MIRA INFORM REPORT
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Report Date : |
01.03.2012 |
IDENTIFICATION DETAILS
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Name : |
LINYI AOTAI TEXTILE CO., LTD. |
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Registered Office : |
No. 98 Yongxing Street, Linyi County, Dezhou City, Shandong Province, 251500 Pr |
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Country : |
China |
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Financials (as on) : |
30.06.2011 |
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Date of Incorporation : |
16.09.2003 |
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Com. Reg. No.: |
371400400001858 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
manufacturing, processing
and selling fabric and textiles |
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No. of Employees
: |
650 |
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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Maximum Credit Limit : |
USD 300,000 |
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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 – September 30th, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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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
LINYI AOTAI TEXTILE CO.,
LTD.
NO. 98 YONGXING STREET, LINYI COUNTY, DEZHOU CITY,
SHANDONG PROVINCE, 251500 PR CHINA
TEL: 86 (0) 534-4329088/4329020
FAX: 86 (0) 534-4362172
EXECUTIVE SUMMARY
INCORPORATION DATE : SEP.
16, 2003
REGISTRATION NO. :
371400400001858
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE
ENTERPRISE
STAFF STRENGTH : 650
REGISTERED CAPITAL : USD 10,000,000
BUSINESS LINE :
MANUFACTURING, PROCESSING AND TRADING
TURNOVER :
CNY 154,960,000 (UNAUDITED, JAN.
1 TO JUN. 30, 2011)
EQUITIES :
CNY 50,500,000 (UNAUDITED, AS OF JUN. 30, 2011)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO
USD 300,000 (PERIODICAL REVIEW)
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE : CNY 6.30=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 Chinese-foreign equity joint venture enterprise at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on Sep. 16, 2003.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered business scope includes dyeing,
finishing and processing fabric of industrial special textile products, textile
fabric, yarn dyed fabric, simulation fabric and high-grade textiles,
manufacturing clothes; selling its products.
SC is
mainly engaged in manufacturing, processing and selling fabric and textiles.
Mr. Qiu
Yafu has been legal representative and chairman of SC since 2003.
SC is known
to have approx. 650 employees at present.
SC is
currently operating at the above stated address, and this address houses its
operating office and factory in the economic development zone of Linyi County.
Our checks reveal that SC owns the total premise about 66,000 square meters.
SC is not known to host web site of its own at present.
Changes of its registered information are as follows:
|
Date of change |
Item |
Before the
change |
After the change |
|
Unknown |
Registered no. |
000675 |
Present one |
MAIN SHAREHOLDERS:
Name %
of shareholdings
Shandong Ruyi Science & Technology Group
Co., Ltd. 69
Australian Maide International Co., Ltd. (In
Chinese Pinyin) 31
Shandong Ruyi Science & Technology Group
Co., Ltd.
========================================
Shandong Ruyi Science & Technology Group
is a Chinese-foreign joint-venture enterprise honored as a national hi-tech
enterprise, leading and top ten enterprises in textile industry, as well as one
of the one-hundred key enterprises in Shandong. Ruyi Group holds autonomy in
export and import and has obtained the certification of ISO9001 and ISO14001.
Ruyi clothing has been honored as “Free of Inspection” by General
Administration of Quality Supervision, Inspection and Quarantine of PRC. The
trademark of “Ruyi” is a noted brand in China. Its products are honored with
“Chinese Famous Brand” and “Noted Export Brand” given by Ministry of Commerce
of PRC. In 2001, Ruyi Group invested and established Ruyi hi-tech industry park
in Jining hi-tech development zone.
Tel: 0537-2311818
Fax: 0537-2316688
Website: http://www.chinaruyi.com/
Email: sry@chinaruyi.com
Legal Representative
and Chairman:
Mr. Qiu Yafu, about 54 years old, with master’s degree, he is currently
responsible for the overall management of SC.
Working Experience(s):
From 2003 to present Working in SC as legal representative and chairman.
Also working in Shandong Jining Ruyi Woolen Textile Co., Ltd. as legal representative; in Shandong Ruyi Woolen
Textile Group Co., Ltd. as general manager and director.
General
Manager:
Mr. Ma Haitao, about 37 years old, he is currently responsible for the daily management of SC.
Working Experience(s):
At present
Working in SC as general manager.
SC is
mainly engaged in manufacturing, processing and selling fabric and textiles.
SC’s products
mainly include: fabric and textiles, and etc.
SC sources its
materials 70% from domestic market, and 30% from overseas markets, mainly
Pakistan. SC sells 40% of its products in domestic market, and 60% to overseas
market, mainly Korea, Hong Kong and Philippines.
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.
*Major Customers:
==============
Texword Co., Ltd. (Korea)
Guangzhou Bofang Tianzhi Textile Co., Ltd.
(Literal Translation)
*Major Suppliers:
=============
Shandong Daiyin Textile Group Co., Ltd.
Weifang Xinchangda Textile Co., Ltd.
Shandong Ruyi Woolen Textile Group Co., Ltd.
Shandong Jining Ruyi Woolen Textile 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: A trade enquiry currently conducted with SC's
supplier(s) reveal the following:
Supplier
A
Products sold: cotton
yarn
Date account opened: 2003
Line of credit: No comment
Terms: T/T,
Credit of 30-60 days
Average monthly sales: No comment
Current balance: No comment
Rating Key: 3
Any Special Comments:
_____________________________________
Payment record keys :
1 = Prompt : Payment made before the credit
period expires
2 = As agreed terms : Payment made upon due
date
3 = Slightly slow but acceptable : Payment made
5 to 20 days beyond agreed terms
4 = Slow : Payment made 16 to 45 days beyond
agreed terms
5 = Poor : Payment made over 45 days beyond
agreed terms
6 = No comment : Account is newly opened
& record is not yet established
Note : In
some instances, payment beyond terms can be the result of disputes over
merchandise, lost invoices, disputed accounts & etc.
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.
Agricultural
Bank of China Linyi County Sub-branch
AC#:
791101040004425
Relationship:
Normal
Balance Sheet
Unit: CNY’000
|
|
As of Dec. 31,
2010 |
As
of Jun. 30, 2011 |
|
Cash & bank |
24,030 |
17,780 |
|
Inventory |
73,470 |
58,410 |
|
Accounts
receivable |
13,330 |
22,960 |
|
Advances to
suppliers |
22,930 |
33,600 |
|
Trading
financial assets |
30 |
0 |
|
Other accounts
receivable |
5,230 |
9,150 |
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Other current
assets |
0 |
900 |
|
|
------------------ |
------------------ |
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Current assets |
139,020 |
142,800 |
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Fixed assets net
value |
62,080 |
65,910 |
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Project under
construction |
40 |
0 |
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Held-to-maturity
investment |
200 |
0 |
|
Intangible and
other assets |
0 |
1,870 |
|
|
------------------ |
------------------ |
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Total assets |
201,340 |
210,580 |
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|
============= |
============= |
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Short loans |
78,720 |
65,750 |
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Notes payable |
26,800 |
28,740 |
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Accounts payable |
22,810 |
25,960 |
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Advances from
clients |
12,180 |
19,970 |
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Accrued payroll |
1,660 |
520 |
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Taxes payable |
-3,310 |
-960 |
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Other accounts
payable |
12,100 |
20,100 |
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Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Current
liabilities |
150,960 |
160,080 |
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Long-term
liabilities |
360 |
0 |
|
|
------------------ |
------------------ |
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Total
liabilities |
151,320 |
160,080 |
|
Equities |
50,020 |
50,500 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
201,340 |
210,580 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31,
2010 |
Jan.
1 to Jun. 30, 2011 |
|
Turnover |
296,830 |
154,960 |
|
Cost of goods sold |
272,080 |
138,050 |
|
Sales expense |
8,410 |
4,110 |
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Management expense |
8,040 |
4,080 |
|
Finance expense |
8,670 |
6,660 |
|
Profit before
tax |
-3,330 |
490 |
|
0 |
0 |
|
|
Profits |
-3,330 |
490 |
Note: SC’s financial statements have not been audited.
Important
Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Jun. 30, 2011 |
|
*Current ratio |
0.92 |
0.89 |
|
*Quick ratio |
0.43 |
0.53 |
|
*Liabilities
to assets |
0.75 |
0.76 |
|
*Net profit
margin (%) |
-1.12 |
0.32 |
|
*Return on
total assets (%) |
-1.65 |
0.23 |
|
*Inventory
/Turnover ×365 |
91 days |
- |
|
*Accounts
receivable/Turnover ×365 |
17 days |
- |
|
*Turnover/Total
assets |
1.47 |
0.74 |
|
* Cost of
goods sold/Turnover |
0.92 |
0.89 |
PROFITABILITY: AVERAGE
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin appears average in the first
half of 2011.
l
SC’s return on total assets appears average in the
first half of 2011.
l
SC’s cost of goods sold is average in the first
half of 2011, 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 fair level.
l
The inventory of SC appears large.
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 medium-sized in its line with fairly stable financial
conditions. The large amount of inventory and short loans could be a threat to
SC’s financial condition. A credit line up to USD 300,000 appears to be within
SC’s capacities upon a periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.48.94 |
|
UK Pound |
1 |
Rs.77.95 |
|
Euro |
1 |
Rs.65.94 |
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 |
|
---- |
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.