MIRA
INFORM REPORT
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Report Date : |
06.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
QINGDAO PHOENIX-HITARGET PRINTING &
DYEING CO., LTD. |
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Registered Office : |
Shuiji Industrial Park, Laixi, Qingdao, Shandong Province, 266600 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
08.10.2003 |
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Com. Reg. No.: |
370285400002718 |
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Legal Form : |
Chinese-Foreign Equity Joint
Venture Enterprise |
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Line of Business : |
manufacturer & Trader of printing & dyeing
cloth, garments, sawing products and deep processing products. |
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No. of Employees : |
1,400 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 : |
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 30th, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
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.
|
Source : CIA |
Company name & address
QINGDAO PHOENIX-HITARGET PRINTING & DYEING CO., LTD.
SHUIJI INDUSTRIAL
PARK, LAIXI,
QINGDAO, SHANDONG
PROVINCE, 266600 PR CHINA.
TEL: 86 (0) 532- 88452712/88452778 FAX: 86 (0) 532- 88452776
EXECUTIVE SUMMARY
INCORPORATION DATE : OCT. 8, 2003
REGISTRATION NO. : 370285400002718
REGISTERED
LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
CHIEF EXECUTIVE :
MR. dai shouhua (CHAIRMAN)
STAFF
STRENGTH : 1,400
REGISTERED CAPITAL :
USD 10,320,000
BUSINESS LINE : MANUFACTURING &
TRADE
TURNOVER : CNY 1,047,070,000 (AS OF DEC. 31,
2012)
EQUITIES : CNY 267,550,000 (AS OF DEC. 31,
2012)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 2,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION :
fairly good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.07 = 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 “No. 4 Yongping Road, Qingdao, Shandong Province 266001 China”, telephone number “86-532-84661306” and fax number “86-532-84661092” all belong to SC’s parent company “Qingdao Phoenix Printing & Dyeing Co., Ltd.”.
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 Oct. 8, 2003.
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 printing & dyeing cloth, garments, sawing
products and deep processing products. (Selling 100% of its products to
overseas market) (with permits if needed).
SC is mainly
engaged in manufacturing and trading printing & dyeing cloth and related
products.
Mr.
Dai Shouhua has been legal representative and chairman of SC since 2003.
SC is known to have approx. 1,400 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
Laixi. Our checks reveal that SC owns the total premise, but SC’s accountant
refused to release the gross area.
www.qdphoenixpd.com It is the
website of SC’s parent-Qingdao Phoenix Printing & Dyeing Co., Ltd. The design
is professional and the content is well organized. At present it is in both
Chinese and English versions.
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
See below for SC as executive party (defendant).
|
Executed
Party |
SC |
|
Court |
Laixi City People's Court |
|
Date of Case |
2010-06-01 |
|
Case
Number |
(2010) 01320 |
|
Claim Amount |
RMB 40,554 |
|
Case Status |
Completed |
Etc.
Remark: Due to the lack of information, we are
unable to provide the cause of action, judgment or other information.
MAIN SHAREHOLDERS:
Name
%
of Shareholding
· Qingdao Phoenix Printing & Dyeing Co., Ltd. 75
Hitarget
Holding Company Limited (Hong Kong) 25
Qingdao
Phoenix Printing & Dyeing Co., Ltd.
=================================
Incorporation Date : Dec.
8, 1998
Registration No. :
370200018003250
Registered Legal Form : Limited
Liabilities Company
Legal Representative : Mr. Dai Shouhua
Registered Capital : CNY
5,260,000
Add.:
No. 4 Yong Ping Road, Licang District, Qingdao, China
Tel.:
0532-84661306
Fax:
0532-84612949
Email:
phoenix@qdphoenixpd.com
Hitarget
Holding Company Limited (Hong Kong)
====================================
CR No.: 1145504
Company Status: Private
Active Status: Live
Legal
Representative and Chairman:
Mr. Dai Shouhua, ID# 37020419490406****, born in 1949, with bachelor’s degree, he is currently responsible for the overall management of SC.
Working
Experience(s):
From 2003 to present Working in SC as chairman and legal representative.
Also working in Qingdao Phoenix Printing & Dyeing Co., Ltd., Qingdao Phoenix-Miho Printing Dyeing Co., Ltd. and Qingdao Phoenix Import & Export Co., Ltd.
General Manager:
Mr. Wu Xiaofei, born in 1963, with bachelor’s degree, he is currently responsible for the daily management of SC.
Working
Experience(s):
At present Working in SC as general manager.
Also working in Qingdao Phoenix Printing & Dyeing Co.,
Ltd. as general
manager.
SC is mainly
engaged in manufacturing and trading printing & dyeing cloth and related
products.
SC’s products
mainly include: printing & dyeing cloth and related products.
SC sources its materials 90% from
domestic market, and 10% from overseas market. SC sells 10% of its products in
domestic market, and 90% to overseas market, mainly to Africa.
The buying terms of SC include Check, T/T, L/C and Credit of
30-60 days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60
days.
Major Suppliers
============
Qingdao Yaoyuan Textiles Co., Ltd. (literal translation)
Jiangsu Demeike Chemical Co., Ltd. (literal translation)
Major Customers
=============
Qingdao
Phoenix Printing & Dyeing Co., Ltd.
Qingdao
Phoenix-Miho Printing Dyeing Co., Ltd.
Qingdao
Phoenix-Miho Printing Dyeing Co., Ltd.
====================================
Incorporation
Date: Nov. 18, 2002
Registration
No.: 370200400102669
Chief
Executive: Mr. Dai Shouhua
Registered
Capital: USD 1,306,000
Add.: No. 7, Wuyang Road, Sifang District, Qingdao, Shandong Province,
266042
Tel.: 86 (0) 532-84884660
Fax: 86 (0) 532-84968496
Qingdao
Phoenix Import & Export Co., Ltd.
===============================
Incorporation
Date: Apr. 20, 2009
Registration
No.: 370200020000906
Chief
Executive: Mr. Dai Shouhua
Registered
Capital: CNY 5,000,000
Add.:
No. 7 Wu Yang Road, Qingdao
Tel.:
86 (0) 532-84966896/84661306
Fax:
86 (0) 532-84966897
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’s suppliers
declined to make any comments.
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.
Bank of China Laixi Branch
AC#:
215600533018
Relationship: Normal.
Huaxia Bank
Qingdao Branch
AC#: N/A
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31,
2012 |
as of Dec. 31,
2011 |
|
Cash & bank |
81,660 |
66,490 |
|
Inventory |
52,550 |
57,480 |
|
Accounts
receivable |
10,260 |
4,420 |
|
Advances to
supplies |
1,100 |
4,020 |
|
Other
receivables |
16,000 |
14,600 |
|
Prepaid expenses |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
161,570 |
147,010 |
|
Fixed assets net
value |
139,130 |
148,150 |
|
Projects under
construction |
8,920 |
0 |
|
Long-term
investments |
0 |
0 |
|
Intangible
assets |
16,870 |
17,210 |
|
Long-term
deferred expenses |
0 |
0 |
|
Other assets |
6,350 |
6,920 |
|
|
------------------ |
------------------ |
|
Total assets |
332,840 |
319,290 |
|
|
============= |
============= |
|
Short loans |
0 |
20,000 |
|
Notes payable |
19,610 |
18,220 |
|
Accounts payable |
27,320 |
32,390 |
|
Advances from
customers |
180 |
0 |
|
Accrued payroll |
19,630 |
17,420 |
|
Welfares payable |
-5,580 |
-2,500 |
|
Taxes payable |
0 |
0 |
|
Other Accounts
payable |
4,130 |
6,390 |
|
Other
current liabilities |
0 |
0 |
|
|
----------------- |
----------------- |
|
Current
liabilities |
65,290 |
91,920 |
|
Long term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
65,290 |
91,920 |
|
Shareholders
equities |
267,550 |
227,370 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
332,840 |
319,290 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2012 |
|
Turnover |
1,047,070 |
|
Cost of goods sold |
935,910 |
|
Taxes and additional of main operations |
4,010 |
|
Other expenses |
680 |
|
Sales expense |
6,660 |
|
Management expense |
32,570 |
|
Finance expense |
2,460 |
|
Non-operating
income |
160 |
|
Non-operating expense |
5,320 |
|
Profit before
tax |
59,620 |
|
Less: profit tax |
15,060 |
|
Profits |
44,560 |
Important Ratios
=============
|
|
as of Dec. 31, 2012 |
as of Dec. 31,
2011 |
|
*Current ratio |
2.47 |
1.60 |
|
*Quick ratio |
1.67 |
0.97 |
|
*Liabilities
to assets |
0.20 |
0.29 |
|
*Net profit
margin (%) |
4.26 |
/ |
|
*Return on
total assets (%) |
13.39 |
/ |
|
*Inventory
/Turnover ×365 |
19 days |
/ |
|
*Accounts
receivable/Turnover ×365 |
4 days |
/ |
|
*Turnover/Total
assets |
3.15 |
/ |
|
* Cost of
goods sold/Turnover |
0.89 |
/ |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears good in its line in
2012.
l
SC’s net profit margin is average in 2012.
l
SC’s return on total assets is good in 2012.
l
SC’s cost of goods sold is average in 2012,
comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in both years.
l
SC’s quick ratio is maintained in a normal level in
both years.
l
The inventory of SC is average in both years.
l
SC’s accounts receivable is average in both years.
l
SC has no short-term loan in 2012.
l
SC’s turnover is in a fairly good level in 2012,
comparing with the size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly good.
SC is considered large-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.41 |
|
UK Pound |
1 |
Rs.102.54 |
|
Euro |
1 |
Rs.85.20 |
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.