MIRA
INFORM REPORT
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Report Date : |
14.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
DONGHUA TEXTILE GROUP CO., LTD. |
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Registered Office : |
No. 1 Gufang (M) Road, Wujin High New Tech. Dev. Zone.
Changzhou, Jiangsu Province, 213161 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Jan. 4, 1996 |
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Com. Reg. No.: |
3204832105519 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in manufacturing
and selling textile products. |
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 : |
Up To usd 600,000 |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
DONGHUA TEXTILE GROUP CO., LTD.
NO. 1 GUFANG (M) ROAD, WUJIN HIGH NEW TECH. DEV. ZONE. CHANGZHOU,
JIANGSU PROVINCE, 213161 PR CHINA
TEL : 86 (0)
519-86573120
FAX : 86 (0) 519-86566398
EXECUTIVE SUMMARY
INCORPORATION DATE : JAN. 4, 1996
REGISTRATION NO. : 3204832105519
REGISTERED LEGAL FORM : LIMITED LIABILITIES
COMPANY
STAFF STRENGTH :
180
REGISTERED CAPITAL : CNY 100,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
cny 144,900,000 (AS OF DEC. 31, 2006)
EQUITIES :
cny 100,900,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 600,000 (PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : FAIRLY steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.39= US$1
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Ren Min Bi
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. 4, 1996.
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 manufacturing fabric, garments,
bedding, shoes and hats; processing slurry yarn and sanded cloth; exporting self-made
artificial cotton, stained cloth and garments; importing materials, machinery,
instruments and parts needed for its producing; selling textile materials and
cotton; researching, manufacturing and developing color cotton and its seed;
designing and developing garment fabric.
SC is mainly
engaged in manufacturing and selling textile products.
Mr. Xu Tongbao has
been chairman of SC since 1996.
SC is known
to have approx. 180 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 Wujin. Our checks reveal
that SC owns the total premise about 27,000 square meters.
http://www.donghua-group.com
. The design is professional and the content is well organized. At present it
is in Chinese version.
No significant events or changes were found during our checks with local
AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Hu Hejun 9
Li Mingge 12
Li Mingqi 9
Xu Shidong 19
Xu Tongbao 51
l
Chairman:
Mr. Xu Tongbao, in his 40’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1996 to present Working
in SC as chairman.
l
General Manager:
Ms. Liu Xiaozhen, in her 40’s with university education. She is
currently responsible for the daily management of SC.
Working Experience(s):
From 2005 to present Working in SC as general manager.
SC is mainly
engaged in manufacturing and selling textile products.
SC’s products
mainly include: jeans, child wear, and knitted sweaters.
SC sources its
materials 100% from domestic market. SC sells 40% of its products in domestic
market, and 60% to the overseas market, mainly American and European countries.
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.
*Major Supplier:
============
Changzhou
Wujin Donghua Textile Co., Ltd.
SC has established well business relations with the
following famous brands of Kmart、WilliamCarter、GAP、Lee、Jelo、Polo, Weatheerproof、Anybyer and Jnco.
SC is
known to have 11 subsidiaries as below,
Dingguagua
Cotton Fashion Co., Ltd.
Tel:
0519-6565688
Fax: 0519-6570698
Changzhou
Donghua Cotton Technology Researching Center Co., Ltd.
Tel:
0519-6573195
Fax:
0519-6573195
Jiangsu
Dingguagua Textile Co., Ltd.
Tel:
0519-6570516
Fax:
0519-6570516
Changzhou
Donghua Fashion Co., Ltd.
Tel:
0519-6564042
Fax: 0519-6573129
Changzhou
Q&X Fashion Co., Ltd.
Tel:
021-52907568
Fax:
021-52907568
Changzhou
Donghua Foreign Trade Co., Ltd.
Tel:
0519-8126501
Fax:
0519-8126500
Changzhou
Wujin Donghua Textile Co., Ltd.
Tel:
0519-6553235
Fax:
0519-6570656
Beijing
Xiangdangdang Technology Development Co., Ltd.
Tel:
010-51908160
Fax:
010-51908180
USA
Dakesa Trade Co., Ltd.
Add: c/o
the Corporation 1441 Broadway, 23rd Floor New York NY 10018
Tel：310-464-7801
Hong
Kong Dingguagua Cotton Fashion Co., Ltd.
Add: Suite
708 7/F Chinachem Golden Plaza 77 Mody Road Tsimshatsui East Kl
Tel：(00854) 29578832
Q&X
LTD.
Add:
William Goodenough HouseMecklenburgh Square,WCIN 2AN London,UK
Tel:
+44(0)1633 811152
Fax:
+44(0)1633 811037
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’s suppliers
declined to make any comments.
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 Wujin Sub-branch
AC#：414010517038018
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2006 |
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Cash & bank |
98,930 |
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Inventory |
54,810 |
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Accounts
receivable |
43,680 |
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Advances to
suppliers |
21,650 |
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Other
receivables |
138,030 |
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Other current
assets |
1,960 |
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------------------ |
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Current assets |
359,060 |
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Fixed assets net
value |
47,520 |
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Projects under
construction |
0 |
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Long term
investment |
26,390 |
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Other assets |
1,050 |
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------------------ |
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Total assets |
434,020 |
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============= |
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Short loans |
189,630 |
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Accounts payable |
40,130 |
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Advances from
clients |
4,810 |
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Taxes payable |
-350 |
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Salaries payable |
0 |
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Other payable |
3,800 |
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Other current
liabilities |
95,100 |
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------------------ |
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Current
liabilities |
333,120 |
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Long term
liabilities |
0 |
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------------------ |
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Total
liabilities |
333,120 |
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Equities |
100,900 |
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------------------ |
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Total
liabilities & equities |
434,020 |
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============= |
Income Statement
Unit: CNY’000
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As of Dec. 31, 2006 |
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Turnover |
144,900 |
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Cost of goods
sold |
119,530 |
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Sales expense |
13,730 |
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Management expense |
9,830 |
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Finance expense |
11,130 |
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Profit before
tax |
-9,150 |
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Less: profit tax |
0 |
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Profits |
-9,150 |
Important Ratios
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2006 |
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*Current ratio |
1.08 |
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*Quick ratio |
0.92 |
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*Liabilities
to assets |
0.77 |
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*Net profit
margin (%) |
-6.31 |
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*Return on
total assets (%) |
-2.11 |
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*Inventory
/Turnover ×365 |
137days |
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*Accounts
receivable/Turnover ×365 |
109days |
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*Turnover/Total
assets |
0.33 |
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* Cost of
goods sold/Turnover |
0.83 |
PROFITABILITY:
FAIR
l
The turnover of SC appears fairly good in 2006.
l
SC’s net profit margin is fair in 2006.
l
SC’s return on total assets is fair in 2006.
l
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal level in 2006.
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SC’s quick ratio is maintained in a normal level in 2006.
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The accounts receivable of SC is average.
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The inventory conversion period of SC appears long.
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The short loans are large.
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SC’s turnover is in a fair level, comparing with the size of its total
assets.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is well-known in its industry with fairly stable financial conditions.
The large amount of short loans could be a threat to SC’s financial condition.
A credit line up to USD 600,000 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. |
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%)