MIRA
INFORM REPORT
|
Report Date : |
09.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
ZHEJIANG JINYUAN FLAX CO., LTD. |
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Registered Office : |
Jinda Industrial Zone, Henggang Town, Haiyan
County Jiaxing, Zhejiang Province 314313 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
18.03.2003 |
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Com. Reg. No.: |
330400400007033 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Subject is engaged in manufacturing and selling flax products. |
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No. of Employees : |
1,262 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
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
ZHEJIANG JINYUAN FLAX CO., LTD.
JINDA INDUSTRIAL ZONE, HENGGANG TOWN, HAIYAN COUNTY
JIAXING,
ZHEJIANG PROVINCE 314313 PR CHINA
TEL: 86 (0) 573-86782999
FAX: 86 (0) 573-86782666
EXECUTIVE SUMMARY
Date of Registration : marCH 18, 2003
REGISTRATION NO. : 330400400007033
LEGAL FORM : WHOLLY FOREIGN-OWNED enterprise
CHIEF EXECUTIVE :
ren weiming (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : USD 40,000,000
staff :
1,262
BUSINESS CATEGORY : MANUFACTURING & TRADING
Revenue :
CNY 435,145,000 (AS OF DEC. 31,
2011)
EQUITIES :
CNY 424,462,000 (AS OF DEC. 31, 2011)
E-MAIL :
N/A
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairLY good
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
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 wholly foreign-owned enterprise of PRC with
State Administration of Industry & Commerce (SAIC) under registration No.: 330400400007033 on March 18, 2003.
SC’s Organization Code Certificate No.:
74703577-0
SC’s Tax No.: 330424747035770
SC’s registered capital: USD 40,000,000
SC’s paid-in capital: USD 40,000,000
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 |
|
Kingdom Group Holdings Limited (Hong Kong) |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Ren Weiming |
|
General Manager and Director |
Shen Yueming |
|
Director |
Zhang Hongwen |
|
Supervisor |
Chen Huiqun |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Kingdom Group Holdings Limited (Hong Kong) 100
--------------------------------------
Registration No.: 0921943
Legal Form: Private
Status: Live
MANAGEMENT
Ren Weiming, Legal
Representative and Chairman
-----------------------------------------------------------------------------
Gender: M
ID# 330424195909132032
Age: 54
Qualification: University
Working experience (s):
At present, working in SC as legal representative and chairman
Shen Yueming, General Manager and Director
------------------------------------------------------------------------
Gender: M
ID# 330424196111112010
Age: 52
Qualification: University
Working experience (s):
At present, working in SC as general manager and director
Also working in Zhejiang Huaning Flax Electric Commerce Co., Ltd. as
legal representative
Zhang Hongwen, Director
---------------------------------------------
Gender: M
ID# 330424196605102058
Age: 47
Qualification: University
Chen Huiqun, Supervisor
---------------------------------------------
Gender: F
ID# 330424197206152060
Age: 41
Qualification: University
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and selling flax
yarn, linen and textile finished products.
SC is mainly engaged in manufacturing and selling flax products.
SC’s products mainly include: linen yarn, etc.
Brand: KINGDOM, Ziwei and CRAPE MIRTLE.
SC sources its materials 70% from domestic market, and 30% from overseas
market, mainly France, Belgium, etc. SC sells 60% of its products in domestic
market, and 40% to overseas market, mainly Korea, Italy, Turkey, India, etc.
The import &
export status of SC in 2011 is as follows,
|
Country |
Amount of Exports (USD) |
Amount of Imports (USD) |
|
Korea |
8,343,698 |
-- |
|
Italy |
12,941,600 |
-- |
|
Turkey |
9,628,980 |
-- |
|
India |
4,590,822 |
-- |
|
France |
-- |
14,341,752 |
|
Belgium |
-- |
6,905,288 |
|
|
----------------- |
----------------- |
|
Total |
35,505,100 |
21,247,040 |
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 Client*
-----------------
Dynamic Ceramic Tile, Inc.
Staff &
Office:
--------------------------
SC is known to have approx. 1,262
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
have the following subsidiaries at present,
Zhaosu Jindi Flax Co., Ltd.
Registration No.: 654126050000306
Zhejiang Huaning Flax Electric Commerce Co., Ltd.
Registration No.: 330424000034566
Date of Registration: December 11, 2009
Legal Form: Limited Liabilities Company
Registered Capital: CNY 30,000,000
Legal Representative: Shen Yueming
Jiangsu Jinyuan Flax Co., Ltd.
Registration No.: 320600400007889
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 local SAIC.
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
240,078 |
136,391 |
|
|
Notes receivable |
5,068 |
13,111 |
|
Accounts receivable |
31,512 |
27,285 |
|
Advances to suppliers |
9,165 |
12,598 |
|
Other receivable |
55,162 |
49,444 |
|
Inventory |
157,637 |
137,502 |
|
Deferred expenses |
0 |
0 |
|
Other current assets |
148 |
198 |
|
|
------------------ |
------------------ |
|
Current assets |
498,770 |
376,529 |
|
Long-term investment |
90,356 |
108,922 |
|
Fixed assets |
147,989 |
166,214 |
|
Construction in progress |
15,798 |
706 |
|
Intangible assets |
13,036 |
23,720 |
|
Long-term prepaid expenses |
7,408 |
10,209 |
|
Deferred income tax assets |
0 |
0 |
|
Other non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
773,357 |
686,300 |
|
|
============= |
============= |
|
Short-term loans |
187,472 |
119,100 |
|
Notes payable |
22,736 |
0 |
|
Accounts payable |
69,933 |
30,410 |
|
Wages payable |
4,607 |
8,474 |
|
Taxes payable |
2,497 |
12,787 |
|
Interest payable |
0 |
1,553 |
|
Advances from clients |
1,961 |
3,652 |
|
Other payable |
19,155 |
19,933 |
|
Other current liabilities |
0 |
1,073 |
|
|
------------------ |
------------------ |
|
Current liabilities |
308,361 |
196,982 |
|
Non-current liabilities |
85,093 |
64,856 |
|
|
------------------ |
------------------ |
|
Total liabilities |
393,454 |
261,838 |
|
Equities |
379,903 |
424,462 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
773,357 |
686,300 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
Revenue |
448,616 |
435,145 |
|
Cost of sales |
365,803 |
322,074 |
|
Taxes and surcharges |
368 |
1,494 |
|
Sales expense |
10,509 |
8,360 |
|
Management expense |
22,104 |
32,642 |
|
Finance expense |
4,539 |
9,852 |
|
Investment income |
19,804 |
20,985 |
|
Non-operating income |
1,598 |
2,031 |
|
Non-operating expense |
608 |
1,981 |
|
Profit before tax |
66,086 |
81,757 |
|
Less: profit tax |
11,991 |
16,663 |
|
54,095 |
65,094 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
1.62 |
1.91 |
|
*Quick ratio |
1.11 |
1.21 |
|
*Liabilities to assets |
0.51 |
0.38 |
|
*Net profit margin (%) |
12.06 |
14.96 |
|
*Return on total assets (%) |
6.99 |
9.48 |
|
*Inventory / Revenue ×365 |
129 days |
116 days |
|
*Accounts receivable/ Revenue ×365 |
26 days |
23 days |
|
* Revenue/Total assets |
0.58 |
0.63 |
|
* Cost of sales / Revenue |
0.82 |
0.74 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
The revenue of SC appears fairly good in its line.
SC’s net profit margin is fairly good in both years.
SC’s return on total assets is fairly good in both years.
SC’s cost of sales is average, comparing with its revenue in 2011.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a fairly good level in both
years.
SC’s quick ratio is maintained in a normal level in both years.
The inventory of SC appears fairly large.
The accounts receivable of SC is maintained in an average level.
SC’s short-term loans appear fairly large.
SC’s revenue is in a fair level, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered medium-sized in its line with fairly good financial
conditions. The fairly large amount of inventory & short-term loans may be
a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.40 |
|
|
1 |
Rs.81.56 |
|
Euro |
1 |
Rs.71.23 |
INFORMATION DETAILS
|
Report Prepared
by : |
NLM |
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.