MIRA INFORM REPORT
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Report Date : |
05.12.2014 |
IDENTIFICATION DETAILS
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Name : |
DEZHOU YUANJI TEXTILE CO., LTD. |
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Registered Office : |
No. 16 Shunhe West Road, Dezhou, Shandong Province, 253002 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
10.03.1993 |
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Com. Reg. No.: |
371400400000371 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Subject is mainly engaged in manufacturing, processing and selling
textiles. |
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No of Employees : |
1,100 |
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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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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, 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.
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Source
: CIA |
COMPANY
NAME & ADDRESS
DEZHOU YUANJI TEXTILE
CO., LTD.
NO. 16 SHUNHE WEST ROAD, DEZHOU, SHANDONG PROVINCE, 253002 PR CHINA
TEL: 86 (0) 534-2421749
FAX: 86 (0) 534-2423578
EXECUTIVE
SUMMARY
INCORPORATION DATE :
MARCH 10, 1993
REGISTRATION NO. :
371400400000371
REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE
STAFF STRENGTH : 1,100
REGISTERED CAPITAL : USD 27,970,500
BUSINESS LINE :
MANUFACTURING, PROCESSING, TRADING
TURNOVER :
CNY 261,460,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY 288,540,000 (AS OF DEC. 31,
2013)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.153 = 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 wholly foreign-owned enterprise at local
Administration for industry & commerce (AIC - the official body of issuing
and renewing business license).
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 manufacturing, processing raw cotton chemical fiber spinning, weaving, dyeing and finishing, garment and related products; selling self-made products.
SC is mainly engaged in manufacturing, processing and selling textiles.
Mr. Xu Yuanhao is legal representative and chairman of SC at present.
SC is known to have approx. 1,100 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 Dezhou. SC’s employee refused to release the detailed information of the premise.
http://www.yuanjitex.com/ The design is professional and the content is
well organized. At present it is in both Chinese and English versions.
Email: postmaster@yuanjitex.com
SC has passed ISO9000, ISO14000, OHSMS18000, etc. Yuanji has been named
one after another "Trustworthy Enterprise in settlement of Exchange"
by the Foreign Exchange Management Bureau, "Class AA Enterprise" by
the Customs, and approved to establish bonded warehouse by the Headquarter of
the Customs, "Class I Inspection Supervision Enterprise for Exporting
Products" by Import & Export Inspection & Quarantine Bureau, and
one of "500 Top Enterprises Investing in the Mainland of China from Hong
Kong, Macao and Taiwan".
No significant changes were found during our
checks with the local AIC.
Subject passed the annual inspection of 2012
with Administration for Industry & Commerce.
Organization Code: 613870324
See below for SC as executive party (defendant).
|
Executed Party |
SC |
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Court |
Dezhou Decheng District People's Court |
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Date
of Case |
2009-08-31 |
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Case Number |
(2009) 00991 |
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Claim
Amount |
RMB 7,416 |
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Case
Status |
Completed |
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Executed Party |
SC |
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Court |
Dezhou Decheng District People's Court |
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Date
of Case |
2009-07-28 |
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Case Number |
(2009) 00836 |
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Claim
Amount |
RMB 4,016 |
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Case
Status |
Completed |
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
Weilong Limited (U.K.) (in Chinese pinyin) 100
l
Legal
Representative and Chairman:
Mr. Xu Yuanhao is currently responsible for the overall management of
SC.
Working Experience(s):
At present Working
in SC as legal representative and chairman.
l
General Manager:
Lai Yinshui is currently responsible for the daily management of SC.
Working Experience(s):
At present Working
in SC as general manager.
l
Directors:
Lai Yinshui
Jiang Yucheng
Qi Weigong
Zhang Yanning
Lai Zongren
Zhang Yucai
SC is mainly engaged
in manufacturing, processing and selling textiles.
SC’s products mainly include:
high-/middle-grade denim fabric in various specification of slub, tretch,
sulphur, overdyed, mercerized, coating, etc.
The production scale includes: 21384
cotton-spinning spindles, 440 of open-end spinning rotors, 192 looms, 1 set of
dyeing & sizing machine and two 24-rope dyeing machine, one set of
mercerizing & desizing machine.
SC sources its materials 50% from domestic market,
and 50% from overseas market. SC sells 50% of its products in domestic market,
and 50% to overseas market.
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 refused to release its
main suppliers and clients.
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TRADEMARKS & PATENTS |
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Registration No. |
5861318 |
5861317 |
6445419 |
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Registration Date |
Jan. 21, 2010 |
Jan. 28, 2010 |
May
28, 2010 |
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Trademark Design |
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SC is known to
invest in the following companies:
Dezhou Yuanmao Textile Co., Ltd.
======================
Registration no.: 370000400004902
Legal representative: Qi Weigong
Incorporation date: 2007-10-22
Shanghai Imperial Textile Design Co., Ltd.
=============================
Registration no.: 310000400368903
Legal representative: Jian Lianfeng
Incorporation date: 2004-1-13
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 declined to
release its banking details.
Balance Sheet
Unit: CNY’000
|
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As of Dec. 31, 2013 |
|
45,640 |
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Bills receivable |
16,580 |
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Inventory |
142,550 |
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Accounts receivable |
55,070 |
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Other Accounts receivable |
6,590 |
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Advances to suppliers |
16,900 |
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Dividends receivable |
0 |
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Other current assets |
0 |
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|
------------------ |
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Current assets |
283,330 |
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Fixed assets net value |
152,300 |
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Projects under construction |
1,930 |
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Long term investment |
29,470 |
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Investment real estate |
29,330 |
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Intangible and other assets |
6,370 |
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Deferred tax asset |
2,020 |
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------------------ |
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Total assets |
504,750 |
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============= |
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Short-term loans |
194,830 |
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Bills payable |
0 |
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Accounts payable |
12,510 |
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Advances from clients |
620 |
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Accrued payroll |
7,260 |
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Tax payable |
-2,280 |
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Other Accounts payable |
2,950 |
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Interest payable |
320 |
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Other current liabilities |
0 |
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------------------ |
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Current liabilities |
216,210 |
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Long term liabilities |
0 |
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------------------ |
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Total liabilities |
216,210 |
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Equities |
288,540 |
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------------------ |
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Total liabilities & equities |
504,750 |
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============= |
Income Statement
Unit: CNY’000
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|
As of Dec. 31,
2013 |
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Turnover |
261,460 |
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Cost of goods sold |
238,140 |
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Taxes and additional of main operation |
2,650 |
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Sales expense |
10,610 |
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Management expense |
25,960 |
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Finance expense |
3,340 |
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Profit before
tax |
-23,630 |
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Less: profit tax |
1,110 |
|
Profits |
-24,740 |
Important Ratios
=============
|
|
As
of Dec. 31, 2013 |
|
*Current ratio |
1.31 |
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*Quick ratio |
0.65 |
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*Liabilities
to assets |
0.43 |
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*Net profit
margin (%) |
-9.46 |
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*Return on
total assets (%) |
-4.90 |
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*Inventory
/Turnover ×365 |
199 days |
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*Accounts
receivable/Turnover ×365 |
77 days |
|
*Turnover/Total
assets |
0.52 |
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* Cost of
goods sold/Turnover |
0.91 |
PROFITABILITY:
FAIR
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin remains in a fair level.
l
SC’s return on total assets remains in a fair
level.
l
SC’s cost of goods sold is fairly high, comparing
with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears fairly large.
l
The accounts receivable of SC appears average.
l
SC’s short-term loan appears large in 2013.
l
SC’s turnover is in a fair level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is low.
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. The large amount of inventory
and short loans could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.88 |
|
|
1 |
Rs.97.02 |
|
Euro |
1 |
Rs.76.13 |
INFORMATION DETAILS
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Analysis Done by
: |
RAS |
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Report Prepared
by : |
SMN |
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 |
|
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.