MIRA
INFORM REPORT
|
Report Date : |
13th March, 2007 |
IDENTIFICATION
DETAILS
|
Name : |
SUNVIM
GROUP CO., LTD. |
|
|
|
|
Registered Office : |
No.1 Furi Street, Gaomi City, Weifang, Shandong Province,
261500 Pr China |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2005 |
|
|
|
|
Date of Incorporation : |
11.08.1999 |
|
|
|
|
Com. Reg. No.: |
3700002801647 |
|
|
|
|
Legal Form : |
Shares Limited Company |
|
|
|
|
Line of Business : |
Engaged in manufacturing and selling towel series products, textiles,
knit goods, bedding, and garments. |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
Company Name & Address
SUNVIM GROUP CO., LTD.
no.1 furi street, gaomi city,
weifang, shandong PROVINCE, 261500 PR CHINA
TEL: 86 (0) 536-2329999
FAX: 86 (0) 536-2323019
EXECUTIVE SUMMARY
INCORPORATION DATE : august 11, 1999
REGISTRATION NO. : 3700002801647
REGISTERED LEGAL FORM : Shares limited company
STAFF STRENGTH :
12,000
REGISTERED CAPITAL : CNY 325,350,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 1,784,119,000 (AS OF DEC.
31, 2005)
EQUITIES :
CNY 507,647,000
(AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 1,000,000 (PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY7.75 = US$1 AS OF 2007-3-13
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 shares limited company at Shandong
provincial Administration for Industry & Commerce (AIC - The official body
of issuing and renewing business license) on August 11, 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 RMB 10M. while that of the co. with foreign investment is RMB
30M. The total capital of a co. which propose to apply for publicly listed
must not less than RMB 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 scope includes manufacturing and selling towel series products, textiles,
knitgoods, bedding, garments and artworks; purchasing and processing cotton;
exporting its products and technology; importing materials, instrument,
machinery and equipment, fittings and technology needed for its production,
excluding the goods forbidden by the government; and also dealing with
compensation trade agreement.
SC is mainly
engaged in manufacturing and selling towel series products, textiles,
knitgoods, bedding, and garments.
Mr. Sun Rigui has been chairman of SC since 1999.
SC owns about 12,000 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 Gaomi city. Our checks
reveal that SC owns the total premise about 580,000 square meters.
http://www.sunvim.com The design is
professional and the content is well organized. At present the web site is both
in Chinese and English versions.
E-mail: office@sunvim.com
SC is a listed company in Shenzhen Stock Exchange Market and its stock
code is: 002083.
Honors:
SC has been honored “The Most Advanced Country Enterprise in
Earning Foreign Exchange”, “The Steady-Going Quality Enterprise in Chinese
Export Industry”, “The Best Credit Enterprise in China ”, “Advanced Private
Enterprise in Shandong Province”, and SC’s products have been awarded “Chinese
Famous Brand”, “Quality Medal of Shandong Province ”, “Famous Brand in Shandong
Province ”, etc.
MAIN SHAREHOLDERS: (As of September 30, 2006)
Name %
of Shareholding
Shandong Sunvim Co., Ltd. 20.12
Sun Rigui 16.77
Shan Qiujuan 5.63
Sun Yong 4.23
Qin Lihua 3.08
Yang Baokun 2.91
Zhang Wuxian 2.63
Wang Peifeng 1.85
Lu Xiyao 1.80
Yan Tang 1.70
Other circulation stocks 39.28
l
Chairman:
Mr. Sun Rigui, 52 years old with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1975 to 1987 Worked
in Weifang Electrical Machine Factory as section chief and vice general
manager;
From 1987 to 1999
Worked in Gaomi
Towel Factory as factory manager;
From 1999 to 2002 Worked
in Shandong Jieyu Textile Co., Ltd. as chairman and general manager;
From 2002 to 2005 Worked
in Sunvim Hometextiles Co., Ltd. as chairman;
At present Working
in SC as chairman.
l
General Manager:
Mr. Sun Yong, 40 years old with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 1989 to 1995 Worked
in Gaomi Towel Factory as director;
From 1995 to 1999 Worked
in Gaomi Towel Factory as director and assistant manager;
From 1999 to 2002 Worked
in Shandong Jieyu Textile Co., Ltd. as assistant manager;
From 2002 to 2005 Worked
in Sunvim Hometextiles Co., Ltd. as assistant
manager;
At present Working
in SC as general manager.
l
Vice-chairman:
Ms. Shan Qiujuan, 53 years old with university education. She is
currently responsible for the daily management of SC.
Working Experience(s):
From 1976 to 1987 Worked
in Weifang Electric Engine Factory auditor;
From 1987 to 1991 Worked
in Gaomi Towel Factory as director;
From 1991 to 1999 Worked
in Gaomi Towel Factory as assistant manager;
From 1999 to 2002 Worked
in Shandong Jieyu Textile Co., Ltd. as vice-chairman and assistant
manager;
From 2002 to 2005 Worked
in Sunvim Hometextiles Co., Ltd. as
vice-chairman and assistant
manager;
At present Working
in SC as vice-chairman.
SC is mainly
engaged in manufacturing and selling towel series products, textiles, knit
goods, bedding, and garments.
SC’s products
mainly include: towel series, bedding
series, decorative cloth series, and chemical products.
SC’s brand is “SUNVIM”.
SC is the largest producing base of towel in China, with the productivity
of over 2000 patterns and 45,000 tons of towel and 25,000,000 meters of the
decorative fabric per year.
SC sources its
materials 100% from domestic market, mainly Shandong province. SC sells 10% of
its products in domestic market, and 90% to overseas market, mainly Japan, USA and European countries.
The buying terms of SC include Check, T/T and Credit of 30 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Suppliers:
==============
Ø
Gaomi Lvzhou
Chemical Co., Ltd.
Ø
Gaomi
Ruifeng Wire Manufacturing Co., Ltd.
Ø
Tailai
Textile Co., Ltd.
SC is
known to have 11 subsidiaries, as following.
Ø
Gaomi
Lvzhou Chemical Co., Ltd.
Ø
Gaomin
Sunvim Plastic Products Co., Ltd.
Ø
Gaomi
Yunxiang Decoration Cloth Co., Ltd.
Ø
Gaomi
Ruifeng Wire Manufacturing Co., Ltd.
Ø
Tailai
Hometextiles Co., Ltd.
Ø
Gaomi
Huazhou Thermoelectric Co., Ltd.
Ø
Gaomi
Yinyang Tap Water Co., Ltd.
Ø
Gaomi
Sunvim Textile Import & Export Co., Ltd.
Ø
Gaomi Sunvim
Real Estate Co., Ltd.
Ø
Gaomi
Jiujiu New-type Building Materials Co., Ltd.
Ø
Gaomi
Yulong Sunvim Home Textiles 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.
Agricultural Bank of China Gaomi Sub-Branch
AC#：15-453001040006553
Relationship:
Normal.
Consolidated Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2004 |
As of Dec. 31, 2005 |
|
Cash & bank |
145,320 |
166,584 |
|
Inventory |
561,033 |
737,670 |
|
Accounts
receivable |
74,824 |
182,388 |
|
Other Accounts
receivable |
0 |
34,028 |
|
Accounts payable
in advance |
11,906 |
89,167 |
|
To be
apportioned expense |
530 |
993 |
|
Other current
assets |
17,523 |
3,489 |
|
|
------------------ |
------------------ |
|
Current assets |
811,136 |
1,214,319 |
|
Fixed assets |
1,049,619 |
2,221,982 |
|
Long term
investment |
1,766 |
18,614 |
|
Intangible
assets |
689 |
30,331 |
|
Other assets |
180,347 |
326,484 |
|
|
------------------ |
------------------ |
|
Total assets |
2,043,557 |
3,811,730 |
|
|
============= |
============= |
|
Short loans |
710,675 |
1,980,800 |
|
Accounts payable |
254,434 |
457,902 |
|
Notes payable |
0 |
16,000 |
|
Taxes payable |
1,039 |
0 |
|
Accounts
receivable in advance |
12,223 |
21,574 |
|
Other Accounts
payable |
9,031 |
51,777 |
|
Withdraw the
expenses in advance |
4,952 |
15,024 |
|
Other current
liabilities |
7,458 |
192,257 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
999,812 |
2,735,334 |
|
Long term
liabilities |
596,839 |
548,554 |
|
Other
liabilities |
4,133 |
20,195 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
1,600,784 |
3,304,083 |
|
Equities |
442,773 |
507,647 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
2,043,557 |
3,811,730 |
|
|
============= |
============= |
Consolidated Income Statement
Unit: CNY’000
|
|
As of Dec. 31, 2004 |
As of Dec. 31, 2005 |
|
Turnover |
1,237,513 |
1,784,119 |
|
Cost of goods
sold |
924,515 |
1,466,514 |
|
Sales expense |
42,855 |
53,545 |
|
Management expense |
72,913 |
88,818 |
|
Finance expense |
68,643 |
102,965 |
|
Profit before
tax |
121,873 |
94,454 |
|
Less: profit tax |
47,474 |
37,383 |
|
Profits |
74,399 |
57,071 |
Important Ratios
|
|
As
of Dec. 31, 2004 |
As
of Dec. 31, 2005 |
|
*Current ratio |
0.81 |
0.44 |
|
*Quick ratio |
0.25 |
0.17 |
|
*Liabilities
to assets |
0.78 |
0.87 |
|
*Net profit
margin (%) |
6.01 |
3.20 |
|
*Return on
total assets (%) |
3.64 |
1.50 |
|
*Inventory
/Turnover ×365 |
165 days |
151 days |
|
*Accounts receivable/Turnover
×365 |
22 |
37 |
|
*Turnover/Total
assets |
0.61 |
0.47 |
|
* Cost of
goods sold/Turnover |
0.75 |
0.82 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin in 2005 is lower than it was in 2004, but still
maintained in a normal level.
l
SC’s return on total assets is also descend a little than it was in
2004.
l
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC declined to a fair level in 2005, because of the
sharp increase of the short loans.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears fairly large.
l
The accounts receivable of SC is maintained in an acceptable level.
l
SC’s short loans more than doubled in 2005, and this will sharply
increase its finance expense and also might increase the risky of its capital
turnover.
l
SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly stable.
SC is considered large-sized in its line with fairly stable financial conditions.
Over the past 8 years, SC has made a stable growth with satisfactory profit.
But the large amount of short loans could be a threat to SC’s financial
conditions.
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 |
|
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)