MIRA
INFORM REPORT
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Report Date : |
26.07.2007 |
IDENTIFICATION
DETAILS
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Name : |
CHINA TEXTILE RESOURCES CORP. |
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Registered Office : |
No. 19, |
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Country : |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
1984 |
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Com. Reg. No.: |
1000001000236 |
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Legal Form : |
State-Owned |
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Line of Business : |
Engaged in investment and management of its subsidiaries. Also engaged in importing and exporting textile raw materials and
different sorts of textiles. |
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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Maximum Credit Limit : |
Up To USD 200,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
name & address
CHINA TEXTILE RESOURCES CORP.
NO. 19,
TEL: 86 (0) 10-52021800
FAX: 86 (0) 10-52021993
EXECUTIVE SUMMARY
INCORPORATION DATE : 1984
REGISTRATION NO. : 1000001000236
REGISTERED LEGAL FORM : STATE-OWNED
STAFF STRENGTH : 200
REGISTERED CAPITAL :
CNY 244,090,000
BUSINESS LINE :
INVESTMENT & MANAGEMENT
TURNOVER :
CNY 1,952,262,000 (AS OF DEC.
31, 2005)
EQUITIES :
CNY 366,688,000 (AS OF DEC. 31, 2005)
PAYMENT : AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : well-known
EXCHANGE RATE : CNY
7.75 = US$1 AS OF 2007-2-12
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
Note: SC’s current address should be the above stated one, and
the given address – No. 15,
SC was registered as a state-owned enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) in 1984.
Company Status: State-owned enterprise This form of business in PR
China is defined as a commodity production or operational units of a
socialist character which in accordance with the law, has autonomy in
management, takes full responsibility for its profits and losses and
practices independent business accounting. It is a legal person established
directly by central / local government or enterprise owned by central or
local government. In theory, the liabilities of this form of enterprise are
ultimately borne by the government, since the adoption of company law in
mid-1994, the Chinese government has planned to separate the ownership from
management and liabilities bearing.
SC’s
registered business scope includes acting as an agent for purchasing, selling,
storage, and transport of raw materials, fuel, equipment and parts needed by
textiles enterprises; importing and exporting commodities and technologies of
textiles system; undertaking
Chinese-foreign equity joint venture enterprise and Chinese-foreign contractual
joint venture enterprise; processing with supplied materials and supplied mode,
barter trade and transiting trade; housing
leasehold; developing, manufacturing and selling textiles,
garments, textile raw materials, and chemicals; development, manufacture,
technology transfer and sale of textile machinery and electronic equipment;
technology consultation, technology services; and cultural exchange.
SC is mainly
engaged in investment and management for its subsidiaries.
Ms. Chang Junchuan
has been legal representative and chairman of SC
since 1999.
SC owns approximately 200 staff at present.
SC is currently operating at the above stated address, and this
address houses its head office in the commercial zone of Beijing. Our checks
reveal that SC owns the total premise about 1,000 square meters.
http://www.ctrc.com.cn/ The design is professional and the content
is well organized. At present it is in Chinese version.
Email: ctrc@ctrc.com.cn
No significant events or changes were found according to our checks with
the local AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
State-owned Assets Supervision
and Administration
Commission of the State council 100
====================
Authorized by the State Council,
in accordance with “Company Law of the People’s Republic of China” and other
administrative regulations, the State-owned Assets Supervision and
Administration Commission of the State Council (SASAC) performs the
responsibility as the investor, guides and pushes forward the reform and
restructuring of state-owned enterprises; supervises the preservation and
increment of the value of state-owned assets for enterprises under its
supervision, and enhances the management of state-owned assets; advances the
establishment of modern enterprise system in SOEs, and perfects corporate
governance; and propels the strategic adjustment of the structure and layout of
the state economy.
l
Legal representative and General manager:
Ms.
Chang Junchuan, born in 1950, senior engineer. She is
currently responsible for the overall management of SC.
Working Experience(s):
From 1999 to present Working
in SC as chairman and general manager.
l
Vice-general
manager:
Mr. Fu Hongjian, in his 40’s with university education. He is currently responsible for the overall management of
SC.
Working Experience(s):
From 2000 to present Working
in SC as vice-general manager.
SC is mainly
engaged in investment and management of its subsidiaries.
SC is also engaged
in importing and exporting textile raw materials, and different sorts of
textiles, such as wool, chemical fiber, and garments, etc.
It is said that SC
has established business relationship with 50 customers in 24 countries in
Europe,
SC is known to have the following subsidiaries:
Beijing
Chemfiber Company
Beijing
Materials Company
Beijing
Sino-Tex Trade Company
China
Textile Resources Shanghai Company
China
Textile Resources Tianjin Company
China
Textile Resources Nanjing Company
China
Textile Resources Guangzhou Company
China
Textile Resources Shenyang Company
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.
Industrial & Commercial Bank of
AC#：09002600468
Relationship:
Balance Sheet
Unit: CNY’000
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as of Dec. 31,
2004 |
as of Dec. 31,
2005 |
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Cash & bank |
83,992 |
74,617 |
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Inventory |
337,424 |
261,805 |
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Accounts
receivable |
58,692 |
97,421 |
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Notes receivable |
645 |
5,028 |
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Dividends
receivable |
22,629 |
4,575 |
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Advances to
supplies |
23,409 |
38,532 |
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Other
receivables |
190,213 |
127,814 |
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Other current
assets |
2,046 |
0 |
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------------------ |
------------------ |
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Current assets |
719,050 |
609,792 |
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Fixed assets |
67,106 |
65,460 |
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Fixed assets net
value |
50,097 |
47,449 |
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Projects under
construction |
45,374 |
44,644 |
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Long-term
investments |
459,985 |
512,763 |
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Intangible and
other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
1,274,506 |
1,214,648 |
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============= |
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Short loans |
520,000 |
429,000 |
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Notes payable |
44,669 |
42,753 |
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Accounts payable |
208,825 |
279,546 |
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Other Accounts
payable |
31,990 |
25,595 |
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Accrued payroll |
3,195 |
2,704 |
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Taxes payable |
-28,766 |
-12,164 |
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Welfares payable |
1,171 |
1,408 |
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Accrued expenses |
0 |
435 |
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Advances from
customers |
125,646 |
78,681 |
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Other
current liabilities |
3,215 |
2 |
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----------------- |
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Current
liabilities |
909,945 |
847,960 |
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Long term
liabilities |
0 |
0 |
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------------------ |
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Total
liabilities |
909,945 |
847,960 |
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Shareholders
equities |
364,561 |
366,688 |
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------------------ |
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Total
liabilities & equities |
1,274,506 |
1,214,648 |
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Income Statement
Unit: CNY’000
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as of Dec. 31,
2004 |
as of Dec. 31,
2005 |
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Turnover |
2,819,033 |
1,952,262 |
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Cost of goods
sold |
2,744,405 |
1,923,210 |
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Add:
Income from other operations |
6,655 |
3,240 |
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Sales expense |
28,301 |
15,182 |
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Management expense |
93,019 |
-3,753 |
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Finance expense |
31,354 |
33,012 |
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Investment
income |
-26,996 |
15,237 |
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Operation Profit |
-94,352 |
3,314 |
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Less: profit tax |
5,395 |
1,198 |
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Net profit |
-99,747 |
2,116 |
Important Ratios
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as of Dec. 31,
2004 |
as of Dec. 31,
2005 |
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*Current ratio |
0.79 |
0.72 |
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*Quick ratio |
0.42 |
0.41 |
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*Liabilities
to assets |
0.71 |
0.70 |
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*Net profit
margin (%) |
-3.54 |
0.11 |
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*Return on
total assets (%) |
-7.83 |
0.17 |
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*Fixed
assets/Total assets |
0.04 |
0.04 |
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*Inventory
/Turnover ×365 |
44days |
49days |
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*Accounts
receivable/Turnover ×365 |
8days |
18days |
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*Turnover/Total
assets |
2.21 |
1.61 |
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* Cost of
goods sold/Turnover |
0.97 |
0.99 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is fair in 2004, but it has been improved to an
acceptable level in 2005.
l
SC’s net profit margin is fair in 2004, but it has been improved to an
acceptable level in 2005.
l
SC’s cost of goods sold is fairly high, comparing with its turnover.
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 fairly large.
l
The accounts receivable of SC is maintained in an acceptable level.
l
SC’s short-term loan appears LARGE.
l
SC’s turnover is in an acceptable 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. A credit line up to USD 200,000 would appear to be within SC’s
capacities upon a periodical review basis.
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 |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
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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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)