MIRA INFORM REPORT
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Report Date : |
16.09.2013 |
IDENTIFICATION DETAILS
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Name : |
NANTONG RISINGSUN TEXTILE CO., LTD. |
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Registered Office : |
Chengnan Industrial Park, Juegang Town, Rudong County,
Nantong City, Jiangsu Province, 226400 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
18.03.2004 |
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Com. Reg. No.: |
320600400009217 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
manufacturer and sale
of fabric including Ingrey, dyed or imprinted fabrics made of cotton, linen,
ramie, bamboo fibre, metallic fabric, polyester, silk, and cotton-silk
materials.. |
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No. of Employees : |
300 |
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 : |
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
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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
NANTONG RISINGSUN
TEXTILE CO., LTD.
Chengnan
industrial park, Juegang Town, Rudong
COUNTY,
NANTONG CITY,
JIANGSU PROVINCE, 226400 PR CHINA
TEL: 86 (0)
513-85229368/83582730/68921151 FAX: 86
(0) 513-83582901
EXECUTIVE SUMMARY
INCORPORATION DATE : MARCH 18, 2004
REGISTRATION NO. : 320600400009217
REGISTERED LEGAL
FORM : Wholly foreign-owned enterprise
STAFF
STRENGTH : 300
REGISTERED CAPITAL :
USD 12,060,000
BUSINESS LINE : manufacturing AND
SALES
TURNOVER : CNY 260,940,000
(AS
OF DEC. 31, 2012)
EQUITIES : CNY
79,860,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.1213 = 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: The (5/F, Yatai Building No.5, Gongnong Road, Nantong City, PR China) is also SC’s operating office.
SC was registered as a wholly foreign-owned enterprise at
local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on
March 18, 2004.
Company Status: Wholly foreign-owned enterprise This form of business in PR China is defined as a legal
person. It is a limited co. established within the territories of PR China
with capital provided totally by the foreign investors. More than one
foreign investor may jointly invest in a wholly foreign-owned enterprise.
The investing party/parties solely exercise management, reap profit and
bear risks and liabilities by themselves. This form of companies usually
have a limited duration is extendible upon approval of Examination and
Approval Authorities.
SC’s registered business scope includes manufacture and sales of gray fabrics,
high-grade fabric; sizing processing.
SC is mainly engaged in manufacturing and sales of fabric textiles.
Mr. Ding Jubing is
chairman, legal representative and general manager of SC at present.
SC is
known to have approx. 300 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 Nantong. Our
checks reveal that SC owns the premise about 32,000 square meters.
SC is not known to host website of its own at present.
See below for SC as executive party (defendant):
|
Executed
Party |
Nantong
Risingsun Textile Co., Ltd. |
|
Court |
Nantong
City Rudong County People's Court |
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Date of Case |
June 4, 2008 |
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Case
Number |
(2008)
01288 |
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Claim Amount |
RMB 80,066 |
|
Case Status |
Completed |
Remark: Due to the lack of information, we
are unable to provide the cause of action, judgment or other information.
No significant changes were found during our checks
with the provincial Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Chun Shing Piece Goods Ltd. (Hong Kong) 100
Chun Shing Piece Goods Ltd. is engaged in wholesale
and retail of dyed and printed fabrics to customers in Hong Kong, China, Asia,
North America and Europe. It has retail outlets in Hong Kong and Canton, China.
Chun Shing Piece Goods Ltd. has its own
modern manufacturing and research facilities in mainland China. It is capable
to fulfill large custom orders in a short period of time.
Chun Shing Piece Goods Ltd. offers more than
1,300 products of Ingrey, dyed or imprinted fabrics made of cotton, linen,
ramie, bamboo fibre, metallic fabric, polyester, silk, and cotton-silk
materials. It has a wide base of customers in North America, Europe and Asia.
Incorporation Date: December 5, 1996
Registration No.: 0578456
Company Status: Private
Active Status: Live
Address: G/F, 91 Yu Chau St, Sham Shui Po,
Kowloon, Hong Kong
Tel: (852) 27490080
Fax: (852) 23957859 / 23987192
Website: http://chunshing.com/
Email: cs@chunshing.com
Chairman, Legal
Representative and General Manager:
Mr. Ding Jubing, ID# 32062319700330XXXX, born in 1970. He is currently
responsible for the overall and management of SC.
Working
Experience(s):
At present Working
in SC as chairman, legal representative and general manager.
Also working in
Nantong Ruisheng Textile Co., Ltd. as legal representative.
Directors:
Lu Suhua ID#
320602701103XXX, born in 1970
Liang Quqian ID# K218479(6)
Supervisor:
Shen Yongjun ID# 32062319680826XXXX, born in
1968
SC is mainly engaged in manufacturing and sales of fabric.
SC’s products
mainly include Ingrey, dyed or imprinted fabrics made of cotton, linen, ramie,
bamboo fibre, metallic fabric, polyester, silk, and cotton-silk materials..
SC sources its materials 95% from domestic
market, and 5% from overseas market. SC sells 60% of its products in domestic
market, and 40% to overseas market, mainly Japan, South Korea, Hong Kong,
Southeast Asia, etc.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include T/T, L/C and Credit of 30-60 days.
Note: SC declined to release its major
suppliers and clients.
Nantong Ruisheng Textile Co., Ltd. (Literal translation)
Legal Representative: Mr. Ding Jubing
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’s suppliers
declined to make any comments.
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.
Industrial and Commercial Bank of China Rudong County Renmin Road
Sub-branch
Account number:
N/A
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
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As
of Dec. 31, 2012 |
|
Cash & bank |
4,250 |
|
Inventory |
20,590 |
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Accounts
receivable |
37,750 |
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Advances to
suppliers |
4,220 |
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Prepaid expenses |
70 |
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Other
receivables |
1,980 |
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Other current
assets |
0 |
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|
------------------ |
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Current assets |
68,860 |
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Fixed assets net
value |
38,930 |
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Long term
investment |
30,440 |
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Projects under
construction |
790 |
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Intangible and
other assets |
2,630 |
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------------------ |
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Total assets |
141,650 |
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=========== |
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Short loan |
32,000 |
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Accounts payable |
14,330 |
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Advances from
customers |
8,270 |
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Taxes payable |
-1,220 |
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Accrued Expenses |
340 |
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Employee salary
payable |
1,100 |
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Notes Payable |
1,200 |
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Other Accounts
payable |
5,770 |
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Other current liabilities |
0 |
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Current
liabilities |
61,790 |
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Long term
liabilities |
0 |
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------------------ |
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Total
liabilities |
61,790 |
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Equities |
79,860 |
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------------------ |
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Total
liabilities & equities |
141,650 |
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=========== |
Income Statement
Unit: CNY’000
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As of Dec. 31,
2012 |
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Turnover |
260,940 |
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Cost of goods
sold |
236,950 |
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Taxes and additional of main operation |
500 |
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Sales expense |
7,000 |
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Management expense |
4,640 |
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Finance expense |
1,450 |
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Non-operating
income |
0 |
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Non-operating expense |
70 |
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Profit before
tax |
10,330 |
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Less: profit tax |
2,580 |
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Profits |
7,750 |
Important
Ratios
=============
|
|
As
of Dec. 31, 2012 |
|
*Current
ratio |
1.11 |
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*Quick
ratio |
0.78 |
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*Liabilities
to assets |
0.44 |
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*Net
profit margin (%) |
2.97 |
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*Return
on total assets (%) |
5.47 |
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*Inventory
/Turnover ×365 |
29days |
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*Accounts
receivable/Turnover ×365 |
53days |
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*Turnover/Total
assets |
1.84 |
|
*
Cost of goods sold/Turnover |
0.91 |
PROFITABILITY:
FAIRLY GOOD
· The turnover of SC appears fairly good in its line.
· SC’s net profit margin is average.
· SC’s return on total assets is fairly good.
· SC’s cost of goods sold is average.
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 average.
· The accounts receivable of SC is maintained in an average level.
· SC’s short loans are average in 2012.
· SC’s turnover is in an average level, comparing with the size of its total assets.
LEVERAGE: AVERAGE
· The debt ratio of SC is low.
· The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
SC is considered medium-sized in its line with stable financial
conditions
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.79 |
|
UK Pound |
1 |
Rs.100.70 |
|
Euro |
1 |
Rs.84.67 |
INFORMATION DETAILS
|
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 |
|
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 |
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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 |
|
<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.