MIRA INFORM REPORT
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Report Date : |
12.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
JIANGSU JINYUAN FLAX CO., LTD. |
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Registered Office : |
Rugao Economic Development Zone, Rugao, Nantong, Jiangsu
Province, 226572 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
17.10.2003 |
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Com. Reg. No.: |
320600400007889 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
manufacturing and selling flax
products |
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No. of Employees : |
817 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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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 : |
Regular |
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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 |
|
Insignificant |
A1 |
|
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.
|
Source
: CIA |
Company name & address
JIANGSU JINYUAN FLAX CO., LTD.
RUGAO ECONOMIC
DEVELOPMENT ZONE, RUGAO, NANTONG,
JIANGSU PROVINCE,
226572 PR CHINA
TEL: 86 (0)
513-87506000/87303901 FAX: 86 (0)
513-87503666
EXECUTIVE SUMMARY
INCORPORATION DATE : OCT. 17, 2003
REGISTRATION NO. : 320600400007889
REGISTERED LEGAL FORM : Chinese-foreign equity joint venture enterprise
CHIEF EXECUTIVE :
MR. SHEN YUEMING (CHAIRMAN)
STAFF STRENGTH : 817
REGISTERED CAPITAL : USD 18,500,000
BUSINESS LINE : MANUFACTURING and
trading
TURNOVER :
CNY 208,870,000 (AS OF DEC. 31,
2012)
EQUITIES :
CNY 190,220,000 (AS OF DEC. 31, 2012)
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.201=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 Oct. 17, 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 manufacturing and
selling flax yarn, tencel, silk and other textiles; linen, silk, silk and other
high-grade fabric weaving and finishing.
SC is
mainly engaged in manufacturing and selling flax products.
Mr.
Shen Yueming is the legal
representative, chairman and general manager of SC at present.
SC is
known to have approx. 817 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 Rugao. Our
checks reveal that SC covers an area of 207,446 square
meters.
http://www.kingdom-china.com
The website belongs to SC’s one parent company Kingdom
Group Holdings Limited. The design is professional and the content is
well organized. At present it is in Chinese and English versions.
E-mail: kingdom@kingdom-china.com
Changes of its
registered information are as follows:
|
Date of change |
Item |
Before the
change |
After the change |
|
2011-12 |
Registered capital |
USD
11,500,000 |
USD 12,500,000 |
|
Unknown |
USD
12,500,000 |
Present amount |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Kingdom Group Holdings Limited
(Hong Kong) 48
Zhejiang Jinyuan Flax Co., Ltd. 52
Kingdom Group Holdings Limited
(Hong Kong)
………………………………………………….
CR No.: 0921943
Legal form: Private
Status: Live
Website: http://www.kingdom-china.com/
Email: kingdom@kingdom-china.com
Zhejiang Jinyuan Flax Co., Ltd.
………………………………..
Legal representative: Ren Weiming
Registration No.: 330400400007033
Incorporation date: Mar. 18, 2003
Registered capital: USD 40,000,000
Legal form: Wholly foreign-owned enterprise
Tel: 86(573)86782999/86781325
Fax: 86(573)86782666/86788277
Add: Henggangji Town, Haiyan County,
Zhejiang Province
Legal
representative, Chairman and General manager:
Mr. Shen Yueming , born in 1961, 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 Jiangsu Ziwei Flax Co., Ltd. as legal representative, and in Kingdom Group Holdings Limited as executive director.
Supervisors:
Chen Huiqun
Liu Meijuan
Directors:
Ren Weiming
Zhang Hongwen
SC is mainly engaged in
manufacturing and selling flax products.
SC’s products mainly include: linen yarn, etc.
Brand: KINGDOM
SC sources its materials 100% from
domestic market. SC sells 30% of its products in domestic market and 70% to
overseas market, mainly Korea, India and European Countries.
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.
Note: SC’s management
declined to release its major clients and suppliers.
According
to the website: http://www.kingdom-china.com/
Jiangsu Ziwei Flax Co., Ltd.
==================
Legal
rep.: Shen Yueming
Tel:
86-513-87303907
Fax:
86-513-87503666
Add:
No. 1, Huimin West Road, Rugao Economic Development Zone, Rugao, Nantong,
Jiangsu Province
Kingdom Europe SRL
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 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.
SC’s management
declined to release its banking information.
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31, 2011 |
as of Dec. 31, 2012 |
|
Cash & bank |
/ |
40,020 |
|
Notes receivable |
/ |
8,600 |
|
Inventory |
/ |
72,840 |
|
Accounts
receivable |
/ |
70,700 |
|
Advances to
suppliers |
/ |
10,610 |
|
Prepaid expenses |
/ |
250 |
|
Other
receivables |
/ |
2,380 |
|
Other current
assets |
/ |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
/ |
205,400 |
|
Long-term
investments |
/ |
/ |
|
Fixed assets net
value |
/ |
/ |
|
Projects under
construction |
/ |
/ |
|
Intangible
assets |
/ |
/ |
|
Other assets |
/ |
/ |
|
|
------------------ |
------------------ |
|
Total assets |
328,310 |
351,870 |
|
|
============= |
============= |
|
Short loans |
/ |
/ |
|
Notes payable |
/ |
/ |
|
Accounts payable |
/ |
/ |
|
Advances from
customers |
/ |
/ |
|
Accrued
Payroll |
/ |
/ |
|
Welfare
Payable |
/ |
/ |
|
Taxes payable |
/ |
/ |
|
Other accounts
payable |
/ |
/ |
|
Other
current liabilities |
/ |
/ |
|
|
----------------- |
----------------- |
|
Current
liabilities |
/ |
/ |
|
Long term
liabilities |
/ |
/ |
|
|
------------------ |
------------------ |
|
Total
liabilities |
139,700 |
161,650 |
|
Shareholders
equities |
188,610 |
190,220 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
328,310 |
351,870 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
as
of Dec. 31, 2011 |
as of Dec. 31, 2012 |
|
Turnover |
234,380 |
208,870 |
|
Cost of goods
sold |
/ |
166,950 |
|
Taxes
and additional of main operation |
/ |
2,050 |
|
Income
from other operation |
/ |
10,170 |
|
Sales expense |
/ |
2,980 |
|
Management expense |
/ |
4,250 |
|
Finance expense |
/ |
9,390 |
|
Asset impairment loss |
/ |
-30 |
|
Investment
income |
/ |
70 |
|
Non-operating
income |
/ |
1,450 |
|
Non-operating expense |
/ |
40 |
|
Profit before
tax |
55,060 |
34,930 |
|
Less: profit tax |
13,910 |
8,730 |
|
Net profit |
41,150 |
26,200 |
Note: we did not find SC’s detailed
financial reports for Yr2011 and Yr2012.
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
/ |
/ |
|
*Quick ratio |
/ |
/ |
|
*Liabilities
to assets |
0.43 |
0.46 |
|
*Net profit
margin (%) |
17.56 |
12.54 |
|
*Return on
total assets (%) |
12.53 |
7.45 |
|
*Inventory
/Turnover ×365 |
/ |
128 days
|
|
*Accounts
receivable/Turnover ×365 |
/ |
124 days
|
|
*Turnover/Total
assets |
0.71 |
0.59 |
|
* Cost of
goods sold/Turnover |
/ |
0.80 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line
in both years, but it declined in 2012.
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 2012,
comparing with its turnover.
LIQUIDITY: AVERAGE
l
The inventory of SC appears fairly large in 2012.
l
The accounts receivable of SC appears fairly large
in 2012.
l
SC’s turnover is in a fair level in both years,
comparing with the size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low.
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 accounts receivable could be a
threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.53 |
|
UK Pound |
1 |
Rs.83.59 |
|
Euro |
1 |
Rs.71.33 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.