MIRA INFORM REPORT
|
Report Date : |
04.11.2014 |
IDENTIFICATION DETAILS
|
Name : |
HUAFANG COMPANY LIMITED BY SHARES |
|
|
|
|
Registered Office : |
No. 819 Huanghe
2nd Road, Binzhou, Shandong Province 256617 PR |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
30.09.2014 |
|
|
|
|
Date of Incorporation : |
03.09.1999 |
|
|
|
|
Com. Reg. No.: |
370000018037457 |
|
|
|
|
Legal Form : |
Shares Limited Company |
|
|
|
|
Line of Business : |
Subject is engaged in manufacturing, processing and selling cotton,
woolen textile, knitting and garments; technology developing, consulting,
service and transferring of new products; selling electromechanical
equipment; import and export business; manufacturing, processing, selling,
importing and exporting cotton, wool spinning, dyeing & printing
products. |
|
|
|
|
No of Employees : |
3,196 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
Payment Behaviour : |
No Complaints |
|
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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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, 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
HUAFANG COMPANY LIMITED BY SHARES
NO. 819 HUANGHE 2ND
ROAD, BINZHOU
SHANDONG PROVINCE
256617 PR CHINA
TEL: 86 (0) 543-3288626/3288507
FAX: 86 (0) 543-3288433/3288555
***Note: SC is also known as HUAFANG CO.,
LTD.
EXECUTIVE
SUMMARY
Date
of Registration : september 3,
1999
REGISTRATION
NO. : 370000018037457
LEGAL
FORM : SHARES LIMITED COmpany
REGISTERED
CAPITAL :
CNY 422,364,101
staff : 3,196
BUSINESS
CATEGORY :
manufacturing & trading
Revenue : CNY 1,683,058,000 (Consolidated, JAN. 1, 2014 TO SEP.
30, 2014)
EQUITIES : cny 817,648,000
(Consolidated, AS OF SEP. 31, 2014)
WEBSITE : www.hfgf.cn
E-MAIL : xxzx@hfyr.cn
PAYMENT
: AVERAGE
MARKET
CONDITION : COMPETITIVE
FINANCIAL
CONDITION : fairly stable
OPERATIONAL
TREND :
fairly STEADY
GENERAL
REPUTATION : average
EXCHANGE
RATE : CNY 6.11 = 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
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.: 370000018037457
on September 3, 1999.
SC’s Organization Code Certificate No.:
70638595-0
SC’s registered capital: CNY 422,364,101
SC’s paid-in capital: CNY 422,364,101
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Registration No. |
3700001803745 |
370000018037457 |
|
2012-1 |
Legal Representative |
Du Shuming |
Wang Limin |
|
2014-07-01 |
Registered Capital |
CNY 319,800,000 |
CNY 422,364,101 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) (As
of September 30, 2014) |
% of Shareholding |
|
Shandong Binzhou Printing and Dyeing Group
Co., Ltd. |
20.75 |
|
Huida Asset Hosting Co., Ltd. |
5.72 |
|
Guangdong Wens Investment Co., Ltd. |
4.5 |
|
AEGON-INDUSTRIAL Fund-China Everbright
Bank-Dingzeng No. 1 (Classification) Specific Multi-client Asset Management
Plans |
4.16 |
|
Huaan Fund- Industrial Bank-Foreign Trade
Trust-Ruijun Asset 1st Fujia 1st Structured Collection
Trust |
3.17 |
|
Caitong Fund-PingAn Bank-PingAn
Trust-PingAn Fortune. Chuangying 1st No. 96 Trust Plans of
Assembled Funds |
2.96 |
|
Shanghai Textile Investment &
Management Co., Ltd. |
2.26 |
|
Beijing Shida Qixiang Trade Co., LTD. |
1.86 |
|
Beijing Yingdong Antong Investment
Consulting Co., Ltd. |
1.69 |
|
China Great Wall Asset Management
Corporation |
1.59 |
|
Other shareholders |
51.34 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman and General
Manager |
Wang Limin |
|
Deputy General Manager |
Yan Yingshan |
|
Li Fengming |
|
|
Zhao Yuzhong |
|
|
Chen Baojun |
|
|
Ju Liyan |
|
|
Luo Weixin |
|
|
Liu Shuichao |
|
|
Sheng Shouxiang |
RECENT
DEVELOPMENT
SC is a listed company in Shanghai Stock Exchange Market with the code
of 600448.
SHAREHOLDER
CHART & BACKGROUND
Name (As of September 30, 2014) % of Shareholding
Shandong Binzhou Printing and Dyeing Group
Co., Ltd. 20.75
Huida Asset Hosting Co., Ltd. 5.72
Guangdong Wens Investment Co., Ltd. 4.5
AEGON-INDUSTRIAL Fund-China Everbright
Bank-Dingzeng No. 1 (Classification) Specific Multi-client Asset Management
Plans 4.16
Huaan Fund- Industrial Bank-Foreign Trade
Trust-Ruijun Asset 1st Fujia 1st Structured Collection Trust 3.17
Caitong Fund-PingAn Bank-PingAn Trust-PingAn
Fortune. Chuangying 1st No. 96 Trust Plans of Assembled Funds 2.96
Shanghai Textile Investment & Management
Co., Ltd. 2.26
Beijing Shida Qixiang Trade Co., Ltd. 1.86
Beijing Yingdong Antong Investment
Consulting Co., Ltd. 1.69
China Great Wall Asset Management
Corporation 1.59
Other shareholders 51.34
Shandong Binzhou Printing and Dyeing Group
Co., Ltd.
-------------------------------------------
Registration No.: 371600018004683
Date of Registration: December 20, 1994
Registered Capital: CNY 50,000,000
Legal Representative: Bo Fangming
Huida Asset Hosting Co., Ltd.
------------------------------------
Registration No.: 100000000039690
Registered Capital: CNY 100,000,000
Legal Representative: Zhu Huanqi
Guangdong Wens Investment Co., Ltd.
----------------------------------
Registration No.: 440101000156132
Registered Capital: CNY 120,000,000
Legal Representative: Huang Songde
Shanghai Textile Investment & Management
Co., Ltd.
------------------------------------
Registration No.: 310105000341408
Registered Capital: CNY 10,000,000
Legal Representative: Zhao Hongguang
Beijing Shida Qixiang Trade Co., Ltd.
--------------------------------------
Registration No.: 110105001057939
Registered Capital: CNY 1,000,000
Legal Representative: Cai Jingjing
Beijing Yingdong Antong Investment
Consulting Co., Ltd.
----------------------------------------
Registration No.: 110105010848109
Registered Capital: CNY 1,000,000
Legal Representative: Cui Yue
China Great Wall Asset Management
Corporation
------------------------------------------
Registration No.: 100000000032539
Registered Capital: CNY 10,000,000,000
Legal Representative: Zhang Xiaosong
Web: www.gwamcc.com
MANAGEMENT
Wang Limin, Legal
Representative, Chairman and General Manager
-----------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 51
Ø
Nationality: China
Ø Qualification:
University
Ø Working experience
(s):
From
2012 to present, working in SC as legal representative, chairman and general
manager
Deputy
General Manager
---------------------------------
Yan Yingshan
Li Fengming
Zhao Yuzhong
Chen Baojun
Ju Liyan
Luo Weixin
Liu Shuichao
Sheng Shouxiang
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing,
processing and selling cotton, woolen textile, knitting and garments;
technology developing, consulting, service and transferring of new products;
selling electromechanical equipment; import and export business; manufacturing,
processing, selling, importing and exporting cotton, wool spinning, dyeing
& printing products.
SC
is mainly engaged in manufacturing and selling textile products.
SC’s products mainly include:
Home textiles
series
Fabric series
Cotton prints
series
Bedding series
Clothes series
New fiber series
SC sources its
materials 80% from domestic market, and 20% from overseas market. SC sells 20%
of its products in domestic market, and 80% to overseas market, mainly
Southeast Asia, etc.
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 Clients*
-----------------
Profitlink International Trading Limited
(Hong Kong)
Qingdao Jiamu Textile Co., Ltd.
Staff & Office:
--------------------------
SC is known
to have approx. 3,196 staff at present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
RELATED
COMPANY
Subsidiaries:
----------------
Binzhou Huafang Property Co., Ltd.
Binzhou Huafang Property Management Service Co., Ltd.
Shanghai Yingnong Textile Co., Ltd.
Binzhou Huafang Investment Co., Ltd.
Binzhou Qicai Network Technology Co., Ltd.
Etc.
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’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.
BANKING
Basic Bank:
Industrial and
Commercial Bank of China
AC#:
1613003509022153112
FINANCIALS
Consolidated Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
As
of Sep. 30, 2014 |
|
205,292 |
228,917 |
431,941 |
514,030 |
|
|
Accounts
receivable |
89,656 |
97,264 |
99,483 |
161,536 |
|
Notes receivable |
1,831 |
0 |
0 |
40 |
|
Advances to
suppliers |
84,685 |
82,803 |
34,125 |
38,587 |
|
Other receivable |
37,081 |
25,560 |
50,843 |
102,900 |
|
Inventory |
481,803 |
369,228 |
492,723 |
510,835 |
|
Dividend
receivable |
0 |
0 |
0 |
0 |
|
Non-current
assets due within one year |
0 |
0 |
0 |
0 |
|
Other current
assets |
20,002 |
26,157 |
29,448 |
16,921 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
Current assets |
920,350 |
829,929 |
1,138,563 |
1,344,849 |
|
Fixed assets |
557,751 |
478,044 |
462,215 |
434,405 |
|
Construction in
progress |
43,836 |
50,071 |
63,797 |
88,354 |
|
Project
materials |
0 |
0 |
0 |
0 |
|
Intangible
assets |
65,293 |
28,402 |
34,906 |
244,614 |
|
Long-term
investment |
0 |
0 |
0 |
0 |
|
Long-term
deferred expense |
0 |
0 |
0 |
0 |
|
Deferred income
tax assets |
67 |
126 |
149 |
149 |
|
Other
non-current assets |
8,377 |
8,377 |
6,743 |
6,794 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
Total assets |
1,595,674 |
1,394,949 |
1,706,373 |
2,119,165 |
|
|
============= |
============= |
============= |
============= |
|
Short-term loans |
395,569 |
411,500 |
588,973 |
506,038 |
|
Notes payable |
129,920 |
187,002 |
285,000 |
330,000 |
|
Accounts payable |
249,980 |
216,278 |
241,992 |
290,647 |
|
Wages payable |
4,617 |
2,486 |
2,544 |
3,637 |
|
Taxes payable |
-1,224 |
1,568 |
3,526 |
17 |
|
Interest payable |
0 |
0 |
2,096 |
0 |
|
Advances from
clients |
157,752 |
65,705 |
34,586 |
34,579 |
|
Other payable |
122,924 |
94,837 |
43,976 |
56,399 |
|
Other current
liabilities |
1,571 |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
Current
liabilities |
1,061,109 |
979,376 |
1,202,693 |
1,221,317 |
|
Non-current
liabilities |
68,635 |
10,950 |
82,505 |
80,200 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
Total
liabilities |
1,129,744 |
990,326 |
1,285,198 |
1,301,517 |
|
Equities |
465,930 |
404,623 |
421,175 |
817,648 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
Total
liabilities & equities |
1,595,674 |
1,394,949 |
1,706,373 |
2,119,165 |
|
|
============= |
============= |
============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
Jan. 1, 2014 to Sep. 30, 2014 |
|
Revenue |
2,108,746 |
2,153,768 |
2,221,813 |
1,683,058 |
|
Cost of sales |
1,999,053 |
1,977,651 |
2,051,593 |
1,568,112 |
|
Taxes and surcharges |
3,965 |
9,990 |
8,012 |
4,225 |
|
Sales expense |
36,054 |
36,815 |
39,488 |
29,341 |
|
Management expense |
49,019 |
52,121 |
56,970 |
36,059 |
|
Finance expense |
30,439 |
38,821 |
53,197 |
26,705 |
|
Assets impairment loss |
2,593 |
11,685 |
7,675 |
369 |
|
Investment
income |
0 |
-13,637 |
0 |
0 |
|
Non-operating
income |
28,942 |
17,135 |
13,189 |
2,908 |
|
Non-operating expense |
970 |
21,961 |
1,901 |
432 |
|
Profit before
tax |
15,593 |
8,222 |
16,168 |
20,723 |
|
Less: profit tax |
40 |
306 |
517 |
0 |
|
15,553 |
7,916 |
15,651 |
20,723 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
As of Sep. 30, 2014 |
|
*Current ratio |
0.87 |
0.85 |
0.95 |
1.10 |
|
*Quick ratio |
0.41 |
0.47 |
0.54 |
0.68 |
|
*Liabilities
to assets |
0.71 |
0.71 |
0.75 |
0.61 |
|
*Net profit
margin (%) |
0.74 |
0.37 |
0.70 |
1.23 |
|
*Return on
total assets (%) |
0.97 |
0.57 |
0.92 |
0.98 |
|
*Inventory /
Revenue ×365/270 |
84 days |
63 days |
81 days |
82 days |
|
*Accounts
receivable / Revenue ×365/270 |
16 days |
17 days |
17 days |
26 days |
|
*Revenue /
Total assets |
1.32 |
1.54 |
1.30 |
0.79 |
|
*Cost of sales
/ Revenue |
0.95 |
0.92 |
0.92 |
0.93 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC
appears fairly good 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 sales is fairly high, comparing with
its revenue.
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 large.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’s short-term loans appear large.
l
SC’s revenue 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 low.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered large-sized in its line with fairly stable financial
conditions. The large amount of inventory and short-term loans may be a threat
to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.41 |
|
|
1 |
Rs.98.06 |
|
Euro |
1 |
Rs.76.67 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
SMN |
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.