MIRA
INFORM REPORT
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Report Date : |
01.09.2008 |
IDENTIFICATION
DETAILS
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Name : |
SHAOXING
CHENSHEN TEXTILE AND GARMENT CO., LTD. |
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Registered Office : |
No. 22 Lunan Industrial Zone, Chengwan Road, Keqiao, Shaoxing, Zhejiang
Province, 312030 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. 2004 |
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Com. Reg. No.: |
330621000016841 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Selling Textile Products and Garments. |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
usd 60,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
SHAOXING CHENSHEN
TEXTILE AND GARMENT CO., LTD.
NO. 22 LUNAN INDUSTRIAL ZONE, CHENGWAN ROAD,
KEQIAO, SHAOXING,
ZHEJIANG PROVINCE, 312030 PR CHINA
TEL: 86 (0) 575-85589683 FAX: 86 (0) 575-84810677
EXECUTIVE SUMMARY
INCORPORATION DATE : MAR.
11, 2004
REGISTRATION NO. : 330621000016841
REGISTERED LEGAL FORM : LIMITED LIABILITIES
COMPANY
STAFF STRENGTH :
50
REGISTERED CAPITAL : CNY 10,000,000
BUSINESS LINE : INTERNATIONAL TRADE
TURNOVER :
cny 60,490,000 (AS OF DEC. 31, 2007)
EQUITIES :
cny 8,510,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 60,000
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly
STABLE
OPERATIONAL TREND : fairly steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.87= 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 Ren Min Bi
Note: the given address was the former address
of SC.
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 Mar. 11, 2004.
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 selling textile products,
garments, light textile materials and crafts; selling building materials, decoration
materials, machinery, electronic products; importing and exporting various
goods and technology.
SC is mainly
engaged in selling textile products and garments.
Mr. Zhang Zhichen
has been chairman of SC since 2004.
SC is known
to have approx. 50 employees at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the industrial zone of Shaoxing. Our checks reveal that SC
rents the total premise about 1,200 square meters.
http://www.chenshentex.com .
The design is professional and the content is well organized. At present it is
in Chinese and English versions.
E-Mail: sophiexie@chenshentex.com
Changes of SC’s registered information
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Date: |
Item |
Before changed |
After changed |
|
Nov. 2007 |
Registered capital |
CNY 1,500,000 |
CNY 10,000,000 |
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Main shareholders |
Zhang Zhifeng 40% Zhang Zhichen 60% |
Zhang Zhifeng 6% Zhang Zhichen 9% Zhejiang Suofulan Textile Technology Co.,
Ltd. 85%; |
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Registered Number |
3306212105732 |
Present one |
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Jun. 2008 |
Address |
3rd Floor, Yatai Bishuiyuan,
Keqiao, Shaoxing County, Zhejiang Province 219 |
No. 22 Lunan Industrial Zone, Chengwan
Road, Keqiao, Shaoxing, Zhejiang Province |
|
Jul. 2008 |
Main shareholders |
Zhang Zhifeng 6% Zhang Zhichen 9% Zhejiang Suofulan Textile Technology Co.,
Ltd. 浙85%; |
Present ones |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhejiang Suofulan Holding Group Co., Ltd. 51
Zhang Zhichen ID: 33062119770705121943 43
Zhang Zhifeng ID: 330621801017119 6
l
Chairman and General Manager:
Mr. Zhang Zhichen, in his 30’s with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From Sep. 1998 to Aug.
1999 Worked
in Shaoxing Development Zone Property Management Co., Ltd.
From Aug. 1999 to Mar. 2003
Worked in Shaoxing Pharmaceutical Biology Products Co., Ltd.
From Mar. 2003 to Mar. 2004 Worked in Shaoxing Jiangnan Printing &
Dyeing Co., Ltd.
From Mar. 2004 to present
Working in SC as chairman and general manager.
l
Vice General Manager:
Mr. Zhang Zhifeng, in his 20’s with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
From 2007 to present
Working in SC as vice general
manager.
SC is mainly
engaged in selling textile products and garments.
SC’s products
mainly include: textile products and garments.
SC sources its
materials 90% from domestic market, and 10% from the overseas market, mainly
European countries. SC sells 10% of its products in domestic market, and 90% to
the overseas market, mainly Southeast Asia, American and European countries.
The buying terms of SC include Check, 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 Supplier:
=============
Shaoxing Jiangnan Printing & Dyeing 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’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.
SC refused to
release its bank information.
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 |
7,590 |
6,010 |
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Inventory |
120 |
150 |
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Accounts
receivable |
0 |
7,400 |
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Advances to
suppliers |
540 |
6,530 |
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Other
receivables |
12,160 |
13,240 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
20,410 |
33,330 |
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Fixed assets net
value |
1,620 |
1,360 |
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Projects under
construction |
0 |
0 |
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Long term
investment |
0 |
0 |
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Other assets |
0 |
0 |
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------------------- |
------------------ |
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Total assets |
22,030 |
34,690 |
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============ |
============= |
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Short loans |
7,800 |
15,010 |
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Accounts payable |
0 |
1,300 |
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Bills payable |
7,260 |
4,920 |
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Advances from
clients |
1,970 |
2,080 |
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Taxes payable |
20 |
10 |
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Salaries payable |
0 |
0 |
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Other payable |
3,720 |
2,670 |
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Other current
liabilities |
110 |
190 |
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------------------ |
------------------ |
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Current
liabilities |
20,880 |
26,180 |
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Long term
liabilities |
0 |
0 |
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------------------- |
------------------ |
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Total
liabilities |
20,880 |
26,180 |
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Equities |
1,150 |
8,510 |
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-------------------- |
------------------ |
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Total
liabilities & equities |
22,030 |
34,690 |
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============= |
============= |
Income Statement
Unit: CNY’000
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|
As of Dec. 31, 2006 |
As of Dec. 31, 2007 |
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Turnover |
86,990 |
60,490 |
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Cost of goods
sold |
80,970 |
58,620 |
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Sales expense |
250 |
270 |
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Management expense |
5,490 |
3,120 |
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Finance expense |
340 |
-420 |
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Profit before
tax |
-150 |
-980 |
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Less: profit tax |
90 |
0 |
|
Profits |
-240 |
-980 |
Important Ratios
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|
2006 |
2007 |
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*Current ratio |
0.98 |
1.27 |
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*Quick ratio |
0.97 |
1.27 |
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*Liabilities
to assets |
0.95 |
0.75 |
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*Net profit
margin (%) |
-0.28 |
-1.62 |
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*Return on
total assets (%) |
-1.09 |
-2.83 |
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*Inventory
/Turnover ×365 |
1day |
1day |
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*Accounts
receivable/Turnover ×365 |
0 |
45days |
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*Turnover/Total
assets |
3.95 |
1.74 |
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* Cost of
goods sold/Turnover |
0.93 |
0.97 |
PROFITABILITY:
FAIR
l
The turnover of SC appears fairly good, but it was declining in 2007.
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SC’s net profit margin is fair, and it was declining in 2007.
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SC’s return on total assets is fair, and it was declining in 2007.
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SC’s cost of goods sold is fairly high, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a fair level in 2006 and normal
in 2007.
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SC’s quick ratio is maintained in a normal level in 2006 and 2007.
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The accounts receivable of SC is average.
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The inventory of SC is average.
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The short loans of SC appear fairly 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 fairly high.
l
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.
Credit dealings of small amount can be considered for it at present.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.21 |
|
UK Pound |
1 |
Rs.79.76 |
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Euro |
1 |
Rs.64.72 |
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%)