MIRA
INFORM REPORT
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Report Date : |
16.01.2007 |
IDENTIFICATION
DETAILS
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Name : |
ZIBO YINSHILAI TEXTILE CO., LTD. |
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Registered Office : |
Yinlong Village, Boshan Economic
Development Zone, Zibo, Shandong Province, 255213 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
December 1, 1999 |
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Com. Reg. No.: |
001530 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Manufacturing
and selling all sorts of textile fabrics. |
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 & address
ZIBO YINSHILAI TEXTILE CO., LTD.
YINLONG VILLAGE, BOSHAN ECONOMIC DEVELOPMENT ZONE, ZIBO,
SHANDONG PROVINCE, 255213 PR CHINA.
TEL: 86 (0) 533-4656349
FAX: 86 (0) 533-4656267
EXECUTIVE SUMMARY
INCORPORATION DATE : December 1, 1999
REGISTRATION NO. : 001530
REGISTERED LEGAL FORM :
CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
STAFF STRENGTH : 900
REGISTERED CAPITAL : usd 12,400,000
BUSINESS LINE : MANUFACTURING
TURNOVER :
CNY 493,840,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 102,490,000 (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 2007-1-15
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
SC was registered as a Chinese-foreign equity joint venture enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on December 1, 1999.
Company Status: Chinese-foreign equity joint
venture enterprise This form of business in PR China is
defined as a legal person. It is a limited co. jointly invested by one or
more foreign companies and one or more PR China controlled companies within
the territories of PR China according to a certain proportion of capital
investment. The investing parties exercise business management, share
profits and bear all risks and liabilities of the co. together. The equity
joint venture law requires that foreign party contribute not less than 25%
of the registered capital, with no maximum. The joint venture usually have
a limited duration of 10 to 50 years. Enterprise with large investment,
long construction periods, low investment returns, introducing of advanced
technology & advanced technology products which have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered business scope
includes manufacturing imitation silk multifunction health cloth, differential
fiber, high-grade fabrics products, and selling self-made products, in
accordance with licenses.
SC is mainly engaged in
manufacturing and selling all sorts of textiles.
Mr. Liu Dong has been legal representative and chairman of SC since
1999.
SC owns
approximately 900 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 Zibo.
Our checks reveal that SC owns the total premise about 35,000 square meters.
SC is not known to host website of its own at present.
No significant events or changes were found during our checks with
the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zibo
Boshan Yinshan Chemical Fiber Co., Ltd. 75
Hong
Kong Daji Group Co., Ltd. 25
l
Legal representative and General manager:
Mr. Liu
Dong, 38 years old with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 1999 to present Working
in SC as chairman and legal representative.
l
Vice-general manager:
Ms. Sun
Hongchun, 42 years old with university education. She
is currently responsible for the daily
management of SC.
Working Experience(s):
From 2000 to present Working
in SC as vice-general manager.
SC is mainly engaged in
manufacturing and selling all sorts of textile fabrics.
SC’s products mainly include
high-grade purified cotton, fiber scribbled and
unbleached material, etc.
SC’s main brand is “Yinshilai”.
SC sources its materials 80%
from domestic market, and 20% from overseas market, mainly USA and Australia.
SC sells 75% of its products in domestic market, and 25% to overseas market,
mainly Southeast Asian market.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60
days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
*Major Suppliers:
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Zibo Yinrong Commerce & Trade Co., Ltd
Rizhao Sanwei Textiles Co., Ltd.
*Major Customers:
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Zhejiang
LiuQiao Feather Co., Ltd.
Yantai
North Home Textile Co., Ltd.
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.
Bank of
China Zibo Branch Boshan Sub-branch
AC#：420064095408091001
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2005)
Unit: CNY’000
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Cash & bank |
84,080 |
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Inventory |
26,160 |
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Accounts receivable |
59,530 |
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Other receivables |
61,380 |
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Prepaid expenses |
3,560 |
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Advances to suppliers |
35,640 |
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Notes receivable |
1,820 |
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Other current assets |
20 |
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------------------ |
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Current assets |
272,190 |
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Fixed assets |
243,040 |
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Fixed assets net value |
202,980 |
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Projects under construction |
2,660 |
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Long term investment |
0 |
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Other assets |
0 |
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Total assets |
477,830 |
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Short loans |
48,700 |
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Accounts payable |
132,270 |
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Other payable |
57,100 |
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Advances from customers |
22,300 |
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Taxes payable |
220 |
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Accrued payroll |
117,360 |
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Accrued expenses |
2,150 |
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Other current liabilities |
0 |
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Current liabilities |
380,100 |
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Long term liabilities |
-4,760 |
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Total liabilities |
375,340 |
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Equities |
102,490 |
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Total liabilities &
equities |
477,830 |
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Income Statement (as of Dec. 31, 2005)
Unit: CNY’000
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Turnover |
493,840 |
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Cost of goods sold |
472,150 |
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Sales expense |
5,600 |
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Management expense |
2,850 |
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Finance expense |
5,360 |
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Add: Income from
other operations |
1,360 |
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Profit before tax |
9,230 |
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Less: profit tax |
0 |
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Profits |
9,230 |
Important Ratios
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as
of Dec. 31, 2005 |
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*Current ratio |
0.72 |
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*Quick ratio |
0.65 |
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*Liabilities
to assets |
0.79 |
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*Net profit
margin (%) |
1.87 |
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*Return on
total assets (%) |
1.93 |
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*Fixed
assets/Total assets |
0.42 |
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*Inventory
/Turnover ×365 |
19days |
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*Accounts
receivable/Turnover ×365 |
45days |
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*Turnover/Total
assets |
1.03 |
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* Cost of
goods sold/Turnover |
0.96 |
PROFITABILITY: FAIRLY GOOD
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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 acceptable, comparing with its turnover.
LIQUIDITY: FAIR
l
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 is maintained in an average level.
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The
accounts receivable of SC is maintained in an average level.
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SC’s
short-term loan appears normal, but its accounts payable appears TOO LARGE.
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SC’s
turnover is in an acceptable level, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
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The
debt ratio of SC is normal.
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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 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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