MIRA
INFORM REPORT
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Report Date : |
31st January, 2007 |
IDENTIFICATION
DETAILS
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Name : |
SHANDONG WEIQIAO TEXTILE CO., LTD. |
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Registered Office : |
No. 1 Weifang Road, Zouping County
Economic Development Zone, Shandong
Province, 256212 Pr China |
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Country : |
China |
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Financials (as on) : |
31/12/2005 |
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Date of Incorporation : |
Dec. 6, 1999 |
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Com. Reg. No.: |
3700001804676 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Engaged in manufacturing, processing
and selling cotton yarns and cloth |
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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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Name & address
SHANDONG WEIQIAO TEXTILE CO., LTD.
NO. 1 WEIFANG
ROAD, ZOUPING COUNTY ECONOMIC DEVELOPMENT ZONE,
SHANDONG
PROVINCE, 256212 PR CHINA
TEL:
86 (0) 543-4161111
FAX:
86 (0) 543-4162000
EXECUTIVE SUMMARY
INCORPORATION DATE : DEC. 6, 1999
REGISTRATION NO. : 3700001804676
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
CHIEF EXECUTIVE : MR. ZHANG BO (CHAIRMAN)
STAFF STRENGTH : 140,000
REGISTERED CAPITAL : CNY 1,194,389,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 13,584,389,000
(AS OF DEC. 31, 2005)
EQUITIES : CNY 9,921,348,000 (AS OF DEC. 31, 2005)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : FAVORABLE TERMS
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : upward
GENERAL REPUTATION : well-known
EXCHANGE RATE : CNY 7.91 = US$1 AS OF 2006-10-25
SC was registered as a shares limited company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Dec. 6, 1999.
Company Status: Shares limited co. This form of
business in PR China is defined as a legal person. Its registered capital
is divided into shares of equal par value and the co. raises capital by
issuing share certificates by promotion or by public offer. Shareholders
bear limited liability to the extent of shareholding, and the co. is liable
for its debts only to the extent of its total assets. The characteristics
of the shares limited co. are as follows: The establishment of
the co. requires at least five promoters and at least three of them must be
PR- China controlled legal persons. Natural person can not be allowed to
serve as promoters. The minimum
registered capital of a co. is CNY 10M. while that of the co. with foreign
investment is CNY 30M. The total capital of a co. which propose to apply
for publicly listed must not less than CNY 50M. The board of
directors must consist of an odd number of five to nineteen directors. If the co. raises
capital by public offer, the promoters must not subscribe less than 35% of
the total shares. the promoters’ shares are restricted to transfer- within
three years of the offer. Directors can not transfer the shares they hold
in the co. during their terms of office. A state-owned
enterprise that is restructured into a shares limited co. must comply with
the conditions & requirements specified under the law &
administrative rule.
SC’s registered business line include:
manufacturing, processing and selling cotton yarns, cloth weaving, printing and
dyeing, knit wears and garments. Import and export various goods. SC is mainly
engaged in manufacturing, processing and selling cotton yarns and cloths.
Mr. Zhang Bo has been chairman of SC
since Sep. 2003.
SC owns approximately 140,000 staff.
SC is currently operating at the above
stated address and this address houses its operating office and factory in the
industrial zone of Shandong. Our checks reveal that SC owns the total premise
about 3,100,000 square meters including the new factory in Zouping Economic
Development Zone. The conditions inside are normal and standard during our
visit.
http://www.wqfz.com
The design is professional and the content is well organized. At present the
web is only in Chinese version.
E-mail: cdejian2004@163.com
SC is a listed company in Hong Kong
Stock Exchange Market with the stock code 2698.
SC’s former registered capital was CNY 818,005,500
and in Mar. 2006 it was increased to the present one.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Weiqiao Pioneering Group Co., Ltd. 50.16%
Zhang shi’ping 0.64%
Zhang bo 1.58%
Zhang shi’xue 2.14%
Other 12 individuals 10.37%
public shares 35.11%
Chairman:
Mr. Zhang Bo, 36 years old with university education. He is
currently responsible for the overall management and business strategy of SC.
He used to work in Shandong Agricultural Co., Limited, Binzhou Branch and
Binzhou Electrical Power Industrial Head office, etc. He is a deputy of
National People’s Congress. He has surpasses 10 years management experience.
Working Experience(s):
From July 25, 2001 to present Working in Weihai WeiQiao Textile
Co., Ltd. as chairman
From Sep. 2003 to present Working in SC as chairman.
General
manager:
Ms. Zhang hong’xia, 34 years old with
college education. She is currently responsible for the daily management of SC.
She has been general manager of SC since 1999. She has 12 years experience in
the textile industry.
Working Experience(s):
From Sep. 2003 to present Working in SC as general
manager.
SC is mainly engaged in manufacturing,
processing and selling cotton yarns and cloth.
SC owns a total of 4 production areas,
namely The First Production Area, The Second Production Area, The Third
Production Area at Zouping County, and Binzhou Weiqiao Technology Industrial
Park ( "Industrial Park" ).
SC manufactures approximately 659,000
tons of cotton yarn, 1,441 million meters of grey fabric and 124 million meters
of jean in 2005.
SC sources its materials 95% from
domestic market, 5% from international market mainly from Japan. SC sells 60%
of its products in domestic market, mainly to Fujian, Jiangsu, Shanghai,
Guangdong and Shandong, and 40% to overseas market, mainly to Japan, Hong Kong
and European countries.
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.
Major Clients:
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Itochu
Fountain Set Holding Limited
Texwinca Group
Nichimen
Marubeni
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 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.
China Construction Bank Weiqiao
Sub-branch
AC#: 837908012210002067
Relationship: Normal.
Balance Sheet
Unit: CNY’000
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as of
Dec. 31, 2003 |
as of
Dec. 31, 2004 |
as of
Dec. 31, 2005 |
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Cash & bank |
1,429,692 |
2,114,147 |
4,339,975 |
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Inventory |
1,760,443 |
2,131,711 |
3,645,228 |
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Accounts receivable |
432,383 |
577,807 |
562,272 |
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Other Accounts receivable |
316,644 |
364,969 |
458,595 |
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To be apportioned expense |
0 |
0 |
0 |
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Other current assets |
534,297 |
799,965 |
1,002,977 |
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Current assets |
4,473,459 |
5,988,599 |
10,009,047 |
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Fixed assets |
4,850,953 |
6,735,752 |
14,495,891 |
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Fixed assets net value |
0 |
0 |
0 |
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Projects under construction |
0 |
0 |
0 |
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Intangible and other assets |
888,483 |
2,075,637 |
199,828 |
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Total assets |
10,212,895 |
14,799,988 |
24,704,766 |
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Short loans |
0 |
0 |
5,135,412 |
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Accounts payable |
1,188,603 |
1,158,180 |
2,244,091 |
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Salaries payable |
0 |
0 |
0 |
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Shares payable |
1,690 |
31,380 |
38,517 |
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Taxes payable |
210,813 |
476,057 |
560,092 |
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Other Accounts payable |
113,225 |
597,819 |
841,358 |
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Withdraw the expenses in advance |
0 |
0 |
0 |
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Other current liabilities |
1,721,121 |
2,918,929 |
951,136 |
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Current liabilities |
3,235,452 |
5,182,365 |
9,770,606 |
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Other liabilities |
0 |
0 |
5,012,812 |
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Total liabilities |
5,696,718 |
8,846,078 |
14,783,418 |
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Equities |
4,516,177 |
5,953,910 |
9,921,348 |
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Total liabilities & equities |
10,212,895 |
14,799,988 |
24,704,766 |
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Income Statement
Unit: CNY’000
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2003 |
2004 |
2005 |
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Turnover |
6,560,470 |
11,088,224 |
13,584,389 |
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Cost of goods sold |
5,350,157 |
9,231,047 |
11,340,259 |
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Profit before tax |
853,442 |
1,246,884 |
1,435,784 |
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Profits |
541,672 |
825,535 |
1,248,394 |
Important Ratios
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As of Dec. 31, 2004 |
As of Dec. 31, 2005 |
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*Current ratio |
1.16 |
1.02 |
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*Quick ratio |
0.74 |
0.65 |
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*Liabilities to assets |
0.60 |
0.60 |
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*Net profit margin (%) |
7.44 |
9.19 |
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*Return on total assets (%) |
5.57 |
5.05 |
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*Fixed assets/Total assets |
0.46 |
0.59 |
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*Inventory /Turnover ×365 |
70days |
98days |
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*Accounts receivable/Turnover ×365 |
19days |
15days |
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*Turnover/Total assets |
0.75 |
0.55 |
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* Cost of goods sold/Turnover |
0.83 |
0.83 |
PROFITABILITY: FAIRLY GOOD
The turnover of SC
appears fairly good in 2004 and 2005.
SC’s net profit margin
is fairly good in 2004 and 2005.
SC’s return on total
assets is fairly good in 2004 and 2005.
SC’s cost of goods sold
is average, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC
is maintained in a normal level.
SC’s quick ratio is
maintained in a fair level.
The inventory of SC appears
fairly large.
The accounts receivable
of SC is average.
SC’s short loans of
2005 appears LARGE.
SC’s turnover is in an
acceptable level, comparing with the size of its total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is
average.
The risk for SC to go
bankrupt is low.
Overall financial
condition of the SC: Stable.
SC is well-known in its industry with stable
financial conditions. Credit dealings with SC in favorable terms can be
considered.
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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