MIRA
INFORM REPORT
|
Report Date : |
15.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
FOSHAN SHUNDE LANGMEI CARPET PRODUCTS CO.,
LTD. |
|
|
|
|
Registered Office : |
No. 5-7, Xinxiang Road, Wusha, Daliang Street, Shunde
District, Foshan, Guangdong
Province, 528000 Pr |
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|
|
Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
05.02.2007 |
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Com. Reg. No.: |
440681400001655 |
|
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Legal Form : |
Chinese-Foreign Equity Joint
Venture Enterprise |
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|
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Line of Business : |
manufacturing and selling different sorts of carpets |
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No. of Employees : |
250 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
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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
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
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 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
Foshan Shunde Langmei Carpet Products Co., Ltd.
No. 5-7, XINXIANG
ROAD, WUSHA, DALIANG STREET, SHUNDE DISTRICT,
FOSHAN, GUANGDONG
PROVINCE, 528000 PR CHINA
TEL: 86 (0)
757-28083133 FAX: 86 (0)
757-28083383/ 29282229
EXECUTIVE SUMMARY
INCORPORATION DATE : feb. 5, 2007
REGISTRATION NO. : 440681400001655
REGISTERED LEGAL FORM :
CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
CHIEF EXECUTIVE : MR. liang weiqing (CHAIRMAN)
STAFF STRENGTH : 250
REGISTERED CAPITAL :
usd 45,000,000
BUSINESS LINE : MANUFACTURING AND
TRADING
TURNOVER : CNY 14,210,000 (AS OF DEC. 31, 2012)
EQUITIES : CNY 206,650,000 (AS OF DEC. 31, 2012)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : C.O.D.
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairLY STABLE
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.1443 = 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
Note: SC is also known as TFC Carpet Co.,
Ltd.
SC was registered as a Chinese-foreign equity joint venture
enterprise at local Administration for industry & commerce (AIC - the
official body of issuing and renewing business license) on Feb. 5, 2007.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less than
25% of the registered capital, with no maximum. The investing parties are
free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced technology
& advanced technology products that have good competition position in
international market may extend beyond the 50 years limit.
SC’s registered
business scope includes manufacturing and selling differential chemical fiber, high-grade
nylon carpet, high-grade wool carpet, high-grade tufted carpet, high-grade
carpet tile, yarn, styrene-butadiene latex and carboxylic styrene butadiene
latex. (excluding hazardous chemicals)
SC is mainly
engaged in manufacturing and selling different sorts of carpets.
Mr. Liang Weiqing is legal representative, chairman and general manager of SC
at present.
SC is known to have approx. 250 employees at
present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone
of Foshan. The detailed information of the premise is unspecified.
http://www.tfccarpet.com/ The website can not be landed at present for technical
reason.
Email: sam.li@naturaltfc.com;
cherie@naturaltfc.com
Changes of its
registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2012-4 |
Registered capital |
USD 40,000,000 |
Present amount |
SC started its normal operation since Oct., 2011.
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Design Materials Inc. (U.S.A.) 80
TFC International Limited (Hong Kong) 10
Foshan Shunde Zhenmei Investment Management
Co., Ltd. 10
Design Materials Inc. (U.S.A.)
=======================
Add: 241 S. 55th St., Kansas City, KS 66106
Fax: 913-342-9826
Web: http://www.dmikc.com
E-mail: info@dmifloors.com
TFC International Limited (Hong Kong)
=============================
CR No.:
0652205
Date of
Incorporation: 12-August-1998
Company
Status: Private
Active
Status: Live
Foshan Shunde
Zhenmei Investment Management Co., Ltd.
===========================================
Registered no.: 440681000196416
Legal representative: Liang Xiaoyi
Registered capital: CNY 500,000
Legal form: limited liabilities co.
Legal
Representative, Chairman and General Manager:
Mr. Liang Weiqing is currently responsible for
the overall management of SC.
Working
Experience(s):
At present Working in SC as legal representative, chairman and
general manager.
SC started its normal operation since Oct., 2011.
SC is mainly
engaged in manufacturing and selling different sorts of carpets.
SC’s products
mainly include: residential carpet, commercial carpet, and so on.
SC sources its materials 90%
from domestic market, and 10% from overseas market. SC sells 70% of its
products in domestic market, and 30% 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 Supplier:
=============
Guangdong TFC (Hong Kong) Limited
*Major Customer:
==============
Guangdong
TFC (Hong Kong) Limited
SC
is not known to have any subsidiary at present.
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: we
were unable to get contact with SC’s supplier, so the trade reference is not
available.
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.
Shunde Rural Commercial Bank Daliang Sub-branch
AC#：01618800249171
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31, 2011 |
as of Dec. 31, 2012 |
|
Cash & bank |
720 |
6,390 |
|
Inventory |
11,550 |
31,620 |
|
Accounts
receivable |
580 |
0 |
|
Advances to
suppliers |
23,260 |
90,250 |
|
Other
receivables |
39,580 |
15,120 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
75,690 |
143,380 |
|
Long-term
investments |
0 |
0 |
|
Fixed assets net
value |
131,480 |
145,000 |
|
Projects under
construction |
47,410 |
94,410 |
|
Deferred income
tax assets |
0 |
10,980 |
|
Intangible
assets |
28,040 |
27,410 |
|
Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
282,620 |
421,180 |
|
|
============= |
============= |
|
Short loans |
23,710 |
88,580 |
|
Notes payable |
0 |
18,380 |
|
Accounts payable |
610 |
670 |
|
Advances from
customers |
0 |
4,290 |
|
Employee
pay payable |
510 |
1,800 |
|
Taxes payable |
-14,230 |
-23,140 |
|
Interest payable |
0 |
520 |
|
Other accounts
payable |
38,260 |
45,130 |
|
Other
current liabilities |
0 |
0 |
|
|
----------------- |
----------------- |
|
Current
liabilities |
48,860 |
136,230 |
|
Long term
liabilities |
68,090 |
78,300 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
116,950 |
214,530 |
|
Shareholders
equities |
165,670 |
206,650 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
282,620 |
421,180 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31, 2012 |
|
Turnover |
14,210 |
|
Cost of goods
sold |
20,140 |
|
Taxes
and additional of main operation |
0 |
|
Sales expense |
1,050 |
|
Management expense |
11,530 |
|
Finance expense |
4,890 |
|
Non-operating
income |
0 |
|
Non-operating expense |
0 |
|
Profit before
tax |
-23,400 |
|
Less: profit tax |
-5,500 |
|
Net profit |
-17,900 |
Important Ratios
=============
|
|
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
*Current ratio |
1.55 |
1.05 |
|
*Quick ratio |
1.31 |
0.82 |
|
*Liabilities
to assets |
0.41 |
0.51 |
|
*Net profit
margin (%) |
/ |
-125.97 |
|
*Return on
total assets (%) |
/ |
-4.25 |
|
*Inventory
/Turnover ×365 |
/ |
813 days |
|
*Accounts
receivable/Turnover ×365 |
/ |
/ |
|
*Turnover/Total
assets |
/ |
0.03 |
|
* Cost of
goods sold/Turnover |
/ |
1.42 |
PROFITABILITY:
FAIR
l
The turnover of SC appears average in its line in
2012.
l
SC’s net profit margin is poor in 2012.
l
SC’s return on total assets is fair in 2012.
l
SC’s cost of goods sold is too high in 2012,
comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in both years.
l
SC’s quick ratio is maintained in a normal level in
both years.
l
The inventory conversion period of SC
appears too long in 2012.
l
SC has no accounts receivable in 2012.
l
SC’s short-term loan appears average in
2011 but fairly large in 2012.
l
SC’s turnover is in a poor level in 2012, comparing
with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is low in 2011 but average in
2012.
l
The risk for SC to go bankrupt is average.
Overall financial condition of the SC:
Fairly stable.
Credit Amount: USD 600,000
SC started its normal operation since Oct., 2011. SC is considered
medium-sized in its line with fairly stable financial conditions. The large
amount of short loans could be a threat to SC’s financial condition. A credit line at the above amount appears to be beyond SC’s
capacities, while C.O.D. is recommended at present.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.63 |
|
UK Pound |
1 |
Rs.83.67 |
|
Euro |
1 |
Rs.71.02 |
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 |
---- |
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.