MIRA
INFORM REPORT
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Report Date : |
11.01.2014 |
IDENTIFICATION DETAILS
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Name : |
CHANGSHU JIAHUA KNITTING
AND TEXTILE CO., LTD. |
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Registered Office : |
No. 93, Dongxin Street, Zhenmen, Meili Town, Changshu, Jiangsu
Province 215514 Pr |
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Country : |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
18.02.2005 |
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Reg. No.: |
320581000075886 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Subject is engaged in manufacturing and selling knitting fabric. |
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No. of Employees : |
90 |
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 : |
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
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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.
|
Source
: CIA |
Company name and address
CHANGSHU JIAHUA KNITTING AND TEXTILE CO., LTD.
NO. 93, DONGXIN STREET, ZHENMEN, MEILI TOWN,
CHANGSHU, JIANGSU PROVINCE 215514 PR CHINA
TEL: 86 (0) 512-52603125 FAX: 86 (0) 512-52603730
EXECUTIVE SUMMARY
INCORPORATION DATE :
FEB. 18, 2005
REGISTRATION NO. :
320581000075886
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MR. ZHANG WEIDONG (CHAIRMAN)
STAFF STRENGTH :
90
REGISTERED CAPITAL : CNY 8,980,000
BUSINESS LINE :
MANUFACTURE & TRADE
TURNOVER :
CNY 10,290,000 (JAN. 1 TO JUNE
30, 2013)
EQUITIES :
CNY 10,340,000 (AS OF JUNE 30, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.0482= 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
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 Feb. 18, 2005.
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 manufacturing and selling
textiles, warp knitting cloth, quilted products; importing and exporting
commodities and technologies, excluding commodities and technologies prohibited
by the state.
SC is mainly engaged in manufacturing and selling knitting fabric.
Mr. Zhang Weidong is legal representative, chairman and general manager
of SC at present.
SC is known to have approx. 90 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 Changshu. Our
checks reveal that SC owns the total premise about 8,123 square meters.
http://www.jhtextile.cc/ The design is professional and the content is
well organized. At present the web site is in Chinese and English versions.
E-mail: zhangzhenjie615@163.com
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name
% of Shareholding
Wang Yafeng 30
Zhang Weidong 70
Legal
Representative, Chairman and General Manager:
Mr. Zhang Weidong, born in 1967, with university education. He is
currently responsible for the overall management of SC.
Working
Experience(s):
At present Working
in SC as legal representative, chairman and general manager.
Supervisor:
-----------------------
Wang Yafeng
SC is mainly engaged in manufacturing and selling knitting fabric.
SC’s products mainly include microfiber coral fleece, printed coral
fleece, flannel fleece.
SC sources its materials 50% from domestic market and 50% from overseas
market. SC sells 70% of its products in domestic market and 30% to overseas
market.
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.
Note: SC declined
to release its major suppliers and clients.
SC is not known to have any subsidiary at present.
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.
SC’s accountant refused to release the bank details.
Balance
Sheet
Unit: CNY’000
|
|
As of Dec. 31,
2012 |
As of June 30,
2013 |
|
Cash & bank |
6,750 |
3,790 |
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Note receivable |
0 |
200 |
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Advances to suppliers |
0 |
2,420 |
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Inventory |
6,790 |
9,690 |
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Accounts receivable |
5,790 |
1,290 |
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Other receivables |
270 |
410 |
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Prepaid expenses |
0 |
310 |
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Other current assets |
750 |
0 |
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------------------ |
------------------ |
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Current assets |
20,350 |
18,110 |
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Fixed assets net value |
5,900 |
6,150 |
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Long term investment |
0 |
0 |
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Projects under construction |
3,360 |
3,530 |
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Intangible and other assets |
2,020 |
1,850 |
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Long term deferred expenses |
0 |
230 |
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------------------ |
------------------ |
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Total assets |
31,630 |
29,870 |
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=========== |
=========== |
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Short loan |
1,850 |
5,510 |
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Accounts payable |
1,520 |
770 |
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Bills payable |
6,350 |
1,410 |
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Advances from clients |
270 |
790 |
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Tax payable |
0 |
-330 |
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Other Accounts payable |
10,630 |
11,370 |
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Other payable to government |
0 |
10 |
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Other current liabilities |
310 |
0 |
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------------------ |
------------------ |
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Current liabilities |
20,930 |
19,530 |
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Long term liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total liabilities |
20,930 |
19,530 |
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Equities |
10,700 |
10,340 |
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------------------ |
------------------ |
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Total liabilities & equities |
31,630 |
29,870 |
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=========== |
=========== |
Income
Statement
Unit: CNY’000
|
|
As
of Dec. 31, 2012 |
Jan.
1 to June 30, 2013 |
|
Turnover |
33,770 |
10,290 |
|
Cost of goods sold |
30,020 |
8,990 |
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Taxes and additional of main operation |
/ |
20 |
|
Sales expense |
1,190 |
390 |
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Management expense |
2,240 |
1,260 |
|
Finance expense |
30 |
20 |
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Subsidy income |
/ |
20 |
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Other income |
/ |
50 |
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Other expenses |
50 |
0 |
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Non-operation expenses |
/ |
20 |
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Profit before tax |
240 |
-340 |
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Less: profit tax |
60 |
0 |
|
Profits |
180 |
-340 |
Important
Ratios
=============
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As of Dec. 31,
2012 |
As of June 30,
2013 |
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*Current ratio |
0.97 |
0.93 |
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*Quick ratio |
0.65 |
0.43 |
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*Liabilities to assets |
0.66 |
0.65 |
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*Net profit margin (%) |
0.53 |
-3.30 |
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*Return on total assets (%) |
0.57 |
-1.14 |
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*Inventory /Turnover ×365 |
74 days |
/ |
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*Accounts receivable/Turnover ×365 |
63 days |
/ |
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*Turnover/Total assets |
1.07 |
0.34 |
|
* Cost of goods sold/Turnover |
0.89 |
0.87 |
PROFITABILITY:
FAIR
The turnover of SC appears average.
SC’s net profit margin is average in 2012 but fair in the first half of
2013.
SC’s return on total assets is average in 2012 but fair in the first
half of 2013.
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level.
SC’s quick ratio is maintained in a fair level.
The inventory of SC appears average in 2012, but fairly large in the
first half of 2013.
The accounts receivable of SC appears average.
The short-term loan of SC appears fairly large in the first half of 2013.
SC’s turnover is in an average level in 2012 but in a fair level in the
first half of 2013, 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.
SC is considered small-sized in its line with fairly stable financial
conditions. The fairly large amount of inventory and short-term loan would be a
threat to SC’s financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.94 |
|
|
1 |
Rs.102.06 |
|
Euro |
1 |
Rs.84.31 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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 |
|
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 |
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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.