MIRA INFORM REPORT
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Report Date : |
25.02.2014 |
IDENTIFICATION DETAILS
|
Name : |
HAINING TIANYU CLOTH CO., LTD. |
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Registered Office : |
No. 66 Hongqi Avenue, Warp Knitting Industry Zone, Haining, Zhejiang
Province 314419 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
21.04.1999 |
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Com. Reg. No.: |
330481000051544 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in the manufacturing and processing wrap knitting
cloth, industrial fabric, geotextile, plastics and lamp-case cloth; exporting
its products and importing machinery equipment, spare parts, raw materials
and technologies needed in manufacturing and researching. |
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No. of Employees : |
175 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 – 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 |
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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.
|
Source
: CIA |
Company
name & address
HAINING TIANYU CLOTH CO., LTD.
NO. 66 HONGQI AVENUE, WARP KNITTING INDUSTRY ZONE
HAINING, ZHEJIANG PROVINCE 314419 PR CHINA
TEL: 86 (0) 573-87768658
FAX: 86 (0) 573-87761658
EXECUTIVE
SUMMARY
Date of Registration : april 21, 1999
REGISTRATION NO. : 330481000051544
LEGAL FORM : LIMITED
LIABILITIES COMPANY
CHIEF EXECUTIVE :
zhou wangsong (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 35,000,000
staff :
175
BUSINESS CATEGORY : MANUFACTURING
& trading
Revenue :
CNY 240,550,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY 54,290,000 (AS OF DEC. 31, 2013)
WEBSITE : www.sky-all.com
E-MAIL :
tianyujenny@gmail.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.09 = USD 1 AS OF
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.: 330481000051544
on April 21, 1999.
SC’s Organization Code Certificate No.:
71546140-9
SC’s registered capital: CNY 35,000,000
SC’s paid-in capital: CNY 35,000,000
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:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Zhou Wangsong |
51 |
|
Zhou Lisong |
4 |
|
Wang Zhangxue |
45 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman and General Manager |
Zhou Wangsong |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Zhou Wangsong 51
Zhou Lisong 4
Wang Zhangxue 45
MANAGEMENT
Zhou Wangsong, Legal Representative, Chairman and General
Manager
---------------------------------------------------------------------------------------------------------
Gender: M
Working experience
(s):
At present, working in SC as legal representative, chairman and general
manager
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and processing
wrap knitting cloth, industrial fabric, geotextile, plastics and lamp-case
cloth; exporting its products and importing machinery equipment, spare parts,
raw materials and technologies needed in manufacturing and researching.
SC is mainly engaged in manufacturing and selling wrap knitting cloth.
SC’s products mainly include:
PVC Flex
PVC Films
Truck Tarpaulin
Warp Knitted Fabric
Warp Knitted Fabric 500DX500D 9X9
Warp Knitted Fabric 1000DX1000D 9X9
Warp Knitted Fabric 300DX500D 18X12
Warp Knitted Fabric 1000DX1000D 18X18
Warp Knitted Fabric 200DX300D 18X12
SC sources its materials 100% from domestic market. SC sells 60% of its
products in domestic market, and 40% 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.
Staff &
Office:
--------------------------
SC is known to have approx. 175
staff at present.
SC owns an area as its operating office and factory, but the detailed
information is unknown.
RELATED COMPANY
SC is not known to have any subsidiary at present.
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:
Bank of China Tongxiang Sub-branch Zhouquan Office
AC#: 389661939245
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
49,370 |
44,560 |
28,030 |
|
|
Short-term investment |
1,040 |
1,040 |
3,040 |
|
Notes receivable |
0 |
0 |
0 |
|
Accounts receivable |
41,770 |
39,580 |
48,160 |
|
Advances to suppliers |
10,090 |
9,670 |
14,490 |
|
Other receivable |
48,680 |
32,970 |
4,940 |
|
Interest receivable |
0 |
0 |
0 |
|
Inventory |
10,890 |
14,690 |
19,350 |
|
Prepaid expenses |
150 |
0 |
0 |
|
Non-current assets within one year |
0 |
0 |
0 |
|
Other current assets |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Current assets |
161,990 |
142,510 |
118,010 |
|
Long-term investment |
16,600 |
31,800 |
32,000 |
|
Fixed assets |
56,110 |
51,380 |
42,060 |
|
Construction in progress |
0 |
0 |
0 |
|
Intangible assets |
10,430 |
10,590 |
10,570 |
|
Long-term deferred expenses |
0 |
0 |
0 |
|
Deferred income tax assets |
0 |
0 |
0 |
|
Other non-current assets |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Total assets |
245,130 |
236,280 |
202,640 |
|
|
============= |
============= |
============= |
|
Short-term loans |
96,650 |
96,600 |
74,800 |
|
Notes payable |
64,570 |
68,290 |
39,700 |
|
Accounts payable |
10,850 |
14,610 |
29,330 |
|
Payroll payable |
0 |
0 |
0 |
|
Taxes payable |
360 |
500 |
2,250 |
|
Advances from clients |
30 |
0 |
0 |
|
Other payable |
16,850 |
170 |
2,270 |
|
Other current liabilities |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Current liabilities |
189,310 |
180,170 |
148,350 |
|
Non-current liabilities |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities |
189,310 |
180,170 |
148,350 |
|
Equities |
55,820 |
56,110 |
54,290 |
|
|
------------------ |
------------------ |
------------------ |
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Total liabilities & equities |
245,130 |
236,280 |
202,640 |
|
|
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
Revenue |
271,430 |
240,550 |
|
Cost of sales |
247,700 |
220,440 |
|
Sales tax and extra charges |
590 |
450 |
|
Sales expense |
1,560 |
8,900 |
|
Management expense |
11,740 |
11,500 |
|
Finance expense |
8,610 |
7,260 |
|
Investment income |
290 |
16 |
|
Profit before tax |
2,560 |
-520 |
|
Less: profit tax |
630 |
0 |
|
1,930 |
-520 |
Important Ratios
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
*Current ratio |
0.86 |
0.79 |
0.80 |
|
*Quick ratio |
0.80 |
0.71 |
0.67 |
|
*Liabilities to assets |
0.77 |
0.76 |
0.73 |
|
*Net profit margin (%) |
-- |
0.71 |
-0.22 |
|
*Return on total assets (%) |
-- |
0.82 |
-0.26 |
|
*Inventory / Revenue ×365 |
-- |
20 days |
30 days |
|
*Accounts receivable / Revenue ×365 |
-- |
54 days |
74 days |
|
*Revenue / Total assets |
-- |
1.15 |
1.19 |
|
*Cost of sales / Revenue |
-- |
0.91 |
0.92 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
·
The revenue of SC appears fairly good in its line
in 2012 and 2013.
·
SC’s net profit margin is average in 2012, fair in
2013.
·
SC’s return on total assets is average in 2012,
fair in 2013.
·
SC’s cost of sales is average, comparing with its
revenue.
LIQUIDITY: FAIR
·
The current ratio of SC is maintained in a fair
level in three years.
·
SC’s quick ratio is maintained in a fair level in
three years.
·
The inventory of SC appears average.
·
The accounts receivable of SC appears large.
·
The short-term loans of SC appear large.
·
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.
·
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 large amount of accounts receivable and short-term loans may be a threat to
SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.12 |
|
|
1 |
Rs.103.38 |
|
Euro |
1 |
Rs.85.32 |
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.