MIRA INFORM REPORT

 

 

Report Date :           

08.09.2011

 

IDENTIFICATION DETAILS

 

Name :

GUANGDONG ESQUEL TEXTILES CO., LTD.

 

 

Registered Office :

No. 1 Gaofeng Road, Cangjiang Exports Processing Zone, Gaoming District, Foshan, Guangdong Province 528500

 

 

Country :

China

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

17.11.1988

 

 

Com. Reg. No.:

440600400002304

 

 

Legal Form :

Wholly Foreign-Owned Enterprise

 

 

Line of Business :

manufacturing and selling textiles and garment

 

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

 

Status :

Good

 

 

Payment Behaviour :

Usually Correct

 

 

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, 2011

 

Country Name

Previous Rating

                   (31.12.2010)                  

Current Rating

(31.03.2011)

China

a2

a2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name & address 

 

 Bottom of Form

GUANGDONG ESQUEL TEXTILES CO., LTD.

NO. 1 GAOFENG ROAD, CANGJIANG EXPORTS PROCESSING ZONE

GAOMING DISTRICT, FOSHAN, GUANGDONG PROVINCE 528500 PR CHINA

TEL: 86 (0) 757-88680888/88881000

FAX: 86 (0) 757-88881910

 

 

EXECUTIVE SUMMARY

 

Date of Registration          : november 17, 1988

REGISTRATION NO.                  : 440600400002304

LEGAL FORM                           : Wholly foreign-owned enterprise

CHIEF EXECUTIVE                    : che ketao (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL : usd 243,000,000

staff                                      : 30,170

BUSINESS CATEGORY : manufacturing

Revenue                                : CNY 4,327,047,000 (AS OF DEC. 31, 2010)

EQUITIES                                 : CNY 2,452,879,000 (AS OF DEC. 31, 2010)

WEBSITE                                 : N/A

E-MAIL                                     : N/A

PAYMENT                                : AVERAGE

MARKET CONDITION                : COMPETITIVE

FINANCIAL CONDITION             : FAIRly GOOD

OPERATIONAL TREND  : STEADY

GENERAL REPUTATION           : FAIRLY GOOD

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 wholly foreign-owned enterprise of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 440600400002304 November 17, 1988.

 

SC’s Organization Code Certificate No.: 61762557-X

 

SC’s registered capital: USD 243,000,000

 

SC’s paid-in capital: USD 243,000,000

 

Registration Change Record:

Date

Change of Contents

Before the change

After the change

2011

Registered Capital

USD 205,000,000

USD 243,000,000

 

Current Co search indicates SC’s shareholders & chief executives are as follows:-

 

Name of Shareholder (s)

% of Shareholding

Esquel China Holdings Limited (HK)

100

 

SC’s Chief Executives:-

 

Position

Name

Legal Representative and Chairman

Che Ketao

General Manager

Zhu Bin

 

 

 

 

RECENT DEVELOPMENT

 

No recent development was found during our checks at present.

 

 

SHAREHOLDER CHART & BACKGROUND

                       

Name                                                                                                  % of Shareholding

Esquel China Holdings Limited (HK)                                                                    100

 

*     Esquel China Holdings Limited (HK)

==============================

Registration No.: 0141123

Date of Registration: August 30, 1984

Legal Form: Private

Status: Live

 

 

MANAGEMENT

 

Che Ketao, Legal Representative and Chairman

-------------------------------------------------------------------------

Ø         Gender: M

Ø         ID# P339250

Ø         Working experience (s):

 

At present, working in SC as legal representative and chairman

 

 

Zhu Bin, General Manager

--------------------------------------------

Ø         Gender: M

Ø         Age: 43

Ø         ID# 310228196809015010

Ø         Qualification: University

Ø         Working experience (s):

 

At present, working in SC as general manager

Also working in Guangdong Esquel Textiles Co., Ltd. Yangmei Branch Factory, Guangdong Esquel Textiles Co., Ltd. Xian Branch Factory, Guangdong Esquel Textiles Co., Ltd. Shanghai Branch, and Guangdong Esquel Textiles Co., Ltd. Beijing Branch as principal

 

 

 

 

 

 

 

BUSINESS OPERATION

 

SC’s registered business scope includes manufacturing and selling raw yarn, dyed yarn, grey cloth, dyed fabric, knitted fabric, yarn-dyed, clothing, bedding, bale of cloth, towel, handkerchief and curtains, various garment accessories, printing, plastic products, and packaging materials; packaging and decorating printed matter.

 

SC is mainly engaged in manufacturing and selling textiles and garment.

 

SC’s products mainly include: Cotton yarn, Knitted fabric, Dyed fabric, etc.

 

SC is one of the major fabric suppliers and garment manufacturer for Tommy Hilfigr, Abercrombie & Fitch, Nordstrom, Marks & Spencer, Nike, Polo, Hugo Boss, etc.

 

SC sources its materials 80% from domestic market, mainly Guangdong Province, and 20% from overseas market. SC sells 25% of its products in domestic market, mainly Shanghai, Beijing, Guangdong province, and 75% to overseas market, mainly USA, Europe, Japan, and Southeast Asia.

 

The buying terms of SC include 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.

 

Staff & Office:

--------------------------

SC is known to have approx. 30,170 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 branches,

=================================

l         Guangdong Esquel Textiles Co., Ltd. Shanghai Branch

Registration No.: 310000500202959

Date of Registration: October 9, 2007

Principal: Zhu Bin

 

l         Guangdong Esquel Textiles Co., Ltd. Beijing Branch

Registration No.: 110000420010129

Date of Registration: December 21, 1994

Principal: Zhu Bin

 

l         Guangdong Esquel Textiles Co., Ltd. Xian Branch Factory

Registration No.: 440600500011941

Date of Registration: August 17, 2000

Principal: Zhu Bin

 

l         Guangdong Esquel Textiles Co., Ltd. Yangmei Branch Factory

Registration No.: 440600500011933

Date of Registration: August 17, 2000

Principal: Zhu Bin

 

l         Guangdong Esquel Textiles Co., Ltd. Guangzhou 1st Garment Shop

l         Guangdong Esquel Textiles Co., Ltd. Guangzhou 2nd Garment Shop

l         Guangdong Esquel Textiles Co., Ltd. Tianjin 1st Shop

l         Guangdong Esquel Textiles Co., Ltd. Chengdu 1st Garment Shop

l         Guangdong Esquel Textiles Co., Ltd. Shenyang 1st Garment Shop

l         Guangdong Esquel Textiles Co., Ltd. Beijing 2nd Garment Shop

l         Guangdong Esquel Textiles Co., Ltd. Beijing 3rd Garment Shop

l         Guangdong Esquel Textiles Co., Ltd. Beijing 4th Garment Shop

l         Guangdong Esquel Textiles Co., Ltd. Beijing 5th Garment Shop

l         Guangdong Esquel Textiles Co., Ltd. Beijing 11th Garment Shop

l         Guangdong Esquel Textiles Co., Ltd. Beijing 12th Garment Shop

 

 

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

 

The bank information of SC is not filed in local SAIC.

 

 

FINANCIALS

 

Financial Summary

Unit: CNY’000

As of Dec. 31, 2009

As of Dec. 31, 2010

Long term investment

300

300

Total assets

2,901,448

4,059,118

 

-------------

-------------

Long term liabilities

186,345

265,132

Total liabilities

929,116

1,606,239

Equities

1,972,332

2,452,879

 

-------------

-------------

Revenue

3,507,793

4,327,047

Profit before tax

222,619

262,420

Less: profit tax

22,251

39,250

Profits

200,368

223,170

 

Note: The detailed financials for Y2009 and Y2010 of SC are not filed in SAIC.

 

Important Ratios

=============

 

As of Dec. 31, 2009

As of Dec. 31, 2010

*Liabilities to assets

0.32

0.40

*Net profit margin (%)

5.71

5.16

*Return on total assets (%)

6.91

5.50

* Revenue/Total assets

1.21

1.07

 

 

FINANCIAL COMMENTS

 

PROFITABILITY: FAIRLY GOOD

l         The revenue of SC appears fairly good, and it increased in 2010.

l         SC’s net profit margin is fairly good in both years.

l         SC’s return on total assets is fairly good in both years.

 

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 in both years.

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, a credit line up to USD 10,000,000 would appear to be within SC’s capacities.

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.46.02

UK Pound

1

Rs.73.61

Euro

1

Rs.64.78

 

 

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%)

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.