MIRA
INFORM REPORT
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Report Date : |
01.08.2012 |
IDENTIFICATION DETAILS
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Name : |
KANGNAI GROUP CO., LTD. |
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Registered Office : |
Kangnai Industrial Garden, China Shoes Capital Industrial Garden, Shuangyu, Wenzhou City, Zhejiang Province, 325007 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
20.09.2000 |
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Com. Reg. No.: |
330300000022663 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
manufacturing and selling leather shoes |
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No. of Employees : |
4,000 (including subsidiaries) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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 – March 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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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
KANGNAI
GROUP CO., LTD.
KANGNAI INDUSTRIAL GARDEN, CHINA SHOES
CAPITAL INDUSTRIAL GARDEN,
SHUANGYU, WENZHOU CITY, ZHEJIANG PROVINCE,
325007 PR CHINA
TEL: 86(0)577-88755536/88755551 FAX: 86(0)577-88755537/88755550
EXECUTIVE SUMMARY
INCORPORATION DATE : SEPTEMBER 20, 2000
REGISTRATION NO. : 330300000022663
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
STAFF STRENGTH : 4,000 (INCLUDING SUBSIDIARIES)
REGISTERED CAPITAL : CNY 125,000,000
BUSINESS LINE : MANUFACTURING
TURNOVER :
CNY 815,068,000 (AS OF DEC. 31, 2010)
EQUITIES :
CNY 212,236,000 (AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
WELL-KNOWN
EXCHANGE RATE : CNY 6.37=USD 1
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY – China Yuan Ren Min Bi
SC was registered as a limited liabilities co. at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license).
Company Status: Limited Liabilities Co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders
contribute its registered capital jointly. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to extent of its total assets. The characteristics of this form
of co. are as follows: Upon the establishment of the
co., an investment certificate is issued to the each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s registered business scope includes general operating items: leather shoes, leather products, shoe materials, and processing, manufacturing and selling clothes; manufacturing and selling sports shoes, underwear and leather goods; furniture products; selling hardware & electric material, daily use articles, general mechanical and building materials; designing and developing computer network engineering, installing and repairing; importing and exporting goods and technology (excluding items prohibited by legal, administrative rules and regulations, and operating the limited items after obtaining the permits).
SC is mainly engaged in manufacturing and selling leather shoes.
Mr. Zheng Xiukang has been the legal representative and chairman of SC since 2000.
SC is known to have approx. 4,000 employees at present, including the ones in its subsidiaries.
SC is currently operating at the above stated address, and
this address houses its operating office and factory in the industrial zone of Wenzhou. Our checks reveal that
SC owns the total premise about 128,000 square meters.
http://www.kangnai.com/ The design is professional and the content is
well organized. At present it is in Chinese and
English versions.
SC’s brand “Kangnai 康奈” was awarded as
“Well-known trademarks in China”, “The most competitive brand”, etc.
Changes
of its registered information:
|
Date of change |
Item |
Before the
change |
After the change |
|
|
Registered Capital |
CNY 32,000,000 |
CNY 70,000,000 |
|
Company Name |
Wenzhou Changcheng Shoes Co., Ltd. |
Wenzhou Kangnai Group Co., Ltd. |
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|
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Registered Capital |
CNY 70,000,000 |
CNY 75,000,000 |
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Company Name |
Wenzhou Kangnai Group Co., Ltd. |
Kangnai Group Co., Ltd. |
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Registered No. |
3303002002000 |
Present one |
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Shareholders and %
of Shareholdings |
Wang Hongqing
0.69% Jin Ju 0.8% Ke Yuwei 0.8% Jin Xianyue
0.87% Xu Zhengguo 0.87% Dai Jinpeng
0.93% Dai Jinqing
0.93% Dai Jinlong
1.09% Dai Jinhua 9.07%
Zheng Laili 11.73% Zheng Laiyi 17.07% Zheng Xiukang 55.15% |
Dai Jinhua 9.07% Zheng Laili 11.73% Zheng Laiyi 17.07% Zheng Xiukang 62.13% |
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Registered capital |
CNY 75,000,000 |
Present amount |
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% of Shareholdings |
Dai Jinhua 9.07% Zheng Laili 11.73% Zheng Laiyi 17.07% Zheng Xiukang 62.13% |
Present ones |
Organization code: 14511237-X
Tax registration number: 33030214511237-X
MAIN SHAREHOLDERS:
Name %
of shareholdings
Zheng Laili 19.96
ID# 330302751202242
Dai Jinhua 13.72
ID# 330302500816242
Zheng Xiukang 37.28
ID# 330302460308241
Zheng Laiyi 29.04
ID# 330302781211241
Legal
representative and Chairman:
Mr. Zheng Xiukang,
ID# 330302460308241, born in 1946, he is currently responsible for the overall
management of SC.
Working
Experience(s):
From 2000 to present Working in SC as legal representative and chairman;
Also working in Wenzhou Kangnai Dress Co., Ltd., Wenzhou Kangnai Underwear Co., Ltd. and Kangnai Group Wenzhou Outbound Investment Co., Ltd. as legal representative and chairman
Supervisors:
Wang Hongqing
Dai Jinpeng
Jin Xianyue
Directors:
Zheng Laili
Dai Jinlong
Xu Zhengguo
Ke Yuwei
SC
is mainly engaged in manufacturing and selling leather shoes.
SC’s products
mainly include: leather shoes, leather goods, dress, underwear, and etc.
Brand: Kangnai 康奈
SC sources its
materials 60% from domestic market, and 40% from overseas markets. SC sells 60%
of its products in domestic market, and 40% to overseas market, mainly Europe,
America, Southeast Asia and Hong Kong.
The buying terms of SC include Check, L/C, T/T and Credit of 30-60 days.
The payment terms of SC include Check, L/C, T/T, and Credit of 30-60 days.
Note:
SC’s management declined to release its major clients and suppliers.
SC is known to
invest in the following companies:
Wenzhou Kangnai Dress
Co., Ltd.
Wenzhou Kangnai Underwear
Co., Ltd.
Kangnai Group Wenzhou
Outbound Investment Co., Ltd.
Guangzhou Kangchao Shoes Co., Ltd.
Beijing Kangnai Trading Co., Ltd.
Wenzhou Kangnai
Investment Development Co., Ltd.
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.
China Construction Bank Huanglong Sub-branch
AC#:
33001628718059309353
Relationship:
Normal
Balance Sheet
Unit: CNY’000
|
|
As of Dec. 31,
2009 |
As of Dec. 31,
2010 |
|
Cash & bank |
27,040 |
50,192 |
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Notes receivable |
0 |
0 |
|
Inventory |
71,753 |
100,552 |
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Accounts
receivable |
63,154 |
98,127 |
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Advances to
suppliers |
2,838 |
8,847 |
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Prepaid expenses |
720 |
5,817 |
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Other accounts
receivable |
6,250 |
6,318 |
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Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
171,755 |
269,853 |
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Fixed assets net
value |
122,096 |
121,195 |
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Project under
construction |
3,899 |
841 |
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Long term
investment |
169,590 |
172,029 |
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Intangible and
other assets |
26,105 |
26,211 |
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------------------ |
------------------ |
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Total assets |
493,445 |
590,129 |
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============= |
============= |
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Short loans |
310,000 |
370,000 |
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Notes payable |
0 |
0 |
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Accounts payable |
19,378 |
6,949 |
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Advances from
clients |
1,038 |
0 |
|
Accrued payroll |
0 |
0 |
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Taxes payable |
-1,613 |
-4,421 |
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Profit payable |
22,740 |
0 |
|
Surcharge payable |
4,373 |
3,359 |
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Other accounts
payable |
1,919 |
367 |
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Other current
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current
liabilities |
357,835 |
376,254 |
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Long-term
liabilities |
1,443 |
1,639 |
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|
------------------ |
------------------ |
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Total
liabilities |
359,278 |
377,893 |
|
Equities |
134,167 |
212,236 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
493,445 |
590,129 |
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============= |
============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31,
2009 |
As of Dec. 31,
2010 |
|
Turnover |
628,111 |
815,068 |
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Cost of goods sold |
501,741 |
668,904 |
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Sales expense |
49,878 |
46,211 |
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Management expense |
36,857 |
48,894 |
|
Finance expense |
15,141 |
17,298 |
|
Investment
income |
118 |
4,614 |
|
Profit before
tax |
24,248 |
35,394 |
|
6,032 |
7,695 |
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Profits |
18,216 |
27,699 |
Important
Ratios
=============
|
|
As of Dec. 31,
2009 |
As of Dec. 31,
2010 |
|
*Current ratio |
0.48 |
0.72 |
|
*Quick ratio |
0.28 |
0.45 |
|
*Liabilities
to assets |
0.73 |
0.64 |
|
*Net profit
margin (%) |
2.90 |
3.40 |
|
*Return on total
assets (%) |
3.69 |
4.69 |
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*Inventory
/Turnover ×365 |
42 days |
46 days |
|
*Accounts
receivable/Turnover ×365 |
37 days |
44 days |
|
*Turnover/Total
assets |
1.27 |
1.38 |
|
* Cost of
goods sold/Turnover |
0.80 |
0.82 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in its line
and it increased in 2010.
l
SC’s net profit margin appears average in both
years.
l
SC’s return on total assets appears average in both
years.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a poor level in
2009, and fair in 2010.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears average.
l
The short-term loan of SC appears large.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered large-sized in its line with fairly
stable financial conditions. The large amount of short-term loan could be a
threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.81 |
|
UK Pound |
1 |
Rs.87.67 |
|
Euro |
1 |
Rs.68.45 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
|
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 |
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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.