MIRA
INFORM REPORT
|
Report Date : |
13.02.2014 |
IDENTIFICATION DETAILS
|
Name : |
HUZHOU CAIDIE TEXTILES CO., LTD. |
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Registered Office : |
Industrial
Garden, Lianshi Town, Huzhou Zhejiang Province 313013 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
22.10.2001 |
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Com. Reg. No.: |
330504000019518 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in the Manufacturing, Processing and Selling
garments; weaving, processing and selling textiles, finishing, processing and
selling textile raw materials; refining, dyeing and finishing silk cotton
fabric and chemical fiber fabrics. |
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No. of Employees : |
650 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 1,000,000 |
|
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, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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.
|
Source
: CIA |
Company name & address
HUZHOU CAIDIE TEXTILES CO., LTD.
INDUSTRIAL
GARDEN, LIANSHI TOWN, HUZHOU
ZHEJIANG
PROVINCE 313013 PR CHINA
TEL: 86 (0)
572-3952788/2636333
FAX: 86 (0)
572-2636300
EXECUTIVE SUMMARY
Date of Registration : OCTOBER 22, 2001
REGISTRATION NO. : 330504000019518
LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE :
shi jianming (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY
5,200,000
staff :
650
BUSINESS CATEGORY : MANUFACTURING
& TRADING
Revenue :
CNY 424,620,000 (AS OF DEC. 31,
2012)
EQUITIES :
CNY 154,330,000 (AS OF DEC. 31, 2012)
E-MAIL :
N/A
PAYMENT :
AVERAGE
RECOMMENDED CREDIT LIMIT : UP TO USD 1,000,000 (PERIODICAL
REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.05 = 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.: 330504000019518 on October 22, 2001.
SC’s Organization Code Certificate No.:
73242545-0
SC’s Tax No.: 330501732425450
SC’s registered capital: CNY 5,200,000
SC’s paid-in capital: CNY 5,200,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2007-07 |
Company Name |
Huzhou Caidie Dyeing & Finishing Co.,
Ltd. |
Huzhou Caidie Textiles Co., Ltd. |
|
2009-05 |
Registration No. |
3305002058153 |
330504000019518 |
|
-- |
Shareholder (s) (% of Shareholding) |
Huzhou Caidie Knitting Co., Ltd. 1.0% Shi Jianming 63.5% Wu Guanrong 5.0% Wen Juanying 5.0% Other 12 individuals 25.5% |
Shi Jianming 78% Wen Juanying 5% Zhang Hongxing 3% Other 7 Individuals 14% |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Shi Jianming |
78 |
|
Wen Juanying |
5 |
|
Zhang Hongxing |
3 |
|
Other 7 Individuals |
14 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and General Manager |
Shi Jianming |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Shi Jianming 78
Wen Juanying 5
Zhang Hongxing 3
Other 7 Individuals 14
MANAGEMENT
Shi Jianming, Legal Representative, Chairman and General
Manager
----------------------------------------------------------------------------------------------------
Gender: M
Qualification: University
Working experience
(s):
At present, working in SC as legal representative, chairman and general
manager
Also working in Huzhou Caidie Knitting Co., Ltd., Zhejiang Cady
Industrial Co., Ltd., and Huzhou Caidie Import and Export Co., Ltd. as legal
representative
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing, processing and
selling garments; weaving, processing and selling textiles, finishing,
processing and selling textile raw materials; refining, dyeing and finishing
silk cotton fabric and chemical fiber fabrics. (with permit if needed)
SC is mainly engaged in manufacturing and selling cotton textiles,
fabric lining, and garments.
SC’s products mainly include: Chino-velvet, Curl-surfaced texture, Micro
suede, Color-striped cloth, Jacquard cloth, etc.
SC sources its materials 100% from domestic market, mainly Zhejiang. SC
sells 70% of its products in domestic market and 30% to overseas market, mainly
U.S.A., Southeast Asia, etc.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Client*
------------------
American Foam & Fabric Inc.
Staff &
Office:
--------------------------
SC is known to have approx. 650
staff at present.
SC owns an area as its operating office and factory, but the detailed
information is unknown.
RELATED
COMPANY
Huzhou Caidie Knitting Co., Ltd.
Registration No.: 330504000020251
Date of Registration: November 8, 1999
Legal Form: Limited Liabilities Company
Legal Representative: Shi Jianming
Zhejiang Cady Industrial Co., Ltd.
Registration No.: 330504000005561
Date of Registration: December 5, 2002
Legal Form: Limited Liabilities Company
Legal Representative: Shi Jianming
Huzhou Caidie Import and Export Co., Ltd.
Registration No.: 330508000006707
Date of Registration: July 16, 2004
Legal Form: Limited Liabilities Company
Legal Representative: Shi Jianming
Shanghai Huandie International Trade Co., Ltd.
Registration No.: 310101000365347
Date of Registration: January 9, 2006
Legal Representative: Shi Yi
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:
Industrial and Commercial Bank of China Huzhou Branch
AC#: 1205240219049100448
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
64,495 |
77,310 |
70,190 |
|
|
Notes receivable |
1,760 |
0 |
1,950 |
|
Accounts receivable |
4,300 |
134,140 |
78,960 |
|
Advances to suppliers |
0 |
0 |
0 |
|
Other receivable |
65 |
49,360 |
51,350 |
|
Inventory |
10,920 |
8,430 |
25,680 |
|
Deferred expenses |
0 |
0 |
0 |
|
Other current assets |
0 |
19,580 |
190 |
|
|
------------------ |
------------------ |
------------------ |
|
Current assets |
81,540 |
288,820 |
228,320 |
|
Fixed assets |
80,770 |
79,150 |
69,950 |
|
Long-term investment |
105,310 |
104,800 |
105,140 |
|
Construction in progress |
0 |
0 |
0 |
|
Intangible assets |
0 |
0 |
0 |
|
Long-term prepaid expenses |
0 |
0 |
0 |
|
Deferred income tax assets |
0 |
0 |
0 |
|
Other non-current assets |
2,640 |
2,650 |
2,490 |
|
|
------------------ |
------------------ |
------------------ |
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Total assets |
270,260 |
475,420 |
405,900 |
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|
============= |
============= |
============= |
|
Short-term loans |
45,900 |
132,290 |
124,900 |
|
Notes payable |
68,000 |
80,000 |
110,000 |
|
Accounts payable |
18,370 |
1,150 |
940 |
|
Wages payable |
0 |
0 |
0 |
|
Taxes payable |
805 |
-1,230 |
30 |
|
Advances from clients |
0 |
0 |
0 |
|
Other payable |
9,245 |
10,640 |
15,760 |
|
Prepaid expenses |
20 |
0 |
-60 |
|
Other current liabilities |
0 |
-40 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Current liabilities |
142,340 |
222,810 |
251,570 |
|
Non-current liabilities |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities |
142,340 |
222,810 |
251,570 |
|
Equities |
127,920 |
252,610 |
154,330 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities & equities |
270,260 |
475,420 |
405,900 |
|
|
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
Revenue |
294,840 |
504,630 |
424,620 |
|
Cost of sales |
254,280 |
453,860 |
394,550 |
|
Taxes and surcharges |
1,380 |
1,680 |
910 |
|
Sales expense |
5,720 |
7,430 |
10,590 |
|
Management expense |
12,080 |
8,180 |
7,840 |
|
Finance expense |
6,560 |
16,070 |
11,460 |
|
Investment income |
0 |
52,460 |
3,000 |
|
Subsidy income |
715 |
690 |
10 |
|
Non-operating income |
0 |
20 |
1,030 |
|
Non-operating expense |
110 |
110 |
40 |
|
Profit before tax |
15,510 |
70,920 |
3,270 |
|
Less: profit tax |
3,140 |
0 |
330 |
|
12,370 |
70,920 |
2,940 |
Important Ratios
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
0.57 |
1.30 |
0.91 |
|
*Quick ratio |
0.50 |
1.26 |
0.81 |
|
*Liabilities to assets |
0.53 |
0.47 |
0.62 |
|
*Net profit margin (%) |
4.20 |
14.05 |
0.69 |
|
*Return on total assets (%) |
4.58 |
14.92 |
0.72 |
|
*Inventory / Revenue ×365 |
14 days |
7 days |
22 days |
|
*Accounts receivable/ Revenue ×365 |
6 days |
98 days |
68 days |
|
*Revenue/Total assets |
1.09 |
1.06 |
1.05 |
|
*Cost of sales / Revenue |
0.86 |
0.90 |
0.93 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
·
The revenue of SC appears fairly good in its line
in three years..
·
SC’s net profit margin is average in 2010 and 2012,
fairly good in 2011.
·
SC’s return on total assets is average in 2010 and
2012, fairly good in 2011.
·
SC’s cost of sales is average, comparing with its
revenue.
LIQUIDITY: AVERAGE
·
The current ratio of SC is maintained in a fair
level in 2010 and 2012, normal in 2011.
·
SC’s quick ratio is maintained in a fair level in
2010, fairly good in 2011, normal in 2012.
·
The inventory of SC appears average.
·
The accounts receivable of SC appears fairly large
in 2011 and 2012.
·
SC’s short-term loans appear fairly large in 2011
and 2012.
·
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
·
The debt ratio of SC is average in three years.
·
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. The fairly large amount of accounts receivable & short-term
loans may be a threat to SC’s financial condition. Taking into consideration of
SC’s general performance, reputation as well as market conditions, a credit
line up to USD 1,000,000 would
appear to be within SC’s capacities upon a periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.13 |
|
|
1 |
Rs.102.25 |
|
Euro |
1 |
Rs.84.72 |
INFORMATION DETAILS
|
Report Prepared by
: |
NNA |
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.