MIRA
INFORM REPORT
|
Report Date : |
14.01.2013 |
IDENTIFICATION DETAILS
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Name : |
SHANDONG FUJI TEXTILE CO., LTD. |
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Registered Office : |
No. 107 Kejidadao, High & New Tech Industry
Development Zone Linyi, Shandong Province 276000 |
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Country : |
China |
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Financials (as on) : |
30.11.2012 |
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Date of Incorporation : |
17.06.2005 |
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Com. Reg. No.: |
371326228007616 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing
and Selling of Textiles. |
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No. of Employees : |
300 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
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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 – 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 |
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High |
B2 |
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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 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
SHANDONG FUJI TEXTILE CO., LTD.
NO. 107 KEJIDADAO,
HIGH & NEW TECH INDUSTRY DEVELOPMENT ZONE
LINYI, SHANDONG PROVINCE
276000 PR CHINA
TEL: 86 (0)
539-3105588
FAX: 86 (0)
539-3105788
EXECUTIVE SUMMARY
Date of Registration : June 17, 2005
Registration No. :
371326228007616
LEGAL FORM : Limited Liabilities Company
CHIEF EXECUTIVE : liu guanghua (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : cny 30,000,000
staff : 300
BUSINESS CATEGORY :
manufacturing
Revenue : CNY 84,878,000 (AS OF NOV. 30, 2012)
EQUITIES : CNY
25,177,000 (AS OF NOV. 30, 2012)
WEBSITE : www.fujiknit.com
E-MAIL :
fujiknit@126.com
PAYMENT : AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION :
fair
OPERATIONAL TREND :
ORDINARY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.22 = 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.: 371326228007616 on June 17, 2005.
SC’s Organization
Code Certificate No.: 77633598-3
SC’s Tax No.: 371311776335983
SC’s registered capital: cny 30,000,000
SC’s paid-in capital: cny 30,000,000
Registration Change
Record:-
No significant changes of SC have been noted in SAIC since its incorporation.
Current Co search
indicates SC’s shareholders & chief executives are as follows:-
|
Name of Shareholder
(s) |
% of Shareholding |
|
Liu Guanghua |
99.33 |
|
Chen Wei |
0.67 |
SC’s Chief
Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Liu Guanghua |
|
Supervisor |
Chen Wei |
RECENT DEVELOPMENT
No recent
development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Liu
Guanghua 99.33
Chen
Wei 0.67
MANAGEMENT
Liu Guanghua,
Legal Representative, Chairman and General Manager
-------------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 54
Ø
ID# 372826195904081217
Ø
Mobile: 86 (0) 15866440072
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative, chairman
and general manager
Chen Wei, Supervisor
-------------------------------------
Ø
Gender: M
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and selling textiles, knitwear, garments, cloth, high-end
fabric lining; exporting its products and technology; importing
materials, instrument, machinery and equipment, parts and technology needed for
its production.
SC is
mainly engaged in manufacturing and selling textiles.
Brand: HEMEIYI,
FUSHANG
SC’s
products mainly include: knitted underwear
SC sources its materials 100% from domestic market, mainly
Shandong. SC sells 25% of its products in domestic market, and 75% to overseas
market, mainly Japan, Europe, etc.
The buying terms of SC include Check,
T/T and Credit of 30-60 days. The payment terms of SC include T/T, L/C and
Credit of 30-60 days.
Staff & Office:
--------------------------
SC is
known to have approx. 300
staff at present.
SC rents an area as its operating office & factory of approx. 45,000 sq. meters at the heading
address.
RELATED COMPANY
SC is not known to have any subsidiary at present.
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
The
bank information of SC is not filed in SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2011 |
As of Nov. 30, 2012 |
|
11,946 |
22,363 |
|
|
Notes
receivable |
0 |
0 |
|
Accounts receivable |
4,266 |
6,354 |
|
Advances to suppliers |
115,789 |
45,527 |
|
Other receivable |
63 |
248 |
|
Inventory |
30,639 |
13,441 |
|
Deferred expenses |
68 |
50 |
|
Other current assets |
51 |
50 |
|
|
------------------ |
------------------ |
|
Current assets |
162,822 |
88,033 |
|
Fixed assets |
22,436 |
18,899 |
|
Construction in progress |
3,066 |
3,066 |
|
Intangible assets |
0 |
0 |
|
Long-term prepaid expenses |
0 |
0 |
|
Deferred income tax assets |
0 |
0 |
|
Other non-current assets |
12,340 |
12,340 |
|
|
------------------ |
------------------ |
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Total assets |
200,664 |
122,338 |
|
|
============= |
============= |
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Short-term loans |
49,700 |
49,160 |
|
Notes payable |
14,000 |
12,000 |
|
Accounts payable |
103,430 |
21,913 |
|
Wages payable |
0 |
-2 |
|
Welfare payable |
-6 |
-208 |
|
Taxes payable |
-2,198 |
-2,066 |
|
Advances from clients |
5,538 |
1,692 |
|
Other payable |
3,501 |
14,753 |
|
Other current liabilities |
0 |
-81 |
|
|
------------------ |
------------------ |
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Current liabilities |
173,965 |
97,161 |
|
Non-current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total liabilities |
173,965 |
97,161 |
|
Equities |
26,699 |
25,177 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
200,664 |
122,338 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2011 |
As of Nov. 30, 2012 |
|
Revenue |
114,606 |
84,878 |
|
Cost of sales |
98,827 |
75,486 |
|
Taxes and surcharges |
166 |
0 |
|
Sales expense |
4,549 |
1,355 |
|
Management expense |
3,424 |
5,109 |
|
Finance expense |
8,013 |
4,131 |
|
Profit before tax |
-365 |
-1,513 |
|
Less: profit tax |
1 |
17 |
|
-366 |
-1,530 |
Important Ratios
=============
|
|
As of Dec. 31, 2011 |
As of Nov. 30, 2012 |
|
*Current
ratio |
0.94 |
0.91 |
|
*Quick
ratio |
0.76 |
0.77 |
|
*Liabilities
to assets |
0.87 |
0.79 |
|
*Net
profit margin (%) |
-0.32 |
-1.80 |
|
*Return
on total assets (%) |
-0.18 |
-1.25 |
|
*Inventory
/ Revenue ×365 |
98 days |
58 days |
|
*Accounts
receivable/ Revenue ×365 |
14 days |
28 days |
|
*
Revenue/Total assets |
0.57 |
0.69 |
|
*
Cost of sales / Revenue |
0.86 |
0.89 |
FINANCIAL COMMENTS
PROFITABILITY: FAIR
l
The
revenue of SC appears fairly good.
l
SC’s net
profit margin is fair.
l
SC’s
return on total assets is fair.
l
SC’s
cost of sales is average, comparing with its revenue.
LIQUIDITY: FAIR
l
The
current ratio of SC is maintained in a fair level.
l
SC’s
quick ratio is maintained in a normal level.
l
The
inventory of SC is maintained in an average level.
l
The
accounts receivable of SC is maintained in an average level.
l
The
short-term loans of SC appear fairly large.
l
SC’s revenue is in a fair level, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
l
The debt
ratio of SC is average.
l
The risk
for SC to go bankrupt is average.
Overall financial condition of the SC: Fair.
CONCLUSIONS
SC is considered
medium-sized in its line with fair financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.54 |
|
|
1 |
Rs.88.05 |
|
Euro |
1 |
Rs.72.29 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIT |
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.