MIRA INFORM REPORT
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Report Date : |
11.09.2013 |
IDENTIFICATION DETAILS
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Name : |
JIAXING FUDA CHEMICAL FIBRE FACTORY |
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Registered Office : |
Zhulinji Town, Xinfeng Town, Nanhu District, Jiaxing Zhejiang
Province 314005 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
20.06.2000 |
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Com. Reg. No.: |
330402000004514 |
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Legal Form : |
Shares Jointly Owned Enterprise |
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Line of Business : |
Subject is engaged in manufacturing & selling nylon fibers, and
polyester staple fiber. |
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No. of Employees : |
250 |
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 : |
Satisfactory |
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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
|
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
JIAXING FUDA CHEMICAL FIBRE
FACTORY
ZHULINJI TOWN, XINFENG TOWN, NANHU DISTRICT, JIAXING ZHEJIANG PROVINCE
314005 PR CHINA
TEL: 86 (0) 573-83123666/83122261/83121968
FAX: 86 (0) 573-83122538
EXECUTIVE SUMMARY
Date of Registration : jUNE 20, 2000
REGISTRATION NO. : 330402000004514
LEGAL FORM : Shares jointly owned enterprise
CHIEF EXECUTIVE :
TANG SHAOFU (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 24,000,000
staff :
250
BUSINESS CATEGORY : MANUFACTURING
& TRADING
Revenue :
CNY 234,040,000 (AS OF DEC. 31,
2012)
EQUITIES :
CNY 31,480,000 (AS OF DEC. 31, 2012)
WEBSITE : www.fuda-fiber.com
E-MAIL :
info@fudafiber.com
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : ordinary
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 6.12 = 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 Shares jointly owned enterprise of PRC with
State Administration of Industry & Commerce (SAIC) under registration No.: 330402000004514 on June 20, 2000.
SC’s Organization Code Certificate No.:
72279087-6
SC’s registered capital: CNY 24,000,000
SC’s paid-in capital: CNY 24,000,000
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 |
|
Tang Shaofu |
72.114 |
|
Xu Xueming |
9.49 |
|
Jiang Qinle |
4.38 |
|
Zhang Desen |
4.38 |
|
Gu Yuming |
4.38 |
|
Wu Yunliang |
4.38 |
|
Xu Wenfeng |
0.876 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Tang Shaofu |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Tang Shaofu 72.114
Xu Xueming 9.49
Jiang Qinle 4.38
Zhang Desen 4.38
Gu Yuming 4.38
Wu Yunliang 4.38
Xu Wenfeng 0.876
MANAGEMENT
Tang Shaofu, Legal Representative, Chairman and General
Manager
-----------------------------------------------------------------------------------------------------
Gender: M
Qualification: University
Working experience (s):
At present, working in SC as legal representative, chairman and general
manager
Also working in Jiaxing Fulin Chemical Fiber Co., Ltd. as legal
representative
BUSINESS OPERATION
SC’s registered business scope includes manufacturing & selling nylon
fibers, polyester staple fiber.
SC is mainly engaged in manufacturing & selling nylon fibers, and
polyester staple fiber.
SC’s products mainly include: Polyester Staple Fiber, Polyester Tow and
Nylon, etc.
SC sources its materials 90% from domestic market, and 10% from overseas
market. SC sells 50% of its products in domestic market, and 50% 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.
Staff &
Office:
--------------------------
SC is known to have approx. 250
staff at present.
SC owns an area as its operating office and factory, but the detailed
information is unknown.
RELATED COMPANY
Jiaxing Fulin Chemical Fiber Co., Ltd.
----------------------
Registration No.: 330402000014397
Registered Capital: CNY 2,700,000
Legal Representative: Tang Shaofu
SC is known to
invest in the following company,
Jiaxing Fushun Renewable Resources Co., Ltd.
--------------------------
Registration No.: 330402000026226
Registered Capital: CNY 19,000,000
Legal Representative: Gu Yuming
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,
2011 |
As of Dec. 31,
2012 |
|
18,280 |
26,110 |
|
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Notes receivable |
2,550 |
9,640 |
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Accounts receivable |
12,450 |
18,650 |
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Subsidy receivable |
220 |
0 |
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Advances to suppliers |
7,460 |
21,180 |
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Other receivable |
920 |
820 |
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Inventory |
49,960 |
48,020 |
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Deferred expenses |
70 |
50 |
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Other current assets |
10 |
0 |
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------------------ |
------------------ |
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Current assets |
91,920 |
124,470 |
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Long-term investment |
1,900 |
1,900 |
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Fixed assets |
44,420 |
45,760 |
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Construction in progress |
4,020 |
2,970 |
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Intangible assets |
80 |
80 |
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Long-term prepaid expenses |
0 |
0 |
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Deferred income tax assets |
0 |
0 |
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Other non-current assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
142,340 |
175,180 |
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|
============= |
============= |
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Short-term loans |
83,360 |
79,630 |
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Notes payable |
11,000 |
11,300 |
|
Accounts payable |
8,340 |
9,750 |
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Wages payable |
0 |
0 |
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Taxes payable |
-1,200 |
-3,440 |
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Advances from clients |
0 |
0 |
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Other payable |
9,580 |
46,450 |
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Other current liabilities |
20 |
10 |
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------------------ |
------------------ |
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Current liabilities |
111,100 |
143,700 |
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Non-current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total liabilities |
111,100 |
143,700 |
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Equities |
31,240 |
31,480 |
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------------------ |
------------------ |
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Total liabilities & equities |
142,340 |
175,180 |
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Income Statement
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Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Revenue |
128,100 |
234,040 |
|
Cost of sales |
115,570 |
218,370 |
|
Taxes and surcharges |
720 |
190 |
|
Sales expense |
2,980 |
3,620 |
|
Management expense |
3,600 |
4,180 |
|
Finance expense |
5,560 |
8,960 |
|
Subsidy income |
620 |
570 |
|
Non-operating income |
0 |
0 |
|
Non-operating expense |
20 |
50 |
|
Profit before tax |
1,190 |
640 |
|
Less: profit tax |
300 |
170 |
|
890 |
470 |
Important Ratios
=============
|
|
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
*Current ratio |
0.83 |
0.87 |
|
*Quick ratio |
0.38 |
0.53 |
|
*Liabilities to assets |
0.78 |
0.82 |
|
*Net profit margin (%) |
0.69 |
0.20 |
|
*Return on total assets (%) |
0.63 |
0.27 |
|
*Inventory / Revenue ×365 |
142 days |
75 days |
|
*Accounts receivable/ Revenue ×365 |
35 days |
30 days |
|
* Revenue/Total assets |
0.90 |
1.34 |
|
* Cost of sales / Revenue |
0.90 |
0.93 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears fairly good, and it was rising in 2012.
SC’s net profit margin is average in both years.
SC’s return on total assets is average in both years.
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level.
SC’s quick ratio is maintained in a fair level.
The inventory of SC appears large.
The accounts receivable of SC is maintained in an average level.
SC’s short-term loans appear large.
SC’s revenue is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIR
The debt ratio of SC is fairly high in both years.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions. The 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.64.21 |
|
|
1 |
Rs.100.82 |
|
Euro |
1 |
Rs.85.21 |
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 |
|
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 |
|
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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.