MIRA INFORM REPORT
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Report Date : |
08.01.2014 |
IDENTIFICATION DETAILS
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Name : |
WEIFANG
LANTIAN TEXTILE CO., LTD. |
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Registered Office : |
A31 Fushou East Street, High-Tech District, Weifang City, Shandong province, 261061 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2008 |
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Date of Incorporation : |
05.04.2000 |
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Com. Reg. No.: |
370726228007382 |
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Legal Form : |
Limited
Liabilities Co |
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Line of Business : |
Subject is engaged in producing and selling denim fabric, denim garments and other textiles. |
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No. of Employees : |
1,500 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 : |
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
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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
WEIFANG LANTIAN TEXTILE
CO., LTD.
A31 FUSHOU EAST STREET, HIGH-TECH DISTRICT, WEIFANG CITY,
SHANDONG PROVINCE, 261061 PR CHINA
TEL: 86 (0) 536-8866531/8537035
FAX: 86 (0) 536-8866917
EXECUTIVE SUMMARY
INCORPORATION DATE :
APR. 5, 2000
REGISTRATION NO. : 370726228007382
REGISTERED LEGAL FORM :
LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MR. LIU BO (CHAIRMAN)
STAFF STRENGTH : 1,500
REGISTERED CAPITAL : CNY 6,000,000
BUSINESS LINE : MANUFACTURING AND TRADING
TURNOVER :
CNY 298,080,000 (AS OF DEC. 31,
2009)
EQUITIES : N/A (AS OF DEC. 31, 2009)
PAYMENT : AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE (AS OF DEC. 31, 2009)
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 Ren Min Bi
SC was registered as a limited liabilities co. at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on Apr. 5, 2000.
Company Status: Limited Liabilities Co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders
contribute its registered capital jointly. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to extent of its total assets. The characteristics of this form
of co. are as follows: Upon the establishment of the
co., an investment certificate is issued to the each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s registered business scope includes producing and selling yarn-dyed fabric, denim fabric, dyed fabric, gray fabric and garments; exporting homegrown products and technologies of SC; importing raw materials, instruments and apparatus, machinery, components, and technology needed by SC (excluding the items limited or prohibited by state); processing with imported materials, processing with imported samples, assembling with imported parts, and compensation trade in agreement
SC is mainly engaged in producing and selling denim fabric, denim garments and other textiles.
Mr. Liu Bo has been legal representative and chairman of SC since 2000.
SC is known to have approx. 1,500 employees at present.
SC is currently operating at the above stated address, and this address houses its operating office and factory in the high-tech district of Weifang. The detailed information of the area is unspecified.
http://www.wflantian.com The design is professional and the content is well organized. At present it is in Chinese version.
E-mail: wflantian@163.com
SC has obtained the certificated of ISO9001:2000 and ISO14001:2004.
Honors:
======
Changes of its
registered information are as follows:
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Date of change |
Item |
Before the change |
After the change |
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Registered capital |
CNY 500,000 |
Present amount |
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Company name |
Weifang Lantian Weaving Co., Ltd. |
Present one |
MAIN SHAREHOLDERS:
Name %
of shareholdings
Liu Bo 51
Han Xiufang 6.67
Liu Dege 6.67
Pan Yukuan 4.17
Sun Lurong 4.17
Gao Fuchen 3.33
Wang Zhizhou 3.33
Li Xuefeng 1.67
Tan Jianping 1.67
Wang Zhenbao 1.67
Zhang Xiurong 1.67
Other 11 individuals 13.98
Legal
Representative, Chairman and General Manager:
Mr. Liu Bo, ID# 370702196010091818, born in 1960. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2000 to present Working in SC as legal representative, chairman and general manager.
Directors:
=======
Liu Dege , ID# 370702196209081916
Wang Zhizhou , ID# 370702195210250735
Gao Fuchen ID# 370702195803210712
Pan Yukuan ID# 370702196609161819
Supervisors:
=========
Ning Yaoting ID# 370782197601040234
Sun Huixin ID# 370702196307022610
Sun Lurong , ID# 370702196207210040;
SC is mainly engaged in producing and selling denim fabric, denim garments and other textiles.
SC’s products mainly include: denim fabric, denim garments.
SC can produce denim fabric of 24,000,000 meters, cotton yarn of 10,000 tons and 2,000,000 clothes annually.
SC sources its materials 70% from domestic market, and 30% from overseas market, mainly German, U.S.A., and etc. SC sells 50% of its products in domestic market, and 50% to overseas market, mainly European countries, Southeast Asia, U.S.A., and 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, L/C, T/T, and Credit of 30-60 days.
Note: SC refused to release its main customers and suppliers.
According to SC’s website,
SC is known to have the following subsidiary and offices:
Weifang Lantian Garment Co., Ltd.
Shanghai Office
Tel: 021-623915581
Hong Kong Office
Tel: 00852-35496772 35496773
Fax: 00852-35496771
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.
The bank information is not available at local AIC.
Financial Summary
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Unit: CNY’000
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As of Dec. 31, 2008 |
As of Dec. 31, 2009 |
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Total assets |
193,660 |
195,320 |
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Long term investment |
32 |
32 |
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========= |
========= |
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Total liabilities |
/ |
/ |
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Equities |
/ |
/ |
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-------------- |
-------------- |
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Total liabilities & equities |
193,660 |
195,320 |
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========= |
========= |
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Turnover |
258,490 |
298,080 |
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Profit before tax |
6,790 |
21,910 |
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Less: profit tax |
1,750 |
5,480 |
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Profits |
5,040 |
16,430 |
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Note: The above
financial information comes from local AIC, and we did not find SC’s detailed
financial reports.
Important Ratios
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As of Dec. 31, 2008 |
As of Dec. 31, 2009 |
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*Net profit margin (%) |
1.95 |
5.51 |
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*Return on total assets (%) |
2.60 |
8.41 |
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*Turnover/Total assets |
1.33 |
1.53 |
PROFITABILITY: FAIRLY GOOD
The turnover of SC appears fairly good in its line.
SC’s net profit margin appears average in 2008, and fairly good in 2009.
SC’s return on total assets appears average in 2008, and fairly good in 2009.
SC’s turnover is in an average level, comparing with the size of its total assets.
LEVERAGE: AVERAGE
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fairly stable
SC is considered large-sized in its line with fairly stable financial conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.62.38 |
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1 |
Rs.102.25 |
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Euro |
1 |
Rs.84.97 |
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.