MIRA
INFORM REPORT
|
Report Date : |
23.01.2013 |
IDENTIFICATION DETAILS
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Name : |
SINOTEX CORPORATION LIMITED |
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Registered Office : |
Room 1413, 14/F, Zhongda Plaza, No. 989, Dongfang Road Pudong New
Area, Shanghai 200122 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
09.02.1998 |
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Com. Reg. No.: |
310000000093640 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject is engaged in importing and exporting textiles. |
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No. of Employees : |
120 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 (31.03.2012) |
Current Rating (30.06.2012) |
|
China |
A2 |
A2 |
|
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 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
SINOTEX CORPORATION LIMITED
ROOM 1413, 14/F, ZHONGDA PLAZA,
NO. 989, DONGFANG ROAD PUDONG NEW AREA, SHANGHAI 200122 PR CHINA
TEL: 86 (0) 21-50816655
FAX: 86 (0) 21-50818298
EXECUTIVE SUMMARY
Date of Registration : february 9, 1998
REGISTRATION NO. : 310000000093640
LEGAL FORM : SHARES LIMITED
COMPANY
CHIEF EXECUTIVE :
ZHANG JIANYING (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : cny 100,000,000
staff :
120
BUSINESS CATEGORY : trading
Revenue :
CNY 924,860,000 (AS OF DEC. 31, 2011)
EQUITIES :
CNY 109,850,000 (AS OF DEC. 31, 2011)
WEBSITE : www.sinotex-group.com
E-MAIL :
wenhao_pan@sinotex-group.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly STEADY
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 shares limited company of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.:
310000000093640 on February 9, 1998.
SC’s Organization Code Certificate No.:
10002869-2
SC’s registered capital: cny 100,000,000
SC’s paid-in capital: cny 100,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2011-11 |
Company Name |
Sinotex United Import and Export Co., Ltd. |
Sinotex Corporation Limited |
|
Legal Representative |
Yang Jun |
Zhang Jianying |
|
|
Registered Capital |
CNY 57,790,000 |
cny 100,000,000 |
|
|
Shareholder (s) (% of Shareholding) |
China Garments Co., Ltd. 42.21% Anhui Huamao Group Co., Ltd. 10.5% Beijing Jingmian Textile (Group) Co., Ltd. 8.40% Other shareholders 38.89% |
China Garments Co., Ltd. 38.22% Shanghai Lima Technology Development Corp., Ltd. 26.58% Anhui Huamao Group Co., Ltd. 9.51% Textile International Trade Promotion Center 8.18% Beijing Jingmian Textile (Group) Co., Ltd. 7.61% Shijiazhuang Changshan Textile Group Co., Ltd. 5.53% Wuxi No. 1 Cotton Mill 1.90% Xinxiang Huayu Textiles Co., Ltd. 1.90% Hubei Xiangmian Group Co., Ltd. 0.57% |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
China Garments Co., Ltd. |
38.22 |
|
Shanghai Lima Technology Development Corp., Ltd. |
26.58 |
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Anhui Huamao Group Co., Ltd. |
9.51 |
|
Textile International Trade Promotion Center |
8.18 |
|
Beijing Jingmian Textile (Group) Co., Ltd. |
7.61 |
|
Shijiazhuang Changshan Textile Group Co., Ltd. |
5.53 |
|
Wuxi No. 1 Cotton Mill |
1.90 |
|
Xinxiang Huayu Textiles Co., Ltd. |
1.90 |
|
Hubei Xiangmian Group Co., Ltd. |
0.57 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Zhang Jianying |
RECENT DEVELOPMENT
SC is a comprehensive textile company, and it has achieved a more than seventy
percent increase of the average annual rate on trade scale and ranked among the
top 50 textiles self-operated import and export enterprises in China. SC sets
up its export-oriented development strategy with market exploration as the key,
industry as the pillar, technology development as the momentum and keeps the
quality policy as offering customer satisfied products and services, gaining
the best performance and image by applying modern enterprise operation style
under the guarantee of ISO9001-2000 system.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
China Garments Co., Ltd. 38.22
Shanghai Lima Technology Development Corp., Ltd. 26.58
Anhui Huamao Group Co., Ltd. 9.51
Textile International Trade Promotion Center 8.18
Beijing Jingmian Textile (Group) Co., Ltd. 7.61
Shijiazhuang Changshan Textile Group Co., Ltd. 5.53
Wuxi No. 1 Cotton Mill 1.90
Xinxiang Huayu Textiles Co., Ltd. 1.90
Hubei Xiangmian Group Co., Ltd. 0.57
China Garments Co., Ltd.
------------------------------------
China Garments Co., Ltd. has been listed through Shenzhen Stock Exchange
on April 8, 1999. Main business of the company covers: production and selling
of textile, knit goods, leather goods, garments, shoes and caps; selling of
sheepskin, slice up, chemical fiber materials, supplementing materials and,
chemical dyestuff; design and products presentation and, model performance
show, and so on.
Date of Registration: March 3, 1999
Registration No.: 100000000005309
Legal Form: Shares Limited
Company
Chief Executive: Qiao Yu
Registered Capital: CNY 258,000,000
Address: 17/F, Zhejiang Mansion, No. 26 Anzhenxili 3rd Zone,
Chaoyang District, Beijing
Tel: 86-010-65817498 86-010-65838522
Fax: 86-010-65812147
86-010-65838595
Website: www.chinagarments.net.cn
Email: 000902@chinagarments.net.cn
Shanghai Lima Technology Development Corp., Ltd.
---------------------------------------------------------------------
Date of Registration: July 5, 2001
Registration No.: 310229000599525
Legal Form: Limited
Liabilities Company
Chief Executive: Shen Kai
Registered Capital: CNY 6,000,000
Anhui Huamao Group Co., Ltd.
-------------------------------------------
Anhui Huamao Group Co., Ltd. is a state-owned enterprise financed exclusively and was
authorized to operate by Anqing Government. Now it has six subsidiary companies
dealing with textile, import-export trade, real estate, comprehensive service,
knitting and auction.
Add: No. 80, South Fangzhi Road, Anqing City, Anhui
Tel: 0556-5919891, 5919892
Fax: 0556-5919900
Website: www.huamao.com.cn
E-mail: aqfz@mail.hf.ah.cn
Beijing Jingmian Textile (Group) Co., Ltd.
--------------------------------------------------------
Beijing Jingmian Textile Group Co., Ltd. (Beijing Jingmian Group), as a
corporate legal entity was incorporated by three large state-owned textiles
enterprises of the original Beijing N0.1, No.2, No.3 Cotton Mill with more than
50 years history in August 1997. Jingmian Group organizes its production
strictly in accordance with international standards Jingmiag Group has passed
IS09000 quality management system certificate and Oeko-Tex Standard 100
Eco-Certification. Beijing Jingmian Group commits itself to Beijing textiles
industry implements the integration of state-owned and private enterprises and
focus on improving the level of equipments and product innovation. Jingmian
Group endeavors to the involvement in developed technology, the use of
multi-function fibers and the extensive development and production of
high-precision special products. Beijing Jingmian Group identifies and
implements major relocation adjustment strategies according to Beijing
industries adjustment policies and Beijing textiles development requirements in
recent years.
Date of Registration: August 15, 1997
Registration No.: 110000005112490
Legal Form: Limited
Liabilities Company
Chief Executive: Lin Guiliang
Registered Capital: CNY 434,680,000
Add: No. 1 Balizhuangdongli, Chaoyang District, Beijing
Tel: +86 10 6557 0193
Fax: +86 10 6556 9723
Website: www.jingmian.com.cn
Shijiazhuang Changshan Textile Group Co., Ltd.
----------------------------------------------------------------
Date of Registration: March 8, 1996
Registration No.: 130100000240001
Legal Form: Sole
State-Owned Enterprise
Chief Executive: Tang Zhangming
Registered Capital: CNY 1,253,540,000
Hubei Xiangmian Group Co., Ltd.
----------------------------------------------
Date of Registration: April 21, 1997
Registration No.: 420000000023509
Legal Form: Sole State-Owned
Enterprise
Chief Executive: Zeng Qingjian
Registered Capital: CNY 169,310,000
MANAGEMENT
Zhang Jianying,
Legal Representative, Chairman and General Manager
--------------------------------------------------------------------------------------------------------
Gender: M
Qualification: University
Working experience (s):
From 2011 to present, working in SC as legal representative, chairman
and general manager
BUSINESS OPERATION
SC’s registered business scopes include importing and exporting commodities and
technologies, excluding export commodities under state-unified operation
and import commodities operated by the state-designated companies; processing with imported materials, processing with imported samples, assembling
with imported parts, and compensation trade in agreement; counter trade & transit
trade; manufacturing and processing textile materials
textile garments, and household textiles; and domestic sales of the above
import & export commodity.
SC is mainly engaged in importing and exporting textiles.
SC’s products mainly include: textile fibers, yarns, knitted garments,
shuttled garments and home textiles etc.
SC sources its materials 60% from domestic market, mainly Shandong
province and Shanghai, and 40% from overseas market, mainly Korea and
Australia. SC sells 20% of its products in domestic market, mainly Shanghai,
and 80% to overseas market, mainly America and European countries.
The buying terms of SC include T/T, L/C 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. 120
staff at present.
SC owns an area as its operating office, but the detailed information is
unknown.
RELATED COMPANY
SC is known to
have 2 subsidiaries, as follows:
Sinotex Ecuador Textile Industry Co., Ltd.
Shanghai Flocon De Neige Garments 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:
Bank of China
AC#: 044036-8001-00675808091001
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
36,170 |
33,720 |
37,360 |
|
|
Accounts receivable |
54,070 |
63,250 |
68,340 |
|
Advances to suppliers |
89,160 |
85,050 |
96,680 |
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Other receivable |
26,690 |
35,040 |
36,890 |
|
Inventory |
36,820 |
25,300 |
53,610 |
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Non-current assets within one year |
0 |
0 |
0 |
|
Other current assets |
0 |
20 |
80 |
|
|
------------------ |
------------------ |
------------------ |
|
Current assets |
242,910 |
242,380 |
292,960 |
|
Fixed assets |
13,960 |
11,560 |
16,320 |
|
Construction in progress |
0 |
0 |
0 |
|
Long-term investment |
4,990 |
5,110 |
4,550 |
|
Deferred income tax assets |
0 |
0 |
0 |
|
Other non-current assets |
52,950 |
54,400 |
62,350 |
|
|
------------------ |
------------------ |
------------------ |
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Total assets |
314,810 |
313,450 |
376,180 |
|
|
============= |
============= |
============= |
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Short-term loans |
139,720 |
130,090 |
183,350 |
|
Notes payable |
0 |
0 |
0 |
|
Accounts payable |
39,470 |
22,140 |
27,170 |
|
Wages payable |
0 |
0 |
0 |
|
Taxes payable |
-4,220 |
-980 |
-120 |
|
Advances from clients |
29,150 |
48,310 |
42,310 |
|
Other payable |
14,110 |
10,780 |
13,620 |
|
Other current liabilities |
0 |
10 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Current liabilities |
218,230 |
210,350 |
266,330 |
|
Non-current liabilities |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities |
218,230 |
210,350 |
266,330 |
|
Equities |
96,580 |
103,100 |
109,850 |
|
|
------------------ |
------------------ |
------------------ |
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Total liabilities & equities |
314,810 |
313,450 |
376,180 |
|
|
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
Revenue |
949,120 |
1,034,310 |
924,860 |
|
Cost of sales |
913,460 |
994,930 |
888,610 |
|
Taxes and surcharges |
390 |
260 |
290 |
|
Sales expense |
19,780 |
17,260 |
16,820 |
|
Management expense |
6,990 |
7,180 |
7,230 |
|
Finance expense |
8,630 |
6,990 |
6,490 |
|
Income from investment |
30 |
-40 |
50 |
|
Non-operating income |
180 |
30 |
70 |
|
Non-operating expense |
120 |
100 |
180 |
|
Profit before tax |
2,710 |
7,560 |
5,360 |
|
Less: profit tax |
-180 |
1,040 |
1,720 |
|
2,890 |
6,520 |
3,640 |
Important Ratios
=============
|
|
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
1.11 |
1.15 |
1.10 |
|
*Quick ratio |
0.94 |
1.03 |
0.90 |
|
*Liabilities to assets |
0.69 |
0.67 |
0.71 |
|
*Net profit margin (%) |
0.30 |
0.63 |
0.39 |
|
*Return on total assets (%) |
0.92 |
2.08 |
0.97 |
|
*Inventory / Revenue ×365 |
15 days |
9 days |
22 days |
|
*Accounts receivable/ Revenue ×365 |
21 days |
23 days |
27 days |
|
* Revenue/Total assets |
3.01 |
3.30 |
2.46 |
|
* Cost of sales / Revenue |
0.96 |
0.96 |
0.96 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears good in its line.
SC’s net profit margin is average in three years.
SC’s return on total assets is average in three years.
SC’s cost of goods sold is high, comparing with its revenue.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level in three years.
SC’s quick ratio is maintained in a normal level in three years.
The inventory of SC is maintained in an average level.
The accounts receivable of SC is maintained in an average level.
The short-term loans of SC appear large.
SC’s revenue is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average in three years.
The risk for SC to go bankrupt is average.
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 short-term loans may be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.51 |
|
|
1 |
Rs.84.85 |
|
Euro |
1 |
Rs.71.43 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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.