MIRA
INFORM REPORT
|
Report Date : |
19.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
XINGTAI H & J TEXTILE CO., LTD. |
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Registered Office : |
Yinghua Street, Development Zone, Xingtai, Hebei
Province 054001 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
30.04.2004 |
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Com. Reg. No.: |
130501000003806 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in manufacturing and selling textile raw materials |
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No. of Employees : |
1,000 |
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 : |
Slow but correct |
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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 |
|
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 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
XINGTAI
H & J TEXTILE CO., LTD.
YINGHUA STREET, DEVELOPMENT ZONE, XINGTAI
HEBEI PROVINCE 054001 PR CHINA
TEL: 86 (0) 319-8203885 / 8203638
FAX: 86 (0) 319-8203895
EXECUTIVE SUMMARY
Date of Registration : APRIL 30, 2004
REGISTRATION NO. : 130501000003806
LEGAL FORM : LIMITED
LIABILITIES COMPANY
CHIEF EXECUTIVE :
Liu yuejin (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 15,000,000
staff :
1,000
BUSINESS CATEGORY : MANUFACTURING
& TRADING
Revenue :
CNY 430,834,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 19,836,000 (AS OF DEC. 31, 2012)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND :
fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.07 = 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 limited liabilities company of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.: 130501000003806 on April 30, 2004.
SC’s Organization Code Certificate No.:
76206560-1
SC’s registered capital: CNY 15,000,000
SC’s paid-in capital: CNY 15,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2007-4-6 |
Registered Capital |
CNY 1,600,000 |
CNY 15,000,000 |
|
Shareholder (s) (% of Shareholding) |
Xingtai Hengjin Fabric Textiles Co., Ltd. 81.25% Chen Chunxiang 18.75% |
Xingtai Hengjin Fabric Textiles Co., Ltd. 66.67% Chen Chunxiang 33.33% |
|
|
2010-11-23 |
Legal Representative |
Zhang Haifeng |
Liu Yuejin |
|
Shareholder (s) (% of Shareholding) |
Xingtai Hengjin Fabric Textiles Co., Ltd. 66.67% Chen Chunxiang 33.33% |
Chen Chunxiang 12% Liu Yuejin 55% Hu Mengcai 10% Li Zhaoyang 3% Zhang Liping 2% Zhang Haifeng 15% Tang Jingchuan 3% |
|
|
-- |
Registration No. |
1305001100416 |
130501000003806 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Chen Chunxiang |
12 |
|
Liu Yuejin |
55 |
|
Hu Mengcai |
10 |
|
Li Zhaoyang |
3 |
|
Zhang Liping |
2 |
|
Zhang Haifeng |
15 |
|
Tang Jingchuan |
3 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Liu Yuejin |
|
General Manager |
Zhang Haifeng |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Chen Chunxiang 12
Liu Yuejin 55
Hu Mengcai 10
Li Zhaoyang 3
Zhang Liping 2
Zhang Haifeng 15
Tang Jingchuan 3
MANAGEMENT
Liu Yuejin, Legal Representative and Chairman
Gender: M
Age: 55
ID# 130502195801011255
Qualification: University
Working experience
(s):
From 2010 to present, working in SC as legal representative and chairman
Zhang Haifeng,
General Manager
Gender: M
Age: 52
ID# 130502610719031
Qualification: University
Working experience
(s):
At present, working in SC as general manager
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing and selling
textile raw materials, cotton yarn, cotton fabric and garments; importing and
exporting goods (excluding products prohibited by legal, administrative rules
and regulations, and operating the limited products with permit if needed).
SC is mainly engaged in manufacturing and selling textile raw materials.
SC’s products mainly include: cotton yarn and cotton fabric
SC sources its materials 100% from domestic market. SC sells 30% of its products in domestic market, and 70% to overseas market, mainly Cambodia.
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 Customer:
The Lc King Mfg. Co. Inc.
Staff &
Office:
SC is known to have approx. 1,000
staff at present.
SC owns an area as its operating office & factory of approx. 130,000
sq. meters at the heading address.
RELATED
COMPANY
SC is known to
have a subsidiary at present,
Hebei Hengyin Pawn Co., Ltd.
Date of Registration: August
12, 2011
Registration No.: 130500000035846
Legal Form: Limited Liabilities Company
Chief Executive: Liu Yuejin
Registered Capital: CNY 20,000,000
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:
Industrial & Commercial Bank of China Xingtai Xingzhou Sub-branch
AC#: 0406000409300286661
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
938 |
1,048 |
|
|
Notes receivable |
0 |
0 |
|
Accounts receivable |
12,661 |
65,219 |
|
Advances to suppliers |
0 |
0 |
|
Other receivable |
0 |
0 |
|
Inventory |
6,611 |
20,049 |
|
Non-current assets within one year |
0 |
0 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
20,210 |
86,316 |
|
Long-term investment |
0 |
10,000 |
|
Fixed assets |
167,290 |
168,547 |
|
Construction in progress |
7,873 |
18,851 |
|
Intangible assets |
0 |
0 |
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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 |
195,373 |
283,714 |
|
|
============= |
============= |
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Short-term loans |
0 |
90,000 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
129,069 |
121,372 |
|
Wages payable |
443 |
-1,109 |
|
Taxes payable |
-3,371 |
1,003 |
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Dividends payable |
11,503 |
14,445 |
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Advances from clients |
0 |
0 |
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Other payable |
38,629 |
38,167 |
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Other current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current liabilities |
176,273 |
263,878 |
|
Non-current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total liabilities |
176,273 |
263,878 |
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Equities |
19,100 |
19,836 |
|
|
------------------ |
------------------ |
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Total liabilities & equities |
195,373 |
283,714 |
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|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
Revenue |
420,627 |
430,834 |
|
Cost of sales |
384,962 |
402,252 |
|
Taxes and additional |
5 |
0 |
|
Sales expense |
8,485 |
9,246 |
|
Management expense |
12,009 |
10,045 |
|
Finance expense |
4,387 |
4,563 |
|
Non-business income |
1,463 |
579 |
|
Non-business expenditure |
303 |
1,276 |
|
Profit before tax |
13,323 |
4,956 |
|
Less: profit tax |
3,331 |
1,279 |
|
9,992 |
3,677 |
Important Ratios
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
0.11 |
0.33 |
|
*Quick ratio |
0.08 |
0.25 |
|
*Liabilities to assets |
0.90 |
0.93 |
|
*Net profit margin (%) |
2.38 |
0.85 |
|
*Return on total assets (%) |
5.11 |
1.30 |
|
*Inventory / Revenue ×365 |
6 days |
17 days |
|
*Accounts receivable/ Revenue ×365 |
11 days |
56 days |
|
*Revenue/Total assets |
2.15 |
1.52 |
|
*Cost of sales / Revenue |
0.92 |
0.93 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
·
The revenue of SC appears fairly good in its line.
·
SC’s net profit margin is average in both years.
·
SC’s return on total assets is average in both years.
·
SC’s cost of sales is fairly high, comparing with
its revenue.
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 is maintained in an average
level.
·
The accounts receivable of SC is maintained in an
average level.
·
SC’s short-term loans appear large in 2012.
·
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: FAIR
·
The debt ratio of SC is high.
·
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.92 |
|
|
1 |
Rs.100.83 |
|
Euro |
1 |
Rs.85.27 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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 |
|
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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.