MIRA
INFORM REPORT
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Report Date : |
17.07.2014 |
IDENTIFICATION DETAILS
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Name : |
MARKOR INTERNATIONAL FURNITURE CO., LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
16.08.1995 |
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Com. Reg. No.: |
650000410001826 |
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Legal Form : |
Shares Limited Co. |
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Line of Business : |
Subject is engaged in the design, manufacture and national chain sales
of furniture, decoration materials, lamps and ancillary products; sales of
knitwear and textile, kitchenware, daily necessities, office supplies,
ornaments, clothing shoes and hats, hardware, arts and crafts |
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No. of Employees : |
5,993 (Including
Subsidiaries) |
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 : |
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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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, growth of the private sector, development of stock markets and a modern banking system, 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 considered important to "economic security," explicitly looking to foster globally competitive industries. After keeping its currency tightly linked to the US dollar for years, in July 2005 China 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 and expanded the daily trading band within which the RMB is permitted to fluctuate. 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 2013 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 consumption; (b) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and increasing numbers of college graduates; (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. Several factors are converging to slow China's growth, including debt overhang from its credit-fueled stimulus program, industrial overcapacity, inefficient allocation of capital by state-owned banks, and the slow recovery of China's trading partners. The government's 12th Five-Year Plan, adopted in March 2011 and reiterated at the Communist Party's "Third Plenum" meeting in November 2013, emphasizes continued economic reforms and the need to increase domestic consumption in order to make the economy less dependent in the future on fixed investments, exports, and heavy industry. However, China has made only marginal progress toward these rebalancing goals. The new government of President XI Jinping has signaled a greater willingness to undertake reforms that focus on China's long-term economic health, including giving the market a more decisive role in allocating resources.
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Source
: CIA |
Company name and address
MARKOR
INTERNATIONAL FURNITURE CO., LTD.
NO. 160 YINGBIN ROAD, ECONOMIC & TECHNICAL DEVELOPMENT ZONE,
URUMQI, XINJIANG, 830026 PR CHINA
TEL: 86 (0) 991-3836028
FAX: 86 (0) 991-3838191/3628809
EXECUTIVE SUMMARY
INCORPORATION DATE :
AUG. 16, 1995
REGISTRATION NO. :
650000410001826
REGISTERED LEGAL FORM : SHARES
LIMITED CO.
CHIEF EXECUTIVE :
MR. KOU WEIPING (CHAIRMAN)
STAFF STRENGTH :
5,993 (INCLUDING SUBSIDIARIES)
REGISTERED CAPITAL : CNY
646,810,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 2,675,159,000 (CONSOLIDATED,
AS OF DEC. 31, 2013)
EQUITIES :
CNY 2,707,756,000 (CONSOLIDATED, AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : WELL
KNOWN
EXCHANGE RATE :
CNY 6.2062 = 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 Chinese-foreign equity joint venture enterprise
at local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on Aug. 16, 1995 and has been under present ownership since October of 1999.
Company Status:
Shares limited co. This form of business in PR
China is defined as a legal person. Its registered capital is divided into
shares of equal par value and the co. raises capital by issuing share
certificates by promotion or by public offer. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its debts
only to the extent of its total assets. The co has independent property of
legal person and enjoys property rights of legal person. The characteristics of the shares limited co. are as
follows: The establishment of the co.
requires at least two promoters and no more than 200, half of whom shall be domiciled
in The minimum registered capital
of a co. is CNY The board of directors must
consist of five to nineteen directors. If the co.
raises capital by public offer, the promoters must not subscribe less than
35% of the total shares. the promoters’ shares are restricted to transfer-
within one year of the offer. A state-owned enterprise that
is restructured into a shares limited co. must comply with the conditions
& requirements specified under the law & administrative rule.
SC’s registered business scope includes development, design, manufacture
and national chain sales of furniture, decoration materials, lamps and
ancillary products; sales of knitwear and textile, kitchenware, daily
necessities, office supplies, ornaments, clothing shoes and hats, hardware,
arts and crafts; business consulting; goods storage (excluding dangerous
chemicals); import and export of goods and technology (excluding those limited
or prohibited by the state); processing with imported materials, processing
with imported samples, assembling with imported parts, and compensation trade
in agreement; counter trade & transit trade; rental housing; venue rental,
parking service; operation and processing of timber (if needed with permit, and
it is subject to the license; if needed operating according to related
regulations).
SC is mainly engaged in manufacturing and selling decorative materials
and furniture.
Mr. Kou Weiping is legal representative and chairman of SC at present.
SC is known to have approx. 5,993 (including subsidiaries) at
present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the economic & technical
development zone of Urumqi. Our checks reveal that SC owns the total premise,
but the gross area of the premise is unspecified.
http://www.markorfurniture.com
The design is professional and the content is well organized. At present it is
both in Chinese and English versions.
Email: mkzq1@markor.com.cn
SC was listed in Shanghai Stock Exchange Market with the code of 600337
on Nov. 27, 2000.
Changes of its
registered information:
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Date of change |
Item |
Before the change |
After the change |
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SC’s name |
Markor International Furniture Mfg. Co., Ltd. |
Present one |
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Registered no. |
100198 |
4000820 |
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Registered Legal Form |
Chinese-foreign equity joint venture enterprise |
Shares limited co. |
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Registered capital |
USD 2,000,000 |
CNY 81,000,000 |
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Registered capital |
CNY 81,000,000 |
CNY 52,080,000 |
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Registered capital |
CNY 52,080,000 |
CNY 92,080,000 |
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Registered no. |
4000820 |
6500001000952 |
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Registered capital |
CNY 92,080,000 |
CNY 110,496,000 |
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Registered capital |
CNY 110,496,000 |
CNY 198,892,800 |
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Registered capital |
CNY 198,892,800 |
CNY 283,668,900 |
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Registered capital |
CNY 283,668,900 |
CNY 510,604,000 |
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Registered capital |
CNY 510,604,000 |
CNY 632,680,419 |
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Registered capital |
CNY 632,680,419 |
CNY 647,280,419 |
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Registered capital |
CNY 647,280,419 |
Present amount |
Tax Registration Certificate No.: 650104625551670
Organization Code: 625551670
Subject passed the annual inspection of 2012 with Administration for
Industry & Commerce.
MAIN SHAREHOLDERS:
(As of Mar. 31, 2014)
Name %
of Shareholding
Markor Investment Group Co., Ltd. 41.39
Hong Kong Boise Furniture Limited 5.21
National Social Security Fund Combination 111 1.52
National Social Security Fund Combination 106 1.4
Chen Yanxiang 1.08
China Life Insurance Company Limited-Bonus-Individual Bonuses
China Construction Bank-China AMC Advantage Growth Stock Securities
Investment Fund 0.76
Industrial and Commercial Bank of China- GTJA Allianz Desheng Small Cap
Selective
Securities Investment Fund 0.58
Harvest Fund Management Limited-China Construction Bank- Ping An Life
Insurance Company of China 0.58
Xinjiang Investment Development (Group) Co., Ltd. 0.56
Other Shareholders 45.92
Hong Kong Boise Furniture Limited
===========================
CR No.: 0842519
Company Type: Private company limited by shares
Date of Incorporation: 26-Mar.-2003
Active Status: Live
Markor Investment Group Co., Ltd.
==========================
Incorporation Date: May 14, 1993
Registration No.: 650000059019122
Chief Executive: Mr. Feng Dongming (Legal representative)
Website: http://www.markor.com.cn/
Xinjiang Investment Development (Group) Co., Ltd.
=====================================
Incorporation Date:
Registration No.: 650000030002912
Chief Executive: Wang Xuebin (Legal representative)
Legal Representative and Chairman:
Mr. Kou Weiping, born in 1959, with Master’s degree, senior economist.
He is currently responsible for the overall management of SC.
Working
Experience(s):
At present Working
in SC as chairman and legal representative.
Also working in Markor Home Furnishings
(Beijing) Co., Ltd., Markor International Furniture (Tianjin) Mfg. Co.,
Ltd., Markor Chain Stores D/B/A MHF Co., Ltd., Xinjiang Linyuan Trade Co., Ltd., Markor
International Woodwork (Erenhot) Co., Ltd., Markor Logistics
(Tianjin) Co., Ltd., etc. as legal representative; working in Markor
International Furniture Co., Ltd. Urumqi Meiju Branch and Markor International
Furniture Co., Ltd. Shanghai Branch as principal.
Vice Chairman:
Mr. Chen Jiang, born in 1963, with Master’s degree, senior economist. He
is currently responsible for the daily management of SC.
Working
Experience(s):
At present Working
in SC as vice chairman.
General
Manager:
Ms. Huang Xin, born in 1967, with university education, engineer. She is
currently responsible for the daily management of SC.
Working
Experience(s):
At present Working
in SC as general manager.
Directors:
Feng Dongming
Zhang Jianying
Dai Jianguo
Etc.
Supervisors:
Zhen Jingyu
Feng Shujun
Shao Wei
SC is mainly engaged in manufacturing and selling decorative materials
and furniture.
SC’s products mainly include: decorative materials and furniture.
SC sources its materials 80% from domestic market and 20% from the
overseas market. SC sells 45% of its products to overseas market and 55% in domestic market.
The buying terms of SC include Check, L/C, T/T 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 refused to release its main suppliers and customers.
TRADEMARKS & PATENTS
Registration No.: 11399261
Registration Date: Jan. 28, 2014
Trademark Design:
Registration No.: 11783289
Registration Date: May 7, 2014
Trademark Design:
Registration No.: 11242434
Registration Date: Dec. 21, 2013
Trademark Design:
SC is known to
invest in the following companies:
Markor
Chain Stores D/B/A MHF Co., Ltd.
Markor
Home Furnishings (Beijing) Co., Ltd.
Xinjiang Linyuan Trade Co., Ltd.
Markor
Logistics (Tianjin) Co., Ltd.
Markor
International Woodwork (Erenhot) Co., Ltd.
Markor International Furniture (Tianjin) Mfg. Co., Ltd.
Branches:
Markor International Furniture Co., Ltd. Shanghai Branch
==========================================
Incorporation Date:
Registration No.: 310118002986136
Principal: Kou Weiping
Markor International Furniture Co., Ltd. Urumqi Meiju Branch
=============================================
Incorporation Date:
Registration No.: 650000510010834
Principal: Kou Weiping
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 declined to release its banking details.
Balance Sheet (consolidated)
Unit: CNY’000
|
|
as of Dec. 31,
2013 |
as of Dec. 31,
2012 |
|
Cash & bank |
448,163 |
429,557 |
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Trading financial assets |
1,511 |
3,510 |
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Accounts receivable |
157,202 |
195,245 |
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Advances to suppliers |
150,928 |
135,748 |
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Other receivables |
46,707 |
46,012 |
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Inventory |
1,108,556 |
1,123,424 |
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Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
1,913,067 |
1,933,496 |
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Investment real estate |
23,264 |
23,937 |
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Fixed assets |
1,157,924 |
1,156,532 |
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Projects under construction |
177,749 |
159,141 |
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Intangible assets |
291,875 |
288,051 |
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Goodwill |
58,845 |
68,600 |
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Long-term deferred expenses |
82,750 |
81,817 |
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Deferred income tax assets |
69,105 |
56,319 |
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Other assets |
0 |
0 |
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------------------ |
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Total assets |
3,774,579 |
3,767,893 |
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============= |
============= |
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Short loans |
149,838 |
315,978 |
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Bills payable |
16,256 |
45,464 |
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Accounts payable |
209,982 |
251,090 |
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Advances from clients |
384,952 |
303,981 |
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Payroll payable |
61,199 |
66,561 |
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Tax payable |
80,077 |
45,142 |
|
Interest payable |
350 |
442 |
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Other payable |
60,611 |
153,211 |
|
Non-current liabilities due within one year |
0 |
70,272 |
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Other current liabilities |
372 |
1,228 |
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|
------------------ |
------------------ |
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Current liabilities |
963,637 |
1,253,369 |
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Non-Current liabilities |
103,186 |
4,237 |
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|
------------------ |
------------------ |
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Total liabilities |
1,066,823 |
1,257,606 |
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Equities |
2,707,756 |
2,510,287 |
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|
------------------ |
------------------ |
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Total liabilities & equities |
3,774,579 |
3,767,893 |
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============= |
============= |
Income Statement (consolidated)
Unit: CNY’000
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as of Dec. 31,
2013 |
as of Dec. 31,
2012 |
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Turnover |
2,675,159 |
2,631,063 |
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Cost of goods sold |
1,272,668 |
1,394,812 |
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Taxes and additional of main operation |
23,393 |
14,244 |
|
Sales expense |
880,509 |
874,663 |
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Management expense |
241,398 |
276,221 |
|
Finance expense |
31,974 |
33,248 |
|
Asset impairment loss |
17,160 |
10,151 |
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Income from changes in fair
value |
-1,584 |
2,557 |
|
Investment income |
9,935 |
5,221 |
|
Non-operating income |
12,149 |
17,179 |
|
Non-operating expense |
2,511 |
2,424 |
|
Profit before tax |
226,046 |
50,257 |
|
Less: profit tax |
54,038 |
29,547 |
|
Profits |
172,008 |
20,710 |
Important Ratios
|
|
as of Dec. 31,
2013 |
as of Dec. 31,
2012 |
|
*Current ratio |
1.99 |
1.54 |
|
*Quick ratio |
0.83 |
0.64 |
|
*Liabilities to assets |
0.28 |
0.33 |
|
*Net profit margin (%) |
6.43 |
0.79 |
|
*Return on total assets (%) |
4.56 |
0.55 |
|
*Inventory /Turnover ×365 |
152 days |
156 days |
|
*Accounts receivable/Turnover ×365 |
22 days |
28 days |
|
*Turnover/Total assets |
0.71 |
0.70 |
|
* Cost of goods sold/Turnover |
0.48 |
0.53 |
PROFITABILITY:
FAIRLY GOOD
·
The turnover of SC appears good in its line in both
years.
·
SC’s net profit margin is average in 2012, and
fairly good in 2013.
·
SC’s return on total assets is average in both
years.
·
SC’s cost of goods sold is low in both years,
comparing with its turnover.
LIQUIDITY: AVERAGE
·
The current ratio of SC is maintained in a normal
level in both years.
·
SC’s quick ratio is maintained in a fair level in
2012, and in a normal level in 2013.
·
The inventory of SC appears large in both years.
·
The accounts receivable of SC appears average in
both years.
·
SC’s short-term loan is average in both years.
·
SC’s turnover is in a fair level in both years,
comparing with the size of its total assets.
LEVERAGE: FAIRLY
GOOD
·
The debt ratio of SC is low in both years.
·
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly stable.
SC is considered large-sized in its line with fairly stable financial
conditions. The large amount of inventory could be a threat to SC’s financial
situation.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.19 |
|
|
1 |
Rs.103.14 |
|
Euro |
1 |
Rs.81.66 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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|
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.