MIRA INFORM REPORT
|
Report Date : |
27.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
HUZHOU CAIDIE TEXTILES CO., LTD. |
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Registered Office : |
Industrial Garden, Lianshi Town, Huzhou, Zhejiang Province
313013 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
22.10.2001 |
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Com. Reg. No.: |
330504000019518 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in manufacturing, processing and selling garments;
weaving, processing and selling textiles, finishing, processing and selling
textile raw materials; refining, dyeing and finishing silk cotton fabric and
chemical fiber fabrics. |
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No of Employees : |
650 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
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
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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 & ADDRESS
HUZHOU CAIDIE
TEXTILES CO., LTD.
INDUSTRIAL GARDEN, LIANSHI TOWN, HUZHOU
ZHEJIANG PROVINCE 313013 PR CHINA
TEL: 86 (0)
572-3952788
FAX: 86 (0)
572-2636300
EXECUTIVE
SUMMARY
Date of Registration : OCTOBER 22, 2001
REGISTRATION NO. : 330504000019518
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : CNY 5,200,000
staff :
650
BUSINESS CATEGORY : MANUFACTURING & TRADING
Revenue :
CNY 471,740,000 (AS OF DEC. 31,
2013)
EQUITIES :
CNY 274,390,000 (AS OF DEC. 31, 2013)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.13 = USD 1
Adopted
abbreviations (as follows)
SC - Subject Company (the company inquired by
you)
N/A – Not available
CNY – China Yuan Ren Min Bi
OPERATIONAL TREND & GENERAL REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be determined
LEGAL
STATUS & HISTORY
SC was established
as a limited liabilities company of PRC with State Administration of Industry
& Commerce (SAIC) under registration No.: 330504000019518
on October 22, 2001.
SC’s Organization Code Certificate No.:
73242545-0
SC’s Tax No.: 330501732425450
SC’s registered capital: CNY 5,200,000
SC’s paid-in capital: CNY 5,200,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2007-07 |
Company Name |
Huzhou Caidie
Dyeing & Finishing Co., Ltd. |
Huzhou Caidie
Textiles Co., Ltd. |
|
2009-05 |
Registration No. |
3305002058153 |
330504000019518 |
|
-- |
Shareholder (s) (% of Shareholding) |
Huzhou Caidie Knitting Co., Ltd. 1.0% Shi Jianming 63.5% Wu Guanrong 5.0% Wen Juanying 5.0% Other 12 individuals 25.5% |
Shi Jianming 78% Wen Juanying 5% Zhang Hongxing 3% Other 7 Individuals 14% |
|
2014-03-26 |
Shareholder (s) (% of Shareholding) |
Shi Jianming 78% Wen Juanying 5% Zhang Hongxing 3% Other 7 Individuals 14% |
Shi Jianming 80% Wen Juanying 5% Zhang Hongxing 3% Other 6 Individuals 12% |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Shi Jianming |
80 |
|
Wen Juanying |
5 |
|
Zhang Hongxing |
3 |
|
Other 6 Individuals |
12 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and
General Manager |
Shi Jianming |
|
Supervisor |
Zhang Hongxing |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Shi Jianming 80
Wen Juanying 5
Zhang Hongxing 3
Other 6 Individuals 12
MANAGEMENT
Shi Jianming, Legal Representative, Chairman and General
Manager
------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø Qualification:
University
Ø Working experience
(s):
At
present, working in SC as legal representative, chairman and general manager
Also
working in Huzhou Caidie Knitting Co., Ltd., Zhejiang Cady Industrial Co.,
Ltd., and Huzhou Caidie Import and Export Co., Ltd. as legal representative
Zhang Hongxing, Supervisor
-----------------------------------------
Ø
Gender: M
Ø Qualification:
University
BUSINESS
OPERATION
SC’s registered business
scope includes manufacturing, processing and selling garments; weaving,
processing and selling textiles, finishing, processing and selling textile raw
materials; refining, dyeing and finishing silk cotton fabric and chemical fiber
fabrics. (with permit if needed)
SC is mainly
engaged in manufacturing and selling cotton textiles, fabric lining, and
garments.
SC’s products
mainly include: Chino-velvet, Curl-surfaced texture, Micro suede, Color-striped
cloth, Jacquard cloth.
SC sources its materials 100% from domestic
market, mainly Zhejiang. SC sells 70% of its products in domestic market and
30% to overseas market, mainly U.S.A., Southeast Asia, etc.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Client*
------------------
American Foam & Fabric Inc.
Staff & Office:
--------------------------
SC is known
to have approx. 650 staff at
present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
RELATED
COMPANY
n Huzhou Caidie
Knitting Co., Ltd.
Registration No.: 330504000020251
Date of Registration: November 8, 1999
Legal Form: Limited Liabilities Company
Legal Representative: Shi Jianming
n
Zhejiang Cady Industrial Co., Ltd.
Registration No.: 330504000005561
Date of Registration: December 5, 2002
Legal Form: Limited Liabilities Company
Legal Representative: Shi Jianming
n
Huzhou Caidie Import and Export Co., Ltd.
Registration No.: 330508000006707
Date of Registration: July 16, 2004
Legal Form: Limited Liabilities Company
Legal
Representative: Shi Jianming
n
Shanghai Huandie International Trade Co., Ltd.
Registration
No.: 310101000365347
Date
of Registration: January 9, 2006
Legal
Representative: Shi Yi
Etc.
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.
BANKING
Basic Bank:
Industrial and Commercial Bank of China Huzhou Branch
AC#: 1205240219049100448
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
64,495 |
77,310 |
70,190 |
108,030 |
|
|
Notes receivable |
1,760 |
0 |
1,950 |
3,930 |
|
Accounts
receivable |
4,300 |
134,140 |
78,960 |
169,210 |
|
Advances to
suppliers |
0 |
0 |
0 |
0 |
|
Other receivable |
65 |
49,360 |
51,350 |
169,560 |
|
Inventory |
10,920 |
8,430 |
25,680 |
5,060 |
|
Deferred
expenses |
0 |
0 |
0 |
0 |
|
Other current
assets |
0 |
19,580 |
190 |
0 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
Current assets |
81,540 |
288,820 |
228,320 |
455,790 |
|
Fixed assets |
80,770 |
79,150 |
69,950 |
62,670 |
|
Long-term
investment |
105,310 |
104,800 |
105,140 |
105,140 |
|
Construction in
progress |
0 |
0 |
0 |
0 |
|
Intangible
assets |
0 |
0 |
0 |
0 |
|
Long-term
prepaid expenses |
0 |
0 |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
0 |
0 |
|
Other
non-current assets |
2,640 |
2,650 |
2,490 |
4,370 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
Total assets |
270,260 |
475,420 |
405,900 |
627,970 |
|
|
============= |
============= |
============= |
============= |
|
Short-term loans |
45,900 |
132,290 |
124,900 |
103,200 |
|
Notes payable |
68,000 |
80,000 |
110,000 |
165,000 |
|
Accounts payable |
18,370 |
1,150 |
940 |
31,460 |
|
Wages payable |
0 |
0 |
0 |
0 |
|
Taxes payable |
805 |
-1,230 |
30 |
-220 |
|
Advances from
clients |
0 |
0 |
0 |
0 |
|
Other payable |
9,245 |
10,640 |
15,760 |
54,140 |
|
Prepaid expenses |
20 |
0 |
-60 |
0 |
|
Other current
liabilities |
0 |
-40 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
Current
liabilities |
142,340 |
222,810 |
251,570 |
353,580 |
|
Non-current
liabilities |
0 |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
Total liabilities |
142,340 |
222,810 |
251,570 |
353,580 |
|
Equities |
127,920 |
252,610 |
154,330 |
274,390 |
|
|
------------------ |
------------------ |
------------------ |
------------------ |
|
Total
liabilities & equities |
270,260 |
475,420 |
405,900 |
627,970 |
|
|
============= |
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
Revenue |
294,840 |
504,630 |
424,620 |
471,740 |
|
Cost of sales |
254,280 |
453,860 |
394,550 |
428,070 |
|
Taxes and surcharges |
1,380 |
1,680 |
910 |
1,020 |
|
Sales expense |
5,720 |
7,430 |
10,590 |
12,870 |
|
Management expense |
12,080 |
8,180 |
7,840 |
10,790 |
|
Finance expense |
6,560 |
16,070 |
11,460 |
1,050 |
|
Investment
income |
0 |
52,460 |
3,000 |
3,900 |
|
Subsidy income |
715 |
690 |
10 |
30 |
|
Non-operating
income |
0 |
20 |
1,030 |
890 |
|
Non-operating expense |
110 |
110 |
40 |
10 |
|
Profit before
tax |
15,510 |
70,920 |
3,270 |
22,880 |
|
Less: profit tax |
3,140 |
0 |
330 |
0 |
|
12,370 |
70,920 |
2,940 |
22,880 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
*Current ratio |
0.57 |
1.30 |
0.91 |
1.29 |
|
*Quick ratio |
0.50 |
1.26 |
0.81 |
1.27 |
|
*Liabilities
to assets |
0.53 |
0.47 |
0.62 |
0.56 |
|
*Net profit
margin (%) |
4.20 |
14.05 |
0.69 |
4.85 |
|
*Return on
total assets (%) |
4.58 |
14.92 |
0.72 |
3.64 |
|
*Inventory /
Revenue ×365 |
14 days |
7 days |
22 days |
4 days |
|
*Accounts
receivable/ Revenue ×365 |
6 days |
98 days |
68 days |
131 days |
|
*Revenue/Total
assets |
1.09 |
1.06 |
1.05 |
0.75 |
|
*Cost of sales
/ Revenue |
0.86 |
0.90 |
0.93 |
0.91 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC
appears fairly good in its line in four years.
l SC’s net profit
margin is average in 2010 & 2012 & 2013, fairly good in 2011.
l SC’s return on
total assets is average in 2010 & 2012 & 2013, fairly good in 2011.
l
SC’s cost of sales is average, comparing with its
revenue.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a fair
level in 2010 and 2012, normal in 2011 and 2013.
l
SC’s quick ratio is maintained in a fair level in
2010, fairly good in 2011 and 2013, normal in 2012.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears fairly large
in 2011 & 2012 & 2013.
l
SC’s short-term loans appear fairly large in 2011
& 2012 & 2013.
l
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average in four years.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions. The fairly large amount of accounts receivable & short-term
loans may be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.24 |
|
|
1 |
Rs.98.67 |
|
Euro |
1 |
Rs.77.97 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
SMN |
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 |
|
-- |
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.