MIRA
INFORM REPORT
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Report Date : |
16.01.2007 |
IDENTIFICATION
DETAILS
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Name : |
DONGYING TANSINS TEXTILE CO., LTD. |
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Registered Office : |
No. 11 Qingzhou Road, Dongying, Shandong
Province, 257000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
JAN. 21, 1998 |
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Com. Reg. No.: |
3705001804068 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing
and selling textile products. |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Up To USD 1,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
DONGYING TANSINS TEXTILE CO., LTD.
NO. 11 QINGZHOU ROAD, DONGYING,
SHANDONG PROVINCE, 257000 PR CHINA
TEL: 86 (0)
546-8351300
FAX: 86 (0) 546-8351986
EXECUTIVE SUMMARY
INCORPORATION DATE :
JAN. 21, 1998
REGISTRATION NO. :
3705001804068
REGISTERED LEGAL FORM : LIMITED LIABILITIES
COMPANY
STAFF STRENGTH :
3,000
REGISTERED CAPITAL :
CNY 56,120,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
cny 1,398,762,000 (AS OF DEC. 31, 2005)
EQUITIES :
cny 341,468,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE :
UP TO USD 1,000,000
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 7.83 = US$1 AS OF 2007-1-15
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. 21, 1998.
Company Status: Limited liabilities co. This form of
business in PR China is defined as a legal person. 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 listed as follows: -manufacturing
co. : CNY 500,000.00 -trading
&wholesaling co. : CNY 500,000.00 -retailing co. :
CNY 300,000.00 -consultancy &
service co. : CNY 100,000.00 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 50% of the registered capital
while contribution by intangible assets must not exceed 20% 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 and selling cotton yarn,
thread, grey cloth, and towel products; marketing various textiles, textile
materials, textile machinery, fittings, and accessory ingredient; purchasing
and processing cotton; importing and exporting various goods; processing and
selling garments and home textile products; wholesaling of coal.
SC is mainly engaged in
manufacturing and selling textile products.
Mr. Cui Dianwen has been chairman
of SC since 2003.
SC owns about 3,000 staff.
SC is
currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Dongying. Our checks
reveal that SC owns the total premise about 120,000 square meters.
http://www.tansins.com . But it can’t be
landed for technical reasons.
SC was
formerly known as Dongying Textile Factory, which was established in 1986.
SC has
got the certificates of ISO 9002 in 1998, ISO9001: 2000 and ISO 14000 in 2001.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Cui Dianwen 16.50
47 other individuals 83.50
(including Fang Xiangzheng, Zhang Ruixi,
etc.)
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Chairman:
Mr. Cui
Dianwen, in his 40’s with university education. He is currently responsible for
the overall management of SC.
Working Experience(s):
From 2003 to present Working
in SC as Chairman.
l
General Manager:
Mr. Fang
Xiangzheng, in his 40’s with university education. He is currently responsible
for the daily management of SC.
Working Experience(s):
From 2003 to present
Working in SC as general
manager.
SC is mainly engaged in
manufacturing and selling textile products.
SC’s products mainly include:
cotton yarn, grey cloth, towel, yarn-dyed fabric and bedding.
SC has ring spinners 180,000
sets, rotor spinners 6,000 sets, jet looms 220 sets (imported from Japan), and
4 mercerized cotton manufacturing lines.
SC sources its materials 90% from
domestic market and 10% from the overseas markets mainly from Europe. SC sells
70% of its products in domestic market and 30% to the overseas markets, mainly
to Korea, American and Europe.
The
buying terms of SC include Check, 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.
*Major Supplier:
============
Shanghai Erfangji Co., Ltd.
SC is
known to have one subsidiary as following,
Dongying
Tansins Importing and Exporting Co., Ltd.
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 refused to release any
information of its suppliers and the trade reference was not available.
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.
Agriculture
Bank of China Dongying Branch
AC#：331001040000802
Relationship:
Normal.
Financial Summary
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Unit: CNY’000
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As of Dec. 31, 2004 |
As of Dec. 31, 2005 |
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Accounts receivable |
88,920 |
63,260 |
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Current assets |
300,258 |
357,638 |
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Fixed assets |
192,450 |
285,520 |
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Total assets |
665,397 |
865,142 |
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Current liabilities |
411,036 |
523,674 |
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Total liabilities |
411,036 |
523,674 |
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Equities |
254,361 |
341,468 |
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Total liabilities &
equities |
665,397 |
865,142 |
Income Statement
Unit: CNY’000
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As of Dec. 31, 2004 |
As of Dec. 31, 2005 |
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Turnover |
652,415 |
1,398,762 |
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Cost of goods sold |
602,513 |
1,238,143 |
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Sales expense |
12,289 |
9,330 |
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Management expense |
8,865 |
17,315 |
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Finance expense |
8,955 |
15,660 |
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Profit before tax |
9,016 |
71,163 |
Important Ratios
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As
of Dec. 31, 2004 |
As
of Dec. 31, 2005 |
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*Current ratio |
0.73 |
0.68 |
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*Quick ratio |
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*Liabilities
to assets |
0.62 |
0.61 |
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*Net profit
margin (%) |
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*Return on
total assets (%) |
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*Fixed assets/Total
assets |
0.29 |
0.33 |
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*Inventory
/Turnover ×365 |
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*Accounts
receivable/Turnover ×365 |
50days |
17days |
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*Turnover/Total
assets |
0.98 |
1.45 |
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* Cost of
goods sold/Turnover |
0.92 |
0.89 |
PROFITABILITY: FAIRLY GOOD
l
The
turnover of SC appears fairly good in its line.
l
SC’s
profit before tax appears fairly good in 2005.
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 fair level.
l
The
accounts receivable of SC appears average.
l
SC’s
turnover is in a fairly good 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 low.
Overall financial condition of the SC:
Stable.
SC is
considered medium-sized in its line with stable financial conditions. 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/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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