MIRA INFORM REPORT
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Report Date : |
17.12.2014 |
IDENTIFICATION DETAILS
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Name : |
WEIFANG AOFULUN WEAVING CO., LTD. |
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Registered Office : |
No. 606, Science And Technology Three Street, Economic Development Zone Of Changle County, Weifang City, Shandong Province, 262400 Pr |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
18.05.2005 |
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Com. Reg. No.: |
370725228008987 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
·
Engaged in processing, sales and
import and export business of textiles (excluding spinning), ribbon crafts, clothing
accessories (subject to license shall not operate without a license) (With
permit if needed) ·
engaged in manufacturing and
trading of Satin Ribbon, Organza Ribbon, Grosgrain Ribbon, Cutting Ribbon,
Special Ribbon, Shadai, Rib Belt, Plaid Belt, Green Onions, Printed with
Printing, Jacquard, Christmas Ribbon, Rope, Lace & Curlicue |
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No of Employees : |
68 (Approximately) |
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 : |
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 – September 30, 2014
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Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
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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
WEIFANG AOFULUN
WEAVING CO., LTD.
NO. 606, SCIENCE AND TECHNOLOGY THREE
STREET, ECONOMIC
DEVELOPMENT ZONE OF CHANGLE COUNTY, WEIFANG
CITY,
SHANDONG PROVINCE, 262400 PR CHINA
TEL: 86 (0) 536-6283570/6289570 FAX: 86 (0) 536-6289920
EXECUTIVE SUMMARY
INCORPORATION DATE : MAY 18, 2005
REGISTRATION NO. :
370725228008987
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MR. GE CHUANCHANG (LEGAL REPRESENTATIVE)
STAFF STRENGTH :
68
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER :
CNY 27,560,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 4,830,000 (AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.1909 = 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 supplied address is incomplete, and the complete address of SC is the heading one.
SC was registered as a limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on May 18, 2005.
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 processing, sales and import and
export business of textiles (excluding spinning), ribbon crafts, clothing
accessories (subject to license shall not operate without a license) (With
permit if needed)
SC is mainly engaged in manufacturing
and trading of Satin Ribbon,
Organza Ribbon, Grosgrain Ribbon, Cutting Ribbon, Special Ribbon, Shadai,
Rib Belt, Plaid Belt, Green Onions, Printed with Printing, Jacquard, Christmas
Ribbon, Rope, Lace & Curlicue
Mr. Ge Chuanchang
is legal representative, executive director and general manager of SC at present.
SC is known to
have approx. 68 employees at
present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the economic development zone of Changle.
Detailed premise information is not available at present.
www.aofulun.com The design is
professional and the content is well organized. At present it is in English and
Chinese versions.
Email:
sales@aofulun.com
For the past two years there is no record of litigation.
No significant changes were found during our
checks with the local Administration for Industry and Commerce.
Subject passed the
annual inspection of 2012 with Administration for Industry & Commerce.
Organization Code:
775297276
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Ge Chuanchang 80
Guo Mingshun 20
Legal
Representative, Executive Director and General Manager:
Mr. Ge Chuanchang is currently responsible for the overall and daily management of SC.
Working
Experience(s):
At present Working
in SC as legal representative, executive director and general manager.
Supervisor:
Guo Mingshun
engaged in manufacturing
and trading of Satin Ribbon, Organza
Ribbon, Grosgrain Ribbon, Cutting Ribbon, Special Ribbon, Shadai, Rib
Belt, Plaid Belt, Green Onions, Printed with Printing, Jacquard, Christmas
Ribbon, Rope, Lace & Curlicue
SC’s products
mainly include: satin ribbon, organza ribbon, grosgrain ribbon, cutting ribbon,
special ribbon
SC sources its materials 100% from domestic
market. SC sells 85% of its products to domestic market, and 15% to overseas
market.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
Note:
SC declined to release its major suppliers and clients.
According
to the website:
Changle
Shida Changsheng Chemical Co., Ltd.
=============================
Incorporation Date: 2005-3-8
Registration No.: 370725228008577
Registered
capital: CNY 80,000,000
Legal
representative: Guo Mingwen
Tel.:
86 (0) 536-6286999/6286989
Fax:
86 (0) 536-6289370/6281595
E-mail:
sales@aofulun.com
Website:
www.aofulun.com
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 Changle Sub-branch
AC#: 37001678108050150997
Relationship:
Note: According to SC’s accountant, the supplied bank information (China Construction Bank Weifang Branch and bank account number- 37014674700220147808) is incorrect. And the correct bank information is the above one.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2013 |
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Cash & bank |
2,270 |
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Inventory |
6,340 |
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Accounts
receivable |
440 |
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Other
receivables |
30 |
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Prepaid expenses |
90 |
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------------------ |
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Current assets |
9,170 |
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Fixed assets net
value |
12,300 |
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------------------ |
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Total assets |
21,470 |
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=========== |
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Short loans |
10,000 |
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Accounts payable |
4,130 |
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Taxes payable |
30 |
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Other accounts payable |
2,470 |
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Note payable |
0 |
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Payroll payable |
10 |
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Current
liabilities |
16,640 |
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Long term
liabilities |
0 |
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Total
liabilities |
16,640 |
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Equities |
4,830 |
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Total
liabilities & equities |
21,470 |
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Income Statement
Unit: CNY’000
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As of Dec. 31,
2013 |
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Turnover |
27,560 |
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Cost of goods
sold |
25,360 |
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Taxes and
additional of main operation |
20 |
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Sales expense |
110 |
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Management expense |
1,600 |
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Finance expense |
450 |
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Non-operating
income |
0 |
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Non-operating expense |
10 |
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Profit before
tax |
10 |
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Less: profit tax |
0 |
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Profits |
10 |
Important
Ratios
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As
of Dec. 31, 2013 |
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*Current ratio
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0.55 |
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*Quick ratio |
0.17 |
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*Liabilities
to assets |
0.78 |
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*Net profit
margin (%) |
0.04 |
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*Return on
total assets (%) |
0.05 |
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*Inventory
/Turnover ×365 |
84 days |
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*Accounts receivable/Turnover
×365 |
6 days |
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*Turnover/Total
assets |
1.28 |
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* Cost of
goods sold/Turnover |
0.92 |
PROFITABILITY:
AVERAGE
l The turnover of SC appears average in its line.
l SC’s net profit
margin is average.
l SC’s return on
total assets is average.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a poor level.
l
The inventory of SC appears fairly large.
l
The accounts receivable of SC appears small.
l
SC’s short loans are large in 2013.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered small-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 situation.
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.41 |
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UK Pound |
1 |
Rs.99.30 |
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Euro |
1 |
Rs.79.00 |
INFORMATION DETAILS
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Analysis Done by
: |
SUB |
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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.