MIRA
INFORM REPORT
|
Report Date : |
05.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
LUTHAI TEXTILE CO., LTD. |
|
|
|
|
Registered Office : |
No. 81 Songling East Road, Zichuan District Zibo City,
Shandong Province 255100 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
30.09.2012 |
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|
|
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Date of Incorporation : |
16.10.1993 |
|
|
|
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Com. Reg. No.: |
370300400002843 |
|
|
|
|
Legal Form : |
Shares Limited Company |
|
|
|
|
Line of Business : |
Manufacturing and selling yarn dyed fabric and shirts. |
|
|
|
|
No. of Employees : |
16,559 |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
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 2010 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 near 9% for 2011. An economic slowdown in Europe is expected to further drag Chinese growth in 2012. 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
LUTHAI TEXTILE CO., LTD.
NO. 81 SONGLING EAST ROAD, ZICHUAN DISTRICT
ZIBO CITY, SHANDONG PROVINCE 255100 PR CHINA
TEL: 86 (0) 533-5281210
FAX: 86 (0) 533-5288449
EXECUTIVE SUMMARY
Date of Registration : october 16, 1993
REGISTRATION NO. : 370300400002843
LEGAL FORM : SHARES LIMITED COMPANY
REGISTERED CAPITAL : cny 1,008,954,800
staff :
16,559
BUSINESS CATEGORY : manufacturing
& trading
REVENUE :
CNY 4,206,797,000 (FROM JAN. 1 TO SEP. 30, 2012)
EQUITIES :
CNY 5,524,615,000 (AS OF SEP. 30, 2012)
WEBSITE : www.lttc.com.cn
E-MAIL :
lttc@lttc.com.cn
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : good
EXCHANGE RATE :
CNY 6.23 = 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.: 370300400002843
on October 16, 1993.
SC’s Organization Code Certificate No.:
61328117-5
SC’s registered capital: CNY 1,008,954,800
SC’s paid-in capital: CNY 1,008,954,800
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2011 |
Registered
Capital |
CNY 994,864,800 |
CNY 1,008,954,800 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) (as
of June 30, 2012) |
% of Shareholding |
|
Zibo Lucheng Textile Investment Co., Ltd. |
12.22 |
|
Tailun Co., Ltd. |
11.72 |
|
DBS Vickers (Hong Kong) Ltd A/C Clients |
4.02 |
|
First Shanghai Securities Limited |
0.52 |
|
Aviva Investors |
0.46 |
|
Aviva Life And Pensions UK Limited |
0.39 |
|
China Construction Bank-Huaxia Income
Stock Securities Investment Fund |
0.36 |
|
Industrial Bank Co., Ltd.-Xingquan Trend.
Investment Mixed Securities Investment Fund |
0.31 |
|
Guotai Junan Securities (Hong Kong)
Limited |
0.30 |
|
Toyo Securities Asia Limited-A/C Client. |
0.30 |
|
Other Shareholders |
69.4 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Liu Shizhen |
|
Vice Chairman |
Xu Zhinan |
|
Director |
Zeng Facheng |
|
Tengyuan Yingli |
|
|
Xu Zhinan |
|
|
Liu Zibin |
|
|
Chen Ruimou |
|
|
Wang Fangshui |
|
|
Qin Guiling |
|
|
Sun Zhigang |
|
|
Liu Shizhen |
RECENT DEVELOPMENT
SC is a listed company in Shenzhen Stock Exchange Market with the code
of 000726.
SC passed the ISO 9000 Quality Management System and the ISO 14000
Environment, OHSAS 18000 Occupational Health and Safety, SA 8000 Social
Responsibility, WRAP: 1999 Worldwide Responsible Apparel Production Standards,
C-TPAT: 2004 Anti-terrorist Standards, GOTS/OE100 Organic Cotton, total twelve
management systems certification.
SHAREHOLDER CHART &
BACKGROUND
Name
(as of June 30, 2012) %
of Shareholding
Zibo Lucheng Textile Investment Co., Ltd. 12.22
Tailun Co., Ltd. 11.72
DBS Vickers (Hong Kong) Ltd A/C Clients 4.02
First Shanghai Securities Limited 0.52
Aviva Investors 0.46
Aviva Life and Pensions UK Limited 0.39
China Construction Bank-Huaxia Income Stock
Securities Investment Fund 0.36
Industrial Bank Co., Ltd.
-Xingquan Trend. Investment Mixed Securities
Investment Fund 0.31
Guotai Junan Securities (Hong Kong) Limited 0.30
Toyo Securities Asia Limited-A/C Client. 0.30
Other Shareholders 69.4
n Zibo Lucheng
Textile Investment Co., Ltd.
--------------------------------------------------------
Registration No.: 370322228004115
Legal Representative: Liu Shizhen
n First Shanghai
Securities Limited
---------------------------------------------
Registration No.: 0424437
Date of Registration: June 1, 1993
Legal Form: Private
Status: Live
n Guotai Junan
Securities (Hong Kong) Limited
-------------------------------------------------------------
Registration No.: 0433562
Date of Registration: July 8, 1993
Legal Form: Private
Status: Live
MANAGEMENT
Liu Shizhen , Legal
Representative and Chairman
----------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 72
Ø Qualification:
Secondary specialized school
Ø Working experience
(s):
At present, working in SC as legal
representative and chairman
Also working in Zibo Lucheng Textile
Investment Co., Ltd., Beijing Lufeng
Yangguang Apparel Co., Ltd., Beijing Sichuan Apparel Co., Ltd., Shanghai Lutai Textile & Garment Co., Ltd.,
Xinjiang Lutai-fengshou Cotton Co., Ltd., Lufeng Weaving and Dyeing Co., Ltd.,
and Zibo Luqun Textile Co., Ltd. as legal representative
As director of SC
Xu Zhinan , Vice
Chairman
-----------------------------------------------
Ø
Gender: M
Ø
Age: 83
Ø Qualification: Master
Ø Working experience
(s):
At present, working in SC as vice
chairman
As director of SC
Other
Directors
---------------------
Zeng Facheng
Tengyuan Yingli
Liu Zibin
Chen Ruimou
Wang Fangshui
Qin Guiling
Sun Zhigang
BUSINESS OPERATION
SC’s registered business
scope includes manufacturing cotton yarn, dyed fabric, shirts, clothing
accessories, health underwear and other assorted products; selling its products
in domestic and overseas market, after services, operating non-quota license
management, non-exclusive acquisition of goods export, hotel and catering
services & operation.
SC is mainly
engaged in manufacturing and selling yarn dyed fabric and shirts.
SC’s products mainly include:
Wrinkle free fabric
Cotton blend fabric
Stretch fabric
Functional finishing fabric
Casual fabric
High yarn count and high density Fabric
Fenghai Cotton
Environmentally Friendly Fabric
100% cotton non-iron ladies blouse
Men's non-iron dress shirt
Men's organic cotton shirt
SC sources its materials 80% from domestic
market, and 20% from overseas market. SC sells 60% of its products in domestic
market, and 40% 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.
*Major Customers:
==============
OXFORD
TAL
SETA
PVH
Chenfeng (Jintan) Apparel Co., Ltd.
Staff & Office:
--------------------------
SC is known
to have approx. 16,559 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
invest in the following companies:
n Beijing Lufeng Yangguang Apparel Co., Ltd.
Registration
No.: 110105012821711
Date
of Registration: April 27, 2010
Legal
Form: One-person Limited Liabilities Company
Registered
Capital: CNY 10,000,000
Legal
Representative: Liu Shizhen
n
Beijing Sichuan Apparel Co.,
Ltd.
Registration
No.: 110000410148884
Date
of Registration: July 11, 2000
Legal
Form: Chinese-foreign equity joint venture enterprise
Registered
Capital: CNY 42,000,000
Legal Representative: Liu Shizhen
n
Xinjiang Lutai-fengshou Cotton Co., Ltd.
n
Luthai (Hong Kong) Textile Company Limited
Registration
No.: 0786791
Date
of Registration: February 20, 2002
Legal
Form: Private
Status:
Live
n
Shanghai Lutai Textile & Garment Co., Ltd.
Registration
No.: 310117002784828
Date
of Registration: December 30, 2010
Legal
Form: One-person Limited Liabilities Company
Registered
Capital: CNY 5,000,000
Legal
Representative: Liu Shizhen
n
Lufeng Weaving and Dyeing Co., Ltd.
n
Zibo Luqun Textile Co., Ltd.
n
Zibo Xinsheng Thermoelectricity Co., Ltd.
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:
Agricultural
Bank of China Zibo Branch
AC#：15-211001040043344
FINANCIALS
Consolidated Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Sep. 30, 2012 |
|
604,175 |
811,148 |
498,070 |
|
|
Held for trading financial assets |
40,418 |
20,939 |
6,321 |
|
Notes receivable |
137,385 |
160,500 |
131,037 |
|
Accounts
receivable |
155,354 |
201,328 |
171,520 |
|
Advances to
suppliers |
387,789 |
304,469 |
151,219 |
|
Interest
receivable |
1,568 |
0 |
0 |
|
Other receivable |
74,904 |
74,535 |
127,436 |
|
Inventory |
1,466,287 |
1,666,911 |
1,728,514 |
|
Other current
assets |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Current assets |
2,867,880 |
3,239,830 |
2,814,117 |
|
Long-term equity
investment |
68,943 |
68,943 |
67,443 |
|
Fixed assets |
3,644,240 |
3,486,073 |
4,065,694 |
|
Construction in
progress |
66,439 |
502,166 |
297,561 |
|
Project
materials |
1,164 |
39,747 |
43,492 |
|
Intangible
assets |
293,315 |
309,099 |
323,499 |
|
Goodwill |
20,564 |
20,564 |
20,614 |
|
Long-term prepaid
expenses |
0 |
0 |
0 |
|
Deferred income
tax assets |
53,338 |
60,061 |
54,128 |
|
Other
non-current assets |
0 |
25,403 |
7,890 |
|
|
------------------ |
------------------ |
------------------ |
|
Total assets |
7,015,883 |
7,751,886 |
7,694,438 |
|
|
============= |
============= |
============= |
|
Short-term loans |
869,557 |
1,151,414 |
1,145,243 |
|
Held for trading
financial liabilities |
1,951 |
0 |
0 |
|
Notes payable |
78,599 |
11,982 |
16,231 |
|
Accounts payable |
469,527 |
284,363 |
327,765 |
|
Advances from
clients |
147,284 |
91,026 |
97,331 |
|
Payroll payable |
331,046 |
435,106 |
338,369 |
|
Tax payable |
-12,807 |
30,576 |
5,657 |
|
Interest payable |
4,805 |
2,113 |
3,409 |
|
Dividend payable
|
3,260 |
442 |
459 |
|
Other payable |
138,265 |
110,781 |
138,851 |
|
Non-current
liabilities due within one year |
69,364 |
69,060 |
17,258 |
|
Other current
liabilities |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Current
liabilities |
2,100,851 |
2,186,863 |
2,090,573 |
|
Non-current
liabilities |
173,435 |
95,115 |
79,250 |
|
|
------------------ |
------------------ |
------------------ |
|
Total
liabilities |
2,274,286 |
2,281,978 |
2,169,823 |
|
Equities |
4,741,597 |
5,469,908 |
5,524,615 |
|
|
------------------ |
------------------ |
------------------ |
|
Total
liabilities & equities |
7,015,883 |
7,751,886 |
7,694,438 |
|
|
============= |
============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
From
Jan. 1 to Sep. 30, 2012 |
|
Revenue |
5,025,624 |
6,078,659 |
4,206,797 |
|
Cost of sales |
3,390,611 |
4,185,450 |
3,080,465 |
|
Taxes and surcharges |
4,603 |
50,384 |
12,292 |
|
Sales expense |
140,939 |
159,382 |
118,933 |
|
Management expense |
545,420 |
619,497 |
426,097 |
|
Finance expense |
39,090 |
49,140 |
52,048 |
|
Investment
income |
-51,958 |
73,215 |
19,596 |
|
Non-operating
income |
49,236 |
58,939 |
26,453 |
|
Non-operating expense |
22,193 |
19,442 |
3,560 |
|
Profit before
tax |
934,861 |
1,074,325 |
544,605 |
|
Less: profit tax |
119,808 |
182,254 |
77,845 |
|
Profits |
815,053 |
892,071 |
466,760 |
Important Ratios
=============
|
|
As of Dec. 31, 2010 |
As of Dec. 31, 2011 |
As of Sep. 30, 2012 |
|
*Current ratio |
1.37 |
1.48 |
1.35 |
|
*Quick ratio |
0.67 |
0.72 |
0.52 |
|
*Liabilities
to assets |
0.32 |
0.29 |
0.28 |
|
*Net profit
margin (%) |
16.22 |
14.68 |
11.10 |
|
*Return on
total assets (%) |
11.62 |
11.51 |
6.07 |
|
*Inventory /
Revenue ×365/270 |
107 days |
101 days |
111 days |
|
*Accounts
receivable/ Revenue ×365/270 |
12 days |
13 days |
12 days |
|
*
Revenue/Total assets |
0.72 |
0.78 |
0.55 |
|
* Cost of
sales / Revenue |
0.67 |
0.69 |
0.73 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l The revenue of SC
appears good in its line.
l SC’s net profit
margin is fairly good.
l SC’s return on
total assets is fairly good.
l
SC’s cost of sales is average, 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 fairly large.
l
The accounts receivable of SC appears average.
l
SC’s short-term loans appear fairly large.
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 Good.
CONCLUSIONS
SC is considered large-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.52.97 |
|
|
1 |
Rs.83.17 |
|
Euro |
1 |
Rs.72.20 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.