MIRA
INFORM REPORT
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Report Date : |
23.10.2012 |
IDENTIFICATION DETAILS
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Name : |
SHAOXING HUAQING POLYESTER AND TEXTILE CO.,
LTD. |
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Registered Office : |
Foreign Investment Zone, |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
07.11.2002 |
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Com. Reg. No.: |
002222 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
manufacturing, processing & selling polyester fiber |
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No. of Employees : |
250 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 : |
Slow but Correct |
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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
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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
SHAOXING HUAQING POLYESTER AND TEXTILE Co., Ltd.
foreign investment
zone, qianqing town,
shaoxing county,
zhejiang PROVINCE, 312020 PR CHINA
TEL: 86 (0)
575-84056786/84056770 FAX: 86 (0)
575-84058051
EXECUTIVE SUMMARY
INCORPORATION DATE : nov. 7, 2002
REGISTRATION NO. : 002222
REGISTERED LEGAL FORM :
CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
STAFF STRENGTH : 250
REGISTERED CAPITAL :
usd 9,130,000
BUSINESS LINE : MANUFACTURING &
PROCESSING
TURNOVER : CNY 791,420,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 58,620,000 (AS OF DEC. 31, 2011)
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
6.26 = 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 Chinese-foreign equity joint venture
enterprise at local Administration for industry & commerce (AIC - the
official body of issuing and renewing business license) on Nov. 7, 2002.
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 manufacturing and processing differential chemical
fiber; selling its products.
SC is mainly
engaged in manufacturing, processing & selling polyester fiber.
Mr. Zhu Weidong is legal representative,
chairman and general manager of SC at present.
SC is
known to have approx. 250 employees at present.
SC is currently operating at the above stated address, and this
address houses its operating office and factory in the industrial zone of
Shaoxing. Our checks reveal that SC owns the total premise about 40,000 square
meters.
http://www.hqfibre.com/ The website could not open at present.
Email: mjt@hqfibre.com
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Hong Kong Fuqiang Co., Ltd.
(Literal translation) 38.01
Shaoxing County Huaqing Knitting &
Design and Colour Thread Co., Ltd. 34.47
Zhu Weidong 27.52
Shaoxing County Huaqing Knitting &
Design and Colour Thread Co., Ltd.
=====================================================
Registration no.: 330621000080356
Registered capital: CNY 12,000,000
Legal representative: Zhu Weidong
Tel: 0086-575-84056667/84519612/84513668
Fax: 0086-575-84056366
Legal Representative,
Chairman & General Manager:
Mr. Zhu Weidong , born in 1967 with university education. He is currently responsible for the overall management of SC.
Working
Experience(s):
At present Working in SC as legal representative, chairman and general manager
Also working in Shaoxing County Huaqing Knitting & Design and Colour Thread Co., Ltd. as legal representative and in Shaoxing County Huaqing Knitting & Design and Colour Thread Co., Ltd. Yantou Branch as principal.
Vice Chairman:
Xu Xiangchang is currently responsible for the daily
management of SC.
Working
Experience(s):
At present Working
in SC as vice chairman.
Directors:
Xu Yuxiong
Zhu Huili
Zhu Jinquan
Etc.
SC is mainly engaged
in manufacturing, processing & selling polyester fiber.
SC’s products
mainly include polyester, high-end polar fleece fabrics, and spandex covered
yarn, etc.
SC sources its materials 100%
from domestic market. SC sells 100% of its products 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 and Credit of 30-60
days.
Note: SC’s management refused to release its main clients
and suppliers.
Shaoxing
County Huaqing Knitting & Design and Colour Thread Co., Ltd. Yantou Branch
SC is known to invest in the following company:
Anhui Somet Chemical Fiber Co., Ltd.
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 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.
Industrial & Commercial Bank of China Qianqing Office
AC#1211020109200027078
Relationship:
Normal
Financial Summary
===============
Unit: CNY’000
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As of Dec. 31, 2011 |
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Current assets |
368,580 |
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Total assets |
697,940 |
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========= |
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Current
liabilities |
639,320 |
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Long term
liabilities |
0 |
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-------------- |
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Total liabilities |
639,320 |
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Equities |
58,620 |
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-------------- |
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Total liabilities & equities |
697,940 |
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========= |
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Turnover |
791,420 |
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Cost of goods sold |
776,410 |
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Profit before tax |
-37,870 |
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Less: profit tax |
0 |
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Profits |
-37,870 |
Note:
we did not find SC’s detailed financial reports for Yr 2011.
Important Ratios
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as
of Dec. 31, 2011 |
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*Current ratio |
0.58 |
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*Quick ratio |
/ |
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*Liabilities
to assets |
0.92 |
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*Net profit
margin (%) |
-4.79 |
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*Return on
total assets (%) |
-5.43 |
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*Inventory
/Turnover ×365 |
/ |
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*Accounts
receivable/Turnover ×365 |
/ |
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*Turnover/Total
assets |
1.13 |
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* Cost of
goods sold/Turnover |
0.98 |
PROFITABILITY:
FAIR
l
The turnover 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 goods sold is high, comparing with its
turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high.
l
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fair.
SC is considered medium-sized in its line with fair
financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.67 |
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UK Pound |
1 |
Rs.86.05 |
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Euro |
1 |
Rs.70.07 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
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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 |
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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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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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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.