MIRA INFORM REPORT
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Report Date : |
20.10.2011 |
IDENTIFICATION DETAILS
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Name : |
LINQING SANHE TEXTILE GROUP CO., LTD. |
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Registered Office : |
No. 1050, Daqiao Street, Linqing, Shandong
Province 252600 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
23.11.2005 |
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Com. Reg. No.: |
371581228010384 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing
and Selling Various Textiles |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 6,000,000 |
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Status : |
Satisfactory |
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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 – September 30th, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
China |
a2 |
a2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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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 & address
LINQING SANHE TEXTILE GROUP CO., LTD.
NO. 1050, DAQIAO
STREET, LINQING, SHANDONG PROVINCE 252600 PR CHINA
TEL: 86 (0)
635-2431316
FAX: 86 (0)
635-2432538
EXECUTIVE SUMMARY
Date of Registration : november 23, 2005
REGISTRATION NO. : 371581228010384
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : CNY 160,000,000
staff : 20,000 (including its branch
plants)
BUSINESS CATEGORY : manufacturing
Revenue :
CNY 2,601,252,000 (AS OF DEC. 31,
2010)
EQUITIES :
CNY 1,215,555,000 (AS OF DEC. 31, 2010)
WEBSITE : www.linqingtex.com
E-MAIL :
rumantrip@126.com; iqsahne@yahoo.com.cn
PAYMENT : AVERAGE
Recommended Credit Limit: UP TO USD
6,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : FAIRLY 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 limited liabilities company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 371581228010384 on November
23, 2005.
SC’s Organization Code Certificate
No.: X1370882-5
SC’s registered capital: CNY 160,000,000
SC’s paid-in capital: CNY 160,000,000
Registration Change Record:
|
Date |
Change of Contents |
Before the change |
After the change |
|
|
Company Name |
Linqing Sanhe Textile Co., Ltd. |
Linqing Sanhe Textile Group Co., Ltd. |
|
-- |
Registration No. |
3715812801038 |
371581228010384 |
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|
Shareholder
(s) |
Wan Qiusheng 95% Hei Yuzhi 5% |
Wan Qiusheng 95% Wan Bin 5% |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Wan Qiusheng |
95 |
|
Wan Bin |
5 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Wan Qiusheng |
|
Supervisor |
Wan Bin |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Wan Qiusheng 95
Wan Bin 5
MANAGEMENT
Wan Qiusheng, Legal Representative, Chairman and General Manager
-------------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 49
Ø
ID# 37250219621006089
Ø
Qualification:
University
Ø
Working
experience (s):
From 2005 present, working in SC as legal representative,
chairman and general manager
Wan Bin, Supervisor
------------------------------------
Ø
Gender: M
Ø
Age: 25
Ø
ID# 371581198601300911
Ø
Qualification:
University
BUSINESS OPERATION
SC’s registered business scope includes manufacture,
processing, selling spinning, dyeing yarn, weaving cloth, and towel blankets;
exporting its products and technology; importing raw
materials, apparatus and instruments, machinery, components, and technology
needed in manufacturing and scientific research; and processing with imported materials, processing with
imported samples, assembling with imported parts, and compensation trade in
agreement.
SC is
mainly engaged in manufacturing and selling various textiles.
Brand: SANHE.
SC’s products mainly include: cotton yarn, and yarn-dyed fabric, wax printing, yarn
products.
SC
sources its materials 80% from domestic market, mainly Shandong province, and 20%
from overseas market. SC sells 60% to overseas market, mainly Africa, Europe,
Southeast Asia and Africa, and 40% in domestic market, mainly Shandong
province.
The buying terms of SC include Check, T/T, L/C, Check and
Credit of 30-60 days. The payment terms of SC include T/T, L/C, Check and
Credit of 30-60 days.
Staff & Office:
------------------------
SC is
known to have approx. 20,000
staff (including its branch plants) at present.
SC owns an area as
its operating office & factory of approx. 380,000 sq. meters at the heading
address.
RELATED COMPANY
SC is known to have the
following branch plants at present:
u
Linqing Sanhe Textile Group Co., Ltd. Spinning Plant
u
Linqing Sanhe Textile Group Co., Ltd.
Dyeing Yarn Plant
u
Linqing Sanhe Textile Group Co., Ltd.
Dyeing and Finishing Plant
u
Linqing Sanhe Textile Group Co., Ltd.
Weaving Plant
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
Bank of China
Liaocheng Branch
AC#: 957538091001
China
Construction Bank Linqing Sub-branch
AC#: 37001856808050004326
FINANCIALS
Financial Summary
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
|
Long term investment |
5,400 |
|
Total assets |
2,898,888 |
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|
------------- |
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Long term liabilities |
148,341 |
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Total
liabilities |
1,683,333 |
|
Equities |
1,215,555 |
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|
------------- |
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Revenue |
2,601,252 |
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Profit before
tax |
213,579 |
|
Less: profit tax |
53,394 |
|
Profits |
160,185 |
Note: The detailed financials for Y2010 are not filed in SAIC.
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
|
*Liabilities
to assets |
0.58 |
|
*Net profit
margin (%) |
6.16 |
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*Return on
total assets (%) |
5.53 |
|
*
Revenue/Total assets |
0.90 |
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 fairly good.
LIQUIDITY:
AVERAGE
l
SC’s revenue is in an
average 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: Fairly Good.
CONCLUSIONS
SC is considered large-sized in its line with
fairly good financial conditions. Taking into consideration of SC’s
general performance, reputation as well as market conditions, we consider
higher credit amount appears to be within SC’s capacities comparing with the
above given one, and USD 6,000,000 is recommended.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.18 |
|
UK Pound |
1 |
Rs.77.49 |
|
Euro |
1 |
Rs.67.96 |
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 |
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 |
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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.