MIRA
INFORM REPORT
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Report Date : |
16.01.2007 |
IDENTIFICATION
DETAILS
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Name : |
taifeng textile group co., ltd. |
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Registered Office : |
No. 63, Daqiao South Road, Laiwu City,
Shandong Province 271100 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
dec. 27, 2001 |
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Com. Reg. No.: |
3712001870395 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing
and selling cotton yarn, etc. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
Up To usd 500,000 |
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Status : |
Satisfactory
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
name & addrss
TAIFENG TEXTILE GROUP CO., LTD.
NO. 63, DAQIAO SOUTH ROAD, LAIWU CITY
SHANDONG PROVINCE 271100 PR CHINA
TEL: 86 (0) 634-8856869
FAX: 86 (0) 634-8856616
EXECUTIVE SUMMARY
INCORPORATION DATE :
dec. 27, 2001
REGISTRATION NO. :
3712001870395
REGISTERED LEGAL FORM : limited liabilities
company
STAFF STRENGTH :
6,000
REGISTERED CAPITAL :
CNY 185,380,000
BUSINESS LINE :
manufacturing
TURNOVER :
cny 740,420,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 183,080,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE :
up to usd 500,000 (PERIODICAL REVIEW)
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
fairly stable
OPERATIONAL TREND :
steady
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 7.79 = US$1 AS OF 2007-01-15
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 Dec. 27, 2001.
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, polyester yarn, blended yarn, raw cotton fabric, colored woven cloth, garment, lining, and bedding, and export of relative technology; importing raw material, accessories, machinery, instruments and apparatus, component, and relative technologies; undertaking Chinese foreign equity joint venture enterprise and Chinese foreign contractual joint venture enterprise; processing and compensation trade agreement; and renting houses.
SC is mainly engaged
in manufacturing and
selling cotton yarn, etc.
Mr. Liu Qingping has been
chairman of SC since 2001.
SC owns approximately 6,000 staff
at present.
SC is
currently operating at the above stated address, and this address houses its
operating office and factory in the development zone of Laiwu. Our checks
reveal that SC rents the total premise about 200,000 square meters.
http://www.taifeng.cc The design is professional and the
content is well organized. At present, the web is only in Chinese version.
E-mail: hqg1968@163.com
No
significant events or changes were found during our checks with the local
Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name % of Shareholding
Shareholder's Union of Staff of SC 99.088
Other individuals 0.912
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Chairman and General
Manager:
Mr. Liu
Qingping, 53 years old with university education. He is currently responsible
for the overall management of SC.
Working Experience(s):
From 2001 to present Working in SC as
chairman and general manager.
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Assistant Manager:
Mr. Zou
Shengzhong, in his 40’s with university education. He is currently responsible
for the daily management of SC.
Working Experience(s):
From 2001 to present Working in SC as
assistant manager.
SC is mainly engaged in
manufacturing and selling cotton yarn, etc.
SC’s
products mainly include: cotton yarn, cotton yarn, polyester yarn, blended
yarn, raw cotton fabric, etc.
SC sources its materials 80% from
domestic market, and 20% from overseas market; SC sells its products 40% to
overseas market, mainly America, Japan, and Australia, and 60% in domestic
market, mainly Shandong province.
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 many subsidiaries at present, and the following are the major
ones:
Shandong
Taifeng Textile Co., Ltd.
Laiwu Runfeng Spinning Co., Ltd.
Laiwu Yinfeng Weaving Co., Ltd.
Qingdao Ai-Li-Si Garment Co., Ltd.
Jiangsu Lianyungang Color Weaving Factory
Shandong Taifeng Import & Export 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 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#：407666210118091001
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2005)
Unit: CNY’000
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Cash & bank |
338,520 |
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Inventory |
192,650 |
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Accounts receivable |
40,670 |
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Other Accounts receivable |
43,220 |
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Accounts payable in advance |
-400 |
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To be apportioned expense |
0 |
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Other current assets |
6,340 |
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Current assets |
621,000 |
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Fixed assets |
639,910 |
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Fixed assets net value |
634,880 |
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Projects under construction |
5,030 |
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Long term investment |
99,410 |
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Other assets |
52,920 |
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Total assets |
1,413,240 |
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Short loans |
313,760 |
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Accounts payable |
153,020 |
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Accounts receivable in advance |
3,930 |
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Other Accounts payable |
29,640 |
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Salaries payable |
6,310 |
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Welfares payable |
5,610 |
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Taxes payable |
1,310 |
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Withdraw the expenses in
advance |
0 |
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Other current liabilities |
446,570 |
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Current liabilities |
960,150 |
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Long term liabilities |
255,000 |
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Other liabilities |
15,010 |
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Total liabilities |
1,230,160 |
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Equities |
183,080 |
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Total liabilities &
equities |
1,413,240 |
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Income Statement (as of Dec. 31, 2005)
Unit: CNY’000
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Turnover |
740,420 |
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Cost of goods sold |
665,610 |
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Sales expense |
22,780 |
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Management expense |
12,800 |
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Finance expense |
30,030 |
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Non-operating income |
1,500 |
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Profit before tax |
10,700 |
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Less: profit tax |
0 |
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Profits |
10,700 |
Important Ratios (as of Dec. 31, 2005)
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*Current ratio 0.65
*Quick ratio 0.45
*Liabilities to
assets 0.87
*Net profit
margin (%) 1.45
*Return on total
assets (%) 0.76
*Inventory
/Turnover ×365 95 days
*Accounts
receivable/Turnover ×365 20 days
*Turnover/Total
assets 0.52
* Cost of goods
sold/Turnover 0.90
PROFITABILITY: AVERAGE
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The turnover of SC appears average 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 fairly high, comparing with its
turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in a fair 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 acceptable level.
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The
short-term loan of SC appears TOO LARGE.
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SC’s turnover is in a normal level, comparing with the size of its
total assets.
LEVERAGE: FAIR
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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
considered large-sized in its line with fairly stable financial conditions. The large amount
of short-term loan could be a threat to SC’s financial condition. A
credit line up to USD 500,000 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/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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