MIRA
INFORM REPORT
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Report Date : |
16.06.2011 |
IDENTIFICATION DETAILS
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Name : |
Luolai
Home Textile Co., Ltd. |
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Registered Office : |
No. 1699,
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Country : |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
23.05.2002 |
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Com. Reg. No.: |
320600400005408 |
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Legal Form : |
Shares Limited
Company |
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Line of Business : |
Manufacturing and Selling Home-Textiles |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 125,000 |
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Status : |
Good |
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Payment Behaviour : |
No complaints |
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Litigation : |
Clear |
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, 2010
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name and address
Luolai Home Textile Co., Ltd.
No. 1699,
TEL: 86 (0) 513-85928735
FAX: 86 (0) 513-85920111
EXECUTIVE SUMMARY
INCORPORATION DATE : may 23, 2002
REGISTRATION NO. : 320600400005408
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
STAFF STRENGTH : 2,798
REGISTERED CAPITAL : CNY 140,363,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 1,818,815,000 (Consolidated, AS OF DEC. 31, 2010)
EQUITIES : CNY 1,445,337,000 (Consolidated, AS OF DEC. 31, 2010)
PAYMENT : AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY GOOD
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : well-known
EXCHANGE RATE : CNY
6.48 = USD 1
Adopted abbreviations
ANS - amount not
stated
NS - not stated
SC - subject
company (the company inquired by you)
NA - not available
CNY -
SC was registered as a shares limited co. at local
Administration for industry & commerce (AIC - the official body of issuing
and renewing business license) on May 23, 2002.
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 The minimum registered
capital of a co. is CNY 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 and selling home-textiles, hotel
textiles, shoes, caps, knitting textiles, mattress, toys, lighting tools, kitchen
wares, sanitary, garments, arts & crafts, decorative fabrics, sewing
products, household goods, chemical fiber products and cultural & office
supplies; selling daily chemicals; goods storage.
SC is mainly
engaged in manufacturing and selling home-textiles
Mr. Xue Weicheng is chairman of SC at present.
SC is
known to have approx. 2,798 employees at present, including 164
technicians, 784 management staff, 1,582 workers and 268 sales representatives.
SC
is currently operating at the above stated address,
and this address houses its operating office and factory in the economic &
technological development zone of Nantong. The detailed information of the
premise is unspecified.
SC is not known to host website of its own at present.
Email: zqb@luolai.com.cn
SC is a listed company in Shenzhen Stock Exchange Market with the code
of 002293.
Tax Registration Certificate No.: 320601738288741
Organization Code: 73828874-1
MAIN SHAREHOLDERS: (as of Dec.
31, 2010)
Name %
of Shareholding
Shanghai Luolai Investment
Holding Co., Ltd.
39.18
Great Well International Enterprise Limited
(
17.81
Nantong Zhongbang Investment
Management Co., Ltd.
14.25
Beijing Benjieming Investment
Advisory Co., Ltd.
2.81
Orient Securities Company
Limited
1.42
China Merchants Bank – Fuguo Tianhe Steady
Selective Preference Stock Security Investment Fund
1.39
Bank of
1.32
Star Point International Holdings Limited (
0.94
0.76
China Construction Bank- Huaxia
Superiority Growth Stock Security Investment Fund
0.75
Other shareholders 19.37
Shanghai Luolai Investment
Holding Co., Ltd.
Registration no.: 310112000206769
Legal representative: Tao Yongying
Great Well International Enterprise Limited
(
CR No.: 1071771
Company Status: Private
Active Status: Live
Star Point International Holdings Limited (
CR No.: 1146715
Company Status: Private
Active Status: Live
l
Chairman:
Mr. Xue Weicheng, senior economist, born in
1958, with university education. He is currently responsible for the overall
management of SC.
Working Experience(s):
At present Working in SC as chairman
Also working in Shanghai Luolai Home Textile Co., Ltd.,
Shanghai SAINTMARC Home Fashions Co., Ltd., Shanghai Yinte Brand Management
Co., Ltd. and Shanghai Luofu E-commerce Co., Ltd. as legal representative
l
General Manager:
Mr. Xue Weibin, senior economist, born in 1964,
with Master’s Degree. He is currently responsible for the daily management of SC.
Working Experience(s):
At present Working in SC as general manager.
*Officials:
======
Name Title
Qian Wei Director
Lv Chundong Director
Xing Yaoyu Supervisor
Wang Liang Supervisor
SC is mainly
engaged in manufacturing and selling home-textiles.
SC’s products
mainly include quilt inner, pillow inner, back cushion, mosquito net, etc.
SC sources its materials 90%
from domestic market, and 10% from overseas market. SC sells 70% of its
products in domestic market, and 30% to overseas market.
The buying terms of SC include Check, T/T, L/C and Credit of
30-60 days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60
days.
*Major Suppliers:
=============
Nantong Minfeng Color Printing Co., Ltd.
Nantong Luolai Chemical Fiber Co., Ltd.
*Major Customers:
==============
Shanghai No. 1
Babaiban Co., Ltd.
Shanghai Jiuguang General
Merchandise Co., Ltd.
Shanghai Landmark Department
Store Co., Ltd
SC has invested in the following companies:
Shanghai
Luolai Home Textile Co., Ltd.
Legal
Representative: Xue Weicheng
Shanghai
SAINTMARC Home Fashions Co., Ltd.
Legal
Representative: Xue Weicheng
Shanghai
Yinte Brand Management Co., Ltd.
Legal
Representative: Xue Weicheng
Shanghai
Luofu E-commerce Co., Ltd.
Legal
Representative: Xue Weicheng
Luolai
Home Textile (HK) Limited
Etc.
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.
SC’s management
declined to release its bank details.
Consolidated
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31,
2009 |
as of Dec. 31,
2010 |
|
Cash & bank |
1,066,884 |
1,057,192 |
|
Inventory |
260,446 |
458,547 |
|
Accounts
receivable |
66,427 |
99,426 |
|
Notes receivable |
2,246 |
11,958 |
|
Advances to
supplies |
17,070 |
25,141 |
|
Other receivables |
6,091 |
8,973 |
|
Other current
assets |
416 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
1,419,580 |
1,661,237 |
|
Fixed assets net
value |
78,949 |
84,235 |
|
Projects under
construction |
24,063 |
46,221 |
|
Long-term investments |
0 |
0 |
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Intangible
assets |
12,441 |
37,874 |
|
Long-term
deferred expenses |
4,723 |
6,664 |
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Other assets |
16,318 |
40,457 |
|
|
------------------ |
------------------ |
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Total assets |
1,556,074 |
1,876,688 |
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|
============= |
============= |
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Short loans |
0 |
0 |
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Accounts payable |
94,610 |
268,714 |
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Other Accounts
payable |
23,632 |
27,006 |
|
Notes payable |
4,792 |
23,247 |
|
Advances from
clients |
34,173 |
44,715 |
|
Taxes payable |
30,683 |
34,524 |
|
Accrued payroll |
21,491 |
26,516 |
|
Other
current liabilities |
5,891 |
6,629 |
|
|
----------------- |
----------------- |
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Current
liabilities |
215,272 |
431,351 |
|
Long term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Total
liabilities |
215,272 |
431,351 |
|
Shareholders
equities |
1,340,802 |
1,445,337 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
1,556,074 |
1,876,688 |
|
|
============= |
============= |
Consolidated Income
Statement
Unit: CNY’000
|
|
as of Dec. 31,
2009 |
as of Dec. 31,
2010 |
|
Turnover |
1,145,307 |
1,818,815 |
|
Cost of goods
sold |
697,436 |
1,131,280 |
|
Sales expense |
201,046 |
342,284 |
|
Management expense |
54,529 |
76,625 |
|
Finance expense |
-1,020 |
-19,013 |
|
Asset
impairment loss |
-349 |
11,604 |
|
Operation Profit |
196,929 |
283,191 |
|
Less: profit tax |
48,896 |
71,365 |
|
Net profit |
148,033 |
211,826 |
Important Ratios
=============
|
|
as of Dec. 31,
2009 |
as of Dec. 31,
2010 |
|
*Current ratio |
6.59 |
3.85 |
|
*Quick ratio |
5.38 |
2.79 |
|
*Liabilities
to assets |
0.14 |
0.23 |
|
*Net profit
margin (%) |
12.93 |
11.65 |
|
*Return on
total assets (%) |
9.51 |
11.29 |
|
*Inventory
/Turnover ×365 |
84 days |
93 days |
|
*Accounts
receivable/Turnover ×365 |
22 days |
20 days |
|
*Turnover/Total
assets |
0.74 |
0.97 |
|
* Cost of
goods sold/Turnover |
0.61 |
0.62 |
PROFITABILITY: FAIRLY GOOD
The turnover of SC appears good in its line, and it increasing in 2010.
l
SC’s net profit margin is fairly good in both
years.
SC’s return on total assets is fairly good in both years.
SC’s cost of goods sold is low, comparing with its turnover.
LIQUIDITY: FAIRLY GOOD
l
The current ratio of SC is maintained in a fairly
good level in both years.
l
SC’s quick ratio is maintained in a fairly good
level in both years.
l
The inventory of SC appears average in both years.
l
The accounts receivable of SC appears average in
both years.
l
SC has no short-term loan in both years.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIRLY GOOD
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is low.
Overall financial condition of the SC:
Fairly good.
SC is considered large-sized in its line with fairly good
financial conditions. A credit line at the above amount appears to be within
SC’s capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.68 |
|
|
1 |
Rs.73.04 |
|
Euro |
1 |
Rs.64.29 |
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 |
|
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.