cost of goods sold is average.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears fairly large.
l
SC has no accounts receivable in 2013.
l
SC has no short loans in 2013.
l
SC’s turnover is in a poor 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 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.61.09 |
|
UK Pound |
1 |
Rs.101.41 |
|
Euro |
1 |
Rs.85.08 |
INFORMATION DETAILS
|
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 |
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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 |
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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.