MIRA
INFORM REPORT
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Report Date : |
11.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
ZIBO YINSHILAI TEXTILE CO., LTD. |
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Registered Office : |
Yinlong Village, Boshan Economic Development Zone, Zibo, Shandong Province, 255213 |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
01.12.1999 |
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Com. Reg. No.: |
001530 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Manufacturing and Selling Different Sorts of Textile Fabrics |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 1,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
COMPANY NAME & ADDRESS
ZIBO YINSHILAI TEXTILE CO., LTD.
Yinlong Village, Boshan Economic Development Zone, Zibo, Shandong Province, 255213 PR CHINA.
TEL: 86 (0) 533-4656649
FAX: 86 (0) 533-4656267
EXECUTIVE SUMMARY
INCORPORATION DATE : December 1, 1999
REGISTRATION NO. : 001530
REGISTERED LEGAL FORM :
CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
CHIEF EXECUTIVE :
MR. liu dong (CHAIRMAN)
STAFF STRENGTH :
900
REGISTERED CAPITAL : usd 12,400,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 495,060,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 179,050,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 1,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
7.39 = US1$
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’s correct address should be the above stated one, instead of
the given address – No. 161, Dongmen Road, Zhoucun District, Zibo, Shandong
Province.
SC was registered as a Chinese-foreign equity joint venture enterprise
at local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on December 1, 1999.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR China is defined as a legal
person. It is a limited co. jointly invested by one or more foreign
companies and one or more PR China controlled companies within the
territories of PR China according to a certain proportion of capital
investment. The investing parties exercise business management, share
profits and bear all risks and liabilities of the co. together. The equity
joint venture law requires that foreign party contribute not less than 25%
of the registered capital, with no maximum. The investing parties are free
to agree on method of profit distribution and liabilities bearing according
to the proportion of capital investment. Each investing parties contributes
funds, tangible assets, technology & etc. The board of directors
excises the high authority. The joint venture usually has a limited
duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered business scope includes manufacturing imitation silk
multifunction health care cloth, differential fiber, high-grade fabrics
products, and selling self-made products, in accordance with licenses.
SC is mainly engaged in manufacturing and selling different sorts of
textiles.
Mr. Liu Dong has been legal representative and chairman of SC since
1999.
SC is known to have approx. 900 staff members 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 Zibo. Our
checks reveal that SC owns the total premise about 35,000 square meters.
SC is not known to host website of its own at present.
SC started its normal operation in September 2003.
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Zibo Boshan Yinshan Chemical Fiber Co., Ltd. 75
Hong Kong Daji Group Co., Ltd 25
Chairman, Legal representative and General manager:
Mr. Liu Dong , 38 years old with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1999 to present Working
in SC as chairman, legal representative and general manager.
Vice-general manager:
Ms. Sun Hongchun , 42 years old with university education. She is currently
responsible for the daily management of SC.
Working Experience(s):
From 2000 to present Working
in SC as vice-general manager.
SC is mainly engaged in manufacturing and selling different sorts of
textile fabrics.
SC’s products mainly include high-grade purified cotton, fiber scribbled
and unbleached material, etc.
SC’s main brand is “Yinshilai”.
SC sources its materials 80% from domestic market, and 20% from overseas
market, mainly USA and Australia. SC sells 75% of its products in domestic
market, and 25% to overseas market, mainly Southeast Asian 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.
*Major Supplier:
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Rizhao Sanwei Textiles Co., Ltd.
*Major Customers:
==============
Zhejiang LiuQiao Feather Co., Ltd.
Yantai North Home Textile Co., Ltd.
SC is not known to have any subsidiary at present.
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.
Bank of China Zibo Branch Boshan Sub-branch.
AC#：420064095408091001
Relationship: Normal.
Balance Sheet
Unit: CNY’000
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as
of Dec. 31, 2005 |
as
of Dec. 31, 2006 |
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Cash & bank |
84,080 |
134,460 |
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Inventory |
26,160 |
38,820 |
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Accounts receivable |
59,530 |
22,060 |
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Other receivables |
61,380 |
43,810 |
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Prepaid expenses |
3,560 |
3,030 |
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Advances to suppliers |
35,640 |
11,090 |
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Notes receivable |
1,820 |
1,050 |
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Other current assets |
20 |
20 |
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------------------ |
------------------ |
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Current assets |
272,190 |
254,340 |
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Fixed assets |
243,040 |
267,870 |
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Fixed assets net value |
202,980 |
206,440 |
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Projects under construction |
2,660 |
9,450 |
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Long term investment |
0 |
0 |
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Other assets |
0 |
0 |
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------------------ |
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Total assets |
477,830 |
470,230 |
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============= |
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Short loans |
48,700 |
106,600 |
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Accounts payable |
132,270 |
34,170 |
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Other payable |
57,100 |
34,630 |
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Advances from customers |
22,300 |
5,260 |
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Taxes payable |
220 |
0 |
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Accrued payroll |
117,360 |
0 |
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Accrued expenses |
2,150 |
0 |
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Notes payable |
0 |
120,700 |
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Other current liabilities |
0 |
-180 |
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------------------ |
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Current liabilities |
380,100 |
301,180 |
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Long term liabilities |
-4,760 |
-10,000 |
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Total liabilities |
375,340 |
291,180 |
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Equities |
102,490 |
179,050 |
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Total liabilities & equities |
477,830 |
470,230 |
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Income Statement
Unit: CNY’000
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as
of Dec. 31, 2005 |
as
of Dec. 31, 2006 |
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Turnover |
493,840 |
495,060 |
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Cost of goods sold |
472,150 |
402,290 |
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Sales expense |
5,600 |
4,990 |
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Management expense |
2,850 |
4,220 |
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Finance expense |
5,360 |
7,690 |
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Add: Income from other operations |
1,360 |
0 |
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Profit before tax |
9,230 |
76,700 |
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Less: profit tax |
0 |
0 |
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Profits |
9,230 |
76,700 |
Important Ratios
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as
of Dec. 31, 2005 |
as
of Dec. 31, 2006 |
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*Current ratio |
0.72 |
0.84 |
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*Quick ratio |
0.65 |
0.72 |
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*Liabilities to assets |
0.79 |
0.62 |
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*Net profit margin (%) |
1.87 |
15.5 |
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*Return on total assets (%) |
1.93 |
16.3 |
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*Inventory /Turnover ×365 |
19 days |
29 days |
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*Accounts receivable/Turnover ×365 |
45 days |
16 days |
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*Turnover/Total assets |
1.03 |
1.05 |
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* Cost of goods sold/Turnover |
0.96 |
0.81 |
PROFITABILITY: FAIRLY GOOD
The turnover of SC is maintained in a fairly good level in both 2 years.
SC’s net profit margin is average in 2005 and fairly good in 2006.
SC’s return on total assets is average in 2005 and fairly good in 2006.
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level in both 2 years.
SC’s quick ratio is maintained in a fair level in both 2 years.
The inventory of SC appears average in both 2 years.
The accounts receivable of SC appears average.
The short loans of SC appear fairly large.
SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
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 favorable market
conditions. Over the past 8 years, SC has made a stable growth with fairly good
profit. A credit line up to USD 1,000,000 would appear to be within SC’s
capacities.
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. |
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%)