MIRA
INFORM REPORT
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Report Date : |
04.09.2014 |
IDENTIFICATION DETAILS
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Name : |
xuchang
hengyuan hair products, inc. |
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Registered Office : |
Sunshine Avenue, Economic & Technological Development
Zone, |
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Country : |
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Financials (as on) : |
30.06.2014 |
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Date of Incorporation : |
27.11.2001 |
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Com. Reg. No.: |
411000100009918 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Engaged in manufacturing and selling hair products. |
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No. of Employees : |
4,000 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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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 01, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
China |
A2 |
A2 |
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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 |
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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 and address
xuchang hengyuan hair products,
inc.
SUNSHINE AVENUE, ECONOMIC &
TECHNOLOGICAL DEVELOPMENT ZONE, XUCHANG, HENAN PROVINCE, 461000 PR CHINA
TEL: 86 (0) 374-8316997 FAX: 86 (0) 374-8316988
EXECUTIVE SUMMARY
INCORPORATION DATE : NOV. 27, 2001
REGISTRATION NO. : 411000100009918
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
STAFF STRENGTH : 4,000
REGISTERED CAPITAL :
CNY 122,000,000
BUSINESS LINE : MANUFACTURING AND TRADING
TURNOVER :
CNY 394,181,000 (JAN. 1 TO JUN. 30, 2014)
EQUITIES :
CNY 920,732,000 (AS OF JUN. 30, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.1425 = 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 shares limited company at
local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license).
Company Status: Shares limited co. This
form of business in PR China is defined as a legal person. Its registered capital
is divided into shares of equal par value and the co. raises capital by
issuing share certificates by promotion or by public offer. Shareholders
bear limited liability to the extent of shareholding, and the co. is liable
for its debts only to the extent of its total assets. The co has
independent property of legal person and enjoys property rights of legal
person. The characteristics of the shares limited co. are as follows: The
establishment of the co. requires at least two promoters and no more than
200, half of whom shall be domiciled in The
minimum registered capital of a co. is CNY The
board of directors must consist of five to nineteen directors. If the co. raises
capital by public offer, the promoters must not subscribe less than 35% of
the total shares. the promoters’ shares are restricted to transfer- within
one year of the offer. A
state-owned enterprise that is restructured into a shares limited co. must
comply with the conditions & requirements specified under the law &
administrative rule.
SC’s registered
business scope includes manufacturing and selling human hair products, wig
products, jewelry, other ancillary products, and providing technical services;
exporting self-made products; importing machinery and equipment, spare parts,
hair products, jewelry raw and auxiliary materials required for the production,
processing, research; processing with imported materials, processing with
imported samples, assembling with imported parts, and compensation trade in
agreement; domestic marketing of all kinds of hair
products, the jewelry raw and auxiliary materials. (with permit if needed)
SC is mainly
engaged in manufacturing and selling hair products.
Mr.
Zhao Jianshuan is the legal representative, chairman and general manager of
SC at present.
SC is known to have approx. 4,000 employees at
present.
SC is currently operating at the above stated address, and this
address houses its operating office and factory in the economic &
technological development zone of Xuchang. SC’s employee refused to release the
gross area of the premise.
http://www.hengyuanhair.com.cn/
The
design is professional and the content is well organized. At present it is in
Chinese and English versions.
E-mail: sales@hengyuanhair.com.cn ; info@hengyuanhair.com.cn
Changes of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2008 |
Registered legal form |
Chinese-foreign equity joint venture
enterprise |
Limited liabilities company |
|
Registration No. |
000275 |
Present one |
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2009 |
Chinese name |
|
Present one |
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Registered legal form |
Limited liabilities company |
Present one |
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Registered capital |
CNY 92,000,000 |
CNY 102,000,000 |
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|
2011 |
Registered capital |
CNY 102,000,000 |
CNY 112,000,000 |
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Registered capital |
CNY 112,000,000 |
Present amount |
Note: SC changed its Chinese name in 2009, while its English name
remains the same.
SC has obtained ISO9001 Certification, ISO14001 Certification, OHSAS and
ISO8001 Certification.
SC had been honored as an “Advanced Organization for Earning Foreign Exchange”
in Xuchang city and one of the “Top 100 Quality Enterprises” in Henan Province,
and listed among the industry’s few “Level-AA Enterprises” by the General
Administration of Customs. Also SC had acquired national high-tech enterprise.
SC is selected as a “Level-AA Enterprise” by the General Administration of
Customs; SC was selected as one of the “2008 Top 100 Enterprises with Excellent
Product Quality Management in Henan” by the Quality and Technical Supervision
Bureau of Henan Province and the Henan Daily Newspaper Group, etc.
Subject passed the annual inspection of 2012 with
Administration for Industry & Commerce.
Organization Code: 732489278
See below for SC as executive party (defendant).
|
Executed Party |
SC |
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Court |
Xuchang Weidu District People's Court |
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Date
of Case |
|
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Case Number |
(2012) 00171 |
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Claim
Amount |
RMB 8,640 |
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Case
Status |
Completed |
Remark: Due to the lack of information, we are unable to provide the cause of action,
judgment or other information.
MAIN SHAREHOLDERS:
Name Amount
(CNY) % of Shareholding
Zhao Jianshuan 33,410,000 27.39
Li Hongping 26,510,000 21.73
Chen Yanli 6,800,000 5.57
Shenzhen Nanhai Growth Choice Venture
Capital Partnership (Limited Partnership)
6,000,000 4.92
Shi Xiaoming 5,800,000 4.75
Other shareholders 43,480,000 35.64
l
Legal representative, chairman and
general manager:
Mr. Zhao Jianshuan, born in 1968, engineer, enrollment
consultant, he is currently responsible for the
overall management of SC.
Working Experience(s):
At present Working
in SC as legal representative, chairman and general manager.
Also
working in Xuchang Hengyuan Hair Products, Inc. Guangzhou Branch as principal.
l
Directors:
Wang Xinxin
Liu Junyan
Li Hongping
Ren Zhanwei
l
Supervisors:
Wan Limei
Zeng Yunmei
SC is mainly
engaged in manufacturing and selling hair products.
Main Products:
hair weaving, hair cover, hair toupee, hair accessories, mannequin heads and
others.
SC sources its materials 60%
from domestic market and 40% from oversea market, mainly India. SC sells 1% of
its products in domestic market, and 99% to overseas market, mainly North
America and Africa.
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
suppliers:
………………….
Henan Hongye Construction Group Co., Ltd.
Srinivasa Hair Industries
Gupta Enterprises
Etc.
Major Clients:
………………
Shake-N-Go Fashion, Inc.
Sun Taiyang Co., Ltd.
Fashion World Ent., Inc.
Etc.
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TRADEMARKS & PATENTS |
|
Registration No. |
8202675 |
8969420 |
8944411 |
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Registration Date |
April 21, 2011 |
Dec. 28, 2011 |
Jan. 7, 2012 |
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Trademark Design |
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SC is known to invest in the
following companies:
Xuchang
Yumei Hair Products Co., Ltd. (in Chinese Pinyin)
H&Y
France
H&Y
Middle East FZE
H&Y
Hair UK Limited
K.K.
H&Y Japan
Hengyuan
Hair & Yard Co. Ltd Russian Federation
Branches:
Xuchang
Hengyuan Hair Products, Inc. Yuexiu Branch
Xuchang
Hengyuan Hair Products, Inc. Guangzhou Branch
Xuchang
Hengyuan Hair Products, Inc. Nanjing Branch
Xuchang
Hengyuan Hair Products, Inc. Wuhan Branch
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 records 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.
SC’s management
declined to release its bank details.
Balance Sheet
Unit: CNY’000
|
|
As
of Jun. 30, 2014 |
As of Dec. 31,
2013 |
|
Cash & bank |
217,622 |
228,978 |
|
Inventory |
906,975 |
890,886 |
|
Accounts
receivable |
334,265 |
377,070 |
|
Advances to
supplies |
42,494 |
9,586 |
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Other
receivables |
45,837 |
27,130 |
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Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
1,547,193 |
1,533,650 |
|
Fixed assets net
value |
247,583 |
249,746 |
|
Projects under
construction |
282,162 |
201,878 |
|
Long-term
investments |
10,533 |
9,533 |
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Intangible
assets |
66,614 |
40,287 |
|
Other assets |
718 |
718 |
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------------------ |
------------------ |
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Total assets |
2,154,803 |
2,035,812 |
|
|
============= |
============= |
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Short loans |
534,170 |
690,619 |
|
Notes payable |
148,000 |
122,059 |
|
Accounts payable |
103,112 |
179,064 |
|
Advances from
customers |
930 |
1,211 |
|
Salaries and
welfare payable |
36,179 |
33,003 |
|
Taxes payable |
-1,150 |
-1,328 |
|
Dividend payable |
12,200 |
12,200 |
|
Other accounts
payable |
9,650 |
7,028 |
|
Non-current
liabilities due within one years |
17,800 |
17,800 |
|
Other
current liabilities |
200,000 |
0 |
|
|
----------------- |
----------------- |
|
Current
liabilities |
1,060,891 |
1,061,656 |
|
Long term
liabilities |
173,180 |
73,180 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
1,234,071 |
1,134,836 |
|
Shareholders
equities |
920,732 |
900,976 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
2,154,803 |
2,035,812 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
Jan.
1 to Jun. 30, 2014 |
as
of Dec. 31, 2013 |
|
Turnover |
394,181 |
988,646 |
|
Cost of goods sold |
297,622 |
716,279 |
|
Taxes and additional of main operation |
676 |
2,084 |
|
Sales expense |
5,928 |
16,309 |
|
Management expense |
35,453 |
77,501 |
|
Finance expense |
31,273 |
74,776 |
|
Asset
impairment loss |
0 |
457 |
|
Non-operating income |
15 |
4,356 |
|
Non-operating expense |
11 |
66 |
|
Profit before tax |
23,233 |
105,530 |
|
Less: profit tax |
3,476 |
13,401 |
|
Profits |
19,757 |
92,129 |
Important Ratios
=============
|
|
As
of Jun. 30, 2014 |
As of Dec. 31,
2013 |
|
*Current ratio |
1.46 |
1.44 |
|
*Quick ratio |
0.60 |
0.61 |
|
*Liabilities
to assets |
0.57 |
0.56 |
|
*Net profit
margin (%) |
5.01 |
9.32 |
|
*Return on
total assets (%) |
0.92 |
4.53 |
|
*Inventory
/Turnover ×365 |
/ |
329 days |
|
*Accounts
receivable/Turnover ×365 |
/ |
140 days |
|
*Turnover/Total
assets |
0.18 |
0.49 |
|
* Cost of
goods sold/Turnover |
0.76 |
0.72 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is fairy good.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a normal
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 appears average.
l
The short-term loan of SC appears large.
l
SC’s turnover is in a fair 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 fairly low.
Overall financial
condition of the SC: Fairly stable.
SC is considered large-sized in its line with fairly stable financial
conditions. The large amount of inventory and short loans could be a threat to
SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.61 |
|
|
1 |
Rs.100.48 |
|
Euro |
1 |
Rs.79.56 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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Report Prepared
by : |
PDT |
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.