MIRA
INFORM REPORT
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Report Date : |
21.06.2013 |
IDENTIFICATION DETAILS
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Name : |
JIANGSU LIANFA TEXTILE CO., LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
11.11.2002 |
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Com. Reg. No.: |
320600400006064 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
manufacturing and selling refrigeration equipment yarn,
yarn-dyed fabrics, printed and dyed fabrics, and shirts |
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No. of Employees : |
6,609 (Including Its Main Subsidiaries) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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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 : |
No Complaints |
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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
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Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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China |
A2 |
A2 |
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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 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
JIANGSU LIANFA
TEXTILE CO., LTD.
NO. 88 HENGLIAN ROAD, CHENGDONG TOWN, HAI’AN
COUNTY, NANTONG, JIANGSU PROVINCE, 226600 PR CHINA
TEL: 86 (0) 513-81819081/88905193 FAX: 86 (0) 513-88814823/88905190
EXECUTIVE SUMMARY
INCORPORATION DATE : NOV.
11, 2002
REGISTRATION NO. : 320600400006064
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
CHIEF EXECUTIVE : MR. XUE QINGLONG (CHAIRMAN)
STAFF STRENGTH : 6,609 (including
its main subsidiaries)
REGISTERED CAPITAL : CNY 215,800,000
BUSINESS LINE : MANUFACTURING AND TRADING
TURNOVER :
CNY 2,730,920,000 (CONSOLIDATED,
AS OF DEC. 31, 2012)
EQUITIES :
CNY 2,358,941,000 (CONSOLIDATED,
AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION : FAIRLY GOOD
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : WELL-KNOWN
EXCHANGE RATE : CNY 6.13 = USD 1
Adopted abbreviations:
ANS - amount not stated
NS - not stated SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
SC was registered as a
shares limited company at local Administration
for Industry & Commerce (AIC - The official body of issuing and renewing
business license).
Company Status:
Shares limited co. This form of business in PR
China is defined as a legal person. Its registered capital is divided into
shares of equal par value and the co. raises capital by issuing share
certificates by promotion or by public offer. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to the extent of its total assets. The co has independent
property of legal person and enjoys property rights of legal person. The characteristics of the shares limited co. are as
follows: The establishment of the co.
requires at least two promoters and no more than 200, half of whom shall be domiciled
in The minimum registered capital
of a co. is CNY 5M. while that of the co. with foreign investment is CNY
5M. The total capital of a co. which propose to apply for publicly listed
must be no less than CNY 30M. The
board of directors must consist of five to nineteen directors. If the co. raises capital by public
offer, the promoters must not subscribe less than 35% of the total shares.
the promoters’ shares are restricted to transfer- within one year of the
offer. A
state-owned enterprise that is restructured into a shares limited co. must comply with the conditions &
requirements specified under the law & administrative rule.
SC’s registered business scope includes manufacturing and
selling dyed yarn, fiber, yarn, dyed fabric, printing products, textiles,
apparel and related products; own plant, equipment leasing.
SC is
mainly engaged in manufacturing and selling refrigeration equipment yarn,
yarn-dyed fabrics, printed and dyed fabrics, and shirts.
Mr.
Xue Qinglong is legal representative and
chairman of SC since 2012.
SC is known
to have approx. 6,609 employees (including its main subsidiaries),
including 4,528 workers, 297 sales staff, 1,112 technical staff, 64 financial
staff, 239 administrative staff, and 369 other staff.
SC is currently operating at the above stated address, and
this address houses its operating office and factory in the industrial zone of
Hai’an County. Our checks reveal that SC covers an area of 500,000 square meters.
http://www.lianfa.cn/ The design is
professional and the content is well organized. At present it is both in Chinese
and English versions.
E-Mail: wuqp@lianfa.cn ; sales_usa@lianfa.cn
SC is a listed company in Shenzhen Stock Exchange Market with the code
of 002394.
Changes of its
registered information:
|
Date
of change |
Item |
Before
the change |
After
the change |
|
2008 |
Registration No. |
003909 |
Present one |
|
2010 |
Registered capital |
CNY 80,900,000 |
CNY 107,900,000 |
|
2011 |
Registered capital |
CNY 107,900,000 |
Present amount |
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
(As of Mar. 31, 2013)
Name
%
of Shareholding
Jiangsu Lianfa Group Co., Ltd. 40.45
Uni-Concept (Textile) Limited
(Hong Kong) 15.27
Shandong International Trust Corporation
10.19
Shanghai Ganghong Investment Co., Ltd. (in Chinese Pinyin) 6.05
Shanxi Securities Company
Limited –
Customer Credit Transactions
Backed Securities Account 0.41
GF Securities Company Limited –
Customer Credit Transactions
Backed Securities Account 0.21
Goldstate Securities Co., Ltd. –
Customer Credit Transactions
Backed Securities Account 0.18
Shenyin & Wanguo Securities
Co., Ltd. –
Customer Credit Transactions
Backed Securities Account 0.17
Guotai Junan Securities Co.,
Ltd. –
Customer Credit Transactions
Backed Securities Account
0.13
China Fortune Securities Co.,
Ltd. –
Customer Credit Transactions
Backed Securities Account
0.12
Other shareholders 26.82
Jiangsu Lianfa Group Co., Ltd.
======================
Legal representative: Kong Xiangjun
Incorporation date: June 30, 1994
Uni-Concept (Textile) Limited (Hong Kong)
=================================
CR No.: 0687068
Incorporation date: Sep. 1, 1999
Legal form: Private
Status: Live
Legal
Representative, Chairman
and General manager:
Mr. Xue Qinglong, born in 1964, with university education, senior economist. He is currently responsible for the overall management of SC.
Working
Experience(s):
From 2012 to present Working in SC as legal representative, chairman and general manager;
Also working in Nantong Lianfa Garments Co., Ltd., Hai’an Lianfa Garments Co., Ltd., Suqian Lianfa Garments Co., Ltd., Jiangsu Lianfa Venture Capital Co., Ltd., etc. as legal representative and chairman
Vice chairman:
Mr. Huang Changgen, born in 1966, with MBA degree, senior economist, senior engineer, he is currently responsible for the daily management of SC.
Working
Experience(s):
From 2008 to 2012 Worked in SC as general manager;
From 2011 to present Working in SC as vice chairman;
Also working in Nantong Lianfa Thermal Power Co., Ltd., Nantong Lianfa Printing & Dyeing Co., Ltd. and Huai’an Lianfa Textile Co., Ltd. as legal representative and chairman
SC is
mainly engaged in manufacturing and selling refrigeration equipment yarn,
yarn-dyed fabrics, printed and dyed fabrics, and shirts.
SC’s products mainly include: long-staple length cotton
fabric, texture fabric, natural fabric, functional finishing fabric, men's
formal shirt, men's Casual Shirt, women's formal shirt, women's casual wear,
yarn products, etc.
SC sources its materials 95% from domestic market and 5%
from oversea market. SC sells 70% of its products to overseas market and 30% in domestic 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 Suppliers:
=============
Changzhou Jieqi Textile Co., Ltd.
Changzhou Wujin Dayuan Dyed Fabric Co., Ltd.
Changzhou Jinmao Yarn-dyed Co., Ltd.
*Major Customers:
==============
Sportica (Xiamen) Industrial Co., Ltd.
THREADTEX INC
MASSIMO DUTTI (Spain)
SECTION SEVEN LTD.
CHINA GRACE GARMENT LTD.
SC is known to have the following subsidiaries:
Nantong Lianfa Thermal Power Co., Ltd.
Hai'an Lianfa Garments Co., Ltd.
Hai'an Lianfa Cotton Spinning Co., Ltd.
Jiangsu
James Textile Co., Ltd.
Huai’an Lianfa Textile Co., Ltd.
Nantong Lianfa Printing & Dyeing Co., Ltd.
Nantong Lianfa Garments Co., Ltd.
Lianfa Textile (H.K.) Limited
Lianfa Textile (Europe) Limited
Etc.
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.
SC’s management
declined to release its banking information.
Consolidated
Balance Sheet
Unit: CNY’000
|
|
as
of Dec. 31, 2011 |
as
of Dec. 31, 2012 |
|
Cash
& bank |
650,559 |
1,583,585 |
|
Notes
receivable |
7,191 |
12,706 |
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Accounts
receivable |
227,614 |
273,198 |
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Other
receivables |
14,243 |
16,481 |
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Advances to
suppliers |
81,548 |
77,982 |
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Inventory |
441,918 |
505,073 |
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Other
current assets |
2 |
4,785 |
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------------------ |
------------------ |
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Current
assets |
1,423,075 |
2,473,810 |
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Fixed
assets net value |
1,006,174 |
1,141,452 |
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Projects
under construction |
154,561 |
81,837 |
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Investment
real estate |
2,628 |
17,047 |
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Long
term investment |
0 |
5,000 |
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Intangible
assets |
53,830 |
62,546 |
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Long-term
deferred expenses |
8,424 |
15,335 |
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Other
assets |
4,760 |
10,920 |
|
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------------------ |
------------------ |
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Total
assets |
2,653,452 |
3,807,947 |
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============= |
============= |
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Short
loans |
240,093 |
264,645 |
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Notes
payable |
9,300 |
21,814 |
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Accounts
payable |
199,251 |
249,360 |
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Advances from
clients |
33,484 |
30,903 |
|
Payroll
payable |
41,873 |
44,553 |
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Taxes
payable |
-30,815 |
-23,408 |
|
Other
payable |
7,847 |
9,192 |
|
Other
current liabilities |
5,357 |
9,828 |
|
|
------------------ |
------------------ |
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Current
liabilities |
506,390 |
606,887 |
|
Long
term liabilities |
1,850 |
842,119 |
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|
------------------ |
------------------ |
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Total
liabilities |
508,240 |
1,449,006 |
|
Equities |
2,145,212 |
2,358,941 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
2,653,452 |
3,807,947 |
|
|
============= |
============= |
Consolidated
Income Statement
Unit: CNY’000
|
|
as
of Dec. 31, 2011 |
as
of Dec. 31, 2012 |
|
Turnover |
2,751,230 |
2,730,920 |
|
Cost of goods sold |
2,140,495 |
2,162,928 |
|
Taxes
and additional of main operation |
20,330 |
26,512 |
|
Sales expense |
96,389 |
126,260 |
|
Management expense |
81,349 |
97,714 |
|
Finance expense |
15,870 |
17,644 |
|
Asset impairment loss |
862 |
1,558 |
|
Income From
Changes In Fair Value |
3,047 |
0 |
|
Investment
income |
-4,263 |
2,357 |
|
Non-operating
income |
19,252 |
22,828 |
|
Non-operating expense |
5,139 |
1,878 |
|
Profit before
tax |
408,832 |
321,611 |
|
Less: profit tax |
102,282 |
81,965 |
|
Profits |
306,550 |
239,646 |
Important Ratios
=============
|
|
as
of Dec. 31, 2011 |
as
of Dec. 31, 2012 |
|
*Current ratio |
2.81 |
4.08 |
|
*Quick ratio |
1.94 |
3.24 |
|
*Liabilities
to assets |
0.19 |
0.38 |
|
*Net profit
margin (%) |
11.14 |
8.78 |
|
*Return on total
assets (%) |
11.55 |
6.29 |
|
*Inventory
/Turnover ×365 |
59 days |
68 days |
|
*Accounts
receivable/Turnover ×365 |
30 days |
37 days |
|
*Turnover/Total
assets |
1.04 |
0.72 |
|
* Cost of
goods sold/Turnover |
0.78 |
0.79 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears good in its
line in both years.
l
SC’s net profit margin is fairly good
in both years.
l
SC’s return on total assets is fairly
good in both years.
l
SC’s cost of goods sold is average in
both years, comparing with its turnover.
LIQUIDITY:
FAIRLY GOOD
l
The current ratio of SC is maintained
in a fairly good level in both years.
l
SC’s quick ratio is maintained in a
fairly good level in both years.
l
The inventory
of SC appears average in both years.
l
The accounts receivable of SC appears
average in both years.
l
SC’s short-term loan is average in both years.
l
SC’s turnover is in an average level in
2011 but in a fair level in 2012, comparing with the size of its total assets.
LEVERAGE:
FAIRY 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.
SC is considered large-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.70 |
|
UK Pound |
1 |
Rs.92.22 |
|
Euro |
1 |
Rs.79.19 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
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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.