MIRA
INFORM REPORT
|
Report Date : |
04.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
WUXI TAIJI INDUSTRY
CO., LTD. |
|
|
|
|
Registered Office : |
South Of Huaqing Bridge, Lucun, Wuxi, Jiangsu Province,
214024 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
26.07.1993 |
|
|
|
|
Com. Reg. No.: |
320200000015148 |
|
|
|
|
Legal Form : |
Shares Limited Company |
|
|
|
|
Line of Business : |
Manufacturing and processing chemical fibers and products,
chemical fiber products, chemical fiber machinery and accessories, textile machinery
and accessories, general equipment, motors, automotive parts; installation
and maintenance services of mechanical equipment; textile technology service |
|
|
|
|
No. of Employees |
3,392 |
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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
High Risk |
C2 |
|
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
|
Source
: CIA |
Company name and address
WUXI TAIJI INDUSTRY CO., LTD.
south of huaqing
bridge, lucun, wuxi,
jiangsu PROVINCE,
214024 PR CHINA
TEL: 86 (0)
510-85412136/85419120
FAX: 86 (0)
510-85402890/85430760
EXECUTIVE SUMMARY
INCORPORATION DATE : july 26, 1993
REGISTRATION NO. : 320200000015148
REGISTERED LEGAL FORM
: SHARES LIMITED COMPANY
CHIEF EXECUTIVE : MR. gu bin (CHAIRMAN)
STAFF STRENGTH : 3,392 (including
subsidiaries)
REGISTERED CAPITAL : CNY 1,191,274,272
BUSINESS LINE :
MANUFACTURING, PROCESSING, TRADING, SERVICE
TURNOVER :
CNY 3,973,317,000 (Consolidated,
AS OF DEC. 31, 2013)
EQUITIES : CNY 2,170,503,000 (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 6.2465 = 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 Shares limited co. at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license).
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 manufacturing and processing chemical fibers and products, chemical fiber products, chemical fiber machinery and accessories, textile machinery and accessories, general equipment, motors, automotive parts; installation and maintenance services of mechanical equipment; textile technology service; technology design and development of chemical fiber; manufacturing, processing and selling needle textiles, textile raw materials (excluding cotton, cocoon); selling chemical raw materials (excluding hazardous chemicals), instrumentation, electronics and communications equipment (excluding ground satellite receiving facilities), building materials, plastics products and metal materials; importing and exporting various commodities and technologies.
SC is mainly engaged in manufacturing, processing and selling chemical fiber products, chemical fiber machinery and accessories, textile machinery and accessories, etc., and providing related technical service.
Mr. Gu Bin has been legal representative and chairman of SC since 2007.
SC is known to have approx. 3,392 (including subsidiaries) employees at present, including 2,276 production staff, 29 sales staff, 676 technical staff, 35 financial staff and 376 administrative staff.
SC is currently operating at the above stated address, and this address houses its operating office and factory in the industrial zone of Wuxi. Detailed premise information is not available at present.
Note: the heading address refers to the same place as Nantu, Xiadian Bridge, Lucun, Wuxi
http://www.wxtj.com/ The design is professional and the content is well organized. At present it is in both Chinese and English versions.
E-mail: wxtj600667@wxtj.com
Changes of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Registration No. |
3200001104108 |
320200000015148 |
SC is a listed company in Shanghai Stock Exchange Market with the code of 600667.
SC’s quality system meets the international standards of ISO 9002:1994.
Subject passed the annual inspection of 2012 with Administration for Industry & Commerce.
Tax Registration Certificate No.: 320201135890776
Organization Code: 135890776
There is no record of litigation till now.
MAIN SHAREHOLDERS: (As of March 31, 2014)
Name % of Shareholding
Wuxi Industry Development Group Co., Ltd. 32.08
China Construction Bank - China Bonus Hybrid Open-End Securities Investment Funds 2.58
Bank of Communications - Hon Hing Securities Investment Fund 1.85
National Social Security Fund 116 Combination 1.68
China Everbright Bank Co., Ltd. - UBS SDIC Prosperous Industries Securities Investment Fund 1.08
Industrial Bank Co., Ltd. - Xingquan Trend Investment Mixed Securities Investment Fund 1.03
Agricultural Bank of China - Invesco Great Wall Resource Monopoly Equity Securities Investment Fund 0.95
Zhongrong International Trust Co., Ltd. - Zhongrong - Click into Gold 13 Securities Investment
Gather Fund Trust Plan (literal translation) 0.84
China Tobacco Investment Management Corporation 0.73
China Merchants Bank Co., Ltd. - JP Morgan Industry Wheeled Securities Investment Fund 0.63
Other shareholders 56.55
Wuxi Industry Development Group Co., Ltd.
================================
Registration no.: 320200000007943
Registered capital: CNY 3,589,379,241.46
Legal representative: Jiang Guoxiong
Tel: 0510-82806630
Fax: 0510-82704640
E-mail: ywh@wxidg.com
Website: http://www.wxidg.com/
Chairman and legal
representative:
Mr. Gu Bin born in 1970, with Master’s Degree, engineer. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2007 to present Working in SC as chairman and legal representative;
Also working in Wuxi Industry Development Group Co., Ltd. as vice president, and in Hitech Semiconductor (Wuxi) Co., Ltd., Taiji Semiconductor (Suzhou) Co., Ltd., Taiji Micro-electronics (Suzhou) Co., Ltd., etc. as legal representative.
General Manager and
director:
Mr. Sun Hongwei born in 1966 with university education, senior economist. He is currently responsible for the daily management of SC.
Working Experience(s):
At present Working in SC as general manager and director.
Also working in Jiangsu Taiji Industry New Materials Co., Ltd. and Wuxi Taiji International Trade Co., Ltd. as legal representative, and in Hitech Semiconductor (Wuxi) Co., Ltd. as director.
Vice general managers:
Jia Donghua
Bi Qiangxin
Directors:
Chen Shujin
Wan Ruping
Li Dong
Etc.
Supervisors:
Huang Shiqiang
Cao Jie
Zhou Run
Etc.
SC is mainly engaged in manufacturing, processing and selling chemical fiber products, chemical fiber machinery and accessories, textile machinery and accessories, etc., and providing related technical service.
SC’s products mainly include:
Industrial Yarn
Tire Coro Fabric
Industrial Fabric
Fabrics for PVC coating
Light conveyor belt fabric
Twisted yarn
SC sources its materials 80% from domestic market, and 20% from overseas market. SC sells 10% of its products in domestic market, and 90% to overseas market, mainly Europe and Southeast Asian 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’s management refused to release its main suppliers and clients.
SC is known to invest
in the following companies:
Jiangsu Taiji Industry New Materials Co., Ltd.
Hitech Semiconductor (Wuxi) Co., Ltd.
Taiji Semiconductor (Suzhou) Co., Ltd.
Taiji Micro-electronics (Suzhou) Co., Ltd.
Wuxi Taiji International Trade Co., Ltd.
Wuxi Hongyuan Mechanical and Electrical Technology Co., Ltd.
Wuxi Xidong Technological Industry Park Co., Ltd.
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 management declined to release its bank details.
Consolidated Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31, 2013 |
as of Dec. 31, 2012 |
|
Cash & bank |
1,403,662 |
978,545 |
|
Inventory |
288,814 |
364,370 |
|
Accounts receivable |
185,174 |
414,541 |
|
Notes receivable |
149,374 |
125,973 |
|
Advances to supplies |
32,133 |
65,289 |
|
Other receivables |
22,191 |
20,665 |
|
Other current assets |
28,768 |
10,888 |
|
|
------------------ |
------------------ |
|
Current assets |
2,110,116 |
1,980,271 |
|
Fixed assets net value |
2,842,443 |
3,028,477 |
|
Projects under construction |
231,094 |
206,356 |
|
Disposal of fixed assets |
0 |
3,350 |
|
Long-term investments |
48,579 |
48,579 |
|
Intangible assets |
141,425 |
127,947 |
|
Deferred tax assets |
14,228 |
12,167 |
|
Other assets |
314,393 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
5,702,278 |
5,407,147 |
|
|
============= |
============= |
|
Short loans |
1,509,463 |
948,130 |
|
Accounts payable |
381,367 |
400,770 |
|
Other Accounts payable |
20,671 |
33,910 |
|
Notes payable |
49,765 |
50,645 |
|
Advances from clients |
8,364 |
3,073 |
|
Taxes payable |
19,141 |
-21,582 |
|
Interest payable |
6,792 |
7,604 |
|
Dividends payable |
879 |
879 |
|
Accrued payroll |
12,998 |
18,049 |
|
Non-current liabilities due within one year |
929,556 |
663,098 |
|
Other current liabilities |
9,909 |
202 |
|
|
----------------- |
----------------- |
|
Current liabilities |
2,948,905 |
2,104,778 |
|
Long term liabilities |
574,582 |
1,123,140 |
|
Other liabilities |
8,288 |
7,202 |
|
|
------------------ |
------------------ |
|
Total liabilities |
3,531,775 |
3,235,120 |
|
Shareholders equities |
2,170,503 |
2,172,027 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
5,702,278 |
5,407,147 |
|
|
============= |
============= |
Consolidated Income Statement
Unit: CNY’000
|
|
as of Dec. 31, 2013 |
as of Dec. 31, 2012 |
|
Turnover |
3,973,317 |
4,156,966 |
|
Cost of goods sold |
3,553,405 |
3,674,022 |
|
Taxes and additional of main operation |
2,569 |
1,875 |
|
Sales expense |
25,221 |
25,047 |
|
Management expense |
199,890 |
161,118 |
|
Finance expense |
104,855 |
134,508 |
|
Asset impairment loss |
-6,863 |
3,899 |
|
Investment income |
6,261 |
8,134 |
|
Non-operating income |
56,091 |
25,935 |
|
Non-operating expense |
919 |
537 |
|
Profit before tax |
155,673 |
190,029 |
|
Less: profit tax |
42,288 |
45,418 |
|
Profits |
113,385 |
144,611 |
Important Ratios
=============
|
|
as of Dec. 31, 2013 |
as of Dec. 31, 2012 |
|
*Current ratio |
0.72 |
0.94 |
|
*Quick ratio |
0.62 |
0.77 |
|
*Liabilities to assets |
0.62 |
0.60 |
|
*Net profit margin (%) |
2.85 |
3.48 |
|
*Return on total assets (%) |
1.99 |
2.67 |
|
*Inventory /Turnover ×365 |
27 days |
32 days |
|
*Accounts receivable/Turnover ×365 |
18 days |
37 days |
|
*Turnover/Total assets |
0.70 |
0.77 |
|
* Cost of goods sold/Turnover |
0.89 |
0.88 |
PROFITABILITY: FAIRLY GOOD
The turnover of SC appears 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 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.
The accounts receivable of SC appears average.
SC’s short-term loan of SC appears large in both years.
SC’s turnover 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.
SC is considered large-sized in its line with fairly stable financial conditions. The large amount of short loans could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.21 |
|
|
1 |
Rs.99.17 |
|
Euro |
1 |
Rs.80.56 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
NIS |
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.