MIRA
INFORM REPORT
|
Report Date : |
14.02.2012 |
IDENTIFICATION DETAILS
|
Name : |
Luthai
Textile Co., Ltd. |
|
|
|
|
Registered Office : |
No. 81 Songling East Road,
Zichuan District, Zibo City, Shandong Province 255100 PR |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
30.09.2011 |
|
|
|
|
Date of Incorporation : |
16.10.1993 |
|
|
|
|
Com. Reg. No.: |
370300400002843 |
|
|
|
|
Legal Form : |
Shares Limited Company |
|
|
|
|
Line of Business : |
Manufacturing cotton yarn, dyed fabric, shirts, clothing accessories |
|
|
|
|
No. of Employees : |
16,019 |
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 |
|
Maximum Credit Limit : |
USD 20,000,000 |
|
Status : |
Good |
|
Payment Behaviour : |
No complaints |
|
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 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
China |
A2 |
A |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company name and address
Luthai
Textile Co., Ltd.
no. 81
songling east road, zichuan district
zibo
city, shandong PROVINCE 255100 PR CHINA
TEL: 86
(0) 533-5281210
FAX: 86 (0)
533-5288449
EXECUTIVE SUMMARY
Date of Registration : october 16, 1993
REGISTRATION NO. : 370300400002843
LEGAL FORM : SHARES LIMITED COMPANY
REGISTERED CAPITAL :
cny 1,008,954,800
staff : 16,019
BUSINESS CATEGORY :
manufacturing
REVENUE :
CNY 4,464,379,000 (FROM JAN. 1 TO SEP. 30, 2011)
EQUITIES :
CNY 5,323,824,000 (AS OF SEP. 30, 2011)
WEBSITE : www.lttc.com.cn
E-MAIL :
lttc@lttc.com.cn
PAYMENT : AVERAGE
Recommended Credit Limit : UP TO USD 20,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION :
FAIRly good
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : good
EXCHANGE RATE : CNY 6.30 = 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 shares limited company
of PRC with State Administration of Industry & Commerce (SAIC) under
registration No.: 370300400002843 on October 16, 1993.
SC’s Organization Code Certificate
No.: 61328117-5
SC’s registered capital: CNY 1,008,954,800
SC’s paid-in capital: CNY 1,008,954,800
Registration Change Record:
|
Date |
Change of Contents |
Before the change |
After the change |
|
2011 |
Registered
Capital |
CNY
994,864,800 |
CNY 1,008,954,800 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) (as
of June 30, 2011) |
% of Shareholding |
|
Zibo Lucheng Textile
Investment Co., Ltd. |
12.40 |
|
Tailun Co., Ltd. (In Chinese
Pinyin) |
11.88 |
|
DBS VICKERS (HONG KONG) LTD
A/C CLIENTS |
4.08 |
|
E Fund Value Growth Mixed Fund |
0.66 |
|
AVIVA INVESTORS |
0.60 |
|
Boshi The Third Industrial
Growth Stock Funds |
0.50 |
|
GUOTAI JUNAN
SECURITIES(HONGKONG) LIMITED |
0.40 |
|
Lu Beishe |
0.40 |
|
Yulong Security Investment
Fund |
0.33 |
|
Toyo Securities Asia Ltd. |
0.31 |
|
Other Shareholders |
68.44 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Liu Shizhen |
|
Vice Chairman |
Xu
Zhinan |
|
Director |
Zeng Facheng |
|
Tengyuan Yingli |
|
|
Xu
Zhinan |
|
|
Liu Zibin |
|
|
Chen Ruimou |
|
|
Wang Fangshui |
|
|
Qin Guiling |
|
|
Sun Zhigang |
|
|
Liu Shizhen |
RECENT DEVELOPMENT
SC is a listed company in Shenzhen Stock Exchange Market with the code
of 000726.
SC passed the ISO 9000 Quality Management System and the ISO 14000 Environment,
OHSAS 18000 Occupational Health and Safety, SA 8000 Social Responsibility,
WRAP: 1999 Worldwide Responsible Apparel Production Standards, C-TPAT: 2004
Anti-terrorist Standards, GOTS/OE100 Organic Cotton, total twelve management
systems certification.
SHAREHOLDER CHART &
BACKGROUND
Name
(as of June 30, 2011) %
of Shareholding
Zibo Lucheng Textile Investment
Co., Ltd.
12.40
Tailun Co., Ltd. (In Chinese
Pinyin)
11.88
DBS VICKERS (HONG KONG) LTD A/C
CLIENTS 4.08
E Fund Value Growth Mixed Fund
0.66
AVIVA INVESTORS 0.60
Boshi The Third Industrial
Growth Stock Funds
0.50
Guotai Junan Securities (Hong
Kong) Limited 0.40
Lu Beishe
0.40
Yulong Security Investment Fund
0.33
Toyo Securities Asia Ltd.
0.31
Other Shareholders
68.44
n
Zibo Lucheng Textile Investment Co.,
Ltd.
--------------------------------------------------------
Registration No.: 370322228004115
Legal Representative: Liu Shizhen
n
Guotai Junan Securities (Hong Kong)
Limited
-------------------------------------------------------------
Registration No.: 0433562
Date of Registration: July 8, 1993
Legal Form: Private
Status: Live
n
Toyo Securities Asia Ltd.
------------------------------------
Registration No.: 0192747
Date of Registration: July 7, 1987
Legal Form: Private
Status: Live
MANAGEMENT
Liu Shizhen, Legal Representative and Chairman
----------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 71
Ø
Qualification:
Secondary specialized school
Ø
Working
experience (s):
At present, working in SC as legal representative and
chairman
Also working in Zibo Lucheng
Textile Investment Co., Ltd., Beijing
Lufeng Yangguang Apparel Co., Ltd., Beijing Sichuan Apparel Co., Ltd., Shanghai
Lutai Textile & Garment Co., Ltd., Xinjiang Lutai-fengshou Cotton Co.,
Ltd., Lufeng Weaving and Dyeing Co., Ltd., and Zibo Luqun Textile Co., Ltd. as
legal representative
As director of SC
Xu
Zhinan, Vice Chairman
-----------------------------------------------
Ø
Gender: M
Ø
Age: 82
Ø
Qualification:
Master
Ø
Working
experience (s):
At present, working in SC as vice chairman
As director of SC
Other
Directors
---------------------
Zeng Facheng
Tengyuan Yingli
Liu Zibin
Chen Ruimou
Wang Fangshui
Qin Guiling
Sun Zhigang
BUSINESS OPERATION
SC’s registered
business scope includes manufacturing cotton yarn, dyed fabric, shirts,
clothing accessories, health underwear and other assorted products; selling its
products in domestic and overseas market, after services, operating non-quota
license management, non-exclusive acquisition of goods export, hotel and
catering services & operation.
SC is mainly
engaged in manufacturing and selling yarn dyed fabric and shirts.
SC’s products mainly include:
Wrinkle free fabric
Cotton blend fabric
Stretch fabric
Functional finishing fabric
Casual fabric
High yarn count and high density
Fabric
Fenghai Cotton
Environmentally Friendly Fabric
100% cotton non-iron ladies
blouse
Men's non-iron dress shirt
Men's organic cotton shirt
SC sources its materials 80%
from domestic market, and 20% from overseas market. SC sells 60% of its
products in domestic market, and 40% to overseas market.
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 Customers:
==============
OXFORD
TAL
SETA
PVH
Chenfeng (Jintan) Apparel Co., Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 16,019
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 invest in the following companies:
n
Beijing
Lufeng Yangguang Apparel Co., Ltd.
Registration
No.: 110105012821711
Date
of Registration: April 27, 2010
Legal
Form: One-person Limited Liabilities Company
Registered
Capital: CNY 10,000,000
Legal
Representative: Liu Shizhen
n
Beijing Sichuan Apparel
Co., Ltd.
Registration
No.: 110000410148884
Date
of Registration: July 11, 2000
Legal
Form: Chinese-foreign equity joint venture enterprise
Registered
Capital: CNY 42,000,000
Legal Representative: Liu Shizhen
n
Xinjiang Lutai-fengshou Cotton Co., Ltd.
n
Luthai (Hong Kong) Textile Company Limited
Registration
No.: 0786791
Date
of Registration: February 20, 2002
Legal
Form: Private
Status:
Live
n
Shanghai Lutai Textile & Garment Co., Ltd.
Registration
No.: 310117002784828
Date
of Registration: December 30, 2010
Legal
Form: One-person Limited Liabilities Company
Registered
Capital: CNY 5,000,000
Legal
Representative: Liu Shizhen
n
Lufeng Weaving and Dyeing Co., Ltd.
n
Zibo Luqun Textile Co., Ltd.
n
Zibo Xinsheng Thermoelectricity 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:
Agricultural
Bank of China Zibo Branch
AC#：15-211001040043344
FINANCIALS
Consolidated Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Sep. 30, 2011 |
|
604,175 |
995,739 |
|
|
Held for trading financial assets |
40,418 |
21,136 |
|
Notes receivable |
137,385 |
129,905 |
|
Accounts
receivable |
155,354 |
195,432 |
|
Advances to
suppliers |
387,789 |
192,304 |
|
Interest
receivable |
1,568 |
0 |
|
Other receivable |
74,904 |
54,419 |
|
Inventory |
1,466,287 |
1,757,332 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
2,867,880 |
3,346,267 |
|
Long-term equity
investment |
68,943 |
68,943 |
|
Fixed assets |
3,644,240 |
3,516,280 |
|
Construction in
progress |
66,439 |
220,379 |
|
Project
materials |
1,164 |
32,712 |
|
Intangible assets |
293,315 |
311,491 |
|
Goodwill |
20,564 |
20,563 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
53,338 |
57,180 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
7,015,883 |
7,573,815 |
|
|
============= |
============= |
|
Short-term loans |
869,557 |
1,070,351 |
|
Held for trading
financial liabilities |
1,951 |
1,402 |
|
Notes payable |
78,599 |
16,414 |
|
Accounts payable |
469,527 |
241,192 |
|
Advances from
clients |
147,284 |
125,844 |
|
Payroll payable |
331,046 |
375,808 |
|
Tax payable |
-12,807 |
53,869 |
|
Interest payable |
4,805 |
3,307 |
|
Dividend payable
|
3,260 |
442 |
|
Other payable |
138,265 |
161,234 |
|
Current
liabilities due within one year |
69,364 |
95,926 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
2,100,851 |
2,145,789 |
|
Non-current
liabilities |
173,435 |
104,202 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
2,274,286 |
2,249,991 |
|
Equities |
4,741,597 |
5,323,824 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
7,015,883 |
7,573,815 |
|
|
============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
From
Jan. 1 to Sep. 30, 2011 |
|
Revenue |
5,025,624 |
4,464,379 |
|
Cost of sales |
3,390,611 |
2,979,098 |
|
Taxes and surcharges |
4,603 |
27,603 |
|
Sales expense |
140,939 |
106,806 |
|
Management expense |
545,420 |
457,468 |
|
Finance expense |
39,090 |
35,387 |
|
Investment
income |
-51,958 |
55,349 |
|
Non-operating
income |
49,236 |
21,677 |
|
Non-operating expense |
22,193 |
14,734 |
|
Profit before
tax |
934,861 |
900,051 |
|
Less: profit tax |
119,808 |
148,135 |
|
Profits |
815,053 |
751,916 |
Important Ratios
=============
|
|
As of Dec. 31, 2010 |
As of Sep. 30, 2011 |
|
*Current ratio |
1.37 |
1.56 |
|
*Quick ratio |
0.67 |
0.74 |
|
*Liabilities to
assets |
0.32 |
0.30 |
|
*Net profit
margin (%) |
16.22 |
16.84 |
|
*Return on
total assets (%) |
11.62 |
9.93 |
|
*Inventory /
Revenue ×365/270 |
107
days |
107 days |
|
*Accounts
receivable/ Revenue ×365/270 |
12
days |
12 days |
|
*
Revenue/Total assets |
0.72 |
0.59 |
|
* Cost of
sales / Revenue |
0.67 |
0.67 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears
good.
l
SC’s net profit margin is fairly good.
l
SC’s return on total assets is fairly good.
l
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears fairly large.
l
The accounts receivable of SC appears average.
l
SC’s short-term loans appear fairly large.
l
SC’s revenue is in a
fair level, comparing with the size of its total assets.
LEVERAGE:
FAIRLY GOOD
l
The debt ratio of SC is low.
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. A credit line up to USD 20,000,000
would appear to be within SC’s capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.31 |
|
|
1 |
Rs.77.84 |
|
Euro |
1 |
Rs.65.35 |
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.