MIRA
INFORM REPORT
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Report Date : |
11.12.2013 |
IDENTIFICATION DETAILS
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Name : |
RICHINA LEATHER INDUSTRIAL CO., LTD. |
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Registered Office : |
No. 768, Nanda Road,
Baoshan District, Shanghai 200436 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
29.12.1995 |
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Com. Reg. No.: |
310000400136057 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject is engaged in manufacturing and selling leather products |
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No. of Employees : |
800 |
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 : |
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 – March, 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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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 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
RICHINA LEATHER INDUSTRIAL Co., Ltd.
no. 768, nanda road, baoshan district, shanghai
200436 PR CHINA
TEL: 86 (0) 21-62503354
FAX: 86 (0) 21-62509052
EXECUTIVE SUMMARY
INCORPORATION DATE : dec. 29, 1995
REGISTRATION NO. : 310000400136057
REGISTERED LEGAL FORM : SHARES
LIMITED COMPANY
CHIEF EXECUTIVE :
MR. yan Ciliang (CHAIRMAN)
STAFF STRENGTH :
800
REGISTERED CAPITAL : CNY
21,794,441
BUSINESS LINE :
MANUFACTURING and trading
TURNOVER :
CNY 596,000,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 77,270,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.0716 = 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 initially registered as a Limited Liability Company at local
Administration for Industry & Commerce (AIC-The official body of issuing
and renewing business license) on Dec. 29, 1995 and later was changed into the
present legal form.
Company Status: Shares limited co. This form of business in PR
China is defined as a legal person. Its registered capital is divided into
shares of equal par value and the co. raises capital by issuing share
certificates by promotion or by public offer. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to the extent of its total assets. The co has independent
property of legal person and enjoys property rights of legal person. The characteristics of the shares limited co. are as
follows: The establishment of the co.
requires at least two promoters and no more than 200, half of whom shall be domiciled
in The minimum registered capital
of a co. is CNY The board of directors must
consist of five to nineteen directors. If the co.
raises capital by public offer, the promoters must not subscribe less than
35% of the total shares. the promoters’ shares are restricted to transfer-
within one year of the offer. A
state-owned enterprise that is restructured into a shares limited co. must
comply with the conditions & requirements specified under the law &
administrative rule.
SC’s registered business scope includes manufacturing leather which the
materials are imported, leather products and related raw materials; selling its
products (with permit if needed).
SC is mainly engaged in manufacturing and selling leather products.
Mr. Yan Ciliang is legal representative, chairman and general manager of
SC at present.
SC is known to have approx. 800 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 Shanghai. The
detailed information of the premise is unspecified.
Note: the (No. 19, Lane 800, Nan Da Avenue, Baoshan District, Shanghai
200436 China) refers to the same place as the heading one.
www.srl-leather.com/
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
Email: jennifer.zhang@srl-leather.com
Changes of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2005 |
Shareholders |
Shanghai Leather Corporation Ltd. 5% Richina Leather Co., Ltd. 85% Richina Pacific (China) Investment Limited 10% |
Shanghai Leather Corporation Ltd. 5% Richina Leather Co., Ltd. 5% Richina Pacific (China) Investment Limited 80% Shanghai Richina Consulting Co., Ltd. 5% Shanghai Richina Leather Research & Development Co., Ltd. 5% |
|
2006 |
Shareholders |
Shanghai Leather Corporation Ltd. 5% Richina Leather Co., Ltd. 5% Richina Pacific (China) Investment Limited 80% Shanghai Richina Consulting Co., Ltd. 5% Shanghai Richina Leather Research & Development Co., Ltd. 5% |
Shanghai Leather Corporation Ltd. 5% Richina Leather Co., Ltd. 85% Richina Pacific (China) Investment Limited 10% |
|
Unspecified |
Company name |
Shanghai Richina Leather Co., Ltd. |
The present one |
|
Shareholders |
Shanghai Leather Corporation Ltd. 5% Richina Leather Co., Ltd. 85% Richina Pacific (China) Investment Limited 10% |
Present ones |
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|
Legal form |
Limited Liability Company |
The present one |
SC has passed ISO 9001 and 14001, TS 16949 rated for automotive leather
and LWG Silver certified for environmental excellence.
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name % of Shareholding
Shanghai Leather Corporation Ltd. 5
Richina Pacific (China) Investment Limited 95
Shanghai Leather Corporation Ltd.
Shanghai Leather Corporation Ltd. is the largest enterprise of leather
industry in China. It broadly covers the manufacture and processing of leather,
leather shoes, leather goods, leather chemicals, leather machinery and metal
fittings for leather products. It also handles the business of sales and
marketing of its own products on domestic and overseas markets.
Registration no.: 310000400008492
Registered capital: CNY
257,180,000
Legal representative: Yan
Ciliang
Tel: 0086-(21)53027883/
0086-(21)53520808
Fax: 0086-(21)63016921
Email: leather@online.sh.cn
Website: http://www.shanghai-leather.com/
Richina Pacific (China) Investment Limited
Registration no.: 310000400520992
Registered capital: USD
100,000,000
Legal representative: RICHARD
C.L.YAN
Tel: 021-64739077
Legal
Representative, Chairman & General Manager:
Mr. Yan Ciliang 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 Shanghai Leather Corporation Ltd. as legal
representative.
*Officials:
Name Title
Kwan Siew May Director
Robert Burton Moore Jr. (robert.moore@richina.com) Director
Huang Dan Supervisor
Lou Suqin Supervisor
SC is mainly engaged in manufacturing and selling leather products.
SC’s products mainly include leather products.
SC sources its materials 80% from domestic market, and 20% from overseas
market. SC sells 70% of its products in domestic market, and 30% 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.
SC’s produces leather for the premium market segment for global brands
such as Ariat, Born, Caterpillar, Clarks, Cole Haan, Johnston and Murphy,
Merrell, Rocky Brands, Rockport, Sperry Topsider, UGG and Wolverine Boots. SC’s
auto leather is widely used by many brands, including Ford, General Motors,
Chrysler, Nissan, Toyota plus several domestic China auto companies including
BYD and Chery.
Note: SC’s management refused to release its main suppliers.
Clients: (according to SC’s website)
The information on SC’s subsidiaries is not available at present.
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 Shanghai Baoshan Dachang Sub-branch
AC# 033270-08015001921
Shanghai Rural Commercial Bank
AC# N/A
Relationship: Normal
Balance Sheet
Unit: CNY’000
|
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as
of Dec. 31, 2012 |
|
Cash & bank |
26,210 |
|
Inventory |
90,070 |
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Accounts receivable |
19,130 |
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Notes receivable |
2,520 |
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Advances to supplies |
5,530 |
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Other receivables |
10,270 |
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Other current assets |
0 |
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------------------ |
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Current assets |
153,730 |
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Fixed assets net value |
83,320 |
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Projects under construction |
0 |
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Long-term investments |
139,190 |
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Deferred tax assets |
9,310 |
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Intangible and other assets |
0 |
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Total assets |
385,550 |
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============= |
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Short loans |
146,360 |
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Accounts payable |
16,660 |
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Other Accounts payable |
63,510 |
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Advances from clients |
34,510 |
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Taxes payable |
-530 |
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Accrued payroll |
1,190 |
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Non-current liabilities due with in one year |
2,240 |
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Interest payable |
480 |
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Other current liabilities |
0 |
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----------------- |
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Current liabilities |
264,420 |
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Long term liabilities |
43,860 |
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------------------ |
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Total liabilities |
308,280 |
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Shareholders equities |
77,270 |
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------------------ |
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Total liabilities & equities |
385,550 |
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============= |
Income Statement
Unit: CNY’000
|
|
as
of Dec. 31, 2012 |
|
Turnover |
596,000 |
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Cost of goods sold |
552,950 |
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Taxes and additional of
main operation |
680 |
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Sales expense |
4,640 |
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Management expense |
16,060 |
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Finance expense |
11,000 |
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Assets impairment loss |
1,280 |
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Non-operating income |
110 |
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Non-operating expense |
610 |
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Operation Profit |
8,890 |
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Less: profit tax |
3,170 |
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Net profit |
5,720 |
Important
Ratios
|
|
as
of Dec. 31, 2012 |
|
*Current ratio |
0.58 |
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*Quick ratio |
0.24 |
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*Liabilities to assets |
0.80 |
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*Net profit margin (%) |
0.96 |
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*Return on total assets (%) |
1.48 |
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*Inventory /Turnover ×365 |
56 days |
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*Accounts receivable/Turnover ×365 |
12 days |
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*Turnover/Total assets |
1.55 |
|
* Cost of goods sold/Turnover |
0.93 |
PROFITABILITY: AVERAGE
·
The turnover of SC appears
fairly good in its line.
·
SC’s net profit margin is
average.
·
SC’s return on total assets
is average.
·
SC’s cost of goods sold is
fairly high, comparing with its turnover.
LIQUIDITY: FAIR
·
The current ratio of SC is maintained in a poor
level.
·
SC’s quick ratio is maintained in a poor level.
·
The inventory of SC appears fairly large.
·
The accounts receivable of SC appears average.
·
SC’s short-term loan appears large in 2012.
·
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIR
·
The debt ratio of SC is fairly high.
·
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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.21 |
|
|
1 |
Rs.100.65 |
|
Euro |
1 |
Rs.84.15 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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 |
|
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 |
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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.