MIRA INFORM REPORT
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Report Date : |
13.10.2014 |
IDENTIFICATION DETAILS
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Name : |
JIANGSU LIANFA
TEXTILE CO., LTD. |
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Registered Office : |
No. 88 Henglian Road, Chengdong Town, Hai’an County, Nantong, Jiangsu Province, 226600 PR |
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Country : |
China |
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Financials (as on) : |
30.06.2014 |
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Date of Incorporation : |
11.11.2002 |
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Com. Reg. No.: |
320600400006064 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject includes manufacturing and selling dyed yarn, fiber,
yarn, dyed fabric, printing and dyeing products, textiles, apparel and
related products; own plant, equipment leasing; wholesales of non self
produced textiles, clothing, clothing accessories, import and export,
commission agency (excluding auction) (if needed with application or permit). |
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No. of Employees : |
6,951 |
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 – 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
|
Source
: CIA |
Company
name and address
JIANGSU LIANFA TEXTILE CO., LTD.
NO. 88 HENGLIAN ROAD, CHENGDONG TOWN, HAI’AN COUNTY,
NANTONG, JIANGSU PROVINCE, 226600 PR CHINA
TEL: 86 (0) 513-88869069
FAX: 86 (0) 513-88869069
EXECUTIVE SUMMARY
INCORPORATION DATE :
NOV. 11, 2002
REGISTRATION NO. :
320600400006064
REGISTERED LEGAL FORM :
SHARES LIMITED COMPANY
CHIEF EXECUTIVE : MR. XUE QINGLONG (CHAIRMAN)
STAFF STRENGTH : 6,951
REGISTERED CAPITAL :
CNY 323,700,000
BUSINESS LINE :
MANUFACTURING AND TRADING
TURNOVER :
CNY 1,602,155,000 (CONSOLIDATED,
JAN. 1~JUN. 30, 2014)
EQUITIES :
CNY 2,594,246,000 (CONSOLIDATED,
AS OF JUN. 30, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY GOOD
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
WELL-KNOWN
EXCHANGE RATE : CNY 6.1313 = 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
Note: *The was former registered address.
*The correct name is the heading one.
SC was registered as a shares limited company 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 selling dyed yarn, fiber, yarn, dyed fabric, printing and dyeing products, textiles, apparel and related products; own plant, equipment leasing; wholesales of non self produced textiles, clothing, clothing accessories, import and export, commission agency (excluding auction) (if needed with application or permit).
SC is mainly engaged in manufacturing and selling yarn, yarn-dyed fabrics, printed and dyed fabrics, and shirts, etc.
Mr. Xue Qinglong has been legal representative, general manager and chairman of SC since 2012.
SC is known to have approx. 6,951 employees, including 5,116 workers, 356 sales staff, 863 technical staff, 54 financial staff, 323 administrative staff, and 239 other staff.
SC is currently operating at the above stated address, and this address houses its operating office and factory in the industrial zone of Hai’an County. Our checks reveal that SC covers an area of 500,000 square meters.
http://www.lianfa.cn/ The design is professional and the content is well organized. At present it is both in Chinese and English versions.
E-Mail: panzg@gl.lianfa.cn
SC is a listed company in Shenzhen Stock Exchange Market with the code of 002394.
Changes of its
registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2008 |
Registration No. |
003909 |
Present one |
|
2010 |
Registered capital |
CNY 80,900,000 |
CNY 107,900,000 |
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2011 |
Registered capital |
CNY 107,900,000 |
CNY 215,800,000 |
|
2014-6 |
Registered capital |
CNY 215,800,000 |
Present amount |
Subject passed the annual inspection of 2012 with Administration for Industry & Commerce.
Organization Code: 743127133
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS: (As of June 30, 2014)
Name %
of Shareholding
Jiangsu Lianfa Group Co., Ltd. 40.45
Uni-Concept (Textile) Limited (Hong Kong) 6.95
Shanghai Ganghong Investment Co., Ltd. (in Chinese Pinyin) 6.05
Shaanxi International Trust Co., Ltd.-Fortune 2 0.31
Zhongrong International Trust Co., Ltd.-Haitong Umbrella Bao
No. 1 Securities Investment Assembled Funds Trust0.29
Guangzhou Lingtai Investment Co., Ltd. (in Chinese Pinyin) 0.26
Jiang Chunxiang 0.25
Cao Guanghua 0.25
Li Ruihong 0.23
Wang Zhenghan ` 0.22
Other shareholders 44.74
Jiangsu Lianfa Group Co., Ltd.
======================
Legal representative: Kong Xiangjun
Incorporation date: June 30, 1994
Registration No.: 320000000007107
Registered Legal Form: Shares Limited Company
Uni-Concept (Textile) Limited (Hong Kong)
=================================
CR No.: 0687068
Company Type: Private company limited by shares
Date of Incorporation: 01-Sep.-1999
Active Status: Live
Legal
Representative, Chairman and
General manager:
Mr. Xue Qinglong born in 1964, with university education, senior economist. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2012 to present Working in SC as legal representative, chairman and general manager;
Also working in Nantong Lianfa Garments Co., Ltd. and Hai'an Lianfa Garments Co., Ltd. etc. as legal representative, etc.
Vice Chairman:
Mr. Huang Changgen, born in 1966, with MBA degree, senior economist, senior engineer, he is currently responsible for the daily management of SC.
Working Experience(s):
From 2008 to 2012 Worked in SC as general manager;
From 2011 to present Working in SC as vice chairman;
Also working in Nantong Lianfa Thermal Power Co., Ltd. and Nantong Lianfa Printing & Dyeing Co., Ltd. as legal representative, etc.
Vice General Manager:
Mr. Pan Zhigang, born in 1981, with master’s degree. He is currently responsible for the daily management of SC.
Working Experience(s):
At present Working in SC as vice general manager
Also working in Jiangsu Lianfa Textile Material Co., Ltd. as legal representative, etc.
Director:
Chen Lihua
Liu Chunlin
Yu Yongjun
Etc.
Supervisor:
Wu Jinghui
Lu Yunyan
Peng Qing
SC is mainly engaged in manufacturing and selling yarn, yarn-dyed fabrics, printed and dyed fabrics, and shirts, etc.
SC’s products mainly include: long-staple length cotton fabric, texture fabric, natural fabric, functional finishing fabric, men's formal shirt, men's Casual Shirt, women's formal shirt, women's casual wear, yarn products, etc.
SC sources its materials 95% from domestic market and 5% from oversea market. SC sells 70% of its products to overseas market and 30% in domestic 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 declined to release its major suppliers and clients.
TRADEMARKS &
PATENTS
Registration No.: 9323220
Registration Date: May 7, 2012
Trademark Design:
Registration No.: 9323181
Registration Date: May 7, 2012
Trademark Design:
Registration No.: 9323287
Registration Date: May 7, 2012
Trademark Design:
SC is known to have
the following subsidiaries:
Nantong Lianfa Thermal Power Co., Ltd.
Hai'an Lianfa Garments Co., Ltd.
Hai'an Lianfa Cotton Spinning Co., Ltd.
Jiangsu James Textile Co., Ltd.
Nantong Lianfa Printing & Dyeing Co., Ltd.
Nantong Lianfa Garments Co., Ltd.
Jiangsu Lianfa Textile Material Co., Ltd.
Etc.
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 banking information.
Consolidated Balance Sheet
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Unit: CNY’000 |
as of Jun. 30, 2014 |
as of Dec. 31, 2013 |
|
Cash & bank |
1,175,164 |
1,136,749 |
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Notes receivable |
11,664 |
8,358 |
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Accounts receivable |
316,308 |
333,509 |
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Advances to suppliers |
92,489 |
96,117 |
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Interest receivable |
1,042 |
1,146 |
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Other receivables |
7,734 |
25,849 |
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Inventory |
506,746 |
654,301 |
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Other current assets |
200,250 |
7,680 |
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------------------ |
------------------ |
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Current assets |
2,311,397 |
2,263,709 |
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Long term investment |
25,000 |
25,000 |
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Investment real estate |
30,612 |
28,918 |
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Fixed assets |
1,288,507 |
1,307,081 |
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Projects under construction |
11,493 |
8,910 |
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Liquidation of fixed assets |
-6 |
0 |
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Intangible assets |
67,722 |
61,905 |
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Goodwill |
291 |
45 |
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Long-term deferred expenses |
5,935 |
7,312 |
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Deferred tax asset |
11,858 |
12,313 |
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Other assets |
300,000 |
300,000 |
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Total assets |
4,052,809 |
4,015,193 |
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============= |
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Short loans |
189,583 |
189,000 |
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Notes payable |
2,918 |
22,840 |
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Accounts payable |
258,953 |
298,698 |
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Advances from clients |
34,513 |
36,602 |
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Payroll payable |
56,285 |
51,580 |
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Taxes payable |
5,928 |
-8,428 |
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Interest payable |
34,320 |
9,675 |
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Other payable |
9,640 |
8,243 |
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Other current liabilities |
23,326 |
0 |
|
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------------------ |
------------------ |
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Current liabilities |
615,466 |
608,210 |
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Long term liabilities |
843,097 |
854,996 |
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------------------ |
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Total liabilities |
1,458,563 |
1,463,206 |
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Equities |
2,594,246 |
2,551,987 |
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------------------ |
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Total liabilities & equities |
4,052,809 |
4,015,193 |
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Consolidated Income Statement
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Unit: CNY’000 |
Jan. 1~ Jun. 30, 2014 |
as of Dec. 31, 2013 |
|
Turnover |
1,602,155 |
3,205,147 |
|
Cost of goods sold |
1,293,623 |
2,540,393 |
|
Taxes and additional of main operation |
16,155 |
22,983 |
|
Sales expense |
82,085 |
157,676 |
|
Management expense |
61,869 |
113,464 |
|
Finance expense |
27,725 |
41,071 |
|
Asset impairment loss |
-1,724 |
11,598 |
|
Investment income |
32,154 |
53,638 |
|
Non-operating income |
8,436 |
34,697 |
|
Non-operating expense |
240 |
2,040 |
|
Profit before tax |
162,772 |
404,257 |
|
Less: profit tax |
45,704 |
113,434 |
|
Profits |
117,068 |
290,823 |
Important Ratios
=============
|
|
as of Jun. 30, 2014 |
as of Dec. 31, 2013 |
|
*Current ratio |
3.76 |
3.72 |
|
*Quick ratio |
2.93 |
2.65 |
|
*Liabilities to assets |
0.36 |
0.36 |
|
*Net profit margin (%) |
7.31 |
9.07 |
|
*Return on total assets (%) |
2.89 |
7.24 |
|
*Inventory /Turnover ×365 |
/ |
75 days |
|
*Accounts receivable/Turnover ×365 |
/ |
38 days |
|
*Turnover/Total assets |
0.40 |
0.80 |
|
* Cost of goods sold/Turnover |
0.81 |
0.79 |
PROFITABILITY: FAIRLY GOOD
The turnover of SC appears good in its line.
SC’s net profit margin is fairly good.
SC’s return on total assets is fairly good in 2013, but average in the first half of 2014.
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIRLY GOOD
The current ratio of SC is maintained in a fairly good level.
SC’s quick ratio is maintained in a fairly good level.
The inventory of SC appears average.
The accounts receivable of SC appears average.
SC’s short-term loan is average.
SC’s turnover is in a fair level, comparing with the size of its total assets.
LEVERAGE: FAIRY GOOD
The debt ratio of SC is low.
The risk for SC to go bankrupt is low.
Overall financial condition of the SC: Fairly good.
SC is considered large-sized in its line with fairly good financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.16 |
|
|
1 |
Rs.98.62 |
|
Euro |
1 |
Rs.77.67 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
NIS |
RATING EXPLANATIONS
|
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 |
|
|
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 |
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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.