MIRA INFORM REPORT
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Report Date : |
10.10.2014 |
IDENTIFICATION DETAILS
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Name : |
LINYI HEXING NONGMAO Co., Ltd. |
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Registered Office : |
West Section Of Hubei Road,
Luozhuang District, Linyi, Shandong
Province, 276000 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
10.07.2002 |
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Com. Reg. No.: |
371300228026520 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Engaged in processing and selling of agricultural products. |
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No. of Employees : |
70 |
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 : |
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 – June 1, 2014
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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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 |
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, 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
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Source
: CIA |
Company
name and address
LINYI HEXING NONGMAO Co., Ltd.
west
Section of Hubei Road, Luozhuang diStrict, Linyi,
SHANDONG
PROVINCE, 276000 PR CHINA
TEL: 86
(0) 539-5390518 FAX: 86 (0) 539-5390518
EXECUTIVE
SUMMARY
INCORPORATION DATE : July 10, 2002
REGISTRATION NO. :
371300228026520
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
STAFF STRENGTH : 70
REGISTERED CAPITAL : CNY 1,200,000
BUSINESS LINE :
PROCESSING & SELLING
TURNOVER :
CNY 10,320,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 1,057,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.14 =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 Ren Min Bi
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 July 10, 2002.
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 processing
and selling of agricultural products (excluding grain and oil; need license to
operate, with permit if needed); processing and selling of willow products;
export business of self-made products and the self-needed mechanical equipment,
spare parts and raw materials, but excluding those limited and prohibited by
the State.
SC is mainly
engaged in processing and selling of agricultural products.
Mr.
Hu Xingdong has been legal representative and chairman of SC since 2003.
SC is known
to have approx. 70 employees at present.
SC is currently operating at the above stated address, and this
address houses its operating office and factory in the industrial zone of
Linyi. Detailed information of the premise is unspecified.
SC also has a factory in “Lanling County, Linyi, Shandong
Province”, but the detailed information of the premise is unspecified.
http://hexingsuanye.1688.com/
This is SC’s promotion website on “Alibaba” platform. The design is
professional and the content is well organized. At present it is only in
Chinese version.
Changes
of its registered information:
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Date of change |
Item |
Before the change |
After the change |
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Legal Rep. |
Li Zuoqi |
Present one |
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Registered Capital |
CNY 800,000 |
Present amount |
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Shareholdings |
Li Zuoqi 51.25% Hu Xingdong 48.75% |
Present ones |
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Company Name |
Linyi Hexing Food Co., Ltd. (literal translation) |
Present one |
Organization Code: 740962918
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name
Amount
(CNY’0000) % of shareholdings
Li Zuoqi 41 34.17
Hu Xingdong 79 65.83
l
Legal Representative and Chairman:
Mr. Hu Xingdong,
born in 1965, he is currently responsible for the overall management of SC.
Working Experience(s):
From 2003 to present Working in SC as legal
representative and chairman.
SC is mainly
engaged in processing and selling of agricultural products.
SC’s products mainly include garlic, garlic powder and
garlic tablets, etc.
SC sources its materials 100%
from domestic market. SC sells 100% of its products 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.
Note:
SC refused to release its main customers and suppliers
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.
SC declined to release its bank details.
Financial Summary
Unit: CNY’000
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As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
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Total liabilities |
7,850 |
3,726 |
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Equity |
1,270 |
1,057 |
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------------ |
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Total assets |
9,120 |
4,783 |
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========= |
========= |
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Turnover |
22,710 |
10,320 |
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Profit before tax |
56 |
-193 |
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Profits |
7 |
-203 |
Note: SC’s
management refused to release its latest financial reports.
Important
Ratios
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As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
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*Liabilities
to assets |
0.86
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0.78
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*Net profit
margin (%) |
0.03
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-1.97 |
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*Return on
total assets (%) |
0.08
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-4.24 |
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*Turnover/Total
assets |
2.49
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2.16
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PROFITABILITY: FAIR
l The
turnover of SC appears average in both years, but appears a declining trend.
l SC’s net profit
margin appears average in 2011 but fair in 2012.
l SC’s return on total
assets appears average in 2011 but fair in 2012.
l
SC’s turnover is in an average level in both years,
comparing with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high in 2011, and fairly
high in 2012.
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.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.04 |
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1 |
Rs.98.64 |
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Euro |
1 |
Rs.77.74 |
INFORMATION DETAILS
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Analysis Done by
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KAR |
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Report Prepared
by : |
PDT |
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.