MIRA
INFORM REPORT
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Report Date : |
10.01.2014 |
IDENTIFICATION DETAILS
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Name : |
SUNVIM GROUP CO., LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
30.09.2013 |
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Date of Incorporation : |
11.08.1999 |
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Com. Reg. No.: |
370000228016476 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject is engaged in manufacturing and selling towel series products,
textiles, bedding, and garments. |
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No. of Employees : |
18,989 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Good |
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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) |
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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.
|
Source
: CIA |
Company name & address
SUNVIM
GROUP CO., LTD.
NO. 1 FURI STREET, GAOMI CITY, WEIFANG
SHANDONG PROVINCE 261500 PR CHINA
TEL: 86 (0) 536-2308043/2305663
FAX: 86 (0) 536-2315895
EXECUTIVE SUMMARY
Date of Registration : August 11, 1999
REGISTRATION NO. : 370000228016476
LEGAL FORM : SHARES LIMITED COMPANY
CHIEF EXECUTIVE :
Sun Rigui (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 908,000,000
staff :
18,989
BUSINESS CATEGORY : MANUFACTURING & trading
REVENUE :
CNY 3,279,458,000 (CONSOLIDATED, JAN. 1, 2013 TO SEP. 30, 2013)
EQUITIES :
CNY 2,851,046,000 (CONSOLIDATED, AS OF SEP. 30, 2013)
WEBSITE : www.sunvim.com
E-MAIL :
zeng@sunvim.com
& zkun@sunvim.net
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : FAIRLY GOOD
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 shares
limited company of PRC with State Administration of Industry & Commerce
(SAIC) under registration No.:
370000228016476 on August 11,
1999.
SC’s Organization Code Certificate No.:
16584015-5
SC’s Tax No.: 370785165840155
SC’s registered capital: CNY 908,000,000
SC’s paid-in capital: CNY 908,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Registration No. |
3700002801647 |
370000228016476 |
|
Legal Form |
Limited Liabilities Company |
shares limited company |
|
|
|
Registered Capital |
CNY 525,655,319 |
CNY 625,655,319 |
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|
Registered Capital |
CNY 625,655,319 |
CNY 938,482,980 |
|
2013-11 |
Registered Capital |
CNY 938,482,980 |
CNY 908,000,000 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) (As of Nov. 30, 2013) |
% of Shareholding |
|
Sunvim Holdings Group Co., Ltd. |
24.21 |
|
Sun Rigui |
6.65 |
|
Ping'an Trust Co., Ltd. - Ping’an Wealth* No. 6 Ruifu Assembled Fund
Trust Plan |
2.2 |
|
Sun Yong |
2.13 |
|
Shan Qiujuan |
1.99 |
|
Citic Securities Co., Ltd. Arrange to Repurchase Special Account |
1.56 |
|
Yang Baokun |
1.48 |
|
Zhang Wuxian |
1.14 |
|
Qin Lihua |
0.86 |
|
Lv Xiyao |
0.56 |
|
Other Shareholders |
57.22 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Sun Rigui |
|
General Manager |
Wu Mingfeng |
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Director |
Yan Tang |
|
Fu Peilin |
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|
Sun Yong |
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Supervisor |
Qi Zongzhong |
|
Qin Bo |
|
|
Yu Conghai |
RECENT
DEVELOPMENT
SC is a listed company in Shenzhen Stock Exchange Market with the code
of 002083
SC has been honoured “The Most Advanced Country Enterprise in Earning
Foreign Exchange”, “The Steady-Going Quality Enterprise in Chinese Export Industry”,
“The Best Credit Enterprise in China”, “Advanced Private Enterprise in Shandong
Province”, and SC’s products have been awarded “Chinese Famous Brand”, “Quality
Medal of Shandong Province”, “Famous Brand in Shandong Province”, etc.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
(As of Nov. 30, 2013)
----------------------------------
Sunvim Holdings Group Co., Ltd. 24.21
Sun Rigui 6.65
Ping’an Trust Co., Ltd. - Ping’an Wealth* No. 6 Ruifu Assembled Fund Trust
Plan 2.2
Sun Yong 2.13
Shan Qiujuan 1.99
Citic Securities Co., Ltd. Arrange to Repurchase Special Account 1.56
Yang Baokun 1.48
Zhang Wuxian 1.14
Qin Lihua 0.86
Lv Xiyao 0.56
Other Shareholders 57.22
Sunvim Holdings Group Co., Ltd.
----------------------------------------
Registered no.: 370700228069149
Chief Executive: Sun
Rigui
MANAGEMENT
Sun Rigui, Legal
Representative and Chairman
-------------------------------------------------------------------------
Gender: M
Age: 59
Qualification: University
Working experience
(s):
From 1975 to 1987, worked in Weifang Electrical Machine Factory as
department chief and vice general manager;
From 1987 to 1999, worked in Gaomi Towel Factory as factory manager;
From 1999 to 2002, worked in Shandong Jieyu Textile Co., Ltd. as
chairman and general manager;
From 2002 to 2005, worked in Sunvim Hometextiles Co., Ltd. as chairman;
From 1999 to present, working in SC as legal representative and
chairman, also working in Sunvim Holdings Group Co., Ltd. as legal
representative
Wu Mingfeng
General Manager
-----------------------------------------------------
Gender: M
Age: 53
Qualification: High School
Working experience
(s):
At present, working in SC as director, general manager
Director
-----------
Yan Tang
Fu Peilin
Sun Yong
Supervisor
--------------
Qi Zongzhong
Qin Bo
Yu Conghai
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing and selling towel series products,
textiles, bedding, garments and artworks; purchasing and processing cotton;
exporting its products and technology; importing materials, instruments,
machinery, equipment, fittings and technology needed for its production,
excluding the goods forbidden by the government; processing with imported
materials, processing with imported samples, assembling with imported parts,
and compensation trade in agreement; warehousing.
SC is mainly engaged in manufacturing and selling towel series products,
textiles, bedding, and garments.
Brand: SUNVIM
SC’s products mainly include: various industrial polyester fibers, soft
lamp-box fabric, etc.
SC sources its materials 100% from domestic market, mainly Shandong
province. SC sells 20% of its products in domestic market, and 80% to overseas
market, mainly Japan, U.S.A. and Europe.
The buying terms of SC include Check, T/T and Credit of 30 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Customers:
==============
Ty.Ty.&Ty. Inc.
Wal-Mart Stores Inc.
Homegoods, Inc.
*Major Suppliers:
=============
Weifang Shanshui Cement Co., Ltd.
Shaoyang Textile Machinery Co., Ltd.
Staff &
Office:
--------------------------
SC is known to have approx. 18,989
staff at present.
SC owns an area as its operating office and factory, but the detailed
information is unknown.
RELATED
COMPANY
SC is known to
have the following subsidiaries:
Gaomi Sunvim Real Estate Co., Ltd.
Gaomi Wanren Thermal Power Co., Ltd.
Shanghai Sunvim Home Textiles Technology Co., Ltd.
Gaomi Sunvim Water Supply Co., Ltd.
Shandong Sunvim Solar Technology Co., Ltd.
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’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.
BANKING
Basic Bank:
Agricultural Bank of China Gaomi Sub-Branch
AC#: 15-453001040006553
FINANCIALS
Consolidated
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
As
of Sep. 30, 2013 |
|
526,808 |
322,392 |
|
|
Accounts receivable |
344,939 |
331,340 |
|
Notes receivable |
17,814 |
7,804 |
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Advances to suppliers |
90,806 |
136,555 |
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Interest receivable |
0 |
0 |
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Other receivable |
82,131 |
79,314 |
|
Inventory |
1,932,191 |
1,885,525 |
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Non-current assets within one year |
0 |
0 |
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Other current assets |
1,540 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
2,996,229 |
2,762,930 |
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Long-term investments |
44,566 |
1,218 |
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Real estate investment |
5,769 |
5,621 |
|
Fixed assets |
3,311,703 |
3,237,437 |
|
Construction in progress |
88,797 |
95,833 |
|
Project materials |
11 |
11 |
|
Intangible assets |
320,928 |
323,040 |
|
Goodwill |
6,436 |
6,436 |
|
Long-term deferred expense |
2,913 |
2,923 |
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Deferred income tax assets |
32,554 |
32,035 |
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Other non-current assets |
116,234 |
307,184 |
|
|
------------------ |
------------------ |
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Total assets |
6,926,140 |
6,774,668 |
|
|
============= |
============= |
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Short-term loans |
2,108,625 |
1,696,913 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
593,620 |
726,721 |
|
Payroll payable |
73,058 |
68,404 |
|
Taxes payable |
-18,375 |
36,146 |
|
Advances from clients |
44,058 |
145,133 |
|
Other payable |
21,751 |
27,647 |
|
Non-current liabilities due within one year |
357,242 |
376,539 |
|
Other current liabilities |
256,641 |
31,631 |
|
|
------------------ |
------------------ |
|
Current liabilities |
3,436,620 |
3,109,134 |
|
Non-current liabilities |
676,285 |
814,488 |
|
|
------------------ |
------------------ |
|
Total liabilities |
4,112,905 |
3,923,622 |
|
Equities |
2,813,235 |
2,851,046 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
6,926,140 |
6,774,668 |
|
|
============= |
============= |
Consolidated
Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
Jan.
1, 2013 to Sep. 30, 2013 |
|
Revenue |
4,470,022 |
3,279,458 |
|
Cost of sales |
3,755,941 |
2,572,467 |
|
Business Taxes and Surcharges |
41,506 |
30,104 |
|
Sales expense |
150,652 |
124,490 |
|
Management expense |
258,755 |
222,701 |
|
Finance expense |
217,290 |
121,614 |
|
Asset impairment loss |
178,571 |
24,409 |
|
Investment income |
39,258 |
-2,083 |
|
Non-operating income |
136,680 |
2,503 |
|
Non-operating expense |
4,078 |
1,990 |
|
Profit before tax |
39,602 |
182,103 |
|
Less: profit tax |
23,604 |
49,131 |
|
Profits |
15,998 |
132,972 |
Important Ratios
|
|
As
of Dec. 31, 2012 |
As
of Sep. 30, 2013 |
|
*Current ratio |
0.87 |
0.89 |
|
*Quick ratio |
0.31 |
0.28 |
|
*Liabilities to assets |
0.59 |
0.58 |
|
*Net profit margin (%) |
0.36 |
4.05 |
|
*Return on total assets (%) |
0.23 |
1.96 |
|
*Inventory / Revenue ×365/270 |
158 days |
156 days |
|
*Accounts receivable / Revenue ×365/270 |
29 days |
28 days |
|
*Revenue / Total assets |
0.65 |
0.48 |
|
*Cost of sales / Revenue |
0.84 |
0.78 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIRLY GOOD
·
The revenue of SC appears fairly good in its line.
·
SC’s net profit margin is average.
·
SC’s return on total assets is average.
·
SC’s cost of goods sold is average, comparing with
its revenue.
LIQUIDITY: FAIR
·
The current ratio of SC is maintained in a fair level.
·
SC’s quick ratio is maintained in a poor level.
·
The inventory of SC appears large.
·
The accounts receivable of SC average.
·
The short-term loans of SC appear large.
·
SC’s revenue is in a fair 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 large-sized in its line with fairly stable financial
conditions. The large amount of inventory & short-term loans could be a
threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.18 |
|
|
1 |
Rs.102.31 |
|
Euro |
1 |
Rs.84.50 |
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.