MIRA INFORM REPORT
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Report No. : |
352292 |
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Report Date : |
07.12.2015 |
IDENTIFICATION DETAILS
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Name : |
HEROVO TEXTILE
MACHINERY CO., LTD. |
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Registered Office : |
Room 405, 407, 409, Zhonghai Tower, No. 426 South Haichang Road,
Haizhou Street, Haining City, Zhejiang Province, 314400 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
20.01.2011 |
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Com. Reg. No.: |
330481000090695 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in selling textile machinery and accessories,
textile fabrics and yarn |
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No. of Employee : |
12 |
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 – March 31, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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. 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 for the first time in modern history. Still, China's per capita income is below the world average.
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 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 2014 more than 274 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 also implemented several economic reforms in 2014, including passing legislation to allow local governments to issue bonds, opening several state-owned enterprises to further private investment, loosening the one-child policy, passing harsher pollution fines, and cutting administrative red tape.
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Source
: CIA |
Company name
HEROVO TEXTILE
MACHINERY CO., LTD.
room 405, 407, 409,
zhonghai tower, no. 426 south haichang road, haizhou street, haining city,
zhejiang province, 314400 PR CHINA
TEL: 86 (0)
573-87808861/87386882/89239582 FAX:
86 (0) 573-87808863
EXECUTIVE
SUMMARY
INCORPORATION DATE :
JANUARY 20, 2011
REGISTRATION NO. :
330481000090695
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
12
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 11,540,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 5,110,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO
USD 20,000
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.3969 = USD
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: SC is also
known as Haining City Herovo Textile Machinery Co., Ltd.
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 January 20, 2011.
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:
general business items: wholesaling
textile machinery and accessories, textile fabrics, yarn; importing and exporting goods and technology
(except goods and technology prohibited by the state and pre-approval needed)
SC is mainly engaged in selling textile machinery and accessories,
textile fabrics and yarn.
Mr. Chen Junfeng is legal
representative of SC at present.
SC is known to
have approx. 12 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in Haining. The detailed information of the premise is unspecified.
http://www.herovo.com/ The design is professional and the content is
well organized. At present it is in both Arabic and English versions.
Email: herovohn@herovo.com
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the
change |
After the change |
|
2014-6-10 |
Registered capital |
CNY 500,000 |
Present amount |
|
Shareholding |
Xi
Yiling 35% Chen
Rui 5% |
Present ones |
Organization code: 568190345
There is no litigation record of SC for the past two years.
MAIN SHAREHOLDERS:
Name % of
Shareholding
Chen Junfeng 60
Xi Yiling 20
Chen Rui 20
l Legal
Representative, executive director and general manager:
Mr. Chen Junfeng is currently responsible for the overall
management of SC.
Working Experience(s):
At present Working in SC as legal representative, executive director and general manager.
Also working in Zhejiang Lvlong New
Material Co., Ltd. as legal representative, chairman and general manager, and
working in Haiyan Haililong Warp Knitting Co., Ltd. as legal representative,
executive director and manager.
l Supervisor:
Xi Yiling
SC is mainly
engaged in selling textile machinery and accessories, textile fabrics and yarn.
SC’s products mainly include: warp knitting machine, warping machine
and beam, machine parts, belt, fabric, polyester yarn, chinlon yarn, spandex
yarn, etc.
SC sources its materials from domestic
market and overseas market. SC sells its products in domestic market and
overseas market.
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.
Note:
SC refused to release its major clients and suppliers.
Herovo Textile Machinery Co., Limited
==============================
CR
No.: 1152926
Company
Type: Private Company limited by shares
Date
of Incorporation:
Active
Status: Live
Zhejiang
Lvlong New Material Co., Ltd. (literal translation)
==========================================
Registration
number: 330481400010025
Legal
representative: Chen Junfeng
Incorporation
date:
Haiyan
Haililong Warp Knitting Co., Ltd. (literal translation)
============================================
Registration number: 330424000063431
Legal representative: Chen Junfeng
Incorporation date:
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.
N/A
Financial Summary
Unit: CNY’000
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As of Dec. 31, 2013 |
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Total liabilities |
3,308 |
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Equities |
577 |
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-------------------- |
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Total assets |
3,885 |
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|
============= |
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Turnover |
8,811 |
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Net Profits |
Balance Sheet
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Unit:
CNY’000 |
As of Dec. 31, 2014 |
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Cash
& bank |
450 |
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Inventory |
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Accounts
receivable |
1,010 |
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Other
accounts receivable |
4,260 |
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|
------------------ |
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Current assets |
9,750 |
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Fixed
assets net value |
30 |
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------------------ |
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Total
assets |
9,780 |
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|
=========== |
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Short
loans |
2,000 |
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Accounts
payable |
-1,780 |
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Taxes
payable |
20 |
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Other
accounts payable |
4,430 |
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------------------ |
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Current
liabilities |
4,670 |
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Long
term liabilities |
0 |
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------------------ |
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Total
liabilities |
4,670 |
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Equities |
|
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------------------ |
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Total
liabilities & equities |
9,780 |
Income Statement
|
Unit:
CNY’000 |
As of Dec. 31, 2014 |
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Turnover |
11,540 |
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Cost of goods
sold |
9,290 |
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Taxes and additional of main operation |
10 |
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Sales expense |
1,660 |
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Management expense |
490 |
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Finance expense |
30 |
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Non-operating expenses |
10 |
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Profit
before tax |
50 |
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Less:
profit tax |
10 |
|
Profits |
40 |
Important Ratios
|
|
As of Dec. 31,
2013 |
|
|
*Current ratio |
/ |
2.09 |
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*Quick ratio |
/ |
1.22 |
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*Liabilities to assets |
0.85 |
0.48 |
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*Net profit margin (%) |
0.51 |
0.35 |
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*Return on total assets (%) |
1.16 |
0.41 |
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*Inventory /Turnover ×365 |
/ |
128 days |
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*Accounts receivable/Turnover ×365 |
/ |
32 days |
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*Turnover/Total assets |
2.27 |
1.18 |
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* Cost of goods sold/Turnover |
/ |
0.81 |
PROFITABILITY:
AVERAGE
l The turnover of SC appears average in both years and there is a rise in
2014.
l SC’s net profit margin is average in both years.
l SC’s return on total assets is average in both years.
l SC’s cost of goods sold is in an average level in 2014.
LIQUIDITY: AVERAGE
l The current ratio of SC is maintained in a fairly good level in 2014.
l SC’s quick ratio is maintained in a normal level in 2014.
l The inventory of SC appears fairly large in 2014.
l SC’s accounts receivable is average in 2014.
l SC’s short term loan is average in 2014.
l SC’s turnover is average in both years, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
l The debt ratio of SC is high in 2013, but appears low in 2014.
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. The fairly large amount of inventory could be a threat to its
financial condition. After our research and
based on the information obtained.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.84 |
|
UK Pound |
1 |
Rs.101.04 |
|
Euro |
1 |
Rs.73.05 |
|
CNY |
1 |
Rs. 10.41 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
ASH |
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 |
|
<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.