MIRA
INFORM REPORT
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Report Date : |
10.02.2014 |
IDENTIFICATION DETAILS
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Name : |
qingdao labas textile co., ltd. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
12.11.1999 |
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Com. Reg. No.: |
370214400016006 |
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Legal Form : |
Chinese-Foreign
Equity Joint Venture |
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Line of Business : |
Subject includes manufacturing pajamas, household
textiles, artex products, toys, garments and sofas, computer integrated
manufacturing system using garment production |
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No. of Employees : |
320 |
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 : |
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 – 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
qingdao labas
textile co., ltd.
no. 615 chuncheng
road, chengyang district, qingdao,
shandong PROVINCE,
266109 PR CHINA
TEL: 86 (0)
532-80901607/ 18660286138
FAX: 86 (0)
532-80901688
EXECUTIVE SUMMARY
INCORPORATION DATE : october 12, 1999
REGISTRATION NO. : 370214400016006
REGISTERED LEGAL FORM
: Chinese-foreign equity joint venture enterprise
CHIEF EXECUTIVE : MR. wang keqi (CHAIRMAN)
STAFF STRENGTH : 320
REGISTERED CAPITAL :
usd 2,000,000
BUSINESS LINE : manufacturing &
selling
TURNOVER : CNY 98,850,000
(AS OF DEC. 31, 2012)
EQUITIES : CNY
142,830,000 (AS OF DEC. 31, 2012)
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND :
fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.06 = 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 Chinese-foreign equity joint venture enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on October 12, 1999.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered business scope includes manufacturing pajamas, household textiles, artex products, toys, garments and sofas, computer integrated manufacturing system using garment production (excluding export license and quota management of goods and may not re-export restrictions countries and regions, products 70% export to overseas market). (with permit if needed).
SC is mainly engaged in manufacturing and selling textiles.
Mr. Wang Keqi is the legal representative, chairman and general manager of SC at present.
SC is known to have approx. 320 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 Qingdao. Our checks reveal that SC owns the total premise, but the detailed information of the premise is unspecified.
http://www.labas.com.cn This website belongs to Qingdao Labas Textile Group and also including the information of SC. The design is professional and the content is well organized. At present the web site is both in Chinese and English versions.
E-mail: lydia@labas.cn
SC passed certifications of ISO9001 quality management system, ISO14001 environment management system and OHSAS18001occupational health and safety management system. In addition, SC passed certifications of world-class corporations, such as IKEA and TAGAT.
Changes of its registered information are as follows:
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Date of change |
Item |
Before the change |
After the change |
|
Unspecified |
Registration No. |
001600 |
Present one |
|
2008-8 |
Registered Capital |
USD 120,000 |
Present amount |
Subject passed the annual inspection of 2012 with Administration for Industry & Commerce.
Organization Code: 718002961
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name Amount (USD) % of Shareholding
Qingdao Labas Industrial Co., Ltd. 1,166,040 58.302
Hong Kong Xinghong International
Trade Company (literal translation) 833,960 41.698
Qingdao Labas Industrial Co., Ltd.:
==========================
Registration No.: 370200228051228
Incorporation Date: 1998-09-29
Chairman: Wang Keqi
Registered Capital: CNY 6,000,000
Tel: +86-532-80901666/80901629/80901661
Fax: +86-532-80901611/80901688/8090169
E-Mail: barry@labas.cn
Add.: 28th Floor, Inter Royal Building, No. 15, Donghai West Road, Qingdao, China
Legal Representative, Chairman and General Manager:
Mr. Wang Keqi, in his 50’s, with university education. He is currently responsible for the overall and daily management of SC.
Working Experience(s):
At present Working
in SC as legal representative, chairman and general manager.
Also working in Qingdao Labas Industrial Co., Ltd. and Shandong Labas Home Fitting Co., Ltd. as legal representative, etc.
SC is mainly engaged in manufacturing and selling textiles.
SC’s products mainly include: sofa covers, shower curtains, window curtains, cushion covers, tablecloth, beddings, etc.
SC sources its materials 100% from domestic market, mainly Shandong and Liaoning. SC sells 30% of its products in domestic market, and 70% to overseas market, mainly USA, Europe and Southeast Asian 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’s management
declined to release its major clients and suppliers.
Shandong Labas Home Fitting Co., Ltd.
=======================s
Registration No.: 370983200010073
Incorporation Date: 2010-11-11
Chairman: Wang Keqi
Etc.
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 Chengyang Sub-branch
AC#：37101988227050249063
Relationship: Normal.
Balance Sheet
Unit: CNY’000
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As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
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Cash & bank |
26,560 |
23,720 |
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Notes receivable |
0 |
0 |
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Inventory |
19,530 |
19,840 |
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Accounts receivable |
18,870 |
12,310 |
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Advances to suppliers |
53,350 |
81,070 |
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Other accounts receivable |
38,020 |
22,300 |
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Other current assets |
50 |
30 |
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------------------ |
----------------- |
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Current assets |
156,380 |
159,270 |
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Fixed assets net value |
40,700 |
37,450 |
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Project under construction |
0 |
0 |
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Long term investment |
0 |
0 |
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Long-term prepaid expenses |
0 |
0 |
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Project materials |
0 |
0 |
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Intangible and other assets |
2,690 |
2,540 |
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------------------ |
------------------ |
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Total assets |
199,770 |
199,260 |
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============= |
============= |
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Short loans |
38,000 |
35,000 |
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Notes payable |
0 |
0 |
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Accounts payable |
9,130 |
12,640 |
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Advances from clients |
0 |
0 |
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Accrued payroll |
0 |
0 |
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Welfare payable |
0 |
0 |
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Taxes payable |
-2,140 |
-820 |
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Surcharge payable |
0 |
0 |
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Other accounts payable |
6160 |
9610 |
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Other current liabilities |
0 |
0 |
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Interest payable |
0 |
0 |
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------------------ |
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Current liabilities |
51,150 |
56,430 |
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Long-term liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total liabilities |
51,150 |
56,430 |
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Equities |
148,620 |
142,830 |
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------------------ |
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Total liabilities & equities |
199,770 |
199,260 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2012 |
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Turnover |
98,850 |
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Cost of goods sold |
90,620 |
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Taxes and additional of main operations |
290 |
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Sales expense |
450 |
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Management expense |
11,280 |
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Finance expense |
1,940 |
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Non-operating income |
0 |
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Non-operating expense |
50 |
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Profit before tax |
-5,780 |
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0 |
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Profits |
-5,780 |
Important Ratios
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As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
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*Current ratio |
3.06 |
2.82 |
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*Quick ratio |
2.68 |
2.47 |
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*Liabilities to assets |
0.26 |
0.28 |
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*Net profit margin (%) |
/ |
-5.85 |
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*Return on total assets (%) |
/ |
-2.90 |
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*Inventory /Turnover ×365 |
/ |
74 days |
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*Accounts receivable/Turnover ×365 |
/ |
46 days |
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*Turnover/Total assets |
/ |
0.50 |
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* Cost of goods sold/Turnover |
/ |
0.92 |
PROFITABILITY: FAIR
The turnover of SC appears average in its line in 2012.
SC’s net profit margin is fair in 2012.
SC’s return on total assets is fair in 2012.
SC’s cost of goods sold is fairly high in 2012, comparing with its turnover.
LIQUIDITY: FAIRLY
GOOD
The current ratio of SC is maintained in a fairly good level.
SC’s quick ratio is maintained in a fairly good level.
The inventory of SC is maintained in an average level in both years.
The accounts receivable of SC is maintained in an average level in both years.
SC’s short-term loan is average in both years.
SC’s turnover is in fair in 2012, comparing with the size of its total assets.
LEVERAGE: FAIRLY GOOD
The debt ratio of SC is low.
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fairly stable.
SC is considered medium-sized in its line with fairly stable financial conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.62.32 |
|
|
1 |
Rs.101.78 |
|
Euro |
1 |
Rs.84.68 |
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.