MIRA
INFORM REPORT
|
Report Date : |
27.12.2012 |
IDENTIFICATION DETAILS
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Name : |
RUSHAN
SUNGMIN TEXTILE Co., Ltd. |
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Registered Office : |
Weihai Textile Dyeing & Finishing Industry Park,
Xiwaihuan Road, Rushan, Weihai, Shandong Province, 264500 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
04.12.2003 |
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Com. Reg. No.: |
371083400001576 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Engaged in processing and selling high-grade textile
materials and garments |
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No. of Employees : |
100 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
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 |
china - ECONOMIC OVERVIEW
Since the late 1970s China has moved from a closed, centrally planned system to a more market-oriented one that plays a major global role - in 2010 China became the world's largest exporter. Reforms began with the phasing out of collectivized agriculture, and expanded to include the gradual liberalization of prices, fiscal decentralization, increased autonomy for state enterprises, creation of a diversified banking system, development of stock markets, rapid growth of the private sector, and opening to foreign trade and investment. China has implemented reforms in a gradualist fashion. In recent years, China has renewed its support for state-owned enterprises in sectors it considers important to "economic security," explicitly looking to foster globally competitive national champions. After keeping its currency tightly linked to the US dollar for years, in July 2005 China revalued its currency by 2.1% against the US dollar and moved to an exchange rate system that references a basket of currencies. From mid 2005 to late 2008 cumulative appreciation of the renminbi against the US dollar was more than 20%, but the exchange rate remained virtually pegged to the dollar from the onset of the global financial crisis until June 2010, when Beijing allowed resumption of a gradual appreciation. The restructuring of the economy and resulting efficiency gains have contributed to a more than tenfold increase in GDP since 1978. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2010 stood as the second-largest economy in the world after the US, having surpassed Japan in 2001. The dollar values of China's agricultural and industrial output each exceed those of the US; China is second to the US in the value of services it produces. Still, per capita income is below the world average. The Chinese government faces numerous economic challenges, including: (a) reducing its high domestic savings rate and correspondingly low domestic demand; (b) sustaining adequate job growth for tens of millions of migrants and new entrants to the work force; (c) reducing corruption and other economic crimes; and (d) containing environmental damage and social strife related to the economy's rapid transformation. Economic development has progressed further in coastal provinces than in the interior, and by 2011 more than 250 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of population control policy is that China is now one of the most rapidly aging countries in the world. Deterioration in the environment - notably air pollution, soil erosion, and the steady fall of the water table, especially in the North - is another long-term problem. China continues to lose arable land because of erosion and economic development. The Chinese government is seeking to add energy production capacity from sources other than coal and oil, focusing on nuclear and alternative energy development. In 2010-11, China faced high inflation resulting largely from its credit-fueled stimulus program. Some tightening measures appear to have controlled inflation, but GDP growth consequently slowed to near 9% for 2011. An economic slowdown in Europe is expected to further drag Chinese growth in 2012. Debt overhang from the stimulus program, particularly among local governments, and a property price bubble challenge policy makers currently. The government's 12th Five-Year Plan, adopted in March 2011, emphasizes continued economic reforms and the need to increase domestic consumption in order to make the economy less dependent on exports in the future. However, China has made only marginal progress toward these rebalancing goals.
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Source : CIA |
Company name and address
RUSHAN SUNGMIN TEXTILE Co., Ltd.
Weihai Textile Dyeing &
Finishing Industry Park, xiwaihuan road, rushan, weihai, shanDONG PROVINCE,
264500 PR CHINA
TEL: 86 (0)
631-6608889/6608889-8018
FAX: 86 (0) 631-6605868
EXECUTIVE SUMMARY
INCORPORATION DATE : december 4, 2003
REGISTRATION NO. : 371083400001576
REGISTERED LEGAL FORM :
WHOLLY FOREIGN-OWNED enterprise
STAFF STRENGTH : 100
REGISTERED CAPITAL :
usd 4,150,000
BUSINESS LINE : processING &
selling
TURNOVER : CNY 24,300,000 (AS OF DEC. 31, 2011)
EQUITIES : CNY 18,500,000 (AS OF DEC. 31,
2011)
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.24
= USD1
Adopted abbreviations
ANS -
amount not stated
NS -
not stated
SC -
subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
Note: SC has one trading name – Rushan
Sungmin Fabric Co., Ltd.
SC was registered as a wholly
foreign-owned enterprise at local Administration for Industry & Commerce
(AIC - The official body of issuing and renewing business license) on December
4, 2003.
Company Status: Wholly foreign-owned enterprise This form of business in PR
China is defined as a legal person. It is a limited co. established within
the territories of PR China with capital provided totally by the foreign
investors. More than one foreign investors may jointly invest in a wholly
foreign-owned enterprise. The investing party/parties solely exercise
management, reap profit and bear risks and liabilities by themselves. This
form of companies usually have a limited duration is extendible upon
approval of Examination and Approval Authorities.
SC’s
registered business scope includes after-treatment processing high-grade
textile materials, processing garments; selling self-made products.
SC is
mainly engaged in processing and selling high-grade textile materials and
garments.
Mr. Huang
Jiaozhang has been legal representative and chairman of SC since 2003.
SC is
known to have approx. 100 employees at present.
SC is currently operating at the above stated address, and this address houses its operating office and factory in the industrial zone of Rushan. SC’s accountant Ms. Sun releases that SC owns the total premise about 45,000 square meters.
http://shengmin.host2.whcncidc.com/ The design
is professional and the content is well organized. At present it is in both
Chinese and English versions.
E-mail: sohye@sungmin.com.cn
Changes of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
Unspecified |
Registration No. |
003812 |
Present one |
|
Registered Capital |
USD 3,000,000 |
Present amount |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Sungmin Enterprise Co., Ltd.
(Korea) 100
Add.: 245-1, Wonchon-Dong, Yeongtong-gu, Suwon-City, Korea
Tel: 82-31-211-1259
Tel: 82-31-211-7523
Contact: Justin Jang
E-mail: justin@sungmin.com
l
Legal representative and
chairman:
Mr. Huang Jiaozhang, in his
Working Experience(s):
From 2003 to present Working in SC as chairman and
legal representative.
l
Directors:
Rui Jiezi
Huang
Haozhen, also working in Rushan Sungmin Trade Co., Ltd. as legal
representative.
SC is mainly
engaged in processing and selling high-grade textile materials and garments.
SC’s products mainly include:
various kinds of silk & natural fabric, and garments, etc.
SC sources its materials 99%
from domestic market, and 1% from overseas market. SC sells 13% of its products
in domestic market, and 87% to overseas market, mainly Hong Kong and 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 Supplier:
=============
Shanghai Nengtai Textiles Co., Ltd.
*Major Customer:
=============
Sungmin
Enterprise Co., Ltd. (Korea)
According to SC’s website:
Sungmin USA, Inc.
Add.: 37 West 39th Street Suite 1201, New York, NY 10018
Tel: 212-221-6482
Fax: 212-302-1919
Contact: Han Hong
E-mail: han@sungmin.com
Etc.
Subsidiary, Branch and Office:
Rushan Sungmin Trade Co., Ltd.
-----------------------------
Registration No.:
371083228015720
Chairman: Huang Haozhen
Rushan Sungmin Textile Co., Ltd.
Shanghai Branch
-------------------------------------------------------------
Registration No.:
310000500215525
Incorporation Date:
Rushan Sungmin Textile Co., Ltd.
Shanghai Office
---------------------------------------------------------------
Registration No.: 050055
Incorporation Date:
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’s
suppliers declined to make any comments.
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.
Agriculture Bank of China Rushan Sub-branch
AC#：570101040009462
Relationship:
Normal.
Balance
Sheet
Unit:
CNY’000
|
|
as of Dec. 31, 2011 |
|
Cash
& bank |
700 |
|
Inventory |
16,880 |
|
Accounts
receivable |
2,550 |
|
Advances
to suppliers |
130 |
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Other
receivables |
500 |
|
Dividends
receivable |
0 |
|
Other
current assets |
0 |
|
|
------------------ |
|
Current
assets |
20,760 |
|
Fixed
assets net value |
18,970 |
|
Projects
under construction |
0 |
|
Long
term investment |
500 |
|
Long-term
prepaid expenses |
100 |
|
Intangible
assets |
0 |
|
Other
assets |
330 |
|
|
------------------ |
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Total
assets |
40,660 |
|
|
============= |
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Short
loans |
3,500 |
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Accounts
payable |
12,820 |
|
Other
accounts payable |
5,640 |
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Notes
payable |
0 |
|
Taxes
payable |
-200 |
|
Advances
from clients |
0 |
|
Accrued
payroll |
400 |
|
Dividends
payable |
0 |
|
Other
payable |
0 |
|
Other
current liabilities |
0 |
|
|
------------------ |
|
Current
liabilities |
22,160 |
|
Long
term liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
22,160 |
|
Equities |
18,500 |
|
|
------------------ |
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Total
liabilities & equities |
40,660 |
|
|
============= |
Income
Statement
Unit:
CNY’000
|
|
as
of Dec. 31, 2011 |
|
Turnover |
24,300 |
|
Cost
of goods sold |
22,720 |
|
Sales expense |
2,520 |
|
Management expense |
2,720 |
|
Finance expense |
320 |
|
Non-operating
income |
10 |
|
Non-operating expense |
50 |
|
Profit
before tax |
-4,020 |
|
Less:
profit tax |
0 |
|
Profits |
-4,020 |
Important
Ratios
=============
|
|
as of Dec. 31, 2011 |
|
*Current
ratio |
0.94
|
|
*Quick
ratio |
0.18
|
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*Liabilities
to assets |
0.55
|
|
*Net
profit margin (%) |
-16.54 |
|
*Return
on total assets (%) |
-9.89 |
|
*Inventory
/Turnover ×365 |
254
days |
|
*Accounts
receivable/Turnover ×365 |
39
days |
|
*Turnover/Total
assets |
0.60
|
|
*
Cost of goods sold/Turnover |
0.93
|
PROFITABILITY:
FAIR
l
The turnover of SC appears average in
its line.
l
SC’s net profit margin is poor.
l
SC’s return on total assets is fair.
l
SC’s cost of goods sold is fairly high,
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.
l
The inventory of SC is large in 2011.
l
The accounts receivable of SC is
average in 2011.
l
SC’s short-term loan is in an average
level in 2011.
l
SC’s turnover is in a fair 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 medium-sized in its line with fairly stable
financial conditions. The large amount of inventory could be a threat to SC’s
financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.96 |
|
|
1 |
Rs.88.67 |
|
Euro |
1 |
Rs.72.45 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
RATING EXPLANATIONS
|
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 |
|
-- |
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.