MIRA INFORM REPORT
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Report No. : |
343283 |
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Report Date : |
09.10.2015 |
IDENTIFICATION DETAILS
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Name : |
HAIYAN SANMA STANDARD HARDWARE Co., Ltd. |
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Registered Office : |
No. 5 Zhenxing Road, Hardware
Industrial Park, Bazi Village, Yucheng
Town, Haiyan County, Jiaxing
City, Zhejiang Province, 314308 Pr
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
09.01.2007 |
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Com. Reg. No.: |
330424000005682 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Subject is mainly engaged in manufacturing, processing and selling
fasteners, products mainly include: scoket head bolt, socket hex bolt, hex nuts,
square nuts and flange bolt. |
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No. of Employees : |
156 |
RATING & COMMENTS
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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 – 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 and address
HAIYAN SANMA STANDARD HARDWARE Co., Ltd.
NO. 5 ZHENXING
ROAD, HARDWARE INDUSTRIAL PARK, BAZI VILLAGE, YUCHENG TOWN, HAIYAN COUNTY, jiaxing
city, ZHEJIANG PROVINCE, 314308 PR CHINA
TEL: 86 (0)
573-86466198/86466183 FAX: 86 (0)
573-86466118
EXECUTIVE
SUMMARY
INCORPORATION DATE : jan. 9, 2007
REGISTRATION NO. : 330424000005682
REGISTERED LEGAL FORM : Limited liabilities co.
STAFF STRENGTH : 156
REGISTERED CAPITAL : CNY 36,000,000
BUSINESS LINE :
TRADING, processing and manufacturing
TURNOVER : CNY 140,320,000
(AS OF DEC. 31, 2014)
EQUITIES : CNY 46,350,000 (AS OF DEC. 31, 2014)
PAYMENT : AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.3531 = 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 limited liabilities
company at local Administration for Industry & Commerce (AIC - The official
body of issuing and renewing business license) on Jan. 9, 2007.
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 manufacture and processing of
fasteners, plastic products (excluding waste plastic processing), auto parts,
motorcycle accessories, electric tools, metal products (metal surface treatment
and heat treatment processing), wire and cable; metal heat treatment,
electroplating processing; wholesale and retail of building materials,
decoration materials (excluding hazardous chemicals), knitwear, textiles and
raw materials (excluding cocoon, silk and cotton), hardware, auto parts,
motorcycle accessories, stationery (excluding pre-approval terms), chemical raw
materials and products (excluding dangerous chemicals); import and export of
goods and technology (excluding those prohibited or limited by the state).
SC is mainly engaged in manufacturing, processing and selling fasteners.
Mr. Ma Xueming is
legal representative and executive director of SC at present.
SC is known to
have approx. 156 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 Jiaxing. Detailed
premise information is not available at present.
http://www.smbzj.com/
The design is professional and the content is well organized. At present it is
in English and Chinese versions.
Email: zmj@smbzj.com
For the past two years there is no record of litigation.
Changes of its registered information:
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Date of change |
Item |
Before the change |
After the change |
|
2007-4-28 |
Registered capital |
CNY 8,000,000 |
CNY 12,800,000 |
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2007-11-07 |
Registered capital |
CNY 12,800,000 |
Cny 30,000,000 |
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2007-11-13 |
Registration no. |
3304242101236 |
Present one |
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2009-7-1 |
Registered capital |
Cny 30,000,000 |
Organization Code:
797636080
MAIN
SHAREHOLDERS:
Name Amount
(CNY) % of Shareholding
Haiyan Sanma Development Co., Ltd. 26,000,000 72.22
He Majun 10,000,000 27.78
Haiyan Sanma Development Co., Ltd.
===========================
Incorporation Date: 1998-10-15
Registration No.: 330424000055722
Registered Legal Form: Limited Liabilities
Co.
Legal representative: Ma Xueming
l Legal
Representative and Executive Director:
Mr. Ma Xueming is currently responsible for
the overall management of SC.
Working Experience(s):
At present Working in SC as legal representative
and executive director.
Also working in Haiyan Sanma
Development Co., Ltd. as legal representative; working in Haiyan Sanma
Development Co., Ltd. Huashui Branch and Haiyan Sanma Development Co., Ltd.
Sanma Garment Branch as principal.
l General Manager:
Mr. Ma Xueliang is currently responsible for
the daily management of SC.
Working Experience(s):
At present Working in SC as general
manager.
l
Supervisor:
Ma Renliang
SC is mainly engaged in manufacturing, processing and selling fasteners.
SC’s products
mainly include: scoket head bolt, socket hex bolt, hex nuts, square nuts and
flange bolt, etc.
SC sources its materials 100% from domestic
market. SC sells 40% of its products in domestic market, and 60% to overseas
market.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
Note: SC declined to release its major
suppliers and clients.
Trademark &
Patents
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Registration No. |
8406783 |
8406844 |
8406818 |
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Registration Date |
2011-06-28 |
2011-06-28 |
2011-06-28 |
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Trademark Design |
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Haiyan
Sanma Development Co., Ltd. Huashui Branch
=============================
Incorporation Date: 2004-02-10
Registration No.: 3304242000998
Principal: Ma Xueming
Haiyan
Sanma Development Co., Ltd. Sanma Garment Branch
=============================
Incorporation Date: 2004-02-10
Registration No.: 3304242000999
Principal: Ma Xueming
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’s accountant
refused to release the bank details.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2014 |
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Cash & bank |
15,600 |
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Inventory |
22,510 |
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Accounts
receivable |
37,740 |
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Advances to
suppliers |
5,630 |
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Other
receivables |
11,580 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
93,060 |
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Fixed assets net
value |
51,290 |
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Projects under
construction |
290 |
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Intangible and
other assets |
6,670 |
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------------------ |
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Total assets |
151,310 |
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=========== |
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Short loan |
53,100 |
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Accounts payable |
18,990 |
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Advances from
customers |
11,530 |
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Taxes payable |
70 |
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Other accounts
payable |
13,570 |
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Note payable |
5,570 |
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Payroll payable |
2,130 |
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------------------ |
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Current
liabilities |
104,960 |
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Long term
liabilities |
0 |
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------------------ |
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Total
liabilities |
104,960 |
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Equities |
46,350 |
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------------------ |
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Total
liabilities & equities |
151,310 |
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=========== |
Income Statement
Unit: CNY’000
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As of Dec. 31,
2014 |
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Turnover |
140,320 |
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Cost of goods
sold |
123,580 |
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Taxes and additional of main operation |
380 |
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Sales expense |
2,130 |
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Management expense |
7,720 |
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Finance expense |
2,380 |
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Non-operating
income |
900 |
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Non-operating expense |
380 |
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Profit before
tax |
4,650 |
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Less: profit tax |
1,200 |
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Profits |
3,450 |
Important
Ratios
=============
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As
of Dec. 31, 2014 |
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*Current ratio
|
0.89 |
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*Quick ratio |
0.67 |
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*Liabilities
to assets |
0.69 |
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*Net profit
margin (%) |
2.46 |
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*Return on
total assets (%) |
2.28 |
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*Inventory
/Turnover ×365 |
59 days |
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*Accounts
receivable/Turnover ×365 |
99 days |
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*Turnover/Total
assets |
0.93 |
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* Cost of
goods sold/Turnover |
0.88 |
PROFITABILITY:
AVERAGE
l The turnover of SC appears fairly good in its line.
l SC’s net profit
margin is average.
l SC’s return on
total assets is average.
l
SC’s cost of goods sold is average.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears fairly large.
l
SC’s short loans are large in 2014.
l
SC’s turnover is in an average 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 average.
Overall financial
condition of the SC: Fairly stable.
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of accounts receivable and short loans could be a
threat to SC’s financial situation.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.16 |
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|
1 |
Rs.99.78 |
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Euro |
1 |
Rs.73.33 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
NIT |
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.