MIRA
INFORM REPORT
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Report Date : |
28.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
xinxiang chemical fiber co., ltd. |
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Registered Office : |
No.1 Jinyuan Road, Fengquan District,
Xinxiang, Henan Province 453011 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
11.03. 1993 |
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Com. Reg. No.: |
4100001003004 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and Selling Chemical Fiber Products. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
usd 5,000,000 |
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Status : |
Very Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
xinxiang chemical fiber co., ltd.
no.1 jinyuan road,
fengquan district, xinxiang,
henan province
453011 PR CHINA
TEL: 86 (0)
373-3978939 FAX: 86 (0) 373-3911359
EXECUTIVE SUMMARY
INCORPORATION DATE : march 11, 1993
REGISTRATION NO. : 4100001003004
REGISTERED LEGAL FORM : shares limited company
STAFF STRENGTH :
8,623
REGISTERED CAPITAL : cny 588,685,690
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 2,629,682,000 (AS OF DEC.
31, 2007)
EQUITIES :
CNY 1,618,888,000 (AS OF DEC. 31, 2007)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 5,000,000 (PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : steady
GENERAL REPUTATION : fairly good
EXCHANGE RATE :
CNY 7.01 = US$1
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Ren Min Bi Yuan
SC was registered as a shares limited company at Henan provincial Administration for Industry & Commerce (The official body of issuing and renewing business license) on March 11, 1993.
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 manufacturing, processing and selling viscose fibers,
synthetic fibers, yarn, thread, and textiles; manufacturing and selling sodium
sulfate, exporting its products and technology; importing materials,
instruments, machinery equipment, parts and technology needed in its
production; processing with imported materials, processing with imported
samples, assembling with imported parts, and compensation trade in agreement.
SC is
mainly engaged in manufacturing and selling chemical fiber products.
Mr. Chen
Yulin has been chairman of SC since
1993.
SC is known to
have approx. 8,623 employees 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
Xinxiang. Our checks reveal that SC owns the total premise about 3,000,000
square meters.
SC is not known to host web site of its own at present.
E-mail: bailu@public.xxptt.ha.cn
SC is a listed company in Shenzhen Stock Exchange Market with the code
of 000949.
SC has got the certificate ISO9001.
Changes of its registered information are as follows:
|
Date of change |
Item |
Before the
change |
After the change |
|
2000-12-31 |
Registered capital |
CNY 245,285,706 |
CNY 490,571,412 |
|
2008-2-2 |
Registered capital |
CNY 490,571,412 |
CNY 588,685,690 |
MAIN SHAREHOLDERS: (As
of December 31, 2007)
Name
% of Shareholding
Xinxiang Bailu Chemical Fiber Group Co., Ltd. 32.84
Xinxiang State-Owned Assets Management Co.,
Ltd. 14.98
Pan Aichai 0.91
Industrial and Commercial Bank of
China-Yifangda Securities Investment Fund 0.77
Wang Zhiying 0.70
Hao Mingli 0.70
Guangfa Securities Co., Ltd. 0.33
Yang Weijian 0.19
Jiang Jingwu 0.19
Huang Chunrui 0.17
Other individuals 48.22
Xinxiang Bailu Chemical Fiber Group Co.,
Ltd.:
===================================
Xinxiang Bailu Chemical Fiber Group Co.,
Ltd. (formerly Xinxiang Chemical Fiber Plant) is one of the largest enterprises
specialized in textile raw materials. Its total assets reach CNY 4 billion. The
company occupies an area of more than 3.0 million square meters. Its economic
profit ranks the front position among viscose enterprises in China. The main
productions are centrifugal viscose rayon filament yarn, continuous viscose
rayon filament yarn, viscose staple fiber, polyester, spandex of 5 series with
more than 100 varieties, The company newly developed 10 items of functional
fiber, such as dope clyed yarn bamboo viscose filament yarn, soya bean viscose
fiber, and obtain patents more than 30 items. The production sells well in
domestic market and foreign markets. The trademark is “Bailu” (“Egret” in
English). The company was established in 1960 and put into production in 1965.
Through more than 40 years’ development, its annual production capacity has
reached 110,000 tons, include viscose rayon filament yarn 50,000 tons, viscose
staple fiber 50,000 tons, synthetic fiber 5,000 tons, spandex 6,000 tons. And
the company has the biggest continuous viscose rayon yarn production line and
the advanced production line for continuous polymerization, dry spinning
spandex. The company has the biggest viscose rayon yarn production capacity in
the world.
Website: http://www.bailu.com
E-mail: lixl@bailu.com
Tel: 086-0373-3978900
Fax: 086-0373-3096610
l
Chairman:
Mr. Chen Yulin , 63 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, also working in
Beijing SL Pharmaceutical Co., Ltd. as chairman, and working in Xinxiang Bailu
Chemical Fiber Group Co., Ltd. as chairman and general manager.
l
General Manager:
Mr. Shao Changjin , 46 years old with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
Before 2005 Worked
in SC as vice general manager;
From 2005 to present Working
in SC as general manager.
l
Vice General Manager:
Mr. Wang Wenxin , 42 years old with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
From 2005 to present Working in SC as vice general
manager, and also working in Minsheng Securities Co., Ltd. as director.
l
Vice General Manager:
Mr. Li Yunsheng , 46 years old with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
From 2005 to present Working
in SC as vice general manager。
SC is
mainly engaged in manufacturing and selling chemical fiber products.
SC’s brand is BAILU
SC’s products mainly include:
Bamboo-fiber Continuous Viscose Rayon, Organic Cotton and Bamboo yarn,
Fire-proof Viscose Fiber.
SC sources its materials 80%
from domestic market, mainly Henan, and 20% from overseas market, mainly Japan;
SC sells its products 60% in domestic market, and 40% to overseas market, mainly USA, Europe and Southeast Asia.
The
buying terms of SC include T/T, L/C and Credit of 30-60 days. The payment terms
of SC include T/T, L/C and Credit of 30-60 days.
*Major Suppliers:
=============
Japan Wise Light Co., Ltd.
Xinxiang Fengrun Cotton Industry Co., Ltd.
Henan Meihui Import and Export Co., Ltd.
*Major Customers:
=============
Xinxiang Fenghuang Development Co., Ltd.
Turkey DENIZLIPEK
Hong Kong Chuangxing Fancy Yarn Ltd.
India GOENKA Co.
Turkey FILOFIBRA CO.
SC is known to have 2 subsidiaries at present:
Xinxiang Runyang Chemical Fiber Co., Ltd.
Xinxiang Kanghua Fabric 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’s suppliers
declined to make any comments.
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 Xinxiang Branch
AC#: 1704020409021006093
Relationship:
Normal.
Consolidated
Balance Sheet
Unit: CNY’000
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as
of Dec. 31, 2006 |
as
of Dec. 31, 2007 |
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Cash & bank |
336,433 |
276,907 |
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Inventory |
299,504 |
559,058 |
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Accounts
receivable |
103,020 |
127,133 |
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Other Accounts
receivable |
2,721 |
1,347 |
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Advances to
suppliers |
41,535 |
222,170 |
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Other current
assets |
56,183 |
50,009 |
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------------------ |
------------------ |
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Current assets |
839,396 |
1,236,624 |
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Fixed assets |
2,211,422 |
2,252,112 |
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Projects under
construction |
48,144 |
88,493 |
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Long term
investment |
11,100 |
11,100 |
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Intangible
assets |
50,709 |
50,199 |
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Other assets |
3,263 |
2,862 |
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------------------ |
------------------ |
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Total assets |
3,164,034 |
3,641,390 |
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============= |
============= |
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Short loans |
947,616 |
1,153,004 |
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Accounts payable |
139,209 |
314,422 |
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Bills payable |
389,000 |
226,000 |
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Advances from
clients |
46,200 |
52,744 |
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Other Accounts
payable |
7,940 |
8,914 |
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Other current
liabilities |
185,764 |
117,418 |
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------------------ |
------------------ |
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Current
liabilities |
1,715,729 |
1,872,502 |
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Long term
liabilities |
90,000 |
150,000 |
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Other
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
1,805,729 |
2,022,502 |
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Equities |
1,358,305 |
1,618,888 |
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------------------ |
------------------ |
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Total
liabilities & equities |
3,164,034 |
3,641,390 |
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============= |
============= |
Consolidated
Income Statement
Unit: CNY’000
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as of Dec. 31, 2006 |
as of Dec. 31, 2007 |
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Turnover |
2,120,377 |
2,629,682 |
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Cost of goods
sold |
1,824,927 |
2,066,627 |
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Sales expense |
13,590 |
22,668 |
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Management expense |
94,502 |
90,449 |
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Finance expense |
77,092 |
96,625 |
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Profit before
tax |
109,337 |
344,525 |
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Less: profit tax |
36,608 |
83,943 |
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Profits |
72,729 |
260,582 |
Important
Ratios
=============
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As
of Dec. 31, 2006 |
As
of Dec. 31, 2007 |
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*Current ratio |
0.49 |
0.66 |
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*Quick ratio |
0.31 |
0.36 |
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*Liabilities
to assets |
0.57 |
0.56 |
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*Net profit
margin (%) |
3.43 |
9.91 |
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*Return on
total assets (%) |
2.30 |
7.16 |
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*Inventory
/Turnover ×365 |
52 days |
78 days |
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*Accounts
receivable/Turnover ×365 |
18 days |
18 days |
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*Turnover/Total
assets |
0.67 |
0.72 |
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* Cost of
goods sold/Turnover |
0.86 |
0.79 |
PROFITABILITY: FAIRLY GOOD
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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 in 2006 and fairly good in
2007.
l
SC’s return on total assets is average in 2006 and fairly
good in 2007.
l
SC’s cost of goods sold is average, comparing with its
turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair level.
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SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears fairy large.
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The accounts receivable of SC is maintained in an average level.
l
The short-term loan of SC appears large.
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SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly Stable.
Over the past 15 years, SC has made a stable growth with fairly stable
financial conditions. The large amount of short loans could be a threat to SC’s
financial condition. 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 |
|
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. |
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 |
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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%)