MIRA INFORM REPORT
|
Report Date : |
03.11.2011 |
IDENTIFICATION DETAILS
|
Name : |
WEIQIAO TEXTILE COMPANY LIMITED |
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Registered Office : |
No. 1 Weifang Road, Economic Development
Zone, Zouping County, Shandong Province
256200 Pr |
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Country : |
China |
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Financials (as on) : |
30.06.2011 |
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Date of Incorporation : |
06.12.1999 |
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Com. Reg. No.: |
370000018046763 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
manufacturing and selling
cotton yarn, grey fabric and denim |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 60,000,000 |
|
Status : |
Good |
|
Payment
Behaviour : |
No Complaints |
|
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 – September 30th, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
China |
a2 |
a2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
Company name & address
WEIQIAO TEXTILE COMPANY LIMITED
NO. 1 WEIFANG ROAD,
ECONOMIC DEVELOPMENT ZONE
ZOUPING COUNTY,
SHANDONG PROVINCE 256200 PR CHINA
TEL: 86 (0)
543-4161208/4162013
FAX: 86 (0)
543-4162000/4161188
EXECUTIVE SUMMARY
Date of Registration : DECEMBER 6, 1999
REGISTRATION NO. : 370000018046763
LEGAL FORM : SHARES LIMITED COMPANY
REGISTERED CAPITAL :
CNY 1,194,389,000
staff : 110,000 (INCLUDING EMPLOYEES
OF ITS SUBSIDIARIES)
BUSINESS CATEGORY :
manufacturing
Revenue :
CNY 8,030,788,000 (SIX-MONTH PERIOD ENDED 30 JUNE 2011)
total EQUITy : CNY 15,548,005,000 (As of Jun. 30, 2011)
WEBSITE : www.wqfz.com
E-MAIL :
N/A
PAYMENT : AVERAGE
Recommended Credit Limit: UP TO USD
60,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : strong
OPERATIONAL TREND :
upward
GENERAL REPUTATION : GOOD
EXCHANGE RATE : CNY 6.36 = 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 shares limited company of
PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 370000018046763 on December 6,
1999.
SC’s Organization Code Certificate
No.: 72071446-6
SC’s registered capital: CNY 1,194,389,000
SC’s paid-in capital: CNY 1,194,389,000
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 |
|
Shandong Weiqiao Pioneering
Group Co., Ltd. |
58.67 |
|
H Shareholders |
30.63 |
|
Zhang Shiping |
0.46 |
|
Song Shoujun |
0.32 |
|
Li Xiuping |
0.29 |
|
Zhang Hongxia |
1.57 |
|
Zhang Shixue |
1.56 |
|
Ma Guixia |
1.23 |
|
Zhang Bo |
1.15 |
|
Qi Xingli |
0.71 |
|
Fan Xuelian |
0.69 |
|
Wang Xuesong |
0.64 |
|
Yang Shaogang |
0.46 |
|
Wang Xiaoyun |
0.44 |
|
Jiang Jianling |
0.44 |
|
Zhang Xianbing |
0.41 |
|
Kong Deqing |
0.33 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Zhang
Hongxia |
|
Executive Director |
Zhang Hongxia |
|
Zhang Yanhong |
|
|
Zhao Suwen |
|
|
Zhang Jinglei |
|
|
Non-Executive Director |
Zhang Shiping |
|
Wang Zhaoting |
|
|
Zhao Suhua |
|
|
Wang Xiaoyun |
|
|
Independent Non-Executive Director |
Wang Naixin |
|
Xu Wenying |
|
|
Chan Wing Yau,
George |
|
|
Supervisor |
Liu Mingping |
|
Lv Tianfu |
|
|
Wang Wei |
RECENT DEVELOPMENT
SC is a listed
company in Hong Kong Stock Exchange Market with the code of 2698.
Ø
SC is the largest cotton textile manufacturer in
the world and one of top-500 enterprises of China and one of top-26 super-large
enterprises of Shandong province
Ø
SC finalists 2009's 50 most globally competitive
Chinese companies
Ø
SC's combed yarn recognized by AQSIQ as "China
Brandname Products"
Ø
SC's grey fabric recognized by AQSIQ as "China
Brandname Products"
Ø
SC's knitting yarn recognized by China Cotton
Textile Association and China Knitting Industry Association as high credit
product by users
Ø
SC's production the "Riverside Scene at
Qingming Festival" won it a patent for exterior design from National
Intellectual Property Rights Organization
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Shandong Weiqiao Pioneering
Group Co., Ltd. 58.67
H Shareholders 30.63
Zhang Shiping
0.46
Song Shoujun 0.32
Li Xiuping 0.29
Zhang Hongxia 1.57
Zhang Shixue 1.56
Ma Guixia 1.23
Zhang Bo 1.15
Qi Xingli 0.71
Fan Xuelian 0.69
Wang Xuesong 0.64
Yang Shaogang 0.46
Wang Xiaoyun 0.44
Jiang Jianling 0.44
Zhang Xianbing 0.41
Kong Deqing 0.33
Shandong
Weiqiao Pioneering Group Co., Ltd.
=======================================
Shandong Weiqiao Pioneering
Group Co ., Ltd is located at the southern end of Lubei plain, closely
adjoining Jiaozhou-Jinan Railway and Jinan-Qingdao Expressway . With the total
capital fund of CNY 38 billion , the AAA credit class of bank , the AA credit
class of customs and the A paying tax class , the group is one super is one
group super grand multiple –producing factory combining spinning , weaving ,
weaving , dyeing-finishing , apparel , home-textile . With its first-class
tech-equipment, productive capacity and the economic benefit, it ranks the
first place in the same trade of China for 9 years in succession. It is the
most competitive amongst the national cotton –chemical textile meatpacking
industry and the universally biggest cotton –textile factory .And in 2006, it
rank 81st among the “China Top 500 Industry Enterprise ”.34th of the “China
Manufacturing Enterprise”, and 91st of “China Impex Enterprise” and 9th of “China
Top 500 of competition ”. In January 2007 to November, the company realized a
sales revenue as high as 6045942.2 Million CNY, an 33.78-percent increase over
that in the same period last year; Total profits and taxes 734503.1 Million
CNY, an 36.32-percent increase over that in the same period last year; Profits
of 519039.6 Million CNY, a 68.58-percent increase over that in the same period
last year; and the total amount of foreign currency earned through exportation
reaching 95423.0 Million USD,a 20.15-percent increase over that in the same
period last year.
Weiqiao Pioneering Group Co.,
Ltd is built from two big holding companies of Weiqiao Textile Co., Ltd and
Weiqiao Aluninum and Power Co., Ltd. It has developed into such an industrial
structure of “based on cotton textiles, associated with thermoelectricity,
complemented by each other between thermoelectricity, aluminum and textiles”.
Address: No. 1 Weifang Road,
Zouping Economic Development Zone, Shandong China
Zip: 256200
Tel: 0543-4161171
Fax: 0543-4161188
Website: www.weiqiaocy.com
Email: wqcy@wqfz.com
MANAGEMENT
Zhang
Hongxia , Legal Representative, Chairman and General Manager
---------------------------------------------------------------------------------------------------------
Ø
Gender: F
Ø
Age: 40
Ø
ID# 372330197108016189
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative, chairman and general manager
She is also a director and general manager of Shandong Weiqiao Mianye Company from 29 September 2003), the chairman and general manager of Shandong Luteng Textile Company Limited (from 12 September 2002), the Chairman and general manager of Shandong Binteng Textile Company Limited (from 9 March 2004) as well as the Chairman of Weiwei industrial Park (from 30 January 2004).
Executive Directors
-------------------------
Zhang Hongxia
Zhang Yanhong
Zhao Suwen
Zhang Jinglei
Non-Executive
Directors
--------------------------------
Zhang Shiping
Wang Zhaoting
Zhao Suhua
Wang Xiaoyun
Independent
Non-Executive Directors
-------------------------------------------------
Wang Naixin
Xu Wenying
Chan Wing Yau
Supervisors
----------------
Liu Mingping
Lv Tianfu
Wang Wei
BUSINESS OPERATION
SC’s registered
business scope includes manufacturing, processing and selling cotton spinning,
weave cloth, printing and dying, knitting, garments; importing and exporting in
permit scope; purchasing and processing cotton; selling cotton.
SC is mainly
engaged in manufacturing and selling cotton yarn, grey fabric and denim.
SC’s
products mainly include:
Cotton Yarn
Grey Fabric
Denim
In 2009, SC produced approximately 648,000 tones of cotton
yarn, 1,186,000,000 meters of grey fabric and 105,000,000 meters of denim.
SC sources its materials 80%
from domestic market, and 20% from overseas market. SC sells 80% of its
products in domestic market, and 20% to overseas market, mainly Japan and South
Korea.
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 Customers:
==============
Itochu
Fountain Set Holding Limited
Texwinca Group
Nichimen
Marubeni
Staff & Office:
--------------------------
SC is
known to have approx. 110,000
staff at present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
SC is
known to have the following subsidiaries:
n
Weihai
Weiqiao Textile Co., Ltd.
n
Binzhou Weiqiao Technology Industrial Park Co., Ltd.
n
Shandong Luteng Textile Company Limited
n
Shandong Weiqiao Mianye Co.,
Ltd.
n
Weihai Weiqiao Technology Industrial Park Co., Ltd.
n
Shandong Binteng Textile Company Limited
Etc.
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 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.
BANKING
Basic Bank:
China
Construction Bank Zouping Sub-branch
AC#:
37001837936050005336
FINANCIALS
CONDENSED
CONSOLIDATED INCOME STATEMENT
For the six-month period ended 30 June
2011
Year ended 31 December 2010
Six-month Six-month
period ended period ended
30 Jun. 2011 31 Dec. 2010
(unaudited) (unaudited)
Notes CNY’000
CNY’000
Revenue 4
8,030,788 17,887,429
Cost of sales (7,014,239)
(15,007,823)
Gross profit 1,016,549
2,879,606
Other income and gains 4
155,081 435,198
Selling and distribution costs (83,183)
(287,298)
Administrative expenses (111,800)
(202,325)
Other expenses (35,302)
(74,421)
Finance costs 5
(270,724) (493,456)
Share of profit of an associate 1,290
–
Profit before tax 6
671,911 2,257,304
Income tax expense 7
(122,894) (621,939)
Profit and total comprehensive income for the period 549,017 1,635,365
Profit and total comprehensive income attributable to:
Owners of the
parent 545,370
1,627,376
Non-controlling
interests 3,647
7,989
549,017 1,635,365
Earnings per share attributable to ordinary
equity holders of
the parent:
Basic 8 CNY 0.46 CNY 1.36
Dividend 9
Nil Nil
CONDENSED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2011
31 December 2010
30 June December
2011 2010
(unaudited) (audited)
Notes CNY’000
CNY’000
NON -CURRENT ASSETS
Property, plant
and equipment 10 16,268,706 16,680,090
Investment
properties –
39,902
Prepaid land lease
payments 197,675
200,167
Other intangible
assets 2,848
3,528
Investment in an
associate 46,290
–
Deferred tax
assets 18 153,823
101,825
TOTAL NON -CURRENT ASSETS 16,669,342
17,025,512
CURRENT ASSETS
Inventories 11
9,351,926 5,871,114
Trade receivables 12 465,986 521,086
Due from the
immediate holding company 13 87,552 46,040
Due from other
related parties 13 52,269 –
Prepayments,
deposits and other receivables 670,031
752,005
Pledged time
deposits 297,566
167,014
Non-pledged time
deposits maturing over three months 630,310
1,594,500
Cash and cash
equivalents 1,595,417
2,412,583
TOTAL CURRENT ASSETS 13,151,057
11,364,342
CURRENT LIABILITIES
Trade payables 14
2,855,138 1,601,224
Bills payable 15
130,000 580,000
Due to the
immediate holding company 13 428 –
Due to other
related parties 13
5,516 9,740
Other payables and
accruals 16 959,436 998,452
Interest-bearing
bank and other borrowings 17 4,513,506 3,610,289
Tax payable 523,819
684,115
Deferred income 14,810
8,927
TOTAL CURRENT LIABILITIES 9,002,653 7,492,747
NET CURRENT ASSETS 4,148,404
3,871,595
TOTAL ASSETS
LESS CURRENT LIABILITIES 20,817,746
20,897,107
NON –CURRENT LIABILITIES
Interest-bearing
bank and other borrowings 17 5,039,662 5,190,910
Deferred income 225,279
175,663
Deferred tax
liabilities 18 4,800 6,124
TOTAL NON -CURRENT LIABILITIES 5,269,741
5,372,697
NET ASSETS 15,548,005
15,524,410
EQUITY
Equity attributable to owners of the parent
Issued capital 19
1,194,389 1,194,389
Reserves 14,250,926
13,705,556
Proposed final dividend 9
– 522,665
15,445,315 15,422,610
Non-controlling interests 102,690
101,800
TOTAL EQUITY 15,548,005
15,524,410
Important Ratios
|
|
as of Jun. 30,
2011 |
as of Dec. 31,
2010 |
|
*Current ratio |
1.46 |
1.52 |
|
*Quick ratio |
0.42 |
0.73 |
|
*Liabilities
to assets |
0.48 |
0.45 |
|
*Net profit
margin (%) |
6.84 |
9.14 |
|
*Return on
total assets (%) |
1.84 |
5.76 |
|
-- |
*Inventory /Turnover ×180 210 days |
*Inventory /Turnover ×365 120 days |
|
* Revenue
/Total assets |
0.27 |
0.63 |
|
* Cost of
sales / Revenue |
0.87 |
0.84 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears
good in its line.
l
SC’s net profit margin is fairly good.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is average, comparing with
its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears large
l
SC’s revenue is in a
fair level, comparing with the size of its total assets.
LEVERAGE:
FAIRLY GOOD
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Strong.
CONCLUSIONS
SC is considered large-sized in its line with
strong financial conditions. The large amount of inventory may be a
threat to SC’s financial condition. A credit line up to USD 60,000,000 would appear to be within
SC’s capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.25 |
|
UK Pound |
1 |
Rs.78.73 |
|
Euro |
1 |
Rs.67.64 |
RATING EXPLANATIONS
|
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.