MIRA
INFORM REPORT
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Report Date : |
05.12.2013 |
IDENTIFICATION DETAILS
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Name : |
HANGZHOU KAILI CHEMICAL FIBER CO., LTD. |
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Registered Office : |
Jingjiang Industrial
Zone, Xiaoshan District, Hangzhou, Zhejiang Province 311223 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
15.10.2002 |
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Com. Reg. No.: |
330181000031924 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
manufacturing and selling
of polyester FDY dyed silk, POY silk, DTY silk and embroidery thread. |
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No. of Employees : |
140 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
TATUS |
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 – September 30th, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
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 & address
HANGZHOU KAILI CHEMICAL FIBER CO., LTD.
JINGJIANG
INDUSTRIAL ZONE, XIAOSHAN DISTRICT, HANGZHOU
ZHEJIANG
PROVINCE 311223 PR CHINA
TEL: 86 (0) 571-22861135
/ 22861261
FAX: 86 (0)
571-82996788 / 82192096
EXECUTIVE SUMMARY
Date of Registration : OCTOBER 15, 2002
REGISTRATION NO. : 330181000031924
LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE : Hu boming (LEGAL
REPRESENTATIVE)
REGISTERED CAPITAL :
CNY 20,000,000
staff : 140
BUSINESS CATEGORY :
MANUFACTURING & TRADING
Revenue : cny 116,750,000 (AS OF DEC. 31,
2012)
EQUITIES : cny 22,560,000 (AS OF DEC. 31,
2012)
WEBSITE : www.klccf.com
E-MAIL :
kl@klccf.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : FAIRly steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.10 = 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 limited liabilities company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 330181000031924 on October 15, 2002.
SC’s Organization Code Certificate No.:
74349603-5
SC’s registered capital: CNY 20,000,000
SC’s paid-in capital: CNY 20,000,000
Registration Change Record:-
|
Date |
Change
of Contents |
Before the change |
After the change |
|
-- |
Legal Representative |
Zheng Fang |
Hu Boming |
|
Registered Capital |
CNY 1,000,000 |
CNY 5,000,000 |
|
|
2007-11-20 |
Registration No. |
3301812610488 |
330181000031924 |
|
2008-08-18 |
Registered Capital |
CNY 5,000,000 |
CNY 20,000,000 |
|
% of shareholding |
Hu Jintang 10% Hu Boming 90% |
Hu Jintang 17.5% Hu Boming 82.5% |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Hu Boming |
82.5 |
|
Hu Jintang |
17.5 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Hu Boming |
|
Supervisor |
Hu Jintang |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name
% of Shareholding
Hu Boming 82.5
Hu Jintang 17.5
MANAGEMENT
Hu Boming , Legal
Representative, Chairman and General Manager
---------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 42
Ø
Qualification:
University
Ø
Working
experience (s):
From 1999 to 2001, worked in Hangzhou Textile Chemical Fiber Co., Ltd.
At present, working in SC as legal representative, chairman and general manager
Also working in Zhejiang Bosheng Chemical Fiber Co., Ltd. as legal representative
Hu Jintang, Supervisor
----------------------------------------
Ø
Gender: M
Ø
Qualification:
University
BUSINESS OPERATION
SC’s registered
business scope includes manufacturing polyester FDY dyed silk, POY silk, DTY
silk and embroidery thread; wholesaling and retailing chemical fiber, chemical
fabric, thread, garments, shoes and caps, bedding articles, sporting goods and
fitness equipment; import and export of goods and technologies (with permit if
needed); other legal projects not required examination and approval.
SC is mainly
engaged in manufacturing and selling polyester FDY dyed silk, POY silk, DTY
silk and embroidery thread.
SC’s products
mainly include: polyester FDY dyed silk, POY silk, DTY silk and embroidery
thread.
SC sources its
materials 70% from domestic markets, and 30% from overseas markets. SC sells
50% of its products in domestic market, and 50% to the overseas market, mainly
Middle East, U.S.A., Southeast Asia, etc.
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 30-90 days.
Staff & Office:
--------------------------
SC is
known to have approx. 140 staff
at present.
SC rents an area as
its operating office and factory, but the detailed information is unknown.
RELATED
COMPANY
Zhejiang
Bosheng Chemical Fiber Co., Ltd.
Registration
No.: 330400000016472
Legal
Representative: Hu Boming
Date
of Registration: 2012-07-23
Etc.
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:
Xiaoshan Rural Cooperative
Bank Jingjiang Sub-branch
AC#:
201000010945829
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
29,529 |
37,909 |
|
|
Short-term investment |
10 |
10 |
|
Notes receivable |
9,314 |
8,239 |
|
Accounts
receivable |
12,522 |
3,422 |
|
Advances to
suppliers |
0 |
2,130 |
|
Other receivable |
9 |
4,293 |
|
Inventory |
19,157 |
35,004 |
|
Deferred
expenses |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
70,541 |
91,007 |
|
Long-term
investment |
300 |
300 |
|
Fixed assets |
16,666 |
19,526 |
|
Construction in
progress |
118 |
118 |
|
Fixed assets in
liquidation |
9 |
9 |
|
Intangible
assets |
1,378 |
1,378 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
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Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
89,012 |
112,338 |
|
|
============= |
============= |
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Short-term loans |
46,000 |
27,000 |
|
Notes payable |
20,323 |
44,509 |
|
Accounts payable |
345 |
-703 |
|
Wages payable |
0 |
0 |
|
Taxes payable |
45 |
-4,538 |
|
Dividends
payable |
-3,513 |
-3,513 |
|
Advances from
clients |
0 |
495 |
|
Other payable |
4,598 |
26,909 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Current
liabilities |
67,798 |
90,159 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Total
liabilities |
67,798 |
90,159 |
|
Equities |
21,214 |
22,179 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
89,012 |
112,338 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
|
Revenue |
144,451 |
161,733 |
|
Cost of sales |
133,479 |
151,837 |
|
Taxes and surcharges |
255 |
528 |
|
Sales expense |
5,291 |
1,373 |
|
Management expense |
1,755 |
4,233 |
|
Finance expense |
2,778 |
3,043 |
|
Non-operating
income |
38 |
111 |
|
Non-operating expense |
150 |
150 |
|
Profit before
tax |
838 |
747 |
|
Less: profit tax |
0 |
0 |
|
838 |
747 |
Financial Summary
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
|
Long term investment |
300 |
|
Total assets |
100,000 |
|
|
------------- |
|
Total
liabilities |
77,440 |
|
Equities |
22,560 |
|
|
------------- |
|
Revenue |
116,750 |
|
Cost of sales |
111,150 |
|
Profit before
tax |
300 |
|
Less: profit tax |
20 |
|
Profits |
280 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
1.04 |
1.01 |
-- |
|
*Quick ratio |
0.76 |
0.62 |
-- |
|
*Liabilities
to assets |
0.76 |
0.80 |
0.77 |
|
*Net profit
margin (%) |
0.58 |
0.46 |
0.24 |
|
*Return on total
assets (%) |
0.94 |
0.66 |
0.28 |
|
*Inventory /
Revenue ×365 |
49 days |
79 days |
-- |
|
*Accounts
receivable / Revenue ×365 |
32 days |
8 days |
-- |
|
*Revenue /
Total assets |
1.62 |
1.44 |
1.17 |
|
*Cost of sales
/ Revenue |
0.92 |
0.94 |
0.95 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears fairly good in its line
in three years.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of sales is fairly high, 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 fair level.
l
The inventory of SC appears large.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’s short-term loans appear large.
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
FAIR
l
The debt ratio of SC is fairly high in three years.
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 inventory & short-term loans may
be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.33 |
|
UK Pound |
1 |
Rs.102.18 |
|
Euro |
1 |
Rs.84.68 |
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.