MIRA INFORM REPORT
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Report Date : |
29.04.2013 |
IDENTIFICATION DETAILS
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Name : |
ZAOZHUANG HIYOUNG DYNASTY
TEXTILE CO., LTD. |
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Formerly Known As : |
ZAOZHUANG HIYOUNG WANGCHAO TEXTILE CO., LTD. |
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Registered Office : |
Wenhua West Road, Taierzhuang District, Zaozhuang, Shandong Province, 277400 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
31.01.2005 |
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Com. Reg. No.: |
370400228041472 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Subject is mainly engaged in manufacturing and
selling textiles. |
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No. of Employees : |
1,200 |
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 : |
Unknown |
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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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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 2012 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 under 8% for 2012. An economic slowdown in Europe
contributed to China's, and is expected to further drag Chinese growth in 2013.
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
ZAOZHUANG HIYOUNG DYNASTY
TEXTILE CO., LTD.
WENHUA WEST ROAD,
TAIERZHUANG DISTRICT,
ZAOZHUANG, SHANDONG
PROVINCE, 277400 PR CHINA
TEL: 86 (0) 632-6658787/6658789 FAX: 86 (0) 632-6658788/6658771
EXECUTIVE SUMMARY
INCORPORATION
DATE : JAN. 31,
2005
REGISTRATION
NO. :
370400228041472
REGISTERED
LEGAL FORM : LIMITED LIABILITIES CO.
STAFF
STRENGTH :
1,200
REGISTERED
CAPITAL : CNY 30,000,000
BUSINESS LINE : MANUFACTURING
TURNOVER : N/A
(AS OF DEC. 31, 2010)
EQUITIES :
CNY 94,370,000 (AS OF DEC. 31, 2010)
PAYMENT
:
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE (AS OF
DEC. 31, 2010)
OPERATIONAL TREND : STEADY
GENERAL
REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.16= 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
Note: SC is also known as Zaozhuang Hiyoung
Wangchao Textile Co., Ltd.
SC was registered as a limited liabilities
co. at local Administration for Industry & Commerce (AIC - The official
body of issuing and renewing business license) on Jan. 31, 2005.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders contribute its registered capital
jointly. Shareholders bear limited liability to the extent of shareholding,
and the co. is liable for its debts only to extent of its total assets. The
characteristics of this form of co. are as follows: Upon the establishment of the
co., an investment certificate is issued to the each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s
registered business scope includes exporting yarn, cloth, elastic fabrics, garments,
shoes and hats, textile fabrics; importing raw materials, machinery equipment,
instruments and spare parts needed in manufacturing and researching. (with
permit if needed)
SC is mainly
engaged in manufacturing and selling textiles.
Mr. Tian Youhai is
legal representative and chairman of SC at present.
SC is known to
have approx. 1,200 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in Zaozhuang, our
checks reveal that SC owns the total premise about 65,000 square meters.
http://www.sunshinepipe.com The design is professional and the content is well organized.
At present the web is in Chinese and English versions.
E-mail: info@sunshinepipe.com
Changes of its registered
information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Registration No. |
3704002804147 |
Present one |
|
Shareholders and shareholding |
Tian Youhai田友海 86.67%; Liu Guisheng刘贵胜13.33% |
Tian Youhai 田友海90% Chen Qisheng陈启升5% Ji Chengmei 纪成美 5% |
|
|
2012-6 |
Tian Youhai 田友海90% Chen Qisheng陈启升5% Ji Chengmei 纪成美 5% |
Present ones |
SC has got the
certificates of ISO9001:2008, ISO14001:2004 and GB/T28001-2001.
MAIN SHAREHOLDERS:
Name % of Shareholding
Tian Youhai 95
Wang Hong 5
l Legal
representative and chairman:
Mr. Tian Youhai, in his
Working Experience(s):
At present Working in SC
as legal representative and chairman
Also working in Zaozhuang
Hiyoung Garment Co., Ltd., Zaozhuang Hiyoung Zhongtai Garment Co., Ltd.,
Shandong Hiyoung Import & Export Co., Ltd., Zaozhuang Hiyoung Huicai
Washing & Dyeing Co., Ltd., Shandong Hiyoung Textile Co., Ltd., etc. as
legal representative.
l General Manager:
Mr. Sun Yong is currently responsible for
the daily management of SC.
Working Experience(s):
At present Working in SC
as general manager
l Supervisor:
Liu Guisheng
SC is mainly engaged in manufacturing and selling
textiles.
SC’s products mainly include textile yarn and denim
fabric.
SC sources its materials 90% from domestic market and
10% from overseas market. SC sells 40% of its products in domestic market and
60% to overseas market.
The buying terms of
SC include Check, T/T, L/C 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 suppliers and clients.
Zaozhuang Hiyoung Garment Co., Ltd.
Zaozhuang Hiyoung Zhongtai Garment Co., Ltd.
Shandong Hiyoung Import & Export Co., Ltd.
Zaozhuang Hiyoung Huicai Washing & Dyeing Co., Ltd.
Shandong Hiyoung Textile Co., Ltd.
Shanghai Hiyoung Fengrun Textile 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 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.
Agricultural
Bank of China Zaozhuang Tai’erzhuang Sub-branch
AC#:
283101040003778
Relationship:
Normal
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
Cash & bank |
141,340 |
85,080 |
|
Inventory |
33,450 |
48,750 |
|
Accounts
receivable |
62,650 |
73,960 |
|
Advances to
suppliers |
4,950 |
9,120 |
|
Other
receivables |
36,450 |
47,580 |
|
Other current
assets |
1,120 |
3,210 |
|
|
------------------ |
------------------ |
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Current assets |
279,960 |
267,700 |
|
Fixed assets net
value |
172,470 |
161,990 |
|
Long term
investment |
12,410 |
27,670 |
|
Projects under
construction |
14,050 |
8,470 |
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Intangible and
other assets |
5,670 |
7,890 |
|
|
------------------ |
------------------ |
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Total assets |
484,560 |
473,720 |
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|
============= |
============= |
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Short loan |
46,060 |
89,340 |
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Bills payable |
81,110 |
57,180 |
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Accounts payable |
62,880 |
53,110 |
|
Advances from
clients |
31,830 |
36,120 |
|
Welfare payable |
0 |
0 |
|
Taxes payable |
-1,820 |
-3,890 |
|
Other Accounts
payable |
169,950 |
146,650 |
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Other current
liabilities |
380 |
840 |
|
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------------------ |
------------------ |
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Current
liabilities |
390,390 |
379,350 |
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Long term liabilities |
0 |
0 |
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|
------------------ |
------------------ |
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Total
liabilities |
390,390 |
379,350 |
|
Equities |
94,170 |
94,370 |
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|
------------------ |
------------------ |
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Total
liabilities & equities |
484,560 |
473,720 |
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============= |
============= |
Income Statement
Unit: CNY’000
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
Turnover |
223,970 |
/ |
|
Cost of goods sold |
198,750 |
/ |
|
Sales expense |
4,910 |
/ |
|
Management expense |
10,320 |
/ |
|
Finance expense |
5,410 |
/ |
|
Profit before tax |
1,890 |
/ |
|
Less: profit tax |
570 |
/ |
|
Profits |
1,320 |
/ |
Note:
SC’s management declined to release the latest financial information.
Important
Ratios
=============
|
|
As of Dec. 31, 2009 |
As of Dec. 31, 2010 |
|
*Current ratio |
0.72 |
0.71 |
|
*Quick ratio |
0.63 |
0.58 |
|
*Liabilities
to assets |
0.81 |
0.80 |
|
*Net profit
margin (%) |
0.59 |
/ |
|
*Return on
total assets (%) |
0.27 |
/ |
|
*Inventory
/Turnover ×365 |
55 days |
/ |
|
*Accounts receivable/Turnover
×365 |
102 days |
/ |
|
*Turnover/Total
assets |
0.46 |
/ |
|
* Cost of
goods sold/Turnover |
0.89 |
/ |
PROFITABILITY: AVERAGE
l The turnover of SC appears fairly good in
2009.
l SC’s net profit margin is average in 2009.
l SC’s return on total assets is average in
2009.
l
SC’s
cost of goods sold is average in 2009, comparing with its turnover.
LIQUIDITY: FAIR
l
The
current ratio of SC is maintained in a fair level in both 2 years.
l
SC’s
quick ratio is maintained in a fair level in both 2 years.
l
The
inventory of SC appears average in both 2 years.
l
The
accounts receivable of SC appears average in both 2 years.
l
The
short-term loan of SC appears average in 2009 but fairly large in 2010.
l
SC’s
turnover is in a fair level in 2009, 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: Fairly
stable.
SC is considered
medium-sized in its line with fairly stable financial conditions. The large
amount of short-term loan could be a threat to SC’s financial condition. Taking
into consideration of SC’s background and development history, credit up to
moderate amount appears acceptable.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.28 |
|
|
1 |
Rs.84.23 |
|
Euro |
1 |
Rs.70.90 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIT |
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.