MIRA
INFORM REPORT
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Report Date : |
14.05.2014 |
IDENTIFICATION DETAILS
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Name : |
nanjing hg-nice gain fabric Co., Ltd. |
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Registered Office : |
No. 9, South Liyuan Road, Jiangning Economic & Technological
Development Zone, Nanjing, Jiangsu Province,
211100 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
14.09.1999 |
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Com. Reg. No.: |
320100400011734 |
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Legal Form : |
Chinese-Foreign Equity Joint
Venture Enterprise |
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Line of Business : |
Engaged in manufacturing and selling plush fabrics. |
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No. of Employees |
430 |
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
|
Source
: CIA |
Company name and address
nanjing hg-nice gain fabric Co., Ltd.
No. 9, south
liyuan road, jiangning Economic & Technological Development zone, nanjing,
jiangsu PROVINCE, 211100 PR CHINA
TEL: 86
(0) 25-52105839/52105891 FAX: 86
(0) 25-52105800
EXECUTIVE SUMMARY
INCORPORATION DATE : SEPTEMBER 14, 1999
REGISTRATION NO. : 320100400011734
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
STAFF STRENGTH : 430
REGISTERED CAPITAL :
USD 12,000,000
BUSINESS LINE : MANUFACTURING & TRADING
TURNOVER : CNY 147,630,000 (AS OF DEC. 31, 2013)
EQUITIES : CNY 130,780,000 (AS OF DEC. 31, 2013)
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
6.23 = 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
Sep. 14, 1999.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of capital
investment. The investing parties exercise business management, share
profits and bear all risks and liabilities of the co. together. The equity
joint venture law requires that foreign party contribute not less than 25%
of the registered capital, with no maximum. The investing parties are free
to agree on method of profit distribution and liabilities bearing according
to the proportion of capital investment. Each investing parties contributes
funds, tangible assets, technology & etc. The board of directors
excises the high authority. The joint venture usually has a limited
duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered business scope includes dyeing, composite, coating,
after-finishing high simulation fiber fabric; manufacturing garments, carpet, decoration
carpet, interior decorations and other craft products; selling its products;
storage in the free trade zone.)
SC is mainly
engaged in manufacturing and selling plush fabrics.
Mr. Chen Mouliang is legal representative and chairman of SC at present.
SC is
known to have approx. 430 employees at present.
SC
is currently operating at the above stated address,
and this address houses its operating office and factory in the economic &
technological development zone of Nanjing. The detailed information of the
premise is unspecified.
SC is not known to host website of its own at present.
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
Organization Code: 608979376
Subject passed the annual inspection of 2012
with Administration for Industry & Commerce.
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Nice Gain Trading Limited (Hong Kong) 40
Shanghai Haixin Group Co., Ltd. 53
Fame Ascent Holdings Limited (Hong Kong) 7
Nice Gain Trading Limited (Hong Kong)
====================
CR No.: 0502026
Date of Incorporation:
Company Status: Private company limited by shares
Active Status: Live
Shanghai Haixin Group Co., Ltd.
======================
Registered no.: 310000400065644
Legal representative: Yu Feng
Date of
Incorporation:
It is a listed company in Shanghai Stock
Exchange Market with the code of 600851.
Phone: +86-21- 57698100
Facsimile: +86-21-57698200
l
Legal representative and Chairman:
Mr. Chen Mouliang, born in 1962 with Doctor’s
Degree, senior economist. He is currently responsible for the overall
management of SC.
Working Experience(s):
At present Working
in SC as legal representative and chairman;
Also working in Shanghai Haixin Group Co., Ltd. as president.
l
Vice Chairman:
Shen Xiaohong is currently responsible for the
daily management of SC.
Working Experience(s):
At present Working
in SC as vice chairman;
Also working in Nanjing Nice Gain Trade Co., Ltd. (Literal Translation) as legal representative
l
General Manager:
Zheng Tong is currently responsible for the daily management of SC.
Working Experience(s):
At present Working
in SC as general manager.
l
Directors:
Liu Linhua
Wang Xiaojing
SC is mainly
engaged in manufacturing and selling plush fabrics.
SC’s products
mainly include: plush fabrics.
SC sources its materials 90%
from domestic market, and 10% 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’s management declined to release its customer and supplier
details.
Nanjing Nice Gain (HG) Garments Co., Ltd.
------------------------------------
Registered
no.: 320100400021279
Date
of incorporation:
Legal
representative: Wang Xiaojing
Nanjing
Nice Gain Trade Co., Ltd. (Literal Translation)
------------------------------------
Registered
no.: 320121000249891
Date
of incorporation:
Legal
representative: Shen Xiaohong
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.
Balance Sheet
Unit: CNY’000
|
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as
of Dec. 31, 2013 |
|
Cash & bank |
5,780 |
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Inventory |
68,830 |
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Accounts
receivable |
47,940 |
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Advances to
suppliers |
1,540 |
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Other
receivables |
1,330 |
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Other current
assets |
20 |
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|
------------------ |
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Current assets |
125,440 |
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Fixed assets net
value |
31,960 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Intangible assets |
7,560 |
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Other assets |
1,360 |
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|
------------------ |
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Total assets |
166,320 |
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============= |
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Short loans |
13,000 |
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Accounts payable |
5,600 |
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Other payable |
7,990 |
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Taxes payable |
-430 |
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Advances from
clients |
6,550 |
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Accrued payroll |
2,210 |
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Other current
liabilities |
620 |
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------------------ |
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Current
liabilities |
35,540 |
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Long term
liabilities |
0 |
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------------------ |
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Total
liabilities |
35,540 |
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Equities |
130,780 |
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------------------ |
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Total liabilities
& equities |
166,320 |
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============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2013 |
|
Turnover |
147,630 |
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Cost of goods
sold |
122,510 |
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Taxes
and additional of main operation |
1,020 |
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Sales expense |
7,630 |
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Management expense |
11,910 |
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Finance expense |
2,520 |
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Asset
impairment loss |
530 |
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Profit before
tax |
1,590 |
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Less: profit tax |
510 |
|
Profits |
1,080 |
Important Ratios
=============
|
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as
of Dec. 31, 2013 |
|
*Current ratio |
3.53 |
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*Quick ratio |
1.59 |
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*Liabilities
to assets |
0.21 |
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*Net profit
margin (%) |
0.73 |
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*Return on
total assets (%) |
0.65 |
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*Inventory
/Turnover ×365 |
171 days |
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*Accounts
receivable/Turnover ×365 |
119 days |
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*Turnover/Total
assets |
0.89 |
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* Cost of
goods sold/Turnover |
0.83 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a fairly
good level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears large in 2013.
l
The accounts receivable of SC appears fairly large
in 2013.
l
SC’s short-term loan is in an average level.
l
SC’s turnover is in a fair level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is average.
Overall financial condition of the SC:
Fairly stable.
SC is considered medium-sized in its line with fairly stable
financial conditions. The large amount of inventory and accounts receivable
could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.87 |
|
|
1 |
Rs.100.98 |
|
Euro |
1 |
Rs.82.40 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
PDT |
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 |
|
|
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 |
-- |
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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.