MIRA
INFORM REPORT
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Report Date : |
11.09.2014 |
IDENTIFICATION DETAILS
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Name : |
GUANGZHOU XINHUADING GARMENT
LTD. |
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Registered Office : |
No. 2 Building A, Maoshan Road, Xinyin Industrial Zone, Xintang Town, Zengcheng, Guangzhou, Guangdong Province, 511340 PR |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
13.07.2012 |
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Com. Reg. No.: |
440125000100454 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in wholesaling & retailing apparel, garment accessories |
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No. of Employees : |
10 |
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 |
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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) |
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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 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 and address
GUANGZHOU XINHUADING GARMENT LTD.
no. 2 building
a, maoshan road, xinyin industrial zone, xintang town, zengcheng, guangzhou,
guangdong province, 511340 PR CHINA
TEL: 86
(0) 20-82670866 FAX: 86 (0)
20-82688228
EXECUTIVE SUMMARY
INCORPORATION DATE : july 13, 2012
REGISTRATION NO. : 440125000100454
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
10
REGISTERED CAPITAL : CNY 500,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 103,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 248,000 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : fair
FINANCIAL CONDITION : fair
OPERATIONAL TREND : fairly steady
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 6.1367 = 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 given company (Huading Industry Group Co., Limited) is SC’s related
company registered in Hong Kong.
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 13, 2012.
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 wholesaling & retailing apparel, garment
accessories, buttons, belts, zippers, and listing.
SC is mainly
engaged in wholesaling & retailing apparel, garment accessories.
Ms. Jiang Xiaoyan has been legal
representative, chairman and general manager of SC since 2012.
SC is known to
have approx. 10 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in the industrial zone of Guangzhou. Detailed premise
information is not available at present.
http://www.huading.info/ The website
belongs to Huading Industry Co., Ltd. The design is
professional and the content is well organized. At present it is in both
Chinese and English versions.
Email: amy@huading.info
No significant events or changes were found during our checks with local
AIC.
Tax registration no.: 440100050606211
Organization code: 050606211
There is no record of litigation till now.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Jiang Xiaoyan 1
Jiang Zhenzhong 99
l
Legal Representative, Chairman and
General Manager:
Ms. Jiang Xiaoyan is currently responsible for the overall management
of SC.
Working Experience(s):
From 2012 to present Working in SC as legal
representative, chairman and general manager.
l
Supervisor:
Jiang Zhenzhong
SC is mainly
engaged in wholesaling & retailing apparel, garment accessories.
SC’s products mainly include: button, snap, rivet, claw nail, eyelet,
diamond rivet, zipper, hand tag, waist patch, belt and so on.
SC sources its materials 100% from domestic
market. SC sells 70% of its products in domestic market, and 30% 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.
TRADEMARKS & PATENTS
No record
Note:
SC refused to release its major clients and suppliers.
Huading Industry Group Co., Limited (Hong Kong)
=====================================
Incorporation
date:
Registration
no.: 2018848
Legal
form: Private company limited by shares
Status:
Live
According
to the above website:
India
office
=========
Add
(India): 3, Mahatma Jyotiba Phule
Sadan, S.B. Pawar Road,
Near
Lower Parel (E), Curry Road (W), Mumbai-400 013,
India.
Tel/Fax:
+91 22 23002157
Huading Industry Co., Limited
(Hong Kong)
=====================
Incorporation
date:
Registration
no.: 1540369
Legal
form: Private company limited by shares
Status:
Live
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.
Guangzhou
Rural Commercial Bank
AC#：N/A
Relationship:
Normal
Balance Sheet
Unit: CNY’000
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as of Dec. 31, 2012 |
as of Dec. 31, 2013 |
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Cash & bank |
24 |
38 |
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Inventory |
110 |
55 |
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Accounts receivable |
0 |
10 |
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Advances to
suppliers |
0 |
0 |
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Other
receivables |
250 |
148 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
384 |
251 |
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Long-term
investments |
0 |
0 |
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Fixed assets net
value |
3 |
3 |
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Projects under
construction |
0 |
0 |
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Intangible
assets |
0 |
0 |
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Other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
387 |
254 |
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============= |
============= |
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Short loans |
0 |
0 |
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Accounts payable |
15 |
0 |
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Advances from
customers |
4 |
12 |
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Accrued
payroll |
0 |
0 |
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Taxes payable |
-2 |
-6 |
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Other accounts
payable |
0 |
0 |
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Other
current liabilities |
0 |
0 |
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----------------- |
----------------- |
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Current
liabilities |
17 |
6 |
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Long term
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
17 |
6 |
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Shareholders
equities |
370 |
248 |
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------------------ |
------------------ |
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Total
liabilities & equities |
387 |
254 |
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============= |
============= |
Income Statement
Unit: CNY’000
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as of Dec. 31, 2012 |
as of Dec. 31, 2013 |
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Turnover |
17 |
103 |
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Cost of goods
sold |
13 |
75 |
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Taxes
and additional of main operation |
0 |
0 |
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Sales expense |
10 |
6 |
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Management expense |
123 |
144 |
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Finance expense |
1 |
0 |
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Non-operating
income |
0 |
0 |
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Non-operating expense |
0 |
0 |
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Profit before
tax |
-130 |
-122 |
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Less: profit tax |
0 |
0 |
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Net profit |
-130 |
-122 |
Important Ratios
=============
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as of Dec. 31,
2012 |
as of Dec. 31, 2013 |
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*Current ratio |
22.59 |
41.83 |
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*Quick ratio |
16.12 |
32.67 |
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*Liabilities
to assets |
0.04 |
0.02 |
|
*Net profit
margin (%) |
-764.71 |
-118.45 |
|
*Return on
total assets (%) |
-33.59 |
-48.03 |
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*Inventory
/Turnover ×365 |
2,362 days |
195 days |
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*Accounts
receivable/Turnover ×365 |
/ |
36 days |
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*Turnover/Total
assets |
0.04 |
0.41 |
|
* Cost of
goods sold/Turnover |
0.76 |
0.73 |
PROFITABILITY:
POOR
l
The turnover of SC appears poor in its line in both
years and it increased in 2013.
l
SC’s net profit margin is poor in both years.
l
SC’s return on total assets is poor in both years.
l
SC’s cost of goods sold is average in both years,
comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in both years.
l
SC’s quick ratio is maintained in a normal level in
both years.
l
The inventory of SC appears fairly large in both
years.
l
SC has no accounts payable in 2012 but it appears
average in 2013.
l
SC has no short-term loan in both years.
l
SC’s turnover is in a poor level in both years,
comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
SC is considered small-sized in its line with fair financial conditions.
The large amount of inventory could be a threat
to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.82 |
|
|
1 |
Rs.98.14 |
|
Euro |
1 |
Rs.78.65 |
INFORMATION DETAILS
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Analysis Done by
: |
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 |
|
|
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 |
|
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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.