MIRA
INFORM REPORT
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Report Date : |
26.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
CHINA TEXMATECH CO., LTD. |
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Registered Office : |
China Garments Mansion, No. 99, Jianguo Road, Beijing
100020 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
1984 |
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Com. Reg. No.: |
1000001000283 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in
international trade. |
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 1,500,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
CHINA TEXMATECH CO., LTD.
CHINA GARMENTS MANSION, NO. 99, JIANGUO ROAD
BEIJING 100020 PR CHINA
TEL : 86 (0) 10-65815588 /51900273
FAX : 86 (0) 10-65518950
EXECUTIVE SUMMARY
INCORPORATION DATE : 1984
REGISTRATION NO. : 1000001000283
REGISTERED LEGAL FORM : limited liabilities
company
STAFF STRENGTH :
120
REGISTERED CAPITAL : cny 120,000,000
BUSINESS LINE :
trading
TURNOVER :
CNY 1,082,910,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 159,010,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 1,500,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : steady
GENERAL REPUTATION : well known
EXCHANGE RATE :
CNY 7.37 = 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 Renminbin
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 and has been under present ownership since 2004.
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 scopes include importing and exporting commodities
and technologies, excluding export commodities under state-unified operation and import commodities operated by the state-designated
companies.
SC is mainly
engaged in international trade.
Mr. Wang Tiankai
has been chairman of SC since 2005.
SC is
known to have approx. 120 staff members at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Beijing. Our checks reveal that SC
owns the total premise about 3,000 square meters.
http://gb.ctmtc.com The design is
professional and the content is well organized. At present, the web is both in
Chinese and English versions.
E-mail: ctmtc@ctmtc.com.cn
SC is the largest enterprise in China specialized in the import and
export of textile machinery and technology. As the key enterprise of China Hengtian
Group Co. it became one of the state’s important enterprises under the direct
administration of the central government of China in 1998. SC has turned into
company limited from state-owned company after gaining the share capital from
Jingwei Textile Machinery Co., Ltd. in 2004. Presently, SC focuses its business
on the import and export of textile machinery and technology, textile products
and garments, textile raw material, and engineering contracted, etc.
In 2005, SC’s former legal representative He Fengxian (贺凤仙)
was taken place by the present one.
MAIN SHAREHOLDERS:
Name
% of Shareholding
China Hengtian Group Co. Ltd. 75
Jingwei Textile Machinery Co., Ltd. 25
China Hengtian Group Co., Ltd. is a
large-scale wholly state-owned holding company under the supervision and
administration the State-Owned Assets Supervision and Administration Commission
of the State Council. With textile machinery, textiles, garments and trade as
its main line, the Group's business activities mainly include scientific
research and development, manufacturing and marketing of textile machinery,
providing customers with complete solving program, import and export of textile
machinery, textiles, garments and textile raw materials, Meanwhile, the
corporate implements a diversified management strategy with real estate and
securities trading as tactically-driven business.
Address: China Garments Mansion, 99 Jianguo
Road, Chaoyang District, Beijing
Post code: 100020
Tel: 86(10) 65811169
Fax: 86(10) 65813211/65813467
E-mail: hengtian@chtgc.com
Website: http://www.chtgc.com
Jingwei Textile Machinery Co., Ltd. (Jingwei
Textile Machinery), was registered in Beijing economic and technological
development zone. By the end of 2004, the whole capital stocks of the company
are CNY 603,800,000, and the total assets scale of the company is more than CNY
5.5billion. At present, it has become a multi-operational group with
cross-territory business and large capacity of complete sets of cotton spinning
machinery that specialized in product development, producing, market service as
the only enterprise in China.
Address: 7/Fl, No.1, Shanghai Center, 39
Liangma Qiao Road, Chaoyang, Beijing
Tel: 8610-84534078/79/80/81
Fax: 8610-84534135
Web: www.jwgf.com
E-mail: jwgf@jwgf.com
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Chairman:
Mr. Wang Tiankai, 51 years old with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 2005 to present Working in SC as chairman;
At present Working in China Hengtian Group Co., Ltd. as general manager, and in
China Textile Machinery (Group) Co., Ltd. as chairman.
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General manager:
Ms. He Fengxian, in her 50’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;
At present Working in China Hengtian Group Co., Ltd. as assistant manager.
SC is mainly
engaged in international trade.
SC’s products
mainly include: Cotton Spinning Equipment, Dyeing and
Finishing Equipment, Weaving Preparatiry, Weaving Equipment, Chemical Fiber
Equipment, Nonwoven Equipment, Textile Instrument & Auxiliary Machinery,
etc.
SC sources its
materials 40% from domestic market, mainly Beijing, 60% from overseas market,
mainly Austria. SC sells its products 100% to overseas market, mainly Southeast
Asia, American and European countries.
The buying terms
of SC include T/T, L/C and Credit of 30-60 days. The payment terms of SC
include T/T, L/C and Credit of 30-60 days.
SC is
known to have the following subsidiaries at present:
China
Texmatech Co., Ltd. Liaoning Branch
Address: Room 806, Jinfeng Building, No. 281, Zhonghe Middle Road,
Hangzhou City, Zhejiang
Tel: 0571-87910238
Fax: 0571-87910258
China
Texmatech Co., Ltd. Zhejiang Branch
Tel:
024-89815537
Fax: 024-89815537
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
AC#：00068808091001
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
165,650 |
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Inventory |
297,420 |
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Accounts
receivable |
50,390 |
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Other Accounts
receivable |
19,660 |
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Advances to
suppliers |
63,760 |
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To be
apportioned expense |
0 |
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Other current
assets |
72,860 |
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------------------ |
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Current assets |
669,740 |
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Fixed assets |
31,960 |
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Long term
investment |
50,090 |
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Other assets |
0 |
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Total assets |
751,790 |
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Short loans |
97,830 |
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Accounts payable |
66,800 |
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Advance from
clients |
346,030 |
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Other Accounts
payable |
60,160 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
18,370 |
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------------------ |
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Current
liabilities |
589,190 |
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Long term
liabilities |
0 |
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Other
liabilities |
3,590 |
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Total
liabilities |
592,780 |
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Equities |
159,010 |
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Total
liabilities & equities |
751,790 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
1,082,910 |
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Cost of goods
sold |
938,180 |
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Sales expense |
89,070 |
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Management expense |
39,420 |
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Finance expense |
1,790 |
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Profit before
tax |
14,220 |
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Less: profit tax |
4,690 |
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Profits |
9,530 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 1.14
*Quick ratio 0.63
*Liabilities to
assets 0.79
*Net profit
margin (%) 0.88
*Return on total
assets (%) 1.27
*Inventory
/Turnover ×365 100days
*Accounts
receivable/Turnover ×365 17days
*Turnover/Total
assets 1.44
* Cost of goods
sold/Turnover 0.87
PROFITABILITY:
AVERAGE
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The turnover of SC appears fairly good in its line.
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SC’s net profit margin is average.
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SC’s return on total assets is average.
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SC’s cost of goods sold is average, comparing with its
turnover.
LIQUIDITY:
AVERAGE
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The current ratio of SC is maintained in a normal level.
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SC’s quick ratio is maintained in a fair level.
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The inventory of SC appears fairly large.
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The accounts receivable of SC is maintained in an average level.
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The short-term loan of SC appears average.
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SC’s turnover is in an average level, comparing with the
size of its total assets.
LEVERAGE:
AVERAGE
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The debt ratio of SC is fairly high.
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The risk for SC to go bankrupt is low.
Overall
financial condition of the SC: Fairly stable.
SC is considered an old-established business in medium size. Taking into
consideration of SC’s general performance, reputation as well as market
conditions, we would rate SC as an average credit risk company.
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%)