MIRA
INFORM REPORT
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Report Date : |
22.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
nanyang textile
Co., Ltd. |
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Registered Office : |
Mazhen Village,
Xiake Town, Jiangyin, Jiangsu Province, 214406 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
May 4, 1997 |
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Com. Reg. No.: |
3202812103862 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in manufacturing
and selling various kinds of painted master batch. |
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 100,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
nanyang textile Co.,
Ltd.
Mazhen village, xiake town, jiangyin,
jiangsu PROVINCE, 214406 PR CHINA.
TEL: 86 (0) 510-86529008
FAX: 86 (0) 510-86522558
EXECUTIVE SUMMARY
INCORPORATION DATE : MAY 4, 1997
REGISTRATION NO. : 3202812103862
REGISTERED LEGAL FORM : LIMITED
LIABILITIES COMPANY
STAFF STRENGTH : 250
REGISTERED CAPITAL : CNY 15,000,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 119,378,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 9,102,000 (AS OF DEC. 31, 2006)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 100,000 (periodical REVIEW)
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
7.42 = 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 limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on May 4, 1997.
Company Status: Limited liabilities co. This form of business in PR China is defined as a legal
person. No more than fifty shareholders contribute its registered capital
jointly. Shareholders bear limited liability to the extent of shareholding,
and the co. is liable for its debts only to extent of its total assets. The
characteristics of this form of co. are as follows: Upon the establishment of the co., an investment
certificate is issued to the each of shareholders. The board of directors is comprised of three to thirteen
members. The minimum registered capital for a co. is CNY 30,000. Shareholders may take their capital contributions in
cash or by means of tangible assets or intangible assets such as industrial
property and non-patented technology. Cash contributed by all shareholders must account for at
least 30% of the registered capital. Existing shareholders have pre-exemption right to
purchase shares of the co. offered for sale by the other shareholders and
to subscribe for the newly increased registered capital of the co.
SC’s registered
business scope includes chemical fiber & spinning; manufacturing, processing
and selling painted master batch, chemical fiber,
non-standard metal equipment, and plastic
packaging materials; selling textile raw materials, hardware, plastic products;
import and export of various goods and technologies; incorporating chemical
fiber branches.
SC is mainly
engaged in manufacturing and selling painted master batch.
Mr. Zhu Hanxiao has been legal representative and chairman of SC since
1997.
SC is
known to have approx. 250 staff members 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 Jiangyin. Our checks reveal that SC owns the total premise about 8,000
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
Zhang Xiaorong 40
Zhu Hanxiao 60
l
Legal representative and chairman:
Mr. Zhu Hanxiao, ID # 320219600609201, 47
years old with university education. He is currently responsible for the
overall management of SC.
Working Experience(s):
From 1997 to present Working in SC as chairman and legal representative.
SC is mainly
engaged in manufacturing and selling various kinds of painted master batch.
SC’s products mainly include polyester slice, polyester
fiber, terylene yarn and PET master batch, etc.
SC sources its materials 100%
from domestic market. SC sells 50% of its products in domestic market, and 50%
to overseas market, mainly Southeast Asian market.
The buying terms of SC include Check, T/T 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 subsidiary:
Nanyang Textile
Co., Ltd. Chemical Branch Company.
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.
Agriculture Bank of China Jiangyin Sub-branch Mazhen Office.
AC#：640901040003696
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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as of Dec. 31, 2005 |
as of Dec. 31, 2006 |
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Cash & bank |
1,094 |
2,527 |
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Inventory |
20,447 |
25,591 |
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Notes receivable |
1,320 |
4,693 |
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Accounts
receivable |
4,099 |
8,715 |
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Other
receivables |
3,577 |
8,780 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
30,537 |
50,306 |
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Fixed assets |
2,003 |
2,208 |
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Fixed assets net
value |
1,135 |
1,166 |
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Projects under
construction |
0 |
0 |
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Long-term
investments |
2 |
3 |
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Intangible and
other assets |
0 |
0 |
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------------------ |
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Total assets |
31,674 |
51,475 |
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============= |
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Short loans |
280 |
21,567 |
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Accounts payable |
13,812 |
14,130 |
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Other Accounts
payable |
6,658 |
-115 |
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Notes payable |
800 |
0 |
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Accrued payroll |
648 |
593 |
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Taxes payable |
49 |
340 |
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Welfares payable |
371 |
852 |
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Other
current liabilities |
6 |
6 |
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Current
liabilities |
22,624 |
37,373 |
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Long term
liabilities |
5,000 |
5,000 |
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Total
liabilities |
27,624 |
42,373 |
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Shareholders
equities |
4,050 |
9,102 |
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Total
liabilities & equities |
31,674 |
51,475 |
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Income Statement
Unit: CNY’000
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as of Dec. 31, 2005 |
as of Dec. 31, 2006 |
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Turnover |
61,713 |
119,378 |
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Cost of goods
sold |
61,617 |
117,911 |
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Add:
Income from other operations |
1,521 |
1,514 |
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Sales expense |
131 |
513 |
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Management expense |
1,522 |
1,840 |
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Finance expense |
176 |
97 |
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Operation Profit |
-252 |
344 |
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Less: profit tax |
242 |
293 |
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Net profit |
-494 |
51 |
Important Ratios
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as of Dec. 31, 2005 |
as of Dec. 31, 2006 |
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*Current ratio |
1.35 |
1.35 |
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*Quick ratio |
0.45 |
0.66 |
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*Liabilities
to assets |
0.87 |
0.82 |
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*Net profit
margin (%) |
-0.80 |
0.04 |
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*Return on
total assets (%) |
-1.56 |
0.10 |
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*Inventory
/Turnover ×365 |
121 days |
78 days |
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*Accounts
receivable/Turnover ×365 |
24 days |
27 days |
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*Turnover/Total
assets |
1.95 |
2.32 |
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* Cost of
goods sold/Turnover |
1.00 |
0.99 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in its line, and it increased in
2006.
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SC’s net profit margin is fair in 2005 and average in 2006.
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SC’s return on total assets is fair in 2005 and average in 2006.
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SC’s cost of goods sold is 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 fair level.
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The inventory of SC appears 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 LARGE.
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SC’s turnover is in an average 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 medium-sized in its line with fairly stable financial
conditions. The large amount of short loans could be a threat to SC’s financial
condition. A credit line up to USD 100,000 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%)