MIRA
INFORM REPORT
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Report Date : |
01.08.2014 |
IDENTIFICATION DETAILS
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Name : |
FOSHAN TEXTILES IMPORT & EXPORT CO., LTD. |
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Registered Office : |
No. 1 No.
129, |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
17.12.1984 |
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Com. Reg. No.: |
440602000066211 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in the importing and exporting commodities and
technology; processing with imported materials, processing with imported
samples, assembling with imported parts, and compensation trade in agreement,
counter trade & transit trade; importing wool; domestic trade, supplying
and selling of commodities |
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No. of Employees : |
50 |
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 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
China |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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, growth of the private sector, development of stock markets and a modern banking system, 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 considered important to "economic security," explicitly looking to foster globally competitive industries. After keeping its currency tightly linked to the US dollar for years, in July 2005 China 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 and expanded the daily trading band within which the RMB is permitted to fluctuate. 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 2013 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 consumption; (b) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and increasing numbers of college graduates; (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. Several factors are converging to slow China's growth, including debt overhang from its credit-fueled stimulus program, industrial overcapacity, inefficient allocation of capital by state-owned banks, and the slow recovery of China's trading partners. The government's 12th Five-Year Plan, adopted in March 2011 and reiterated at the Communist Party's "Third Plenum" meeting in November 2013, emphasizes continued economic reforms and the need to increase domestic consumption in order to make the economy less dependent in the future on fixed investments, exports, and heavy industry. However, China has made only marginal progress toward these rebalancing goals. The new government of President XI Jinping has signaled a greater willingness to undertake reforms that focus on China's long-term economic health, including giving the market a more decisive role in allocating resources.
|
Source
: CIA |
Company name and address
FOSHAN TEXTILES IMPORT & EXPORT CO.,
LTD.
NO. 1 NO. 129,
FENJIANG ZHONG ROAD, FOSHAN
GUANGDONG
PROVINCE 528000 PR CHINA
TEL: 86 (0)
757-83211072/83212285/83211739
FAX: 86 (0)
757-83212185
******************Note:
The given contact ways (86-757-81852936/81852937) & e-mail (info@bettertechltd.com)
belongs to Foshan bettertech Machinery Co., Ltd., and the employee refused to
release the relationship with SC.
EXECUTIVE SUMMARY
Date of Registration : DECember 17, 1984
REGISTRATION NO. : 440602000066211
LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE :
yan guoshan (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 2,860,000
staff :
50
BUSINESS CATEGORY : trading
Revenue :
CNY 1,718,829,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY 7,501,000 (AS OF DEC. 31, 2013)
E-MAIL :
N/A
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.21 = 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 limited liabilities company of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.: 440602000066211 on December 17, 1984.
SC’s Organization Code Certificate No.:
19034181-7
SC’s Tax No.: 440601190341817
SC’s registered capital: CNY 2,860,000
SC’s paid-in capital: CNY 2,860,000
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 |
|
Yan Guoshan |
13.29 |
|
Ju Boxian |
10.49 |
|
Li Xiuwen |
10.49 |
|
Liu Jian |
7.69 |
|
Wu Xiaoyong |
7.69 |
|
Chen Bohao |
5.59 |
|
Liu Qinghua |
4.2 |
|
Yue Xinglong |
4.2 |
|
Chen Xiaohua |
3.5 |
|
Liang Jieqing |
3.5 |
|
Other 22 Shareholders |
29.36 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, General Manager |
Yan Guoshan |
|
Director |
Ju Boxian |
|
Li Xiuwen |
|
|
Liu Jian |
|
|
Supervisor |
Chen Bohao |
|
Liu Qinghua |
|
|
Yue Xinglong |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Yan Guoshan 13.29
Ju Boxian 10.49
Li Xiuwen 10.49
Liu Jian 7.69
Wu Xiaoyong 7.69
Chen Bohao 5.59
Liu Qinghua 4.2
Yue Xinglong 4.2
Chen Xiaohua 3.5
Liang Jieqing 3.5
Other 22 Shareholders 29.36
MANAGEMENT
Yan Guoshan, Legal
Representative, Chairman, and General Manager
-------------------------------------------------------------------------------------------------------
Gender: M
Age: 52
ID# 440601196210031816
Qualification: University
Working experience (s):
At present, working in SC as legal representative, chairman, and general
manager
Director
------------
Ju Boxian
ID# 440602195306090310
Li Xiuwen
ID# 440601195605161813
Liu Jian
ID# 440601196205070044
Supervisor
--------------
Chen Bohao
ID# 440601195511200631
Liu Qinghua
ID# 440107195104120619
Yue Xinglong
ID# 44060119571018091X
BUSINESS OPERATION
SC’s registered business scope includes importing and exporting commodities
and technology (excluding the commodities privileged or prohibited by the
state); processing with imported materials, processing with imported samples,
assembling with imported parts, and compensation trade in agreement, counter
trade & transit trade; importing wool; domestic trade, supplying and
selling of commodities (excluding the products privileged or prohibited).
SC is mainly engaged in international trade.
SC’s products mainly include:
Textile products
Wool
Ceramic
Lighting fixture
SC sources its materials 95% from domestic market, mainly Guangdong
province, and 5% from overseas market. SC sells 10% of its products in domestic
market, and 90% to overseas market, mainly Southeast Asia.
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 Customers:
==============
World Sales Group
Tekmaq S.A.S
Industrias Guinovart Y Cia Ltda
*Major Supplier:
=============
Foshan SANFI Ceramics Co., Ltd.
Staff &
Office:
--------------------------
SC is known to have approx. 50 staff at present.
SC rents an area as its operating office, but the detailed information
is unknown.
RELATED COMPANY
SC should invest in a subsidiary, but the detailed information is not
available.
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
Basic Bank
China Construction Bank Foshan Branch
AC#: 44001668635050883813
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
1,798 |
8,385 |
|
|
Notes receivable |
0 |
0 |
|
Accounts receivable |
52,168 |
28,458 |
|
Advances to suppliers |
489,515 |
767,333 |
|
Other receivable |
42,175 |
62,219 |
|
Inventory |
329 |
295 |
|
Non-current assets within one year |
0 |
0 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
585,985 |
866,690 |
|
Fixed assets |
1,616 |
1,675 |
|
Construction in progress |
0 |
0 |
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Intangible assets |
0 |
0 |
|
Long-term prepaid expenses |
0 |
0 |
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Deferred income tax assets |
0 |
0 |
|
Other non-current assets |
1,315 |
1,347 |
|
|
------------------ |
------------------ |
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Total assets |
588,916 |
869,712 |
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|
============= |
============= |
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Short-term loans |
55,569 |
67,422 |
|
Notes payable |
11,228 |
8,930 |
|
Accounts payable |
72,030 |
58,171 |
|
Wages payable |
90 |
0 |
|
Taxes payable |
341 |
-261 |
|
Advances from clients |
442,280 |
726,696 |
|
Other payable |
766 |
1,253 |
|
Other current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Current liabilities |
582,304 |
862,211 |
|
Non-current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Total liabilities |
582,304 |
862,211 |
|
Equities |
6,612 |
7,501 |
|
|
------------------ |
------------------ |
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Total liabilities & equities |
588,916 |
869,712 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
Revenue |
928,968 |
1,718,829 |
|
Cost of sales |
-- |
1,704,949 |
|
Taxes and surcharges |
-- |
1,673 |
|
Sales expense |
-- |
1,765 |
|
Management expense |
-- |
5,645 |
|
Finance expense |
-- |
2,638 |
|
Profit before tax |
1,551 |
2,254 |
|
Less: profit tax |
0 |
0 |
|
1,551 |
2,254 |
Important Ratios
|
|
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
*Current ratio |
1.01 |
1.01 |
|
*Quick ratio |
1.01 |
1.00 |
|
*Liabilities to assets |
0.99 |
0.99 |
|
*Net profit margin (%) |
0.17 |
0.13 |
|
*Return on total assets (%) |
0.26 |
0.26 |
|
*Inventory / Revenue ×365 |
1 day |
1 days |
|
*Accounts receivable/ Revenue ×365 |
21 days |
7 days |
|
*Revenue/Total assets |
1.58 |
1.98 |
|
*Cost of sales / Revenue |
-- |
1.00 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
·
The revenue of SC appears fairly good in its line.
·
SC’s net profit margin is average.
·
SC’s return on total assets is average.
·
SC’s cost of sales is high, comparing with its
revenue.
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 small.
·
The accounts receivable of SC is maintained in an
average level.
·
SC’s short-term loans are in an average level.
·
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.
·
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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.25 |
|
|
1 |
Rs.101.92 |
|
Euro |
1 |
Rs.80.70 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
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Report Prepared
by : |
SDA |
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.