MIRA
INFORM REPORT
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Report Date : |
23.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
ZHANGJIAGANG CITY
HONGTUO CHEMICAL FIBER CO., LTD. |
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Registered Office : |
Sigang Industrial Park, Yangshe Town, Zhangjiagang,
Jiangsu Province, 215638 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
25.03.2008 |
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Com. Reg. No.: |
20582000158910 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Mainly engaged in selling chemicals and electromechanical equipment. |
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No of Employees : |
18 |
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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Status : |
Moderate |
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Payment Behaviour : |
Unknown |
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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 (30.09.2013) |
Current Rating (01.12.2013) |
|
China |
A2 |
A2 |
|
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 |
|
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, growth of the private sector, development of stock markets and a
modern banking system, 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 considered important to
"economic security," explicitly looking to foster globally
competitive industries. After keeping its currency tightly linked to the US dollar
for years, in July 2005 China 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 and expanded the daily trading band within which the RMB is
permitted to fluctuate. 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. Several factors are converging to slow China's growth, including
debt overhang from its credit-fueled stimulus program, industrial overcapacity,
inefficient allocation of capital by state-owned banks, and the slow recovery
of China's trading partners. The government's 12th Five-Year Plan, adopted in
March 2011 and reiterated at the Communist Party's "Third Plenum"
meeting in November 2013, emphasizes continued economic reforms and the need to
increase domestic consumption in order to make the economy less dependent in
the future on fixed investments, exports, and heavy industry. 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 & ADDRESS
ZHANGJIAGANG CITY HONGTUO CHEMICAL FIBER CO., LTD.
SIGANG INDUSTRIAL PARK, YANGSHE TOWN, ZHANGJIAGANG, JIANGSU
PROVINCE, 215638 PR CHINA
TEL: 86 (0) 512-81626682
FAX: N/A
EXECUTIVE SUMMARY
INCORPORATION DATE :
MAR. 25, 2008
REGISTRATION NO. :
320582000158910
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MR. YAN XU (CHAIRMAN)
STAFF STRENGTH :
18
REGISTERED CAPITAL : CNY 500,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 5,058,000 (AS OF DEC. 31,
2010)
EQUITIES :
CNY 715,000 (AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.2305 = 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
SC was registered as a Limited liabilities
co. at local Administration for Industry & Commerce (AIC - The
official body of issuing and renewing business license) on Mar. 25, 2008.
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 purchasing and selling knitting
& textile products, garments, leather products, art ware, hat & shoes,
textile materials, metal materials, building materials, hardware, mechanical
and electrical products; importing and exporting commodities and technologies
(excluding items limited or forbidden by State).
SC is mainly engaged in selling chemicals and
electromechanical equipment.
Mr. Yan Xu has been legal representative, chairman and general manager
of SC since 2008.
SC is known to have approx. 18 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the industrial zone of Zhangjiagang. Our checks
reveal that SC rents the total premise, but SC’s accountant refused to release
the gross area.
http://hongtuofiber.com/ the
design is professional and the content is well organized. At present it is in
Chinese and English versions.
E-mail: info@hongtuofiber.com
Changes of its
registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Shareholders |
Chen Li 10% Yan Xu 90% |
Present ones |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Chen Li 10
Shen Rongli 5
Yan Xu 85
Legal representative, chairman and general manager:
Mr. Yan Xu, ID# 321001198101010012, born in 1981, with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2008 to present Working
in SC as legal representative, chairman and general manager.
Supervisor:
Chen Li ID# 320827198203250080
SC is mainly engaged in selling chemicals and electromechanical
equipment.
SC’s products mainly include: polyester staple fibers, polyester tops
& tows, electromechanical equipment, etc.
SC sources its materials 80% from domestic market, and 20% from overseas
market. SC sells 10% of its products in domestic market, and 90% to overseas
market.
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.
Note: SC refused
to release its major suppliers and customers.
SC is not known to have any subsidiary at present.
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.
The bank information on SC is not available.
Balance Sheet
Unit: CNY’000
|
|
as
of Dec. 31, 2009 |
as
of Dec. 31, 2010 |
|
Cash & bank |
102 |
/ |
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Inventory |
0 |
/ |
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Accounts receivable |
0 |
/ |
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Notes receivable |
0 |
/ |
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Advances to suppliers |
375 |
/ |
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Other receivables |
476 |
/ |
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Export drawback receivable |
94 |
/ |
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Other current assets |
0 |
/ |
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------------------ |
------------------ |
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Current assets |
1,047 |
/ |
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Fixed assets net value |
0 |
/ |
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Projects under construction |
0 |
/ |
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Long term investment |
0 |
/ |
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Intangible assets |
0 |
/ |
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Deferred tax assets |
0 |
/ |
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Other assets |
0 |
/ |
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------------------ |
------------------ |
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Total assets |
1,047 |
3,531 |
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|
============= |
============= |
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Short loans |
0 |
/ |
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Accounts payable |
0 |
/ |
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Accounts from customers |
236 |
/ |
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Notes payable |
0 |
/ |
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Other payable |
180 |
/ |
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Accrued Wages |
0 |
/ |
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Taxes payable |
0 |
/ |
|
Other current liabilities |
0 |
/ |
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------------------ |
------------------ |
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Current liabilities |
416 |
/ |
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Long term liabilities |
0 |
/ |
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------------------ |
------------------ |
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Total liabilities |
416 |
2,816 |
|
Equities |
631 |
715 |
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------------------ |
------------------ |
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Total liabilities & equities |
1,047 |
3,531 |
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|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
as
of Dec. 31, 2009 |
as
of Dec. 31, 2010 |
|
Turnover |
1,616 |
5,058 |
|
Cost of goods sold |
1,288 |
/ |
|
Taxes and additional of main operation |
0 |
/ |
|
Sales expense |
21 |
/ |
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Management expense |
250 |
/ |
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Finance expense |
-1 |
/ |
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Non-operation income |
0 |
/ |
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Non-operation expense |
1 |
/ |
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Profit before tax |
57 |
114 |
|
Less: profit tax |
20 |
30 |
|
Profits |
37 |
84 |
Note:
we did not find SC’s detailed financial reports at local AIC for Yr2010, and SC’s management refused to release its latest financial information.
Important
Ratios
=============
|
|
as
of Dec. 31, 2009 |
as
of Dec. 31, 2010 |
|
*Current ratio |
2.52 |
/ |
|
*Quick ratio |
2.52 |
/ |
|
*Liabilities to assets |
0.40 |
0.80 |
|
*Net profit margin (%) |
2.29 |
1.66 |
|
*Return on total assets (%) |
3.53 |
2.38 |
|
*Inventory /Turnover ×365 |
0 |
/ |
|
*Accounts receivable/Turnover ×365 |
0 |
/ |
|
*Turnover/Total assets |
1.54 |
1.43 |
|
* Cost of goods sold/Turnover |
0.80 |
/ |
PROFITABILITY:
AVERAGE
The turnover of SC appears average in its line, and it increased greatly
in 2010.
SC’s net profit margin is average in both 2 years.
SC’s return on total assets is average in both 2 years.
SC’s cost of goods sold is average in 2009, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a fairly good level in 2009.
SC’s quick ratio is maintained in a fairly good level in 2009.
SC has no inventory in 2009.
SC has no accounts receivable in 2009.
SC has no short term loan in 2009.
SC’s turnover is in an average level in both 2 years, comparing with the
size of its total assets.
LEVERAGE: FAIR
The debt ratio of SC is low in 2009 but fairly high in 2010.
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 a development history of 5
years. A credit line up to USD 5,000 would appear to be within SC’s capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.58.74 |
|
|
1 |
Rs.98.88 |
|
Euro |
1 |
Rs.80.05 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
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Report Prepared
by : |
SHG |
RATING EXPLANATIONS
|
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 |
|
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.