MIRA
INFORM REPORT
|
Report Date : |
07.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
HUARUI (CHINA) SEWING THREAD CO., LTD. |
|
|
|
|
Formerly Known as: |
Jiangxi Huarui Petrochemical Fit Co., Ltd. |
|
|
|
|
Registered Office : |
Gold North Road,
Ruichang, Jiujiang City, Jiangxi
Province 332200 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
10.06.2005 |
|
|
|
|
Com. Reg. No.: |
360400520001339 |
|
|
|
|
Legal Form : |
Wholly Foreign-Owned Enterprise |
|
|
|
|
Line of Business : |
manufacturing and selling
of pure polyester thread including two-for-one
thread series, thread on plastic cone series, thread on paper cone series and
skein series. |
|
|
|
|
No. of Employees : |
500 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
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 |
|
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
HUARUI (CHINA) SEWING THREAD CO.,
LTD.
GOLD
NORTH ROAD, RUICHANG, JIUJIANG CITY
JIANGXI
PROVINCE 332200 PR CHINA
TEL: 86
(0) 792-4219789/4200111
FAX: 86
(0) 792-4219678
EXECUTIVE SUMMARY
Date of Registration : JUNE 10, 2005
REGISTRATION NO. : 360400520001339
LEGAL FORM : Wholly foreign-owned enterprise
CHIEF EXECUTIVE :
lin yanfei (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL :
USD 35,880,000
staff : 500
BUSINESS CATEGORY :
MANUFACTURING & trading
Revenue :
CNY 230,590,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 253,430,000 (AS OF DEC. 31, 2012)
WEBSITE : www.huaruifz.com
E-MAIL :
N/A
PAYMENT :
AVERAGE
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
LEGAL
STATUS & HISTORY
SC was
established as a wholly foreign-owned enterprise of PRC with
State Administration of Industry & Commerce (SAIC) under registration No.: 360400520001339 on June 10, 2005.
SC’s Organization Code Certificate
No.: 77585722-9
%20SEWING%20THREAD%20CO%20,%20LTD%20%20-%20249019%2007-Jan-2014_files/image002.jpg)
SC’s registered capital: USD 35,880,000
SC’s paid-in capital: USD 35,880,000
Registration Change Record:-
|
Date |
Change
of Contents |
Before
the change |
After
the change |
|
2011-4 |
Registered
Capital |
USD 10,880,000 |
USD 35,880,000 |
|
-- |
Legal
Representative |
Shi Wendong |
Ke Chunlin |
|
2012 |
Company
Name |
Jiangxi Huarui Petrochemical Fit Co., Ltd. |
Huarui (China) Sewing Thread
Co., Ltd. |
|
Legal
Representative |
Ke Chunlin |
Liu Dehuang |
|
|
2013 |
Legal
Representative |
Liu Dehuang |
Lin Yanfei |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
China Swiss International Holdings Limited
(Hong Kong) |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative,
Chairman, and General Manager |
Lin Yanfei |
RECENT
DEVELOPMENT
SC has got the certificate of ISO 9001: 2008.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
China Swiss International
Holdings Limited (Hong Kong) 100
--------------------------------
Registration No.: 1013332
Legal Form: Private
MANAGEMENT
Lin Yanfei, Legal
Representative, Chairman and General Manager
--------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
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 operating
plastics, blow molded packaging, textiles, twisting, weaving, garment, chemical
fiber wire drawing, electronic light industry, mechanical assembly (with EIA
report if needed)
SC is mainly
engaged in manufacturing and selling pure polyester thread.
Brand: HUAMEIRUI
SC’s
products mainly include: two-for-one thread series, thread on plastic cone
series, thread on paper cone series and skein series.
%20SEWING%20THREAD%20CO%20,%20LTD%20%20-%20249019%2007-Jan-2014_files/image004.jpg)
SC sources its materials 40% from domestic market, and 60% from overseas market. SC sells 30% of its products in domestic market, mainly in Guangdong, Fujian, Zhejiang, and 70% to overseas market, mainly Hong Kong, Southeast Asia, Middle East, etc.
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 Customer:
----------------------
Industria
Textilera Sil S.A.
Staff & Office:
--------------------------
SC is
known to have approx. 500
staff at present.
SC owns an area as
its operating office & factory of approx. 140,000 sq. meters at the heading
address.
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:
Agricultural Bank of China Ruichang Sub-branch
AC#: 344101040005465
Shanghai Pudong
Development Bank Jiujiang Sub-branch
AC#: N/a
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
144,150 |
54,190 |
|
|
Short-term
investments |
1,500 |
0 |
|
Accounts receivable |
-9,370 |
57,280 |
|
Advances to
suppliers |
30,710 |
85,650 |
|
Other receivable |
550 |
1,950 |
|
Inventory |
31,110 |
67,770 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
198,650 |
266,840 |
|
Fixed assets |
69,900 |
70,060 |
|
Construction in
progress |
5,450 |
18,510 |
|
Material for
construction |
0 |
2,690 |
|
Intangible
assets |
4,700 |
4,690 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
278,700 |
362,790 |
|
|
============= |
============= |
|
Short-term loans |
102,800 |
133,000 |
|
Notes payable |
93,490 |
60,000 |
|
Accounts payable |
-19,870 |
18,770 |
|
Wages payable |
60 |
4,170 |
|
Taxes payable |
-4,530 |
-1,110 |
|
Advances from
clients |
0 |
100,640 |
|
Other payable |
-138,080 |
-206,110 |
|
Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current liabilities |
33,870 |
109,360 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
33,870 |
109,360 |
|
Equities |
244,830 |
253,430 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
278,700 |
362,790 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
|
Revenue |
100,320 |
230,590 |
|
Cost of sales |
85,810 |
197,250 |
|
Taxes and surcharges |
920 |
470 |
|
Sales expense |
1,850 |
3,460 |
|
Management expense |
2,920 |
5,640 |
|
Finance expense |
5,670 |
8,670 |
|
Investment
income |
-20 |
0 |
|
Subsidy income |
530 |
130 |
|
Non-operating
income |
450 |
460 |
|
Non-operating expense |
710 |
1,000 |
|
Profit before
tax |
5,240 |
15,630 |
|
Less: profit tax |
870 |
7,000 |
|
4,370 |
8,630 |
Important Ratios
=============
|
|
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
*Current ratio |
5.87 |
2.44 |
|
*Quick ratio |
4.95 |
1.82 |
|
*Liabilities
to assets |
0.12 |
0.30 |
|
*Net profit
margin (%) |
4.36 |
3.74 |
|
*Return on
total assets (%) |
1.57 |
2.38 |
|
*Inventory /
Revenue ×365 |
114 days |
108 days |
|
*Accounts
receivable/ Revenue ×365 |
-- |
91 days |
|
*Revenue/Total
assets |
0.36 |
0.64 |
|
*Cost of sales
/ Revenue |
0.86 |
0.86 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears
fairly good in its line.
l
SC’s net profit margin is average in both years.
l
SC’s return on total assets is average in both
years.
l
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a fairly
good level in both years.
l
SC’s quick ratio is maintained in a fairly good
level in 2011 and normal in 2012.
l
The inventory of SC appears large in both years.
l
The accounts receivable of SC appears large in
2012.
l
The short-term loans of SC appear large in both
years.
l
SC’s revenue is in a fair
level, 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 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 inventory &
accounts receivable & short-term loans may be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.33 |
|
UK Pound |
1 |
Rs.101.99 |
|
Euro |
1 |
Rs.84.62 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.