MIRA
INFORM REPORT
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Report Date : |
03.11.2012 |
IDENTIFICATION DETAILS
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Name : |
WUJIANG MIANYI 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 : |
18.09.2003 |
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Com. Reg. No.: |
320584400009827 |
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Legal Form : |
Chinese-Foreign Equity Joint
Venture Enterprise |
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Line of Business : |
manufacturing and selling high-grade
fabrics, and textile products |
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No. of Employees : |
192 employees |
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) |
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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 |
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 & address
Wujiang Mianyi Textile
Co., Ltd.
no. 15 nanhuan 2nd road, shengze town, wujiang
jiangsu PROVINCE 215228 PR CHINA
TEL: 86 (0) 512-63510708
FAX: 86 (0) 512-63561084
EXECUTIVE SUMMARY
Date of Registration : september 18, 2003
REGISTRATION NO. :
320584400009827
LEGAL FORM : Chinese-foreign equity joint venture enterprise
REGISTERED CAPITAL : cny 53,000,000
staff : 192
BUSINESS CATEGORY : manufacturing
Revenue :
CNY 119,910,000 (AS OF DEC. 31,
2011)
EQUITIES :
CNY 47,960,000 (AS OF DEC. 31, 2011)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT : AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : fairly steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.24 = 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
LEGAL STATUS & HISTORY
SC was
established as a Chinese-foreign equity joint venture enterprise of PRC with
State Administration of Industry & Commerce (SAIC) under registration No.: 320584400009827 on September
18, 2003.
SC’s Organization Code Certificate
No.: 75392179-5
SC’s registered capital: cny 53,000,000
SC’s paid-in capital: CNY 50,610,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2011 |
Paid-In
Capital |
CNY 49,810,000 |
CNY 50,610,000 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Hong Kong Dahong Group Co.,
Limited |
27 |
|
Zhou Meili |
73 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Zhou
Meili |
|
Director |
Li Zhiguang |
|
Supervisor |
Teng Yinwei |
|
Xie Youyi |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Hong Kong Great Boss Holdings
Limited 27
Zhou Meili 73
Hong Kong Great Boss Holdings Limited
--------------------------------------------------------
Registration No.: 1044579
Legal Form: Private
MANAGEMENT
Zhou
Meili, Legal
Representative, Chairman and General Manager
---------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 36
Ø
ID# 330324197611015208
Ø
Qualification:
University
Ø
Working
experience (s):
From 2003 to present, working in SC as legal
representative, chairman and general manager
Director
-----------
Li Zhiguang李志光 ID#
330324198309205750
Supervisor
--------------
Teng Yinwei滕银微 ID#
330324197807214321
Xie Youyi谢友义 ID#
330324197709235356
BUSINESS OPERATION
SC’s registered business scope includes manufacturing
high-grade fabrics, textile products; selling its owned products.
SC is
mainly engaged in manufacturing and selling high-grade fabrics, and textile products.
SC’s products
mainly include: satin flowers, satin hanger, polyester shirt,
etc.
SC sources its materials 100% from domestic market, mainly Jiangsu. SC sells 30% of its products in domestic market, and 70% to overseas market, mainly U.S.A., Europe, Mid East, Southeast Asia, etc.
The
buying terms of SC include Check, T/T and Credit of 30-60 days. The payment
terms of SC include T/T, L/C and Credit of 30-60 days.
Staff & Office:
--------------------------
SC is
known to have approx. 192
staff at present.
SC owns an area as
its operating office & factory of approx. 35,000 sq. meters at the heading
address.
RELATED COMPANY
SC
is not known to have any subsidiary at present.
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
The bank
information of SC is not filed in SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
19,410 |
45,590 |
|
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Notes receivable |
0 |
0 |
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Accounts
receivable |
5,330 |
115,400 |
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Advances to
suppliers |
0 |
0 |
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Other receivable |
24,380 |
58,530 |
|
Inventory |
13,180 |
38,200 |
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Non-current
assets within one year |
0 |
0 |
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Other current
assets |
8,760 |
-69,720 |
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|
------------------ |
------------------ |
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Current assets |
71,060 |
188,000 |
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Fixed assets |
39,910 |
42,940 |
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Long-term
prepaid expenses |
0 |
0 |
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Deferred income
tax assets |
0 |
0 |
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Other non-current
assets |
460 |
3,860 |
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|
------------------ |
------------------ |
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Total assets |
111,430 |
234,800 |
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============= |
============= |
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Short-term loans |
79,000 |
35,150 |
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Notes payable |
10,540 |
77,540 |
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Accounts payable |
-27,660 |
790 |
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Advances from
clients |
0 |
0 |
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Other payable |
0 |
77,390 |
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Other current
liabilities |
520 |
-4,030 |
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|
------------------ |
------------------ |
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Current
liabilities |
62,400 |
186,840 |
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Non-current
liabilities |
0 |
0 |
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|
------------------ |
------------------ |
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Total
liabilities |
62,400 |
186,840 |
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Equities |
49,030 |
47,960 |
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|
------------------ |
------------------ |
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Total
liabilities & equities |
111,430 |
234,800 |
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|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
|
Revenue |
119,910 |
|
Cost of sales |
112,450 |
|
Sales expense |
230 |
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Management expense |
2,810 |
|
Finance expense |
6,170 |
|
Profit before
tax |
-1,520 |
|
Less: profit tax |
0 |
|
-1,520 |
Important Ratios
=============
|
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As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
1.14 |
1.01 |
|
*Quick ratio |
0.93 |
0.80 |
|
*Liabilities
to assets |
0.56 |
0.80 |
|
*Net profit margin
(%) |
-- |
-1.27 |
|
*Return on
total assets (%) |
-- |
-0.65 |
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*Inventory /
Revenue ×365 |
-- |
117 days |
|
*Accounts
receivable/ Revenue ×365 |
-- |
352 days |
|
*
Revenue/Total assets |
-- |
0.51 |
|
* Cost of
sales / Revenue |
-- |
0.94 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
l
The revenue of SC appears
fairly good in its line.
l
SC’s net profit margin is fair.
l
SC’s return on total assets is fair.
l
SC’s cost of sales is fairly high, comparing with
its revenue.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears large.
l
SC’s short-term loans are in an average level.
l
SC’s revenue 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: Fair.
CONCLUSIONS
SC is considered medium-sized in its line with
fair financial conditions. The large amount of accounts receivable may be a
threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.66 |
|
UK Pound |
1 |
Rs.86.37 |
|
Euro |
1 |
Rs.69.24 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
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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.