MIRA
INFORM REPORT
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Report Date : |
15.10.2013 |
IDENTIFICATION DETAILS
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Name : |
HUZHOU JINLIBAO TEXTILE CO., LTD. |
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Registered Office : |
No. 1, Huzhi Avenue, Zhili Town, Huzhou, Zhejiang Province, 313008 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
13.09.2002 |
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Com. Reg. No.: |
330503000048942 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in manufacturing and selling different sorts of
textiles. |
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No. of Employees : |
130 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 but Correct |
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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.
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Source
: CIA |
Company name and address
huzhou jinlibao textile Co., Ltd.
No. 1, huzhi avenue, zhili town, huzhou,
zhejiang PROVINCE, 313008 PR CHINA
TEL: 86 (0) 572-3153818 FAX: 86 (0) 572-3152423
EXECUTIVE SUMMARY
INCORPORATION DATE : SEPTEMBER 13, 2002
REGISTRATION NO. : 330503000048942
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE :
MR. shen wenyu (CHAIRMAN)
STAFF STRENGTH :
130
REGISTERED CAPITAL : CNY 40,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 108,340,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 40,240,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.12 = 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 limited liabilities co. at local Administration
for industry & commerce (AIC - the official body of issuing and renewing
business license) on Sep. 13, 2002.
Company Status: Limited liabilities co. This
form of business in PR China is defined as a legal person. No more than
fifty shareholders contribute its registered capital jointly. Shareholders bear
limited liability to the extent of shareholding, and the co. is liable for
its debts only to extent of its total assets. The characteristics of this
form of co. are as follows: Upon
the establishment of the co., an investment certificate is issued to the
each of shareholders. The
board of directors is comprised of three to thirteen members. The
minimum registered capital for a co. is CNY 30,000. Shareholders
may take their capital contributions in cash or by means of tangible assets
or intangible assets such as industrial property and non-patented
technology. Cash
contributed by all shareholders must account for at least 30% of the
registered capital. Existing
shareholders have pre-exemption right to purchase shares of the co. offered
for sale by the other shareholders and to subscribe for the newly increased
registered capital of the co.
SC’s registered business scope includes manufacturing and selling
weaving, wool textile and flax textiles; exporting its products and technology,
importing mechanical equipment, components, raw materials and technology needed
in the manufacture, excluding the items limited or forbidden by the state.
SC is mainly engaged in manufacturing and selling different sorts of
textiles.
Mr. Shen Wenyu is legal representative and chairman of SC at present.
SC is known to have approx. 130 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 Huzhou. The
detailed information of the premise is unspecified.
SC is not known to host website of its own at present.
Email: jlb@cndagang.com
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
Tax Registration Certificate No.: 330501742940827
Organization Code: 742940827
See below for SC as executive party (defendant).
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Executed Party |
Huzhou Jinlibao Textile Co., Ltd. |
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Court |
Huzhou City Wuxing District People's Court |
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Date of Case |
Mar. 2, 2011 |
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Case Number |
(2011) 00557 |
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Claim Amount |
RMB 13,756 |
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Case Status |
Completed |
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Executed Party |
Huzhou Jinlibao Textile Co., Ltd. |
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Court |
Huzhou City Wuxing District People's Court |
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Date of Case |
Feb. 16, 2011 |
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Case Number |
(2011) 00467 |
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Claim Amount |
RMB 32,322.7 |
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Case Status |
Completed |
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Executed Party |
Huzhou Jinlibao Textile Co., Ltd. |
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Court |
Huzhou City Wuxing District People's Court |
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Date of Case |
Jan. 24, 2011 |
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Case Number |
(2011) 00424 |
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Claim Amount |
RMB 15,412.5 |
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Case Status |
Completed |
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Executed Party |
Huzhou Jinlibao Textile Co., Ltd. |
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Court |
Huzhou City Wuxing District People's Court |
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Date of Case |
Jan. 17, 2011 |
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Case Number |
(2011) 00395 |
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Claim Amount |
RMB 15,412.5 |
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Case Status |
Completed |
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Executed Party |
Huzhou Jinlibao Textile Co., Ltd. |
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Court |
Huzhou City Wuxing District People's Court |
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Date of Case |
Jan. 17, 2011 |
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Case Number |
(2011) 00396 |
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Claim Amount |
RMB 16,932 |
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Case Status |
Completed |
Etc.
Remark: Due to the lack of information, we are unable to provide the cause of
action, judgment or other information.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Shen Wenyu 80
Tian Yu 10
Shen Jianqiang 10
Legal
representative and Chairman:
Mr. Shen Wenyu is currently responsible for the overall management of
SC.
Working
Experience(s):
At present Working
in SC as legal representative and chairman
Also working in Huzhou Ange Textile Co., Ltd. as legal representative
SC is mainly engaged in manufacturing and selling different sorts of
textiles.
SC’s products mainly include: weaving, wool textile, flax textiles,
garments.
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.
Note: SC’s management declined to release its customer and supplier
details.
Huzhou Ange Textile Co., Ltd.
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Registered no.: 330506000002071
Legal representative: Shen Wenyu
Date of incorporation:
From internet sources, the said company is also known as Huzhou AnnGles
Textile Co., Ltd.
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 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.
SC’s management declined to release its bank details.
Balance Sheet
Unit: CNY’000
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as of Dec. 31,
2012 |
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Cash & bank |
37,370 |
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Inventory |
36,360 |
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Accounts receivable |
31,820 |
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Advances to suppliers |
0 |
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Other receivables |
38,480 |
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Other current assets |
250 |
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------------------ |
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Current assets |
144,280 |
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Fixed assets net value |
24,640 |
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Projects under construction |
30 |
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Long term investment |
0 |
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Other assets |
6,190 |
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------------------ |
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Total assets |
175,140 |
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Short loans |
48,000 |
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Notes payable |
62,350 |
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Accounts payable |
19,020 |
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Other payable |
4,020 |
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Taxes payable |
-1,500 |
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Advances from clients |
0 |
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Other current liabilities |
130 |
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Current liabilities |
132,020 |
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Long term liabilities |
2,880 |
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Total liabilities |
134,900 |
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Equities |
40,240 |
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Total liabilities & equities |
175,140 |
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Income Statement
Unit: CNY’000
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as of Dec. 31,
2012 |
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Turnover |
108,340 |
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Cost of goods sold |
98,680 |
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Sales expense |
1,250 |
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Management expense |
4,050 |
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Finance expense |
4,830 |
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Profit before tax |
-450 |
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Less: profit tax |
0 |
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Profits |
-450 |
Important Ratios
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as of Dec. 31,
2012 |
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*Current ratio |
1.09 |
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*Quick ratio |
0.82 |
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*Liabilities to assets |
0.77 |
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*Net profit margin (%) |
-0.42 |
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*Return on total assets (%) |
-0.26 |
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*Inventory /Turnover ×365 |
123 days |
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*Accounts receivable/Turnover ×365 |
108 days |
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*Turnover/Total assets |
0.62 |
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* Cost of goods sold/Turnover |
0.91 |
PROFITABILITY:
FAIR
The turnover of SC appears fairly good in its line.
SC’s net profit margin is fair in 2012.
SC’s return on total assets is fair in 2012.
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a normal level.
The inventory of SC appears fairly large in 2012.
The accounts receivable of SC appears fairly large in 2012.
SC’s short-term loan appears large in 2012.
SC’s turnover is in a fair level, comparing with the size of its total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is fairly high.
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fairly stable.
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of short loans, inventory and accounts receivable
could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.30 |
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|
1 |
Rs.97.99 |
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Euro |
1 |
Rs.83.15 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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26-40 |
B |
Capability to
overcome financial difficulties seems comparatively below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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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.