MIRA
INFORM REPORT
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Report Date : |
31.10.2007 |
IDENTIFICATION
DETAILS
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Name : |
TIANJIN TEXTILE GROUP IMPORT AND EXPORT INC. |
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Registered Office : |
No. 3, Yunnan Road, Heping District, Tianjin, 300051 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
July 17, 2000 |
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Com. Reg. No.: |
1200001000395 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Engaged in importing
and exporting textiles and garments. |
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
TIANJIN TEXTILE GROUP IMPORT AND EXPORT INC.
NO. 3, YUNNAN ROAD, HEPING DISTRICT, TIANJIN, 300051 PR CHINA.
TEL : 86 (0) 22-27832567
FAX : 86 (0) 22-27836400
EXECUTIVE SUMMARY
INCORPORATION DATE : july 17, 2000
REGISTRATION NO. :
1200001000395
REGISTERED LEGAL FORM :
SHARES LIMITED COMPANY
STAFF STRENGTH : 150
REGISTERED CAPITAL : CNY 60,000,000
BUSINESS LINE : TRADING
TURNOVER : CNY 1,848,940,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 82,600,000 (AS OF DEC. 31, 2006)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 500,000 (periodical review)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : well-known
EXCHANGE RATE : CNY
7.48 = US1$
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 local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on July 17, 2000.
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 co has independent property
of legal person and enjoys property rights of legal person. The
characteristics of the shares limited co. are as follows: The establishment of the co.
requires at least two promoters and no more than 200, half
of whom shall be domiciled in China.. Natural person are allowed to serve as promoters. The minimum registered
capital of a co. is CNY 5M. while that of the co. with foreign investment
is CNY 5M. The total capital of a co. which propose to apply for publicly
listed must be no less than CNY 30M. The board of directors must
consist 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
one year of the offer. 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 wholesaling and retailing
various commodities & materials; importing and exporting commodities and technology,
excluding the 16 goods controlled to export by the government and the 12 goods
controlled to import by the companies with authorization from the government;
undertaking Chinese foreign equity joint venture enterprise and cooperative
manufacture; processing with imported
materials, processing with imported samples, assembling with imported parts,
and compensation trade in agreement;
counter trade, barter trade & transiting trade; dispatching labor
for above overseas projects; leasing self-owned property; and importing wool.
SC is mainly
engaged in importing and exporting textiles and garments.
Mr. Lilu Baogen has been legal representative and chairman of SC since
2000.
SC is
known to have approx. 150 staff members at present.
SC is
currently operating at the above stated address, and this address houses its
operating office and factory in the commercial zone
of Tianjin. Our checks reveal that SC owns the total premise about 2,000 square
meters.
http://www.ttgie.com/ The design is
professional and the content is well organized. At present it is in both
Chinese and English versions.
Email: amelie@textile-tianjin.com.cn
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Tianjin Textile Group (Holding)
Co., Ltd. 70
Tianjin Senmiao Investment Group Co., Ltd. 5
Tianjin Textile Industry Supply & Sale
Corporation 12.7
Tianjin Wanlong Group Co., Ltd. 3.33
Tianjin Tianhai Group Co., Ltd. 3.33
Other shareholders 5.64
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Tianjin Textile Group (Holding) Co., Ltd.
was established by regrouping Tianjin Textile Industrial Company and Tianjin Zhongfu
International Holding Co., Ltd. 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.
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Legal representative and chairman:
Mr. Lilu Baogen,
in his 50’s with university education. He is currently responsible for the
overall management of SC.
Working Experience(s):
From 2000 to present Working in SC as chairman and legal representative.
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General manager:
Mr. Ning Jinyun, born in 1951, with post-graduate diploma. He is currently responsible for the daily management of SC.
Working Experience(s):
From 2000 to present Working in SC as general manager.
SC is mainly
engaged in importing and exporting textiles and garments.
SC is a sizable
export enterprise. It has been China’s TOP 500, Tianjin’s Top Import &
Export enterprises for many times respectively.
SC’s products
mainly include: garments, home textiles, bags, shoes, towel, and so on.
SC sources its materials 80%
from domestic market, and 20% from overseas market, mainly USA and Europe. SC
sells 20% of its products in domestic market, and 80% 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.
SC is known to have the following subsidiaries:
Tianjin
Zhaolong Garments Trading Co., Ltd.
Tianjin
Trillionshen Clothing Co., Ltd.
Tianjin
Zhaorui Polyester Fill Co., Ltd.
Tianjin
Zhaopeng Textiles Co., Ltd.
Shanghai
Zhaokai Import & Export Co., Ltd.
Baoding
Zhaoxing Textiles Co., Ltd.
Etc.
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 Tianjin Branch.
AC#：07331808091001
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
38,290 |
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Inventory |
100,740 |
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Accounts
receivable |
23,810 |
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Advances to
suppliers |
72,690 |
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Notes receivable |
760 |
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Other
receivables |
630 |
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A receivable tax
rebate of export |
60,640 |
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Other current
assets |
0 |
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Current assets |
297,560 |
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Fixed assets |
28,870 |
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Fixed assets net
value |
19,240 |
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Projects under
construction |
0 |
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Long term
investment |
37,650 |
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Other assets |
1,060 |
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Total assets |
355,510 |
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Short loans |
138,430 |
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Accounts payable |
21,450 |
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Other payable |
4,690 |
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Taxes payable |
-19,860 |
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Welfare expenses
payable |
1,260 |
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Advances from
clients |
124,950 |
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Other current
liabilities |
1,990 |
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Current
liabilities |
272,910 |
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Long term
liabilities |
0 |
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Total
liabilities |
272,910 |
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Equities |
82,600 |
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Total
liabilities & equities |
355,510 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
1,848,940 |
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Cost of goods
sold |
1,782,340 |
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Add:
Income from other operations |
2,720 |
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Sales expense |
46,060 |
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Management expense |
14,390 |
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Finance expense |
7,950 |
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Investment
income |
3,580 |
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Non-operating
income |
1,460 |
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Profit before
tax |
6,000 |
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Less: profit tax |
1,480 |
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Profits |
4,520 |
Important Ratios
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as
of Dec. 31, 2006 |
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*Current ratio |
1.09 |
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*Quick ratio |
0.72 |
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*Liabilities
to assets |
0.77 |
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*Net profit
margin (%) |
0.24 |
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*Return on
total assets (%) |
1.27 |
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*Inventory
/Turnover ×365 |
20 days |
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*Accounts
receivable/Turnover ×365 |
5 days |
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*Turnover/Total
assets |
5.20 |
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* Cost of goods
sold/Turnover |
0.96 |
PROFITABILITY:
AVERAGE
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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 fairly high, comparing with its turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in an average level.
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SC’s quick ratio is maintained in an average level.
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The inventory of SC is fairly large.
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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 TOO LARGE.
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SC’s turnover is in a fairly good level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
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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 medium-sized in its line with fairly good background.
The large amount of short loans 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. |
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%)