MIRA
INFORM REPORT
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Report Date : |
04.05.2012 |
IDENTIFICATION DETAILS
|
Name : |
JIANGSU LIANFA TEXTILE CO., LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
11.11.2002 |
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Com. Reg. No.: |
320600400006064 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing
and selling refrigeration equipment yarn, yarn-dyed fabrics, printed and dyed
fabrics, and shirts. |
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No. of Employees : |
3,692 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Status : |
Good |
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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 30, 2011
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
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 |
Company name
JIANGSU LIANFA TEXTILE CO., LTD.
NO. 88 HENGLIAN ROAD, CHENGDONG TOWN,
HAI’AN COUNTY, NANTONG, JIANGSU PROVINCE, 226600 PR CHINA
TEL: 86 (0) 513-88905193
FAX: 86 (0) 513-88905190
EXECUTIVE SUMMARY
INCORPORATION DATE :
NOV. 11, 2002
REGISTRATION NO. :
320600400006064
REGISTERED LEGAL FORM :
SHARES LIMITED COMPANY
CHIEF EXECUTIVE :
MR. XUE QINGLONG (CHAIRMAN)
STAFF STRENGTH :
3,692
REGISTERED CAPITAL : CNY 215,800,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 2,751,230,000 (CONSOLIDATED,
AS OF DEC. 31, 2011)
EQUITIES :
CNY 2,145,212,000 (CONSOLIDATED,
AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY GOOD
OPERATIONAL TREND : UPWARD
GENERAL REPUTATION :
WELL-KNOWN
EXCHANGE RATE :
CNY 6.29 = 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 Renminbi
SC was registered as a
shares limited company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license).
Company Status:
Shares limited co. This form of business in PR
China is defined as a legal person. Its registered capital is divided into
shares of equal par value and the co. raises capital by issuing share
certificates by promotion or by public offer. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to the extent of its total assets. The co has independent
property of legal person and enjoys property rights of legal person. The characteristics of the shares limited co. are as
follows: The establishment of the co.
requires at least two promoters and no more than 200, half of whom shall be domiciled
in The minimum registered capital
of a co. is CNY The board of directors must
consist of five to nineteen directors. If the co.
raises capital by public offer, the promoters must not subscribe less than
35% of the total shares. the promoters’ shares are restricted to transfer-
within one year of the offer. A state-owned enterprise that
is restructured into a shares limited co. must comply with the conditions
& requirements specified under the law & administrative rule.
SC’s registered business scope includes manufacturing and selling
yarn-dyed fabric, clothing, textiles; own plant, equipment leasing.
SC is
mainly engaged in manufacturing and selling refrigeration equipment yarn,
yarn-dyed fabrics, printed and dyed fabrics, and shirts.
Mr.
Xue Qinglong is legal representative and chairman of SC since Feb. of 2012.
SC is known
to have approx. 3,692 employees, including 235 administrative staff, 351
technical staff, 18 financial staff, and 3,088 other staff.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Hai’an County. Our
checks reveal that SC covers an area of 500,000 square
meters.
http://www.lianfa.cn/ The design is professional
and the content is well organized. At present it is both in Chinese and English
versions.
E-Mail: wuqp@lianfa.cn ; sales_usa@lianfa.cn
SC is a listed company in Shenzhen Stock Exchange Market with the code
of 002394.
Changes of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2008 |
Registration No. |
003909 |
Present one |
|
2010 |
Registered capital |
CNY 80,900,000 |
CNY 107,900,000 |
|
2011 |
Registered capital |
CNY 107,900,000 |
Present amount |
MAIN SHAREHOLDERS: (As of Dec. 31, 2011)
Name %
of Shareholding
Jiangsu Lianfa Group Co., Ltd. 40.45
Uni-Concept (Textile) Limited
(Hong Kong) 25.46
Shanghai Ganghong Investment Co., Ltd. (in Chinese Pinyin) 7.14
Hongta Securities -Huaxia –
Hongta Dengfeng No. 1 Collective
Asset Management Plan 0.51
China Construction Bank –
Nord Value Advantages Securities
Investment Fund
0.39
Li Ruihong
0.24
Huaxi Securities – China
Construction Bank –
Huaxi Securities Rongcheng No. 2
Collective Asset Management Plan 0.20
Guotai Junan Securities Co.,
Ltd.-
Customer Credit Transactions
Backed Securities Account
0.19
China Industrial International
Trust Company Limited –
Industrial Quanzhou
<2007-13> Capital Trust 0.19
Qiu Shaochi 0.18
Other shareholders
25.05
Uni-Concept (Textile) Limited
(Hong Kong)
=================================
CR No.: 0687068
Incorporation date: Sep. 1, 1999
Legal form: Private
Status: Live
l
Legal Representative and
Chairman:
Mr. Xue Qinglong, born in 1964, with university education,
senior economist. He is currently responsible for the overall management of SC.
Working Experience(s):
From Feb. of 2012 to present Working in SC as chairman and legal
representative;
Also working in Nantong Lianfa Garments Co., Ltd., Hai’an Lianfa
Garments Co., Ltd., Suqian Lianfa Garments Co., Ltd., Jiangsu Lianfa Venture
Capital Co., Ltd. as legal representative and chairman
l
General Manager:
Mr. Huang Changgen, born in 1966, with MBA degree, senior
economist, senior engineer, he is currently responsible for the daily
management of SC.
Working Experience(s):
At present Working in SC as general manager;
Also working in Nantong Lianfa Printing &
Dyeing Co., Ltd. as legal representative and chairman
SC is
mainly engaged in manufacturing and selling refrigeration equipment yarn,
yarn-dyed fabrics, printed and dyed fabrics, and shirts.
SC’s products mainly include: long-staple length cotton
fabric, texture fabric, natural fabric, functional finishing fabric, men's
formal shirt, men's Casual Shirt, women's formal shirt, women's casual wear,
yarn products, etc.
SC sources its materials 100% from domestic market. SC sells
70% of its products to overseas market
and 30% in domestic market.
The buying terms of SC include Check, T/T and Credit of 30-60
days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
*Major Suppliers:
=============
Changzhou Jieqi Textile Co., Ltd.
Changzhou Wujin Dayuan Dyed Fabric Co., Ltd.
Changzhou Jinmao Yarn-dyed Co., Ltd.
*Major Customers:
==============
Chenfeng (Jintan) Garments Co., Ltd.
THREADTEX INC
MASSIMO DUTTI (Spain)
SAMWON TRADING INC
SEIDENSTICKER
SC is known to have the following subsidiaries:
Hai'an Lianfa Cotton Spinning Co., Ltd.
Jiangsu
James Textile Co., Ltd.
Lianfa Textile (H.K.) Limited
Lianfa Textile (Europe) Limited
Huai’an Lianfa Textile Co., Ltd.
Nantong Lianfa Printing & Dyeing 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’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.
SC’s management
declined to release its banking information.
Consolidated
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31, 2010 |
as
of Dec. 31, 2011 |
|
Cash
& bank |
882,832 |
650,559 |
|
Notes
receivable |
1,750 |
7,191 |
|
Accounts
receivable |
188,730 |
227,614 |
|
Other
receivables |
29,536 |
14,243 |
|
Advances to
suppliers |
21,007 |
81,548 |
|
Inventory |
409,289 |
441,918 |
|
Other
current assets |
3,797 |
2 |
|
|
------------------ |
------------------ |
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Current
assets |
1,536,941 |
1,423,075 |
|
Fixed
assets net value |
877,844 |
1,006,174 |
|
Projects
under construction |
57,604 |
154,561 |
|
Investment
real estate |
0 |
2,628 |
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Long
term investment |
0 |
0 |
|
Intangible
assets |
47,907 |
53,830 |
|
Long-term
deferred expenses |
6,707 |
8,424 |
|
Other
assets |
966 |
4,760 |
|
|
------------------ |
------------------ |
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Total
assets |
2,527,969 |
2,653,452 |
|
|
============= |
============= |
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Short
loans |
181,502 |
240,093 |
|
Notes
payable |
19,000 |
9,300 |
|
Accounts
payable |
244,595 |
199,251 |
|
Advances from
clients |
43,268 |
33,484 |
|
Payroll
payable |
35,636 |
41,873 |
|
Taxes
payable |
2,511 |
-30,815 |
|
Other
payable |
4,390 |
7,847 |
|
Other
current liabilities |
65,440 |
5,357 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
596,342 |
506,390 |
|
Long
term liabilities |
21,850 |
1,850 |
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|
------------------ |
------------------ |
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Total
liabilities |
618,192 |
508,240 |
|
Equities |
1,909,777 |
2,145,212 |
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|
------------------ |
------------------ |
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Total
liabilities & equities |
2,527,969 |
2,653,452 |
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|
============= |
============= |
Consolidated
Income Statement
Unit: CNY’000
|
|
as of Dec. 31, 2010 |
as
of Dec. 31, 2011 |
|
Turnover |
2,228,753 |
2,751,230 |
|
Cost of goods sold |
1,766,656 |
2,140,495 |
|
Taxes
and additional of main operation |
6,121 |
20,330 |
|
Sales expense |
74,344 |
96,389 |
|
Management expense |
73,822 |
81,349 |
|
Finance expense |
29,963 |
15,870 |
|
Asset impairment loss |
1,592 |
862 |
|
Income From
Changes In Fair Value |
-3,048 |
3,047 |
|
Investment
income |
10,081 |
-4,263 |
|
Non-operating
income |
14,062 |
19,252 |
|
Non-operating expense |
2,531 |
5,139 |
|
Profit before
tax |
294,819 |
408,832 |
|
Less: profit tax |
70,848 |
102,282 |
|
Profits |
223,971 |
306,550 |
Important Ratios
=============
|
|
as of Dec. 31, 2010 |
as
of Dec. 31, 2011 |
|
*Current ratio |
2.58 |
2.81 |
|
*Quick ratio |
1.89 |
1.94 |
|
*Liabilities
to assets |
0.24 |
0.19 |
|
*Net profit
margin (%) |
10.05 |
11.14 |
|
*Return on
total assets (%) |
8.86 |
11.55 |
|
*Inventory
/Turnover ×365 |
67 days |
59 days |
|
*Accounts
receivable/Turnover ×365 |
31 days |
30 days |
|
*Turnover/Total
assets |
0.88 |
1.04 |
|
* Cost of
goods sold/Turnover |
0.79 |
0.78 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears good in its
line, and it increased in 2011.
l
SC’s net profit margin is fairly good
in both years.
l
SC’s return on total assets is fairly
good in both years.
l
SC’s cost of goods sold is average in
both years, comparing with its turnover.
LIQUIDITY:
FAIRY GOOD
l
The current ratio of SC is maintained
in a fairly good level in both years.
l
SC’s quick ratio is maintained in a
fairly good level in both years.
l
The inventory
of SC appears fairly large in both years.
l
The accounts receivable of SC appears
average in both years.
l
SC’s short-term loan is average in both years.
l
SC’s turnover is in an average level,
comparing with the size of its total assets.
LEVERAGE:
FAIRY 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.
SC is considered large-sized in its line with fairly good
financial conditions. A credit line up to USD 10,000,000 would appear to be within
SC’s capacities.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.23 |
|
|
1 |
Rs.86.14 |
|
Euro |
1 |
Rs.69.98 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.