MIRA INFORM REPORT
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Report Date : |
19.08.2011 |
IDENTIFICATION DETAILS
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Name : |
QINGDAO HOMETEX INDUSTRIES CO., LTD. |
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Registered Office : |
Room 1301, No. 39 West Donghai Road, Shinan
District, Qingdao, Shandong Province 266071 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
29.06.2004 |
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Com. Reg. No.: |
370202228126940 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Exporting Textiles |
RATING & COMMENTS
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MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Small Company |
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Payment
Behaviour : |
Usually Correct |
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Litigation : |
---- |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2011
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
|
China |
a2 |
a2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
|
High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name & address
qingdao hometex industries co., ltd.
room 1301, no. 39
west donghai road, shinan district
qingdao, shandong
province 266071 PR CHINA
TEL: 86 (0)
532-85799275/85799236
FAX: 86 (0)
532-85799240
EXECUTIVE SUMMARY
Date of Registration : june 29, 2004
REGISTRATION NO. : 370202228126940
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL :
cny 1,000,000
staff : 20
BUSINESS CATEGORY :
trading
Revenue : CNY 101,340,000 (AS OF
DEC. 31, 2010)
EQUITIES : CNY 110,000 (AS OF DEC. 31, 2010)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT : AVERAGE
Recommended Credit Limit: C.O.D.
MARKET CONDITION : FAIR
FINANCIAL CONDITION : POOR
OPERATIONAL TREND :
DOWNWARD
GENERAL REPUTATION : FAIR
EXCHANGE RATE : CNY 6.39 = USD 1
Adopted abbreviations
(as follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL TREND & GENERAL
REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not yet be determined
Not yet be determined
LEGAL STATUS & HISTORY
SC was
established as a limited liabilities company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 370202228126940 on June 29,
2004.
SC’s Organization Code Certificate
No.: 763614107
SC’s Tax No. 370202763614107
SC’s registered capital: cny 1,000,000
SC’s paid-in capital: cny 1,000,000
No significant changes of SC have
been noted in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Liu Zhiqun |
35 |
|
Liu Xuqian |
35 |
|
Zhang Xiaoming |
30 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Liu Zhiqun |
|
Director |
Liu
Xuqian |
|
Zhang
Xiaoming |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Liu Zhiqun 35
Liu Xuqian 35
Zhang Xiaoming 30
MANAGEMENT
Liu Zhiqun, Legal Representative, Chairman and General Manager
---------------------------------------------------------------------------------------------------
Ø
Gender: F
Ø
Age:
Ø
Qualification:
University
Ø
Working
experience (s):
From 2004 to present, working in SC as legal representative,
chairman and general manager
Liu Xuqian, Director
---------------------------------------
Ø
Gender: F
Ø
Qualification:
University
Zhang
Xiaoming, Director
----------------------------------------------
Ø
Gender: M
Ø
Age:
Ø
Qualification:
University
Also working in Qingdao Huachen Textiles Co.,
Ltd. as legal representative
BUSINESS OPERATION
SC’s registered business scope includes wholesale and
retail of towel products, knitwear, textile, chemical fiber products, plastic
products, paper products, general merchandise, importing and exporting goods
and technology.
SC is
mainly engaged in exporting textiles.
SC’s
products mainly include:
·
Yarn dyed jacquard terry beach
towel
·
Yarn dyed jacquard beach towel
·
Baby hooded towel
·
Micro fiber towel
·
Kids hooded bbeach towel
·
Beach towel - kid’s hooded towel
SC sources its materials 100% from domestic
market, mainly Qingdao. SC sells 100% of its products in to overseas market,
mainly USA, Europe and Australia.
The buying
terms of SC include Check, T/T and Credit of 30-60 days. The payment terms of
SC include L/C and Credit of 30-60 days.
*Major Customer:
=============
USA Cosfibel Inc.
*Major Supplier:
=============
Qingdao
Huachen Textiles Co., Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 20
staff at present.
SC rents an area
as its operating office of approx. 180 sq. meters at the heading address.
RELATED COMPANY
u
Qingdao Huachen Textiles Co., Ltd.
--------------------------------------------------
Date of Registration :
November 26, 2004
Registration No. :
370285400001063
Legal Form : Chinese-foreign equity joint venture
enterprise
Registered Capital :
CNY
14,100,000
Address:
Sunshou Town, Laixi City, Qingdao, Shandong Province
Tel: 86
(0) 532-87483699
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.
BANKING
Basic Bank:
Bank
of China Qingdao Branch
AC# N/A
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
1,840 |
3,140 |
|
|
Accounts
receivable |
2,960 |
820 |
|
Advances to
suppliers |
0 |
0 |
|
Other receivable |
2,940 |
9,530 |
|
Inventory |
10,570 |
20,200 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
20 |
4,030 |
|
|
------------------ |
------------------ |
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Current assets |
18,330 |
37,720 |
|
Fixed assets |
310 |
210 |
|
Construction in
progress |
0 |
0 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
18,640 |
37,930 |
|
|
============= |
============= |
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Short-term loans |
0 |
7,100 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
17,590 |
27,150 |
|
Wages payable |
0 |
0 |
|
Advances from
clients |
0 |
0 |
|
Other payable |
680 |
3,560 |
|
Other current
liabilities |
20 |
10 |
|
|
------------------ |
------------------ |
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Current
liabilities |
18,290 |
37,820 |
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Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Total
liabilities |
18,290 |
37,820 |
|
Equities |
350 |
110 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
18,640 |
37,930 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
|
Revenue |
101,340 |
|
Cost of sales |
93,910 |
|
Sales expense |
4,440 |
|
Management expense |
2,650 |
|
Finance expense |
530 |
|
Profit before
tax |
-230 |
|
Less: profit tax |
10 |
|
-240 |
Important Ratios
=============
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
*Current ratio |
1.00 |
1.00 |
|
*Quick ratio |
0.42 |
0.46 |
|
*Liabilities
to assets |
0.98 |
1.00 |
|
*Net profit
margin (%) |
-- |
-0.24 |
|
*Return on
total assets (%) |
-- |
-0.63 |
|
*Inventory /
Revenue ×365 |
-- |
73 days |
|
*Accounts
receivable/ Revenue ×365 |
-- |
3 days |
|
*
Revenue/Total assets |
-- |
2.67 |
|
* Cost of
sales / Revenue |
-- |
0.93 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
l
The revenue of SC appears
average in its line in 2010.
l
SC’s net profit margin is fair in 2010.
l
SC’s return on total assets is fair in 2010.
l
SC’s cost of goods sold is fairly high, comparing
with its revenue.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a normal
level in both years.
l
SC’s quick ratio is maintained in a fair level in
both years.
l
The inventory of SC appears large.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’s short-term loans appear fairly large in 2010.
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
POOR
l
The debt ratio of SC is high in both years.
l
The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Poor.
CONCLUSIONS
SC is considered small-sized in its line
with poor financial conditions. The large
amount of inventory and short-term loans may be a threat to SC’s financial
condition. Great caution is required in providing credit to SC and C.O.D. is
recommended.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.61 |
|
UK Pound |
1 |
Rs.75.32 |
|
Euro |
1 |
Rs.65.68 |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>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 |
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 |
|
---- |
NB |
New Business |
---- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.