MIRA
INFORM REPORT
|
Report Date : |
17.01.2007 |
IDENTIFICATION
DETAILS
|
Name : |
jihua 3542
textiles co., ltd. |
|
|
|
|
Registered Office : |
No.168
Renmin Road, Xiangfan City, Hubei Province, 441002 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2005 |
|
|
|
|
Date of Incorporation : |
march 7, 1990 |
|
|
|
|
Com. Reg. No.: |
4206001351509 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
Manufacturing
and selling cotton yarn, cloth, knitgoods and garments. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
Maximum Credit Limit : |
Up To usd 600,000 |
|
|
|
|
Status : |
Satisfactory
|
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
name & address
jihua 3542 textiles co., ltd.
no.168 renmin road, xiangfan city,
hubei province, 441002 PR CHINA
TEL: 86 (0) 710-3119670
FAX: 86 (0) 710-3119327
EXECUTIVE SUMMARY
INCORPORATION DATE :
march 7, 1990
REGISTRATION NO. :
4206001351509
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
2,500
REGISTERED CAPITAL :
CNY 100,000,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 455,040,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 189,040,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE :
UP TO usd 600,000 (PERIODICAL REVIEW)
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY7.80 = 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 Renminbi
Note: SC’s current name should be the above
stated one, and the given name – Xiangfan Kniting and Textile was SC’s former
name.
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 March 7, 1990.
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, cloth, knitgoods and garments; importing and exporting commodities and technologies; selling shoes and hat, bedding, and fittings of textile machinery; machinery maintaining; purchasing and processing cotton.
SC is mainly engaged in
manufacturing and selling cotton yarn, cloth, knitgoods and garments.
Mr. Zhang Ming has been chairman
of SC since 1990.
SC owns about 2,500 staff 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 Xiangfan. Our checks
reveal that SC owns the total premise about 50,000 square meters.
SC is
not known to host web site of its own at present.
SC former name was Xiangfan Kniting and Textile
Factory, and it was changed into jihua
3542 textiles co., ltd. in December of 2006.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Jihua Light Industry Group Co., Ltd. 100
l
Chairman and General Manager:
Mr.
Zhang Ming, about 45 years old with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1990 to present Working
in SC as chairman and general manager.
SC is mainly engaged in
manufacturing and selling cotton yarn, cloth, knitgoods and garments.
Brand: Fulong
SC’s products mainly include:
cotton yarn, cloth, knitgoods and dress.
SC sources its materials 100% from domestic
market, mainly Hubei and Zhejiang. SC sells 80% of its products in domestic
market, and 20% to overseas market, mainly Southeast Asian market.
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.
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.
SC’s management
declined to release its bank details.
Balance Sheet (as of Dec. 31, 2005)
Unit: CNY’000
|
Cash & bank |
14,060 |
|
Inventory |
84,730 |
|
Accounts receivable |
30,870 |
|
Other Accounts receivable |
4,380 |
|
To be apportioned expense |
0 |
|
Other current assets |
30,830 |
|
|
------------------ |
|
Current assets |
164,870 |
|
Fixed assets |
433,680 |
|
Fixed assets net value |
276,620 |
|
Projects under construction |
0 |
|
Long term investment |
0 |
|
Other assets |
0 |
|
|
------------------ |
|
Total assets |
441,490 |
|
|
============= |
|
Short loans |
72,000 |
|
Accounts payable |
19,000 |
|
Other Accounts payable |
34,370 |
|
Advances from customers |
8,420 |
|
Withdraw the expenses in
advance |
1,470 |
|
Other current liabilities |
49,150 |
|
|
------------------ |
|
Current liabilities |
184,410 |
|
Long term liabilities |
68,000 |
|
Other liabilities |
40 |
|
|
------------------ |
|
Total liabilities |
252,450 |
|
Equities |
189,040 |
|
|
------------------ |
|
Total liabilities &
equities |
441,490 |
|
|
============= |
Income Statement (as of Dec. 31, 2005)
Unit: CNY’000
|
Turnover |
455,040 |
|
Cost of goods sold |
396,490 |
|
Sales expense |
8,930 |
|
Management expense |
22,230 |
|
Finance expense |
8,270 |
|
Profit before tax |
15,350 |
|
Less: profit tax |
5,060 |
|
Profits |
10,290 |
Important Ratios (as of Dec. 31, 2005)
=============================
*Current ratio 0.89
*Quick ratio 0.43
*Liabilities to
assets 0.57
*Net profit
margin (%) 2.26
*Return on total
assets (%) 2.33
*Inventory
/Turnover ×365 68 days
*Accounts
receivable/Turnover ×365 25 days
*Turnover/Total
assets 1.03
*Cost of goods
sold/Turnover 0.87
PROFITABILITY: AVERAGE
l
The
turnover of SC appears fairly good in its line.
l
SC’s
net profit margin is average.
l
SC’s
return on total assets is average.
l
SC’s
cost of goods sold is average, 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 is maintained in a normal level.
l
The
accounts receivable of SC is maintained in a normal level.
l
The
short-term loan of SC appears fairly 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 600,000
would appear to be within SC’s capacities upon a periodical review basis.
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome financial
difficulties seems comparatively below average/normal. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|