MIRA INFORM REPORT
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Report Date : |
21.05.2014 |
IDENTIFICATION DETAILS
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Name : |
SHANDONG RIFA TEXTILE MACHINERY CO., LTD. |
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Registered Office : |
North Head of Zhonghua
Road, Economic & Technological
Development Zone, Liaocheng, Shandong Province, 252000 PR |
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Country : |
China |
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Financials (as on) : |
30.11.2013 |
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Date of Incorporation : |
11.03.2002 |
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Com. Reg. No.: |
371500018017079 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in developing, manufacturing and selling textile
machinery |
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No. of Employees : |
425 |
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, 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
shandong rifa textile machinery Co., Ltd.
North head of zhonghua road, economic &
technological development zone, liaocheng, shandong PROVINCE, 252000 PR CHINA
TEL: 86 (0) 635-2999585/2999507
FAX: 86 (0) 635-2119668/8516735
EXECUTIVE
SUMMARY
INCORPORATION DATE : mar. 11, 2002
REGISTRATION NO. : 371500018017079
REGISTERED LEGAL FORM : LIMITED
LIABILITIES COMPANY
CHIEF EXECUTIVE :
MR. he xuping (CHAIRMAN)
STAFF STRENGTH :
425
REGISTERED CAPITAL : CNY
78,514,600
BUSINESS LINE :
developing, MANUFACTURING AND TRADING
TURNOVER :
CNY
342,500,000 (JAN. 1 TO nov. 30, 2013)
EQUITIES :
CNY 197,110,000 (AS OF nov. 30, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : well-known
EXCHANGE RATE :
CNY
6.0533 = 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 Company at local
Administration for industry & commerce (AIC - the official body of issuing
and renewing business license) on Mar. 11, 2002.
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 developing, manufacturing and
selling textile machinery; exporting its products, importing machinery
equipment, components and raw materials needed in the manufacture (excluding
the items limited or forbidden by the state).
SC is mainly engaged in developing, manufacturing and selling textile
machinery.
Mr. He Xuping is legal representative, chairman and general manager of
SC at present.
SC is known to have approx. 425 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 Liaocheng. Our checks reveal that SC owns the total premise
about 100,000 square meters.
http://www.rifasd.com/
The design is professional and the content is well organized. At present it is
in Chinese, English and other versions.
E-mail: sd-rifa@yahoo.com.cn
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Company name |
Liaocheng Changrun Textile Machinery Co., Ltd. |
Present one |
|
Legal rep. |
Yu Haiyun |
SC’s quality system meets the international standards of ISO 9001.
Honors:
There is no record of litigation till now.
MAIN SHAREHOLDERS:
Name Amount
(CNY) % of Shareholding
Chang Run Investment Holding Group Co., Ltd. 20,662,300 26.32
Zhejiang Rifa Textile Machinery Co., Ltd. 56,766,600 72.30
Li Zijun
ID # 37020519690820XXXX 1,085,700 1.38
Chang Run Investment Holding Group Co., Ltd.
====================================
Registration no.: 371500018013899
Address: No.
60, Huangshan South Road, Development Zone of Liaocheng, Shandong province
Tel: 86-0635-2119000
Fax: 86-0635-2119000
Email: o.cr@vip.163.com
Web: http://www.crtz.com/
Zhejiang Rifa Textile Machinery Co., Ltd.
==============================
Zhejiang Rifa Textile Machinery Co., Ltd. is a state-level key hi-tech
enterprise, key enterprise of State Textile Industry Administration, key
enterprise of State Machine Industry Administration, CIMS project demonstration
enterprise of China’s "863 plan", China’s CAD applied engineering
demonstration enterprise and key hi-tech enterprise of the Torch Plan of China.
Its former Chinese name was Zhejiang Rifa Textile Machinery Co., Ltd..
Incorporation Date: January
28, 2002
Registration No.: 330624000014283
Legal Rep.: Zheng
Hejun
Registered Capital: CNY
60,000,000
Legal form: Shares
limited co.
E-mail: sales.tm@rifa.com.cn
Add: Rifa
Digital Sci-Tech Park, Hi-Tech Industry Zone (Nanyan), Xinchang County,
Zhejiang Province
Tel: 86
(0) 575-86299100/86299128/86299066
Fax: 86
(0) 575-86299077
Legal
Representative, Chairman and General Manager:
Mr. He Xuping, born in 1966 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.
Also working in Shandong Rifa Textile Machinery Co., Ltd. Liaocheng
Hi-Tech Zone Branch as principal.
Directors:
Xu Huiran
Liang Mengmin
Li Zijun
Liu Shizun
Supervisors:
Guo Yujun
Zhang Jun
Lv Jun
SC is mainly engaged in developing, manufacturing and selling textile
machinery.
SC’s products mainly include rapier loom, terry towel loom, airjet loom,
water jet loom.
SC sources its materials 95% from domestic market, and 5% from overseas
market. SC sells 70% of its products in domestic market, and 30% to overseas
market, mainly India 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 declined to release its customer and supplier details.
Zhejiang Rifa Holding Group Co., Ltd.
===================================================
Incorporation Date: Feb. 26,
1997
Registration No.: 330100000010210
Registered Capital: CNY
190,000,000
Legal Rep.: Wu
Jie
Legal form: Limited
liabilities co.
Add: 19/F, Zhongtian
Building, No. 173 Yugu Road, Xihu District, Hangzhou, Zhejiang Province
Tel: 0571-87633688
Fax: 0571-87633677
E-Mail: rifa@mail.sxptt.zj.cn
Zhejiang Rifa Precision Machinery Co., Ltd.
=========================
It listed in Shenzhen Stock Exchange Market with the code 002520.
Registration no.: 330000000005010
Registered capital: CNY
216,000,000
Legal representative: Wang
Benshan
Tel: 0575-86337958
Fax: 0575-86337881
According to SC’s website:
RIFA Agency in India
Exclusive Agency In India: M/S Voltas Ltd.
Cell Phone Number: +91 9892122828
E-mail: deepaksabarad@voltas.com
Branch:
Shandong Rifa Textile Machinery Co., Ltd. Liaocheng Hi-Tech Zone Branch
=====================================
Registration no.: 371527100000441
Principal: He
Xuping
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.
Huaxia Bank Liaocheng Jianshe Sub-branch
AC#：801200000856
Relationship: Normal
Note: SC’s employee didn’t know the given bank information (Bank of
baroda, Hong Kong).
Balance
Sheet
Unit: CNY’000
|
|
as of
Nov. 30, 2013 |
as of Dec. 31, 2012 |
|
Cash & bank |
38,820 |
69,070 |
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Notes receivable |
33,910 |
80,120 |
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Inventory |
89,460 |
53,830 |
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Accounts receivable |
199,070 |
150,680 |
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Advances to suppliers |
12,150 |
6,930 |
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Other receivables |
920 |
3,170 |
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Other current assets |
30 |
0 |
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------------------ |
------------------ |
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Current assets |
374,360 |
363,800 |
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Long-term investments |
0 |
0 |
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Fixed assets net value |
41,130 |
42,290 |
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Projects under construction |
810 |
260 |
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Long-term deferred expenses |
0 |
90 |
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Deferred income tax assets |
0 |
2,420 |
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Intangible assets |
26,180 |
7,140 |
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Other assets |
2,530 |
0 |
|
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------------------ |
------------------ |
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Total assets |
445,010 |
416,000 |
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============= |
============= |
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Short loans |
88,000 |
43,000 |
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Accounts payable |
129,880 |
13,330 |
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Advances from customers |
23,190 |
14,180 |
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Employee pay payable |
0 |
2,000 |
|
Taxes payable |
-1,620 |
4,740 |
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Other accounts payable |
-100 |
-5,200 |
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Non-current liabilities due within one year |
0 |
42,000 |
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Other current liabilities |
0 |
0 |
|
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------------------ |
----------------- |
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Current liabilities |
239,350 |
114,050 |
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Long term liabilities |
8,550 |
122,710 |
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|
------------------ |
------------------ |
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Total liabilities |
247,900 |
236,760 |
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Shareholders equities |
197,110 |
179,240 |
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|
------------------ |
------------------ |
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Total liabilities & equities |
445,010 |
416,000 |
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|
============= |
============= |
Income
Statement
Unit: CNY’000
|
|
Jan. 1 to Nov. 30, 2013 |
|
Turnover |
342,500 |
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Cost of goods sold |
262,270 |
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Taxes and additional of main operation |
2,340 |
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Sales expense |
23,690 |
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Management expense |
15,660 |
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Finance expense |
4,480 |
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Profit before tax |
39,870 |
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Less: profit tax |
4,940 |
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Net profit |
34,930 |
Important
Ratios
|
|
as
of Nov. 30, 2013 |
as
of Dec. 31, 2012 |
|
*Current ratio |
1.56 |
3.19 |
|
*Quick ratio |
1.19 |
2.72 |
|
*Liabilities to assets |
0.56 |
0.57 |
|
*Net profit margin (%) |
10.20 |
/ |
|
*Return on total assets (%) |
7.85 |
/ |
|
*Inventory /Turnover ×365 |
/ |
/ |
|
*Accounts receivable/Turnover ×365 |
/ |
/ |
|
*Turnover/Total assets |
0.77 |
/ |
|
* Cost of goods sold/Turnover |
0.77 |
/ |
PROFITABILITY:
FAIRLY GOOD
·
The turnover of SC appears fairly good in its line.
·
SC’s net profit margin is fairly good.
·
SC’s return on total assets is fairly good.
·
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: AVERAGE
·
The current ratio of SC is maintained in a fairly
good level in 2012 but normal as of Nov. 30, 2013.
·
SC’s quick ratio is maintained in a fairly good
level in 2012 but normal as of Nov. 30, 2013.
·
The inventory of SC appears average.
·
The accounts receivable of SC appears fairly large.
·
SC’s short-term loan appears average.
·
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 medium-sized in its line with fairly stable financial conditions.
The large amount of accounts receivable could be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.58.74 |
|
|
1 |
Rs.98.77 |
|
Euro |
1 |
Rs.80.52 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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 |
|
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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.