MIRA
INFORM REPORT
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Report Date : |
26.05.2014 |
IDENTIFICATION DETAILS
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Name : |
Shandong Fuji Textile CO., LTD. |
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Registered Office : |
No. 107 Keji Avenue, High & New Tech. Industry Development Zone, Linyi,
Shandong Province, 276000 Pr China |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
17.06.2005 |
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Com. Reg. No.: |
371326228007616 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Mainly Engaged in Manufacturing and Selling Textiles, Knitwear,
Garments, Cloth And High-Grade Fabric |
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No of Employees : |
400 |
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 (30.09.2013) |
Current Rating (01.12.2013) |
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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 Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate 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 & ADDRESS
Shandong Fuji Textile CO.,
LTD.
No. 107 Keji avenue, High & New Tech.
Industry Development Zone,
Linyi, Shandong province, 276000 PR CHINA
TEL: 86 (0) 539-3105588/3105688
FAX: 86 (0) 539-3105788
EXECUTIVE SUMMARY
INCORPORATION DATE : june 17, 2005
REGISTRATION NO. : 371326228007616
REGISTERED LEGAL FORM : Limited liabilities
company
chief executive :
MR. liu guanghua (CHAIRMAN)
STAFF STRENGTH :
400
REGISTERED CAPITAL : CNY 30,000,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER :
CNY 72,300,000 (unaudited, AS OF DEC. 31, 2013)
EQUITIES :
CNY 17,060,000 (unaudited, AS OF DEC. 31, 2013)
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : Fair
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 6.2346 = 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 June 17, 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 & selling
textiles, knitwear, garments, cloth, high-grade fabric; exporting self-made
products and related technologies; importing raw materials, machinery and
equipment, instruments, spare parts and related technologies which required for
production, scientific research, processing with imported materials, processing
with imported samples, assembling with imported parts, and compensation trade
in agreement (excluding the goods prohibited or limited by the country). (With
permit if needed)
SC is mainly engaged in manufacturing & selling textiles, knitwear,
garments, cloth and high-grade fabric.
Mr. Liu Guanghua is legal representative and chairman of SC at present.
SC is known to have approx. 400 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the Hi-tech zone of Linyi. SC’s employee refused to release the detailed information
of the premise.
http://www.fujiknit.com/ The design is professional and the content is
well organized. At present it is in Chinese version.
Email: fujiknit@126.com
No significant changes were found during our checks with the local AIC.
Subject passed the annual inspection of 2012 with Administration for
Industry & Commerce.
Organization Code: 776335983
There is no record of litigation till now.
MAIN SHAREHOLDERS:
Name Amount
(CNY) % of
Shareholding
Liu Guanghua 29,800,000 99.33
Chen Wei 200,000 0.67
Legal representative
and chairman:
Mr. Liu Guanghua is currently responsible for the overall management of
SC.
Working Experience(s):
At present Working in SC as legal
representative and chairman.
General
manager:
Chen Wei is currently responsible for the daily management
of SC.
Working Experience(s):
At present Working in SC as general
manager.
Directors:
Chen Wei
Liu Zeling
Supervisors:
Liu Hongtao
Liu Cunqian
Bu Fanxiang
SC is mainly engaged in manufacturing & selling textiles, knitwear,
garments, cloth and high-grade fabric.
SC’s products mainly include: textiles, knitwear, garments, cloth and
high-grade fabric.
Brands: “Fushang”, “Harmony Inner”
SC sources its materials 90% from domestic market, and 10% from overseas
market. SC sells 100% of its products 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 refused to release its main suppliers and clients.
The information on SC’s subsidiaries is not available 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 declined to release its banking details.
Balance Sheet
Unit: CNY’000
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As of Dec. 31, 2013 |
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Cash & bank |
10,010 |
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Inventory |
37,370 |
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Bills receivable |
0 |
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Accounts receivable |
7,770 |
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Other Accounts receivable |
750 |
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Advances to suppliers |
49,700 |
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To be apportioned expense |
0 |
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Other current assets |
10 |
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------------------ |
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Current assets |
105,610 |
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Fixed assets net value |
15,040 |
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Projects under construction |
3,060 |
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Long-term investment |
12,340 |
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Intangible and other assets |
0 |
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------------------ |
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Total assets |
136,050 |
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============= |
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Short loans |
55,210 |
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Accounts payable |
17,280 |
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Advance from customers |
1,690 |
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Other Accounts payable |
41,770 |
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Notes payable |
4,850 |
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Taxes payable |
-2,140 |
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Withdraw the expenses in advance |
330 |
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Other current liabilities |
0 |
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118,990 |
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Long term liabilities |
0 |
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Other liabilities |
0 |
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------------------ |
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Total liabilities |
118,990 |
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Equities |
17,060 |
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------------------ |
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136,050 |
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Income Statement
Unit: CNY’000
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As of Dec. 31,
2013 |
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Turnover |
72,300 |
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Cost of goods sold |
64,310 |
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Taxes and additional of main operation |
0 |
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Sales expense |
1,830 |
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Management expense |
6,760 |
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Finance expense |
4,480 |
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Profit before tax |
-7,990 |
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Less: profit tax |
30 |
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Profits |
-8,020 |
Note: The Financial Report for Year 2013 hasn’t been audited.
Important Ratios
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As
of Dec. 31, 2013 |
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*Current ratio |
0.89 |
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*Quick ratio |
0.57 |
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*Liabilities to assets |
0.87 |
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*Net profit margin (%) |
-11.09 |
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*Return on total assets (%) |
-5.89 |
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*Inventory /Turnover ×365 |
189 days |
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*Accounts receivable/Turnover ×365 |
40 days |
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*Turnover/Total assets |
0.53 |
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* Cost of goods sold/Turnover |
0.89 |
PROFITABILITY:
FAIR
The turnover of SC appears average in its line.
SC’s net profit margin is fair.
SC’s return on total assets is fair.
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 is fairly large.
The accounts receivable of SC is
maintained in an average level.
SC’s short-term loan appears large in 2013.
SC’s turnover is in a fair level, comparing with the size of its total
assets.
LEVERAGE: FAIR
The debt ratio of SC is high.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
SC is considered medium-sized in its line with fair financial
conditions. The large amount of inventory and short loans could be a threat to
SC’s financial condition. A credit line up to USD 80,000 would appear to be
within SC’s capacities upon a periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.58.48 |
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|
1 |
Rs.98.67 |
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Euro |
1 |
Rs.79.80 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
SHG |
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 |
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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 |
-- |
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.