MIRA INFORM REPORT
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Report No. : |
317133 |
|
Report Date : |
15.04.2015 |
IDENTIFICATION DETAILS
|
Name : |
HEBEI BESTAR COMMERCE AND TRADE CO., LTD. |
|
|
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Registered Office : |
15/F Shennong Building, No. 45 Tangu South Street, Shijiazhuang Hebei
Province 050021 Pr |
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|
Country : |
China |
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|
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
07.03.2006 |
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Com. Reg. No.: |
130100000182418 |
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Legal Form : |
Limited Liabilities Company |
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|
Line of Business : |
Subject is engaged in selling chemical products, hardware, shoes and
hats. |
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|
|
|
No. of Employee : |
30 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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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. In 2014 the People’s Bank
of China (PBOC) doubled 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 2014 stood as the largest economy in the world,
surpassing the US that year� 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; � 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. In 2014 China agreed to begin
limiting carbon dioxide emissions by 2030. China implemented several economic
reforms in 2014, including legislation allowing local governments to issue
bonds, further opening several state-owned enterprises to private investment,
loosening the one-child policy, passing harsher pollution fines, and cutting
administrative red tape.
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. In 2014 China agreed to begin limiting carbon dioxide
emissions by 2030. China implemented several economic reforms in 2014,
including legislation allowing local governments to issue bonds, further
opening several state-owned enterprises to private investment, loosening the
one-child policy, passing harsher pollution fines, and cutting administrative
red tape.
|
Source
: CIA |
COMPANY
NAME AND ADDRESS
HEBEI BESTAR
COMMERCE AND TRADE CO., LTD.
15/F SHENNONG BUILDING, NO. 45 TANGU SOUTH STREET, SHIJIAZHUANG
HEBEI PROVINCE 050021 PR CHINA
TEL: 86 (0) 311-85081825/85081803/85081890
FAX: 86 (0) 311-85081805
EXECUTIVE
SUMMARY
Date of Registration : MARCH 7, 2006
REGISTRATION NO. : 130100000182418
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : CNY 50,000,000
staff :
30
BUSINESS CATEGORY : TRADING
Revenue :
CNY 303,360,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY
10,880,000 (AS OF DEC. 31, 2013)
WEBSITE : www.bestarchem.com
E-MAIL :
bestar@bestarchem.com
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : ORDINARY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.21 = 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 limited liabilities company of PRC with State Administration of Industry
& Commerce (SAIC) under registration No.: 130100000182418 on March 7, 2006.
SC’s Organization Code Certificate No.:
78571621-9
SC’s registered capital: CNY 50,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
|
-- |
Registration No. |
1301002043070 |
130100000182418 |
|
|
Shareholder (s) (% of
Shareholding) |
Li Aiqin 70% Zhao Qingguo 30% |
Li Aiqin70% Zhang Jiachang 30% |
||
|
Legal Representative |
Zhao Qingguo |
Zhang Jiachang |
||
|
2010 |
Registered Capital |
CNY 1,000,000 |
CNY 10,000,000 |
|
|
2011 |
Legal Representative |
Zhang Jiachang |
Guo Chenhao |
|
|
Shareholder (s) (% of
Shareholding) |
Li Aiqin 70% Zhang Jiachang 30% |
Guo Chenhao 10% Guo Junhui 90% |
||
|
-- |
Company Chinese Name |
|
|
|
|
Legal Representative |
Guo Chenhao |
Yang Chao |
||
|
Shareholder (s) (% of
Shareholding) |
Guo Chenhao 10% Guo Junhui 90% |
Guo Wenzao 99% Yang Chao 1% |
||
|
2013 |
Legal Representative |
Yang Chao |
Guo Chenhao |
|
|
Shareholder (s) |
Guo Wenzao 99% Yang Chao 1% |
Guo Wenzao 99% Guo Chenhao 1% |
||
|
-- |
Registered Capital |
CNY 10,000,000 |
CNY 50,000,000 |
|
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Guo Wenzao |
99 |
|
Guo Chenhao |
1 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and
General Manager |
Guo Chenhao |
|
Supervisor |
Guo Wenzao |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Guo Wenzao 99
Guo Chenhao 1
MANAGEMENT
Guo Chenhao, Legal
Representative, Chairman and General Manager
-------------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal
representative, chairman and general manager
Guo Wenzao, Supervisor
-------------------------------------------
Ø
Gender: M
Ø
ID# 130123193111244511
Ø
Age: 84
Ø Working experience
(s):
At present, as supervisor of SC
BUSINESS
OPERATION
SC’s registered business scope includes selling mechanical equipment,
hardware, household appliances, meters, chemical products (excluding dangerous
articles), textiles, shoes and hats, handicrafts, culture & sports goods; importing
and exporting commodities and technologies , excluding export
commodities limited or prohibited by the state (with permit
if needed).
SC is mainly
engaged in selling chemical products, hardware, shoes and hats.
SC’s products mainly include: farm
chemicals, pesticide, hardware, shoes and hats.
SC sources its merchandises 10% from the overseas market and 90% from
domestic market. SC sells 20% of its merchandises in domestic market, and 80%
to overseas market, mainly Pakistan and India.
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 Customers*
----------------------
PAK Ltd. (Pakistan)
Albaugh Inc.
Alag S.A.
*Major Supplier*
--------------------
Hebei Yetian Agrochemical Co., Ltd.
Staff & Office:
--------------------------
SC is known
to have approx. 30 staff at present.
SC rents an area
as its operating office of approx. 100 sq. meters at the heading address.
RELATED
COMPANY
SC
is not known to have any subsidiary at present.
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: A trade enquiry currently
conducted with SC's supplier(s) reveal the following:
Supplier
A
Products sold: pesticide,
API
Date account opened: 2006
Line of credit: N/A
Terms: T/T,
Credit of 30-60 days
Average monthly sales: N/A
Current balance: No comments
Rating Key: 3
Payment record keys:
1 = Prompt: Payment made before the credit
period expires
2 = As agreed terms: Payment made upon due
date
3 = Slightly slow but acceptable: Payment
made 5 to 20 days beyond agreed terms
4 = Slow: Payment made 16 to 45 days beyond
agreed terms
5 = Poor: Payment made over 45 days beyond agreed
terms
6
= No comment: Account is newly opened & record is not yet established
Note: In
some instances, payment beyond terms can be the result of disputes over
merchandise, lost invoices, disputed accounts & etc.
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:
Bank of China Shijiazhuang Yudong Sub-branch
AC#:
10417079508091001
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
980 |
5,170 |
1,800 |
|
|
Accounts
receivable |
38,700 |
12,480 |
32,310 |
|
Advances to
suppliers |
22,740 |
0 |
0 |
|
Other receivable |
6,660 |
56,910 |
47,620 |
|
Inventory |
4,190 |
7,590 |
17,510 |
|
Subsidies
receivable |
5,340 |
1,770 |
6,410 |
|
Other current
assets |
0 |
0 |
270 |
|
|
------------------ |
------------------ |
------------------ |
|
Current assets |
78,610 |
83,920 |
105,920 |
|
Fixed assets |
50 |
50 |
150 |
|
Intangible
assets |
0 |
0 |
0 |
|
Long-term
prepaid expenses |
0 |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
0 |
|
Other
non-current assets |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Total assets |
78,660 |
83,970 |
106,070 |
|
|
============= |
============= |
============= |
|
Short-term loans |
32,000 |
71,120 |
143,030 |
|
Notes payable |
0 |
0 |
0 |
|
Accounts payable |
5,840 |
-15,150 |
-50,110 |
|
Surcharge
payable |
0 |
0 |
0 |
|
Taxes payable |
50 |
-460 |
-390 |
|
Advances from
clients |
16,510 |
0 |
0 |
|
Other payable |
13,610 |
17,530 |
2,660 |
|
Other current
liabilities |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Current
liabilities |
68,010 |
70,040 |
95,190 |
|
Non-current
liabilities |
0 |
3,000 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Total
liabilities |
68,010 |
73,040 |
95,190 |
|
Equities |
10,650 |
10,930 |
10,880 |
|
|
------------------ |
------------------ |
------------------ |
|
Total
liabilities & equities |
78,660 |
83,970 |
106,070 |
|
|
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
Revenue |
164,060 |
208,440 |
303,360 |
|
Cost of sales |
153,480 |
197,430 |
286,950 |
|
Sales expense |
8,260 |
4,910 |
5,660 |
|
Management expense |
1,310 |
2,050 |
4,140 |
|
Finance expense |
930 |
3,810 |
6,380 |
|
Profit before
tax |
80 |
247 |
230 |
|
Less: profit tax |
40 |
60 |
60 |
|
40 |
187 |
170 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
*Current ratio |
1.16 |
1.20 |
1.11 |
|
*Quick ratio |
1.09 |
1.09 |
0.93 |
|
*Liabilities to
assets |
0.86 |
0.87 |
0.90 |
|
*Net profit
margin (%) |
0.02 |
0.09 |
0.06 |
|
*Return on
total assets (%) |
0.05 |
0.22 |
0.16 |
|
*Inventory /
Revenue ×365 |
10 days |
14 days |
22 days |
|
*Accounts
receivable / Revenue ×365 |
87 days |
22 days |
39 days |
|
*Revenue /
Total assets |
2.09 |
2.48 |
2.86 |
|
*Cost of sales
/ Revenue |
0.94 |
0.95 |
0.95 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC
appears fairly good in its line, and it increased year by year.
l SC’s net profit margin
is average in three years.
l SC’s return on
total assets is average in three years.
l
SC’s cost of sales is fairly high, comparing with
its revenue.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
The short-term loans of SC appear large.
l
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered small-sized in its line with fairly stable financial
conditions. The large amount of short-term loans may be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.39 |
|
|
1 |
Rs.91.06 |
|
Euro |
1 |
Rs.66.16 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
ANK |
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.