MIRA
INFORM REPORT
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Report Date : |
16.11.2012 |
IDENTIFICATION DETAILS
|
Name : |
FEIYA
GROUP CO., LTD. |
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Registered Office : |
Industrial Garden, Zhongxin
Road, Jinqing, Luqiao District, Taizhou, Zhejiang Province 318050 PR |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
02.04.1998 |
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Com. Reg. No.: |
331004000016293 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing sewing machine parts, computer embroidery
machines and parts, machine tool parts, automotive parts |
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No. of Employees : |
550 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
China |
A2 |
A2 |
|
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 |
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.
|
Source : CIA |
Company name and address
FEIYA GROUP CO., LTD.
INDUSTRIAL
GARDEN, ZHONGXIN ROAD, JINQING, LUQIAO DISTRICT
TAIZHOU,
ZHEJIANG PROVINCE 318050 PR CHINA
TEL: 86
(0) 576-82707099/82707108
FAX: 86
(0) 576-82707097/82707020
EXECUTIVE SUMMARY
Date of Registration : APRIL 2, 1998
REGISTRATION NO. : 331004000016293
LEGAL FORM :
Limited liabilities company
REGISTERED CAPITAL : CNY 51,000,000
staff : 550
BUSINESS CATEGORY : manufacturing
Revenue : CNY 139,809,000 (AS OF DEC. 31, 2011)
EQUITIES : CNY 143,798,000 (AS OF DEC. 31, 2011)
WEBSITE : www.feiya.com
E-MAIL : feiya@feiya.com.cn
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.24 = USD
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 limited liabilities company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 331004000016293 on
April 2, 1998.
SC’s Organization Code Certificate
No.: 71619188-5
SC’s Tax No.: 331004716191885
SC’s registered capital: CNY 51,000,000
SC’s paid-in capital: CNY 51,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Registration No. |
3310042004887 |
331004000016293 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Ye Xueqin |
34 |
|
Tao Yunzhao |
33 |
|
Lin Caizhao |
33 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Ye
Lianfu |
|
Supervisor |
Ye
Xueqin |
RECENT
DEVELOPMENT
No recent development was found during our checks at
present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Ye Xueqin
34
Tao Yunzhao
33
Lin Caizhao
33
MANAGEMENT
Ye
Lianfu, Legal Representative,
Chairman and General Manager
-------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 57
Ø
ID# 332622550911511
Ø
Qualification: University
Ø
Working experience (s):
From 1998 to present, working in SC as legal
representative, chairman and general manager
Also working in Taizhou Feiya Electric Appliance
Machinery Co., Ltd. as legal representative
Ye Xueqin,
Supervisor
-----------------------------------------
Ø
Gender: F
Ø
Age: 50
Ø
ID# 332603621222512
BUSINESS OPERATION
SC’s registered business scope includes manufacturing sewing
machine parts, computer embroidery machines and parts, machine tool parts,
automotive parts, festival lighting, Christmas trees; importing and exporting various
goods and technology.
SC is
mainly engaged in manufacturing and selling computer embroidery machines.
Brand:
FEIYA
SC’s
products mainly include: high speed machine, sequin embroidery machine,
quilting embroidery machine, cording device, coiling series, double deck
shuttle embroidery machine, computerized knitting machine, single head machine,
chenille combination machine, machine accessory and tuftstitch embroidery
machine.
SC sources its materials 80% from domestic market, and 20% from the overseas market, mainly European countries. SC sells 70% of its products in domestic market, and 30% to the overseas market, mainly American and European countries.
The buying terms of SC include Check, T/T, L/C and Credit of
30-60 days. The payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Customers:
==============
Qingdao Embroidery Machine
Factory
Multi
Trade Del Caribe S.A.
M Y M
Import. Export. S.A.
Staff & Office:
--------------------------
SC is
known to have approx. 550 staff
at present.
SC
owns an area as its operating office & factory of approx. 80,000 sq. meters
at the heading address.
RELATED COMPANY
SC is known to
have 5 subsidiaries at present:
n
Zhejiang Feiya Electric Appliance Import and Export Co.,
Ltd.
---------------------------------------------------------------------------------
Date of Registration: September 23, 2004
Registration No.: 3310042004878
Legal Form: Limited
Liabilities Company
Registered Capital: CNY 17,000,000
n
Taizhou Jinlongding Plastic Products Co., Ltd.
---------------------------------------------------------------
Date of Registration: July 22, 2003
Registration No.: 3310042004080
Legal Form: Limited
Liabilities Company
Registered Capital: CNY 5,500,000
n
Zhejiang Feiya Real Estate Development Co., Ltd.
-------------------------------------------------------------------
Date of Registration: September 13, 2006
Registration No.: 3310042006446
Legal Form: Limited Liabilities
Company
Registered Capital: CNY 10,080,000
n
Taizhou Benke Electric Appliance Machinery Co., Ltd.
-------------------------------------------------------------------------
Date of Registration: June 9, 2005
Registration No.: 3310042005438
Legal Form: Limited
Liabilities Company
Registered Capital: CNY 5,000,000
n
Taizhou Feiya Electric Appliance Machinery Co., Ltd.
-------------------------------------------------------------------------
Date of Registration: December 20, 1988
Registration No.: 3310042004959
Legal Form: Limited
Liabilities Company
Registered Capital: CNY 13,800,000
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:
Taizhou City Commercial Bank
AC#: 100125926200039
FINANCIALS
Balance Sheet
|
Unit:
CNY’000 |
As of Dec. 31, 2010 |
As of Dec. 31, 2011 |
|
10,458 |
25,341 |
|
|
Notes receivable |
0 |
0 |
|
Accounts
receivable |
44,000 |
45,782 |
|
Advances
to suppliers |
0 |
0 |
|
Export
tax refund receivable |
1,729 |
309 |
|
Other
receivable |
7,057 |
6,389 |
|
Inventory |
24,557 |
17,669 |
|
Prepaid
expenses |
8 |
149 |
|
Other
current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
assets |
87,809 |
95,639 |
|
Long-term
investment |
55,485 |
36,405 |
|
Fixed
assets |
44,427 |
51,919 |
|
Construction
in progress |
0 |
0 |
|
Intangible
assets |
19,956 |
19,532 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred
income tax assets |
0 |
0 |
|
Other
non-current assets |
22,591 |
6,428 |
|
|
------------------ |
------------------ |
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Total
assets |
230,268 |
209,923 |
|
|
============= |
============= |
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Short-term
loans |
53,295 |
18,195 |
|
Notes
payable |
3,000 |
5,000 |
|
Accounts
payable |
27,016 |
22,099 |
|
Wages
payable |
0 |
0 |
|
Welfare
payable |
1,454 |
892 |
|
Taxes
payable |
747 |
-137 |
|
Advances
from clients |
0 |
0 |
|
Other
payable |
54 |
20,006 |
|
Other
current liabilities |
64 |
70 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
85,630 |
66,125 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
85,630 |
66,125 |
|
Equities |
144,638 |
143,798 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
230,268 |
209,923 |
|
|
============= |
============= |
Income Statement
|
Unit:
CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
Revenue |
147,179 |
139,809 |
|
Cost of sales |
118,938 |
112,924 |
|
Taxes and surcharges |
853 |
1,172 |
|
Sales expense |
4,236 |
4,148 |
|
Management expense |
16,600 |
16,648 |
|
Finance expense |
1,703 |
560 |
|
Non-business
expenditure |
74 |
3,588 |
|
Profit
before tax |
5,210 |
1,481 |
|
Less:
profit tax |
516 |
93 |
|
4,694 |
1,388 |
Important
Ratios
=============
|
|
As of Dec. 31, 2010 |
As of Dec. 31, 2011 |
|
*Current
ratio |
1.03 |
1.45 |
|
*Quick
ratio |
0.74 |
1.18 |
|
*Liabilities
to assets |
0.37 |
0.31 |
|
*Net
profit margin (%) |
3.19 |
0.99 |
|
*Return
on total assets (%) |
2.04 |
0.66 |
|
*Inventory
/ Revenue ×365 |
61
days |
47
days |
|
*Accounts
receivable/ Revenue ×365 |
110
days |
120
days |
|
*
Revenue/Total assets |
0.64 |
0.67 |
|
*
Cost of sales / Revenue |
0.81 |
0.81 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears fairly good
in its line.
l
SC’s net profit margin is average in
both years.
l
SC’s return on total assets is average
in both years.
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
fairly good level in 2011.
l
The inventory of SC is maintained in an
average level.
l
The accounts receivable of SC appears
large in both years.
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: Fairly Stable.
CONCLUSIONS
SC is considered small-sized in its line with fairly stable
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.54.93 |
|
|
1 |
Rs.87.38 |
|
Euro |
1 |
Rs.69.93 |
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.