MIRA INFORM REPORT
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Report Date : |
13.11.2014 |
IDENTIFICATION DETAILS
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Name : |
WEIFANG GUOTAI TEXTILE CO., Ltd. |
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Registered Office : |
Songzhuang Town, Changyi, Shandong
Province, 261314 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
29.11.2001 |
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Com. Reg. No.: |
370786228002143 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and Selling of Towel Products. SC’s products mainly include: · Plain Color and Bleach Kinds · Striper and Check Kinds · Printing Kinds · Special New Year Purchases Towel Kinds · Jacquard Kinds · Baby Production Kinds · Gauze Towel Kinds · Gauze Kinds · Waffle Kinds · Dish Cloth and Kitchen Towel Kinds · Scouring Bath Articles Kinds |
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No. of Employees : |
200 |
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 – June 1, 2014
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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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 |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
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
WEIFANG GUOTAI TEXTILE CO., Ltd.
SONGZHUANG TOWN,
CHANGYI, SHANDONG PROVINCE, 261314 PR CHINA
TEL: 86 (0)
536-7718838/5590179 FAX: 86 (0)
536-7712034/7718838
EXECUTIVE
SUMMARY
INCORPORATION DATE : NOV. 29, 2001
REGISTRATION NO. : 370786228002143
REGISTERED LEGAL
FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 200
REGISTERED CAPITAL : CNY 800,000
BUSINESS LINE :
MANUFACTURING AND TRADING
TURNOVER : CNY 35,700,000 (AS OF DEC. 31, 2013)
EQUITIES : CNY 1,460,000 (AS
OF DEC. 31, 2013)
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION
: fair
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.1415 = 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 Nov. 29, 2001.
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 selling towels and towel
products, clothing, footwear, bedding; importing and exporting goods and
technologies (excluding products prohibited by legal, administrative rules and
regulations, and operating the limited products with permit if needed). (with
permit if needed).
SC is mainly
engaged in manufacturing and selling towel products.
Mr. Liu Yanguo is legal
representative, chairman and general manager of SC at present.
SC is known to have approx. 200
employees at present.
SC is currently operating
at the above stated address, and this address houses its operating office and
factory in Changyi. Our checks reveal that SC owns the total premise, but SC’s
accountant refused to release the gross area of the premise.
http://www.guotaitextile.com The design is
professional and the content is well organized. At present it is in Chinese,
English and Japanese versions.
Email: liuyanguo@guotaitextile.com
; office@
guotaitextile.com
No significant changes were found during our
checks with the local Administration for Industry and Commerce.
Honors:
Etc.
Tax registration no.: 370786165811290
Organization code: 165811290
For the past two years there is no record of
litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Liu Yanguo 52.50
Liang Yehui 7.50
Liu Shuye 6.25
Zhou Bingwei 6.25
Xie Ruiqin 2.50
Zhou Bingxin 2.50
Li Zengtao 2.50
Zhuang Jixu 2.50
Huang Bingsong 2.50
Zhou Bingjie 1.25
Other 11
Individuals 13.75
l Legal
Representative, Chairman and General Manager:
Mr. Liu Yanguo is currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal
representative, chairman and general manager.
l Vice Chairman:
Liang Yehui; Zhou Bingwei; Liu Shuye are currently responsible for the daily
management of SC.
Working Experience(s):
At present Working in SC as vice
chairman.
l
Directors:
Zhou Bingjie
Huang Bingsong
Liu Haibo
l
Supervisors:
Xie Ruiqin
Dong Jinde
Liu Shuhan
SC is mainly engaged in manufacturing and selling towel products.
SC’s products mainly include:
Plain Color and Bleach Kinds
Striper and Check Kinds
Printing Kinds
Special New Year Purchases Towel Kinds
Jacquard Kinds
Baby Production Kinds
Gauze Towel Kinds
Gauze Kinds
Waffle Kinds
Dish Cloth and Kitchen Towel Kinds
Scouring Bath Articles Kinds
SC sources its
materials 90% from domestic market, and 10% from overseas market. SC sells 10%
of its products in domestic market, and 90% 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.
Trademark & Patents
No record
Note: SC’s management declined to release
its customer and supplier details.
SC is not known to have any subsidiary 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.
Bank of China Changyi Sub-branch
AC#：N/A
Relationship: Normal.
Balance Sheet
Unit: CNY’000
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as of
Dec. 31, 2013 |
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Cash & bank |
6,080 |
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Inventory |
4,540 |
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Accounts receivable |
960 |
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Advances to suppliers |
250 |
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Other receivables |
2,510 |
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Other current assets |
0 |
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------------------ |
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Current assets |
14,340 |
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Long-term investments |
520 |
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Fixed assets net value |
5,410 |
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Projects under construction |
320 |
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Intangible assets |
0 |
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Other assets |
0 |
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------------------ |
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Total assets |
20,590 |
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============= |
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Short loans |
3,000 |
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Accounts payable |
6,620 |
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Advances from customers |
0 |
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Employee pay payable |
4,740 |
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Taxes payable |
-140 |
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Accrued expense |
370 |
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Dividends payable |
450 |
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Other payable |
10 |
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Other accounts payable |
4,080 |
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Other current liabilities |
0 |
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----------------- |
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Current liabilities |
19,130 |
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Long term liabilities |
0 |
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Total liabilities |
19,130 |
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Shareholders equities |
1,460 |
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Total liabilities & equities |
20,590 |
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Income Statement
Unit: CNY’000
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as of
Dec. 31, 2013 |
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Turnover |
35,700 |
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Cost of goods sold |
33,830 |
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Taxes and additional of main operation |
180 |
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Sales expense |
750 |
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Management expense |
1,160 |
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Finance expense |
160 |
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Subsidy income |
60 |
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Non-operating income |
60 |
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Non-operating expense |
0 |
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Profit before tax |
-260 |
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Less: profit tax |
0 |
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Net profit |
-260 |
Important Ratios
=============
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As of Dec.
31, 2013 |
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*Current
ratio |
0.75 |
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*Quick
ratio |
0.51 |
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*Liabilities
to assets |
0.93 |
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*Net profit
margin (%) |
-0.73 |
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*Return on total
assets (%) |
-1.26 |
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*Inventory
/Turnover ×365 |
47 days |
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*Accounts
receivable/Turnover ×365 |
10 days |
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*Turnover/Total
assets |
1.73 |
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* Cost of
goods sold/Turnover |
0.95 |
PROFITABILITY:
FAIR
l The turnover of SC
appears average in its line.
l SC’s net profit
margin is fair.
l SC’s return on
total assets is fair.
l SC’s cost of goods
sold is fairly high, comparing with its turnover.
LIQUIDITY:
FAIR
l The current ratio
of SC is maintained in a fair level.
l SC’s quick ratio
is maintained in a fair level.
l The inventory of
SC appears average.
l The accounts
receivable of SC appears average.
l The short-term
loan of SC appears large in 2013.
l SC’s turnover is
in an average level, comparing with the size of its total assets.
LEVERAGE:
FAIR
l The debt ratio of
SC is high.
l 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 short loans could be a
threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.48 |
|
|
1 |
Rs.97.92 |
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Euro |
1 |
Rs.76.79 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
NIT |
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 |
-- |
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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.