MIRA
INFORM REPORT
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Report Date : |
12.03.2008 |
IDENTIFICATION
DETAILS
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Name : |
Lufeng Weaving and Dyeing Co., Ltd. |
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Registered Office : |
Lutai Industrial Zone, Huangjiapu Town, Zichuan District, Zibo,
Shandong Province, 255100 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
09.05.2004 |
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Com. Reg. No.: |
001992 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Manufacturing
and Selling Textiles and Dyeing Products. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
usd 1,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
Lufeng Weaving and Dyeing Co., Ltd.
lutai industrial
zone, huangjiapu town, zichuan district, zibo,
shandong PROVINCE,
255100 PR CHINA
TEL: 86 (0)
533-5419081 FAX: 86 (0) 533-5419085
EXECUTIVE SUMMARY
INCORPORATION DATE : may 9, 2004
REGISTRATION NO. : 001992
REGISTERED LEGAL FORM : Chinese-foreign equity
joint venture enterprise
STAFF STRENGTH :
2,000
REGISTERED CAPITAL : CNY 486,160,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 622,900,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 556,540,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 1,000,000 (periodical review)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.11 = USD 1
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
Note: SC’s complete name should be the above stated one, instead of the given name – Lu feng company ltd.
SC was registered as a Chinese-foreign equity joint venture
enterprise at local Administration for Industry & Commerce (AIC - The
official body of issuing and renewing business license) on May 9, 2004.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered
business scope includes manufacturing and selling textiles and dyeing products.
SC is mainly engaged
in manufacturing and selling textiles and dyeing
products.
Mr. Liu
Shizhen has been chairman of SC since
2004.
SC is known to
have approx. 2,000 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 Zibo. Our checks reveal
that SC owns the total premise about 100,000 square meters.
SC is not known to host web site of its own at present.
Changes of its registered information are as follows:
|
Date of change |
Item |
Before the
change |
After the change |
|
2007 |
Registered capital |
CNY 326,160,000 |
CNY 486,160,000 |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Luthai Textile
Co., Ltd. 75
Hong Kong Lianye Garments Co., Ltd. 25
Luthai Textile Co., Ltd.:
================
Lutai Textile Co., Ltd. is a joint venture
corporation with A stocks and B stocks which is known as the largest high-grade
yarn-dyed fabric producer, who specializes primarily in textile and garments
making, in electricity and pharmaceutics partially. There are more than 18,000
employees in the company. The total assets reaches 6.75 billion CNY and the net
assets 3.18 billion CNY. It has 17 factories such as spinning factories,
bleaching and dyeing factories, weaving factories, fabric finishing factories,
and garment factories etc. There are branches in Beijing, Shanghai, Qingdao and
Hong Kong. Meanwhile, it has 8 subsidiaries, such as Lufeng Textile-dyeing Co.,
Ltd., Xinjiang Luthai foison cotton Co., Ltd., Shandong Luthai-huanzhong
pharmaceutical Co., ZiBo Luqun Textile Co., Ltd., Luthai (Hong Kong) Co., Ltd.,
Beijing Innovative Garment Co., Ltd.And Beijing Luthai Shirt Co., Ltd., Zibo
Xinsheng Thermo-electricity Co., Ltd.
Address: No.81 Songling East Road of Zichuan
District, Zibo, Shandong.
Tel: 0533-5281210 5276424 5260303 5288997
Fax: 0533-5288449 5280807
Website: http://www.lttc.com.cn
l
Chairman:
Mr. Liu Shizhen , 68 years old with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 2004 to present Working in SC as chairman, and
also working in Luthai Textile
Co., Ltd. as chairman.
l
General Manager:
Mr. Wang Fangshui , 52 years old with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
From 2004 to present
Working in SC as general
manager.
SC is mainly
engaged in manufacturing and selling textiles and dyeing
products.
SC’s products
mainly include: textiles.
SC sources its materials 100% from domestic
market, mainly Shandong. SC sells 20% of its products in domestic market, and
80% to overseas market, mainly USA, Europe and Southeast Asian market.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Customer:
==============
Luthai Textile
Co., Ltd.
*Major Supplier:
==============
Shandong Binzhou Huanyu Textile Group Corp.
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.
Bank of China Zibo Branch
AC#411100110738091001
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2007)
Unit: CNY’000
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Cash & bank |
22,480 |
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Inventory |
127,790 |
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Accounts
receivable |
4,880 |
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Other Accounts
receivable |
3,740 |
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To be
apportioned expense |
0 |
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Other current
assets |
59,590 |
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------------------ |
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Current assets |
218,480 |
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Fixed assets net
value |
570,560 |
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Projects under construction |
28,670 |
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Long term
investment |
0 |
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Other assets |
16,610 |
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------------------ |
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Total assets |
834,320 |
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============= |
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Short loans |
62,870 |
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Accounts payable |
79,220 |
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Other Accounts
payable |
940 |
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Notes payable |
68,820 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
14,940 |
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------------------ |
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Current
liabilities |
226,790 |
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Long term
liabilities |
51,000 |
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Other
liabilities |
-10 |
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------------------ |
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Total
liabilities |
277,780 |
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Equities |
556,540 |
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------------------ |
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Total
liabilities & equities |
834,320 |
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============= |
Income Statement (as of Dec. 31, 2007)
Unit: CNY’000
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Turnover |
622,900 |
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Cost of goods
sold |
526,570 |
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Sales expense |
8,280 |
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Management expense |
31,880 |
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Finance expense |
7,810 |
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Profit before
tax |
50,430 |
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Less: profit tax |
0 |
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Profits |
50,430 |
Important Ratios (as of Dec. 31, 2007)
=============================
*Current ratio 0.96
*Quick ratio 0.40
*Liabilities to
assets 0.33
*Net profit
margin (%) 8.10
*Return on total
assets (%) 6.04
*Inventory
/Turnover ×365 75 days
*Accounts
receivable/Turnover ×365 3 days
*Turnover/Total assets 0.75
* Cost of goods
sold/Turnover 0.85
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 fairly good.
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SC’s return on total assets is fairly good.
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SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
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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.
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The inventory of SC appears large.
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The accounts receivable of SC is average in an acceptable level.
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SC’s short-term loan is in an average level.
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SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIRLY
GOOD
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The debt ratio of SC is low.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly good.
Over the past 4 years, SC has made a stable growth with fairly good
financial conditions. The large amount of inventory could be a threat to SC’s
financial condition. A credit line up to USD 1,000,000
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%)