MIRA
INFORM REPORT
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Report Date : |
09.09.2014 |
IDENTIFICATION DETAILS
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Name : |
Taian Hualong Textile Co., Ltd. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
27.01.1999 |
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Com. Reg. No.: |
370924018001079 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in manufacturing and selling cotton textile and
knitting goods. |
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No. of Employees : |
158 |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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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 01, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
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 and address
Taian Hualong Textile Co., Ltd.
NO. 1656 PEITIANMEN
STREET, HI-TECH ZONE
TAIAN,
SHANDONG province 271000 PR CHINA
TEL: 86
(0) 538-8931888/8931876
FAX: 86
(0) 538-86716911
EXECUTIVE SUMMARY
Date of Registration : january 27, 1999
REGISTRATION NO. : 370924018001079
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL :
cny 4,238,000
staff : 158
BUSINESS CATEGORY :
manufacturing & trading
Revenue : CNY 40,346,000 (AS OF DEC. 31, 2013)
EQUITIES : CNY -4,542,000 (AS OF DEC. 31, 2013)
PAYMENT : AVERAGE
MARKET CONDITION : FAIR
FINANCIAL CONDITION : POOR
OPERATIONAL TREND : FAIR
GENERAL REPUTATION : FAIR
EXCHANGE RATE : CNY 6.15 = 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.: 370924018001079 on January
27, 1999.
SC’s Organization Code Certificate
No.: 70613127-2
SC’s Tax No.: 370903706131272
SC’s registered capital: cny 4,238,000
SC’s paid-in capital: cny 4,238,000
Registration Change Record:-
No significant changes of SC have
been noted in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief executives
are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Taian Tianlong Textile Co.,
Ltd. |
96.46 |
|
Yan
Xin |
3.54 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Yan Xin |
|
General Manager and Director |
Wang Yajun |
|
Director |
Liu Xiandeng |
|
Supervisor |
Wang Xingguan
|
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Taian Tianlong Textile Co., Ltd. 96.46
Yan Xin 3.54
Taian Tianlong Textile Co., Ltd.
--------------------------------------
Registration No.: 370900400001502
Legal Form: Chinese-foreign equity joint
venture enterprise
Registered Capital: CNY 23,260,000
Legal Representative: Yan Xin
MANAGEMENT
Yan
Xin, Legal
Representative and Chairman
-------------------------------------------------------------------
Ø
Gender: M
Ø
Working
experience (s):
At present, working in SC as legal representative and
chairman
Also working in Taian Tianlong Textile Co.,
Ltd. as legal representative
Wang
Yajun, General Manager
and Director
----------------------------------------------------------------------
Ø
Gender: M
Ø
Working
experience (s):
At present, working in SC as general manager and director
Liu
Xiandeng, Director
------------------------------------------
Ø
Gender: M
Wang Xingguan, Supervisor
------------------------------------------------
Ø
Gender: M
BUSINESS OPERATION
SC’s registered business scope includes manufacturing
cotton textile and knitting goods; wholesaling and retailing shoes & hats,
hardware, chemicals, textile equipment & components, building materials,
and grocery.
SC is
mainly engaged in manufacturing and selling cotton textile and knitting goods.
SC’s
products mainly include: cotton textile, etc.
SC sources its materials 100% from domestic
market. SC sells 60% of its products in domestic market, and 40% to overseas
market.
The
buying terms of SC include Check, T/T and Credit of 30-60 days. The payment
terms of SC include Check, T/T, L/C and Credit of 30-60 days.
Staff & Office:
--------------------------
SC is
known to have approx. 158 staff
at present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
SC
is not known to have any subsidiary at present.
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:
Bank
of China Taian Branch
AC#:
370902456123
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
Cash |
788 |
579 |
|
Notes receivable |
0 |
0 |
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Accounts
receivable |
48,369 |
58,946 |
|
Advances to
suppliers |
7,534 |
3,033 |
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Other receivable |
4,156 |
4,126 |
|
Inventory |
9,855 |
9,956 |
|
Prepaid
expenses |
0 |
-4,690 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
70,702 |
71,950 |
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Fixed assets |
15,379 |
11,738 |
|
Construction in
progress |
0 |
0 |
|
Intangible
assets |
0 |
0 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
86,081 |
83,688 |
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|
============= |
============= |
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Short-term loans |
20,204 |
204 |
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Notes payable |
0 |
0 |
|
Accounts payable |
34,221 |
53,639 |
|
Welfares payable |
0 |
266 |
|
Taxes payable |
1,467 |
34 |
|
Advances from
clients |
0 |
0 |
|
Other payable |
7,017 |
6,655 |
|
Accrued expenses |
0 |
0 |
|
Other current
liabilities |
61 |
7 |
|
|
------------------ |
------------------ |
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Current liabilities |
62,970 |
60,805 |
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Non-current
liabilities |
27,425 |
27,425 |
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|
------------------ |
------------------ |
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Total
liabilities |
90,395 |
88,230 |
|
Equities |
-4,314 |
-4,542 |
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|
------------------ |
------------------ |
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Total
liabilities & equities |
86,081 |
83,688 |
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|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
|
Revenue |
69,460 |
40,346 |
|
Cost of sales |
59,605 |
31,879 |
|
Taxes and surcharges |
476 |
353 |
|
Sales expense |
473 |
178 |
|
Management expense |
19,814 |
7,445 |
|
Finance expense |
22 |
-329 |
|
Non-operating
income |
7,892 |
0 |
|
Non-operating expense |
0 |
1,165 |
|
Profit before
tax |
-2,955 |
-350 |
|
Less: profit tax |
0 |
0 |
|
Profits |
-2,955 |
-350 |
Important Ratios
=============
|
|
As
of Dec. 31, 2012 |
As
of Dec. 31, 2013 |
|
*Current ratio |
1.12 |
1.18 |
|
*Quick ratio |
0.97 |
1.02 |
|
*Liabilities
to assets |
1.05 |
1.05 |
|
*Net profit
margin (%) |
-4.25 |
-0.87 |
|
*Return on
total assets (%) |
-3.43 |
-0.42 |
|
*Inventory /
Revenue ×365 |
52 days |
91 days |
|
*Accounts
receivable / Revenue ×365 |
255 days |
534 days |
|
*Revenue /
Total assets |
0.81 |
0.48 |
|
*Cost of sales
/ Revenue |
0.86 |
0.79 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
l
The revenue of SC appears
average in its line, and it decreased in 2013.
l
SC’s net profit margin is fair in both years.
l
SC’s return on total assets is fair in both years.
l
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears average.
l
The accounts receivable of SC appears large.
l
The short-term loans of SC appear small in 2013.
l
SC’s revenue is in a
fair level, comparing with the size of its total assets.
LEVERAGE:
POOR
l
The debt ratio of SC is high.
l
The risk for SC to go bankrupt is fairly high.
Overall financial
condition of the SC: Poor.
CONCLUSIONS
SC is considered small-sized in its line with poor financial
conditions. Great caution is required in providing credit to SC & C.O.D. is
recommended.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.26 |
|
|
1 |
Rs.97.51 |
|
Euro |
1 |
Rs.77.94 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
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|
Report Prepared
by : |
PDT |
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 |
|
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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 |
|
|
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 |
-- |
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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.