MIRA
INFORM REPORT
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Report Date : |
06.02.2014 |
IDENTIFICATION DETAILS
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Name : |
NINGBO QIYUE TEXTILES CO., LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
17.08.2011 |
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Com. Reg. No.: |
330212000265196 |
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Legal Form : |
One-Person Limited
Liabilities Company |
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Line of Business : |
Subject scope includes manufacturing, processing, wholesaling and retailing textile; importing and exporting commodities and technology. |
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No. of Employees : |
40 |
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 |
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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, 2013
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Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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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
NINGBO QIYUE TEXTILES
CO., LTD.
(ALSO KNOWN AS Qiyue (Ningbo) Textile Co., Ltd.)
PINGTANG INDUSTRIAL PARK, DONGWU TOWN, YINZHOU AREA
NINGBO, ZHEJIANG PROVINCE 315030 PR CHINA
TEL: 86 (0) 574-83086072/89057060
FAX: 86 (0) 574-88249225
EXECUTIVE SUMMARY
Date of Registration : august 17, 2011
REGISTRATION NO. : 330212000265196
LEGAL FORM : one-person Limited liabilities company
CHIEF EXECUTIVE : wen hongyan (LEGAL
REPRESENTATIVE)
REGISTERED CAPITAL :
cny 2,000,000
staff : 40
BUSINESS CATEGORY :
manufacturing & processing & trading
Revenue : CNY 108,060,000 (AS OF DEC. 31, 2013)
EQUITIES : CNY 1,320,000 (AS OF DEC. 31, 2013)
WEBSITE : www.caikingdom.com
PAYMENT : AVERAGE
MARKET CONDITION : fair
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND :
ORDINARY
GENERAL REPUTATION : average
EXCHANGE RATE : CNY 6.06 = 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 one-person limited liabilities company of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 330212000265196 on August 17, 2011.
SC’s Organization
Code Certificate No.: 58052266-4
SC’s Tax No.:
330227580522664
SC’s registered
capital: cny 2,000,000
SC’s paid-in
capital: cny 2,000,000
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:-
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Name of Shareholder (s) |
% of Shareholding |
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Wen Hongyan |
100 |
SC’s Chief Executives:-
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Position |
Name |
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Legal Representative, Chairman and General Manager |
Wen Hongyan |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
Wen Hongyan 100
MANAGEMENT
Wen Hongyan , Legal Representative, Chairman and General Manager
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Gender: F
Working experience (s):
At present, working in SC as legal representative, chairman and general manager
BUSINESS OPERATION
SC’s registered business scope includes manufacturing, processing, wholesaling and retailing textile; importing and exporting commodities and technology.
SC is mainly engaged in manufacturing, processing and selling textiles.
SC’s products mainly include:
Cotton yarn
Regenerated yarn
Recycled yarn
OE yarn
Weaving yarn
Knitting yarn
Socks yarn
Gloves yarn
Mop yarn
Towel yarn
Fabric yarn
Carpet yarn (blanket yarn)
Jeans yarn/denim yarn
Hosiery yarn
Twisted yarn
Blended yarn
Melange yarn
Colored yarn
SC sources its products 100% from domestic market. SC sells 30% of its products in domestic market, and 70% to overseas market, mainly Europe, Australia, Africa, Middle East, and Southeast Asia.
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.
Main customers are Gap, ZARA, Ann taylor, M&S, Kappa, Adidas, Chesapeake textiles Company Inc, Impextor kft, Jsc Volga textile company.
Staff & Office:
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SC is known to have approx. 40 staff at present.
SC rents an area as its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
According to SC’s
website,
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Cai Kingdom (Hongkong) Investment Holding Company Limited
CR No.: 1908957
Date of Registration: May 16, 2013
Legal Form: Private
Status: Live
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
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Unit: CNY’000 |
As of Dec. 31, 2013 |
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1,320 |
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Notes receivable |
0 |
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Accounts receivable |
15,760 |
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Advances to suppliers |
0 |
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Other receivable |
-18,410 |
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Inventory |
12,810 |
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Non-current assets within one year |
0 |
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Other current assets |
20 |
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------------------ |
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Current assets |
11,500 |
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Fixed assets |
7,270 |
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Construction in progress |
0 |
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Intangible assets |
0 |
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Long-term investment |
0 |
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Deferred income tax assets |
0 |
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Other non-current assets |
30 |
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Total assets |
18,800 |
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============= |
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Short-term loans |
0 |
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Notes payable |
0 |
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Accounts payable |
17,480 |
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Welfares payable |
0 |
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Taxes payable |
0 |
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Advances from clients |
0 |
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Other payable |
-1 |
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Other current liabilities |
1 |
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Current liabilities |
17,480 |
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Non-current liabilities |
0 |
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Total liabilities |
17,480 |
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Equities |
1,320 |
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Total liabilities & equities |
18,800 |
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Income Statement
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Unit: CNY’000 |
As of Dec. 31, 2013 |
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Revenue |
108,060 |
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Profit before tax |
-680 |
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Less: profit tax |
0 |
|
-680 |
Important Ratios
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As of Dec. 31, 2013 |
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*Current ratio |
0.66 |
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*Quick ratio |
-0.07 |
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*Liabilities to assets |
0.93 |
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*Net profit margin (%) |
-0.63 |
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*Return on total assets (%) |
-3.62 |
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*Inventory / Revenue ×365 |
44 days |
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*Accounts receivable / Revenue ×365 |
54 days |
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*Revenue / Total assets |
5.75 |
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*Cost of sales / Revenue |
-- |
FINANCIAL COMMENTS
PROFITABILITY: FAIR
The revenue of SC appears fairly good in its line.
SC’s net profit margin is fair.
SC’s return on total assets is fair.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level.
The inventory of SC appears average.
The accounts receivable of SC appears average.
SC has no short-term loans.
SC’s revenue is in a fairly good 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 above average.
Overall financial condition of the SC: Fair.
CONCLUSIONS
SC is considered small-sized in its line with fair financial conditions
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.62.45 |
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1 |
Rs.102.01 |
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Euro |
1 |
Rs.84.35 |
INFORMATION DETAILS
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Report Prepared
by : |
NIS |
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 |
-- |
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.