MIRA INFORM REPORT
|
Report Date : |
19.09.2011 |
IDENTIFICATION DETAILS
|
Name : |
WUXI YGM TEXTILE CO., LTD. |
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Registered Office : |
No. 21, Tuanjie Middle Road, Xishan Economic
Development Zone Wuxi, Jiangsu Province 214101 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
30.12.2001 |
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Com. Reg. No.: |
320200400011166 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Manufacturing
and Selling Textiles |
RATING & COMMENTS
|
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 1,000,000 |
|
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 |
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Restricted |
C2 |
|
Off-credit |
D |
Company name & address
WUXI YGM TEXTILE CO., LTD.
NO. 21, TUANJIE
MIDDLE ROAD, XISHAN ECONOMIC DEVELOPMENT ZONE
WUXI, JIANGSU
PROVINCE 214101 PR CHINA
TEL: 86 (0)
510-84056501/84056975
FAX: 86 (0)
510-82852374
EXECUTIVE SUMMARY
Date of Registration : december 30, 2001
REGISTRATION NO. : 320200400011166
LEGAL FORM : WHOLLY
FOREIGN-OWNED enterprise
REGISTERED CAPITAL : usd 33,000,000
staff : 792
BUSINESS CATEGORY : manufacturing
Revenue : CNY 1,251,630,000 (AS OF
DEC. 31, 2010)
EQUITIES : CNY 385,040,000 (AS OF DEC. 31, 2010)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT : AVERAGE
Recommended Credit Limit: UP TO USD
1,000,000 (PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
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.:
320200400011166 on december 30,
2001.
SC’s Organization Code Certificate
No.: 73377293-X
SC’s registered capital: usd 33,000,000
SC’s paid-in capital: usd 33,000,000
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 |
|
Wuxi No. 1 Cotton Investment Co.,
Ltd. (B.V.I.) |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Chen Yongtao |
|
Vice Chairman |
Li Guangming |
|
General Manager |
Zhou Yejun |
|
Director |
Wan Zhihua |
|
Xu Xiuling |
|
|
Supervisor |
Jiang Shimin |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Wuxi No. 1 Cotton Investment
Co., Ltd. (B.V.I.) 100
MANAGEMENT
Chen Yongtao, Legal Representative and Chairman
-------------------------------------------------------------------------------
Ø
Gender: M
Ø
Nationality: HK
Ø
ID#: G093342(1)
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative and
chairman
Li Guangming, Vice Chairman
----------------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as vice chairman
Zhou Yejun, General
Manager
----------------------------------------------------
Ø
Gender: F
Ø
Age: 47
Ø
ID# 320211196402262823
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as general manager
*Officials:
========
Name Title
Wan Zhihua Director
Xu Xiuling Director
Jiang Shimin Supervisor
BUSINESS OPERATION
SC’s registered
business scope includes manufacturing textile products, textile garments,
textile machinery foundry and textile apparatus; repairing and installing textile
equipment; processing textile machinery; leasing loom; purchasing cotton;
leasing its houses.
SC is mainly
engaged in manufacturing and selling textiles.
SC’s products
mainly include cotton yarn and cotton cloth, etc.
SC sources its materials 65%
from domestic market, mainly Xinjiang, and 35% from overseas market, mainly
Japan, USA, Australia and Egypt. SC sells 25% of its products in domestic
market, and 75% to overseas market, mainly Europe, Japan and Hong Kong.
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 Customer:
=============
HK Yangtzekiang Garment Limited
*Major Suppliers:
==============
Japan Toray Co.
USA
DuPont Company
Lenzing
AG
Staff & Office:
--------------------------
SC is
known to have approx. 792 staff at present.
SC owns an area as
its operating office & factory of approx. 540,000 sq. meters at the heading
address.
RELATED COMPANY
l
Wuxi
Changxin Textile Co., Ltd.
l
Wuxi
Yangtzekiang Textile Co., Ltd.
l
Wuxi
Xinlianxing Textile Co., Ltd.
l
Taizhou
Changxin Textile (Xinghua) Co., Ltd.
l
Wuxi
No.1 Cotton Mill Import & Export Co., Ltd.
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:
Bank of China Wuxi Branch
AC# 820121033908093001
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
8,390 |
52,340 |
|
|
Accounts
receivable |
34,220 |
27,040 |
|
Advances to
suppliers |
50 |
95,650 |
|
Other receivable |
1,090 |
300 |
|
Inventory |
42,900 |
298,790 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
0 |
15,520 |
|
|
------------------ |
------------------ |
|
Current assets |
86,650 |
489,640 |
|
Fixed assets |
287,730 |
777,070 |
|
Construction in
progress |
1,590 |
120 |
|
Long-term prepaid
expenses |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
7,390 |
14,020 |
|
|
------------------ |
------------------ |
|
Total assets |
383,360 |
1,280,850 |
|
|
============= |
============= |
|
Short-term loans |
131,000 |
300,000 |
|
Accounts payable |
30,520 |
15,730 |
|
Taxes payable |
-440 |
5,230 |
|
Dividends
payable |
36,130 |
0 |
|
Advances from
clients |
0 |
14,600 |
|
Other payable |
42,670 |
231,800 |
|
Other current
liabilities |
230 |
14,000 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
240,110 |
581,360 |
|
Non-current
liabilities |
0 |
314,450 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
240,110 |
895,810 |
|
Equities |
143,250 |
385,040 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
383,360 |
1,280,850 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2009 |
As of Dec. 31,
2010 |
|
Revenue |
396,090 |
1,251,630 |
|
Cost of sales |
372,280 |
1,111,330 |
|
Sales expense |
2,260 |
4,940 |
|
Management expense |
9,980 |
61,160 |
|
Finance expense |
10,770 |
12,400 |
|
Profit before
tax |
910 |
69,190 |
|
Less: profit tax |
230 |
13,300 |
|
680 |
55,890 |
Important Ratios
=============
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
*Current ratio |
0.36 |
0.84 |
|
*Quick ratio |
0.18 |
0.33 |
|
*Liabilities
to assets |
0.63 |
0.70 |
|
*Net profit
margin (%) |
0.17 |
4.47 |
|
*Return on
total assets (%) |
0.18 |
4.36 |
|
*Inventory /
Revenue ×365 |
40 days |
88 days |
|
*Accounts
receivable/ Revenue ×365 |
32 days |
8 days |
|
*
Revenue/Total assets |
1.03 |
0.98 |
|
* Cost of
sales / Revenue |
0.94 |
0.89 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears fairly good, and it was
rising significantly in 2010.
l
SC’s net profit margin is average in 2009, fairly
good in 2010.
l
SC’s return on total assets is average in 2009,
fairly good in 2010.
l
SC’s cost of goods sold is average, comparing with
its revenue.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a poor
level in 2009, fair in 2010.
l
SC’s quick ratio is maintained in a fair level in
both years.
l
The inventory of SC appears large in 2010.
l
The accounts receivable of SC is maintained in an
average level.
l
The short-term loans of SC appear large in both
years.
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
AVERAGE
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 Stable.
CONCLUSIONS
SC is considered medium-sized in its line with
fairly stable financial conditions. The large amount of inventory and
short-term loans may be a threat to SC’s financial condition. A credit line up
to USD 1,000,000 is recommended upon a periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.47.47 |
|
UK Pound |
1 |
Rs.74.96 |
|
Euro |
1 |
Rs.65.79 |
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.