MIRA
INFORM REPORT
|
Report Date : |
17.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
Bros
Eastern Co., Ltd. |
|
|
|
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Registered Office : |
No. Naner |
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Country : |
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Financials (as on) : |
30.09.2013 |
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Date of Incorporation : |
29.04.2004 |
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Com. Reg. No.: |
330200400002485 |
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Legal Form : |
Shares Limited Company |
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|
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Line of Business : |
Manufacturing engineering specialty textiles, textile
products, textiles and clothing, craft toys, sporting goods; cotton, hemp cultivation;
general cargo warehousing; operating and acting as an agent of importing and
exporting various kinds of commodities and technology |
|
|
|
|
No. of Employees : |
13,929 (Including
Sc’s Subsidiaries) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Good |
|
Payment Behaviour : |
No complaints |
|
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 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
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
Bros Eastern Co., Ltd.
no. naner
east road, luotuo town, zhenhai district
ningbo,
zhejiang province 315200 PR CHINA
TEL: 86 (0)
574-86389999
FAX: 86 (0)
574-87149581
EXECUTIVE SUMMARY
Date of Registration : APRIL 29, 2004
REGISTRATION NO. : 330200400002485
LEGAL FORM : SHARES LIMITED COmpany
REGISTERED CAPITAL :
CNY 750,000,000
staff : 13,929 (including SC’S
subsidiarIES)
BUSINESS CATEGORY :
manufacturing
REVENUE :
CNY 3,284,961,000 (JAN. 1 2013 TO SEP. 30, 2013)
EQUITIES :
CNY 6,153,567,000 (AS OF SEP. 30, 2013)
WEBSITE : www.broseastern.com
E-MAIL : broseastern@bros.com.cn
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND :
fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.09 = 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
Not yet be determined
LEGAL STATUS & HISTORY
SC was
established as a shares limited company of PRC with State Administration of
Industry & Commerce (SAIC) under registration No.: 330200400002485 on April
29, 2004.
SC’s Organization Code Certificate
No.: 76145424-2
SC’s Tax No.: 330211761454242
SC’s registered capital: CNY
750,000,000
SC’s paid-in capital: CNY
750,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Registered Capital |
CNY 558,000,000 |
CNY 750,000,000 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) (As of Sep. 30, 2013) |
% of Shareholding |
|
Xinguo Investment Development
Co., Ltd. |
32.24 |
|
Yang Weixin |
18.30 |
|
San Niu Co., Ltd. |
12.40 |
|
Yang Weiguo |
10.09 |
|
Mianyang Technology City
Industrial Investment Fund (Limited Partnership) |
2.47 |
|
CITIC PE Investment (Hong
Kong) Limited |
2.47 |
|
Ningbo Jiuniu Investment
Consulting Co., Ltd. |
1.19 |
|
Goldstone Investment Limited |
0.67 |
|
Ma Jianrong |
0.39 |
|
Taikang Life Insurance Co.,
Ltd.-Dividend - Individual Dividend |
0.30 |
|
Other Shareholders |
19.48 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Yang
Weixin |
|
General Manager |
Han
Gongjin |
|
Deputy General Manager |
Luo Xiuge |
|
Yang Yong |
|
|
Pan Hong |
RECENT DEVELOPMENT
SC is a listed company in Shenzhen Stock Exchange Market and
its stock code is: 601339.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
(As of Sep. 30, 2013)
------------------------------
Xinguo Investment Development
Co., Ltd.
32.24
Yang Weixin 18.30
San Niu Co., Ltd. 12.40
Yang Weiguo 10.09
Mianyang Technology City
Industrial Investment Fund (Limited Partnership) 2.47
CITIC PE Investment (Hong Kong)
Limited 2.47
Ningbo Jiuniu Investment
Consulting Co., Ltd. 1.19
Goldstone Investment Limited 0.67
Ma Jianrong 0.39
Taikang Life Insurance Co.,
Ltd.-Dividend - Individual
Dividend
Other Shareholders 19.48
Mianyang Technology City Industrial
Investment Fund (Limited Partnership)
--------------------------------------------
Registration No.: 510708000004556
Legal Form: Limited
Partnership
Registered Capital: CNY 9,363,184,373
CITIC PE Investment (Hong Kong) Limited
-----------------------------------------
Date of Registration: July 26, 2010
Registration No.: 1485067
Legal Form: Private
Ningbo Jiuniu Investment Consulting
Co., Ltd.
----------------------------------------
Date of Registration: July 1, 2010
Registration No.: 330200400049058
Legal Form: Wholly
Foreign-Owned Enterprise
Registered Capital: USD 2,000,000
Goldstone Investment Limited
-------------------------------------------
Date of Registration: October 11, 2007
Registration No.: 100000000041239
Legal Form: One-person
Limited Liability Company
Registered Capital: CNY 7,200,000,000
Address: 17/F, CITIC Securities
Tower, No.48 Liangmaqiao Road, Chaoyang District, Beijing
Tel: +8610-60837800
Fax: +8610-60837899
Web: www.goldstone-investment.com
MANAGEMENT
Yang
Weixin, Legal Representative
and Chairman
-----------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 52
Ø
Qualification: University
Ø
Working experience (s):
From 2004 to present, working in SC as legal
representative and chairman
Also working in Ningbo Jiuniu Investment
Consulting Co., Ltd. as legal representative
Han
Gongjin, General Manager
-----------------------------------------------------
Ø
Gender: M
Ø
Age: 56
Ø
Qualification: University
Ø
Working experience (s):
From 2010 to present, working in SC as general
manager
Luo Xiuge,
Deputy General Manager
------------------------------------------------------------
Ø
Gender: M
Ø
Age: 44
Ø
Qualification: University
Ø
Working experience (s):
From 2000 to present, working in SC as deputy
general manager
Yang Yong,
Deputy General Manager
----------------------------------------------------------
Ø
Gender: M
Ø
Age: 40
Ø
Qualification: University
Ø
Working experience (s):
From 2010 to present, working in SC as deputy
general manager
Pan Hong,
Deputy General Manager
--------------------------------------------------------
Ø
Gender: F
Ø
Age: 51
Ø
Qualification: EMBA
Ø
Working experience (s):
From 2010 to present, working in SC as deputy
general manager
Also working in Ningbo Bros Trade Co., Ltd. as
deputy general manager
BUSINESS OPERATION
SC’s
registered business scope includes manufacturing engineering specialty
textiles, textile products, textiles and clothing, craft toys, sporting goods;
cotton, hemp cultivation; general cargo warehousing; operating and acting as an
agent of importing and exporting various kinds of commodities and technology.
SC is mainly engaged in manufacturing and selling textiles.
Brand:
BROS
SC’s
products mainly include: colored spinning products.
SC sources its materials 100% from domestic market. SC sells 45% of its products in domestic market, and 55% to overseas 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, L/C and Credit of 30-60
days.
*Major Customers:
==============
Foshan
Chancheng Huilonghang Knitting Factory
Suzhou
Hengrun Import and Export Co., Ltd.
Design
Knit Inc.
Staff & Office:
--------------------------
SC is
known to have approx. 13,929
staff at present.
SC
owns an area as its operating office and factory, but the detailed information
is unknown.
RELATED COMPANY
SC is
known to have the following subsidiaries:
Bros Eastern Investment Co., Ltd.
Shenzhen Bros Eastern Textiles Co., Ltd.
Huai’an Xinguo Textile Co., Ltd.
Shandong Bros Textiles Co., Ltd.
Huai’an Guo’an Trade Co., Ltd.
Ningbo Bros Textiles Co., Ltd.
Caoxian Bros Textiles Co., Ltd.
Ningbo Haide Knitting Dyeing Co., Ltd.
Yuyao Baili Special Textile Dyeing and Finishing Co., Ltd.
Huai’an Bros Industry Co., Ltd.
PAYMENT
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’s
suppliers declined to make any comments.
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:
Bank of China Ningbo Jiangbi Sub-branch
AC#: 390961645790
AC#: 362362278422
AC#: 358461694949
FINANCIALS
Consolidated Balance Sheet
|
Unit:
CNY’000 |
As of Dec. 31, 2012 |
As of Sep. 30, 2013 |
|
1,928,507 |
759,054 |
|
|
Tradable financial assets |
9,543 |
24,632 |
|
Notes receivable |
41,724 |
61,859 |
|
Accounts
receivable |
324,218 |
431,481 |
|
Advances
to suppliers |
55,922 |
187,038 |
|
Interest
receivable |
31,133 |
5,823 |
|
Other
receivable |
24,012 |
27,063 |
|
Inventory |
1,929,239 |
1,705,962 |
|
Non-current
assets within one year |
0 |
0 |
|
Other
current assets |
1,987,377 |
2,148,001 |
|
|
------------------ |
------------------ |
|
Current
assets |
6,331,675 |
5,350,913 |
|
Long
term equity investment |
677,420 |
677,420 |
|
Investment
real estate |
0 |
0 |
|
Fixed
assets |
1,188,592 |
1,047,883 |
|
Construction
in progress |
178,822 |
417,242 |
|
Project
materials |
0 |
0 |
|
Intangible
assets |
271,046 |
360,858 |
|
Business
Reputation |
0 |
0 |
|
Deferred
income tax assets |
6,585 |
6,762 |
|
Long-term
deferred expenses |
4,377 |
4,807 |
|
Other
non-current assets |
17,774 |
17,827 |
|
|
------------------ |
------------------ |
|
Total
assets |
8,676,291 |
7,883,712 |
|
|
============= |
============= |
|
Short-term
loans |
1,438,916 |
904,859 |
|
Notes
payable |
0 |
0 |
|
Accounts
payable |
92,559 |
198,468 |
|
Advances
from clients |
277,564 |
89,203 |
|
Payroll
payable |
53,272 |
33,277 |
|
Taxes
payable |
26,608 |
50,508 |
|
Other
payable |
101,410 |
25,385 |
|
Non-current
liabilities within one year |
436,133 |
69,862 |
|
Other
current liabilities |
17,309 |
524 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
2,443,771 |
1,372,086 |
|
Non-current
liabilities |
434,782 |
358,059 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
2,878,553 |
1,730,145 |
|
Equities |
5,797,738 |
6,153,567 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
8,676,291 |
7,883,712 |
|
|
============= |
============= |
Consolidated Income Statement
|
Unit:
CNY’000 |
As of Dec. 31, 2012 |
Jan. 1 2013 to Sep. 30, 2013 |
|
Revenue |
4,770,164 |
3,284,961 |
|
Cost of sales |
4,054,843 |
2,647,191 |
|
Business Taxes and Surcharges |
36,483 |
21,798 |
|
Sales expense |
128,947 |
79,403 |
|
Management expense |
266,994 |
211,337 |
|
Finance expense |
26,455 |
-9,864 |
|
Assets Devaluation |
8,620 |
5,008 |
|
Investment
income |
5,810 |
142,617 |
|
Non-operating
income |
54,935 |
25,486 |
|
Non-operating expense |
8,804 |
10,817 |
|
Profit
before tax |
303,853 |
508,253 |
|
Less:
profit tax |
52,554 |
64,651 |
|
251,299 |
443,602 |
Important
Ratios
=============
|
|
As of Dec. 31, 2012 |
As of Sep. 30, 2013 |
|
*Current
ratio |
2.59 |
3.90 |
|
*Quick
ratio |
1.80 |
2.66 |
|
*Liabilities
to assets |
0.33 |
0.22 |
|
*Net
profit margin (%) |
5.27 |
13.50 |
|
*Return
on total assets (%) |
2.90 |
5.63 |
|
*Inventory
/ Revenue ×365/270 |
148
days |
141
days |
|
*Accounts
receivable/ Revenue ×365/270 |
25
days |
36
days |
|
*
Revenue/Total assets |
0.55 |
0.42 |
|
*
Cost of sales / Revenue |
0.85 |
0.81 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears fairly good
in its line.
l
SC’s net profit margin is fairly good.
l
SC’s return on total assets is average.
l
SC’s cost of sales is average,
comparing with its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained
in a fairly good level.
l
SC’s quick ratio is maintained in a
fairly good level.
l
The inventory of SC appears large.
l
The accounts receivable of SC appears
average.
l
SC’s short-term loans are in an average
level.
l
SC’s revenue is in a fair level, 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 low.
Overall
financial condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered large-sized in its line with fairly stable
financial conditions. The large amount of inventory may be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.10 |
|
|
1 |
Rs.101.27 |
|
Euro |
1 |
Rs.85.42 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.