MIRA INFORM REPORT
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Report Date : |
03.09.2013 |
IDENTIFICATION DETAILS
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Name : |
KANGNAI GROUP CO., LTD. |
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Formerly Known As : |
Wenzhou Kangnai Group Co., Ltd. |
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Registered Office : |
Kangnai Industrial
Garden, China Shoes Capital Industrial Garden, Shuangyu, Wenzhou City,
Zhejiang Province, 325007 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
20.09.2000 |
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Com. Reg. No.: |
330300000022663 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in manufacturing and selling of leather shoes, leather goods, dress, underwear |
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No. of Employees : |
3,226 (including branches) |
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 : |
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 – 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 & address
KANGNAI
GROUP CO., LTD.
KANGNAI INDUSTRIAL
GARDEN, CHINA SHOES CAPITAL INDUSTRIAL GARDEN,
SHUANGYU, WENZHOU CITY,
ZHEJIANG PROVINCE, 325007 PR CHINA
TEL:
86(0)577-88755536/56891888
FAX: 86(0)577-88755537/88773829
EXECUTIVE SUMMARY
INCORPORATION DATE : SEPTEMBER 20, 2000
REGISTRATION NO. : 330300000022663
REGISTERED LEGAL
FORM : LIMITED LIABILITIES CO.
CHIEF EXECUTIVE : MR. ZHENG XIUKANG (CHAIRMAN)
STAFF STRENGTH : 3,226 (INCLUDING BRANCHES)
REGISTERED CAPITAL :
CNY 125,000,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY
1,128,380,000 (AS OF
DEC. 31, 2012)
EQUITIES : CNY
281,080,000 (AS OF DEC. 31, 2012)
PAYMENT : AVERAGE
MARKET
CONDITION : COMPETITIVE
FINANCIAL
CONDITION : FAIRLY STABLE
OPERATIONAL
TREND :
STEADY
GENERAL
REPUTATION : WELL-KNOWN
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 Ren
Min Bi
SC was registered as a limited liabilities co. at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license).
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 general
operating items: leather shoes, leather products, shoe materials, and processing,
manufacturing and selling clothes; manufacturing and selling sports shoes,
underwear and leather goods; furniture products; selling hardware &
electric material, daily use articles, general mechanical and building
materials; designing and developing computer network engineering, installing
and repairing; importing and exporting goods and technology (excluding items
prohibited by legal, administrative rules and regulations, and operating the
limited items after obtaining the permits).）
SC is mainly engaged in manufacturing and selling leather shoes.
Mr. Zheng Xiukang has been the legal representative and chairman of SC since 2000.
SC is known to have approx. 3,226 employees at present, including the ones in its branches.
SC is currently operating at the above stated address, and
this address houses its operating office and factory in the industrial zone of
Wenzhou. Our checks reveal that SC owns the total
premise about 128,000 square meters.
http://www.kangnai.com/ The design is professional and the content is
well organized. At present it is in Chinese version.
SC’s brand “Kangnai 康奈” was awarded as “Well-known trademarks in
China”, “The most competitive brand”, etc.
Changes of its registered
information:
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Date of change |
Item |
Before the change |
After the change |
|
2000-9-20 |
Registered Capital |
CNY 32,000,000 |
CNY 70,000,000 |
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Company Name |
Wenzhou Changcheng Shoes Co., Ltd. |
Wenzhou Kangnai Group Co., Ltd. |
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|
2000-12-25 |
Registered Capital |
CNY 70,000,000 |
CNY 75,000,000 |
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2001-1-11 |
Company Name |
Wenzhou Kangnai Group Co., Ltd. |
Kangnai Group Co., Ltd. |
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2008-7-11 |
Registered No. |
3303002002000 |
Present one |
|
2008-12-31 |
Shareholders and % of Shareholdings |
Wang Hongqing 0.69% Jin Ju.8% Ke Yuwei 0.8% Jin Xianyue 0.87% Xu Zhengguo 0.87% Dai Jinpeng 0.93% Dai Jinqing 0.93% Dai Jinlong 1.09% Dai Jinhua 9.07% Zheng Laili 11.73% Zheng Laiy 17.07% Zheng Xiukang 55.15% |
Dai Jinhua 9.07% Zheng Laili 11.73% Zheng Laiy 17.07% Zheng Xiukang 62.13% |
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2010-5-26 |
Registered capital |
CNY 75,000,000 |
Present amount |
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% of Shareholdings |
Dai Jinhua 9.07% Zheng Laili 11.73% Zheng Laiy 17.07% Zheng Xiukang 62.13% |
Present ones |
Organization code:
14511237-X
Tax registration number:
33030214511237-X
For the past two
years there is no record of litigation.
MAIN
SHAREHOLDERS:
Name %
of shareholdings
Zheng Laili 19.96
Dai Jinhua 13.72
Zheng Xiukang 37.28
Zheng Laiyi 29.04
Legal
representative and Chairman:
Mr. Zheng Xiukang ,
born in 1946, he is currently responsible for the overall management of SC.
Working
Experience(s):
From 2000 to present Working in SC as legal representative
and chairman;
Also
working in Wenzhou Kangnai Dress Co., Ltd., Wenzhou Kangnai Underwear Co., Ltd.
and Wenzhou Kangnai Investment Development Co., Ltd. as legal representative
and chairman
Supervisors:
Wang Hongqing
Dai Jinpeng
Jin Xianyue
Directors:
Zheng Laili
Dai Jinlong
Xu Zhengguo
Ke Yuwei
SC is mainly engaged in manufacturing and selling leather shoes.
SC’s products mainly include: leather shoes,
leather goods, dress, underwear.
Brand: Kangnai 
SC sources its materials 70% from domestic
market, and 30% from overseas markets. SC sells 60% of its products in domestic
market, and 40% to overseas market, mainly Europe, America, Southeast Asia and
Hong Kong.
The buying terms of
SC include Check, L/C, T/T and Credit of 30-60 days. The payment terms of SC
include Check, L/C, T/T, and Credit of 30-60 days.
Note: SC’s management declined
to release its major clients and suppliers.
SC is known to
invest in the following companies:
Wenzhou Kangnai
Dress Co., Ltd.
Legal
representative: Zheng Xiukang
Wenzhou Kangnai
Underwear Co., Ltd.
Legal
representative: Zheng Xiukang
Wenzhou Kangnai
Investment Development Co., Ltd.
Legal
representative: Zheng Xiukang
Guangzhou Kangchao
Shoes Co., Ltd.
Beijing Kangnai
Trading Co., Ltd.
Etc.
SC is known to have the following
branches:
Kangnai Group Co.,
Ltd. Wenzhou Branch
Kangnai Group Co.,
Ltd. Wuci Road Sales Office
Kangnai Group Co.,
Ltd. Wuma Garden Sales Office
Kangnai Group Co.,
Ltd. Shengli Road No. 2 Sales Office
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 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.
China
Construction Bank Huanglong Sub-branch
AC#:
33001628718059309353
Relationship: Normal
Note: SC’s management declined to confirm the given bank information.
Financial Information
Unit: CNY’000
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as of Dec. 31, 2012 |
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Current assets |
911,440 |
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Total liabilities |
840,810 |
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Shareholders equities |
281,080 |
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Total Assets |
1,121,890 |
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Turnover |
1,128,380 |
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Cost of goods sold |
893,860 |
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Profit before tax |
41,280 |
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Less: profit tax |
6,190 |
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Net profit |
35,090 |
Note: SC’s management declined to release
SC’s detailed financial reports for Yr2012.
Important Ratios
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as of Dec. 31, 2012 |
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*Liabilities to assets |
0.75 |
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*Net profit margin (%) |
3.11 |
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*Return on total assets (%) |
3.13 |
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*Turnover/Total assets |
1.01 |
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* Cost of goods sold/Turnover |
0.79 |
PROFITABILITY: AVERAGE
l The turnover of SC appears good in its line
in 2012.
l SC’s net profit margin appears average.
l SC’s return on total assets appears average.
l
SC’s
cost of goods sold is average, comparing with its turnover.
l
SC’s turnover
is in an average level, comparing with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt
ratio of SC is average.
l
The risk
for SC to go bankrupt is average.
Overall financial condition of the SC: Fairly
stable.
SC is considered large-sized in its line with fairly stable financial conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.65.86 |
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UK Pound |
1 |
Rs.102.52 |
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Euro |
1 |
Rs.87.06 |
INFORMATION DETAILS
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Report Prepared
by : |
MNL |
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 |
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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.