MIRA
INFORM REPORT
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Report Date : |
23.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
tianjin textile
industrial supply and sales corporation |
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Registered Office : |
No.1 Yingkou Road,
Heping District, Tianjin, 300040 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
november 28, 1993 |
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Com. Reg. No.: |
1201011192378 |
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Legal Form : |
State-Owned Enterprise |
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Line of Business : |
Engaged in selling textiles. |
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 200,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
name & address
tianjin textile
industrial supply and sales corporation
no.1 yingkou road, heping district,
tianjin, 300040 PR CHINA
TEL: 86 (0) 22-23317055
FAX: 86 (0) 22-23317071
EXECUTIVE SUMMARY
INCORPORATION DATE : november 28, 1993
REGISTRATION NO. : 1201011192378
REGISTERED LEGAL FORM : State-owned enterprise
STAFF STRENGTH :
70
REGISTERED CAPITAL : CNY 63,020,000
BUSINESS LINE :
trading
TURNOVER :
CNY 548,920,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 78,590,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 200,000 (PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY7.73 = US$1 AS OF 2007-3-23
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 state-owned enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on November 28, 1993.
Company Status: State-owned enterprise This form of business in PR China
is defined as a commodity production or operational units of a socialist
character which in accordance with the law, has autonomy in management,
takes full responsibility for its profits and losses and practices
independent business accounting. It is a legal person established directly
by central / local government or enterprise owned by central or local
government. In theory, the liabilities of this form of enterprise are
ultimately borne by the government, since the adoption of company law in
mid-1994, the Chinese government has planned to separate the ownership from
management and liabilities bearing.
SC’s registered
business scope includes operating and acting as an agent of importing and
exporting various kinds of commodities and technology, processing the imported materials and
business of compensation trade agreement, carrying trade and transiting trade,
domestic commerce; supplying and selling of commodities, storage service,
economic information consultation services, purchasing, wholesaling and
retailing cotton, lease of houses.
SC is mainly
engaged in selling textile raw materials.
Mr. Ren Zhiming
has been chairman of SC since 1993.
SC owns about 70
staff at present.
SC is currently
operating at the above stated address, and this address houses its operating
office in the commercial zone of Tianjin. Our checks reveal that SC owns the
total premise about 1,000 square meters.
http://www.tj-textile.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: ttiss@tj-textile.com
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Tianjin Textile Group (Holding) Co., Ltd. 100
Tianjin Textile Group (Holding) Co., Ltd.:
==============================
Tianjin Textile Group (Holding) Co., LTD.
was established by regrouping Tianjin Textile Industrial Company and Tianjin
zhongfu International Holding Co., Ltd. Its annual sales revenue amounts to CNY
6 billion and the annual export value is up to US$ 300 million. It has 333
enterprises and institutions in cotton spinning, printing and dyeing, color
weaving, knitting, decoration, textile for industrial use, woolen spinning,
silk, chemical fiber, clothing and textile mechanic equipment. And the company
possesses a batch of famous brands such as Renli, Dearyoung, White Rose,
Feitian, JinTak, OVER2000, Saiyuan, Huaxing, Jianlong, Fangyuan, Ba Xianren,
Red-crowned Crane, Sanhua,Huaguan and Zunyu.
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Chairman and
General Manager:
Mr. Ren Zhiming, 58 years old with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1993 to present Working in SC as chairman and general manager, and also working in Tianjin
Textile
Group Co., Ltd. as general manager.
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Vice General
Manager:
Mr. Chai Songling, 45 years old with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
From 1993 to present
Working in SC as vice general
manager.
SC is mainly
engaged in selling textiles.
SC’s products
mainly include: wool
SC sources its materials 80% from domestic
market, and 20% from overseas market. SC sells 80% of its products in domestic
market, and 20% to overseas market, mainly USA and Southeast Asian market.
The buying terms of SC include T/T, L/C and Credit of 30-45 days. The
payment terms of SC include T/T, L/C and Credit of 30-45 days.
*Major Customers:
==============
Tianjin Textile Group 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.
Industrial and Commercial Bank of China Tianjin Branch
AC#：0302009109053579755
Relationship:
Normal.
Balance Sheet (as of
Dec. 31, 2005)
Unit: CNY’000
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Cash & bank |
76,140 |
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Inventory |
83,630 |
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Accounts
receivable |
775,540 |
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Other Accounts
receivable |
116,110 |
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To be
apportioned expense |
0 |
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Other current
assets |
12,290 |
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Current assets |
1,063,710 |
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Fixed assets net
value |
24,980 |
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Projects under
construction |
0 |
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Long term
investment |
27,270 |
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Other assets |
90 |
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Total assets |
1,116,050 |
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Short loans |
65,500 |
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Accounts payable |
0 |
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Other Accounts
payable |
932,820 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
31,730 |
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Current
liabilities |
1,030,050 |
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Long term
liabilities |
0 |
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Other
liabilities |
7,410 |
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Total
liabilities |
1,037,460 |
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Equities |
78,590 |
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Total
liabilities & equities |
1,116,050 |
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Income Statement (as
of Dec. 31, 2005)
Unit: CNY’000
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Turnover |
548,920 |
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Cost of goods
sold |
531,480 |
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Sales expense |
0 |
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Management expense |
6,930 |
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Finance expense |
3,270 |
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Profit before
tax |
4,240 |
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Less: profit tax |
1,120 |
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Profits |
3,120 |
Important Ratios (as of Dec. 31, 2005)
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*Current ratio 1.03
*Quick ratio 0.95
*Liabilities to
assets 0.93
*Net profit
margin (%) 0.57
*Return on total
assets (%) 0.28
*Inventory /Turnover
×365 56 days
*Accounts
receivable/Turnover ×365 516 days
*Turnover/Total
assets 0.49
* Cost of goods
sold/Turnover 0.97
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 normal level.
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SC’s quick ratio is maintained in a normal level.
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The inventory of SC is maintained in an average level.
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The accounts receivable of SC appears TOO LARGE.
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SC’s short-term loan appears LARGE.
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SC’s turnover is in an acceptable 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 small-sized in its line with fairly stable financial conditions. A credit line
up to USD 200,000 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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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%)