MIRA INFORM REPORT
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Report No. : |
337034 |
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Report Date : |
18.08.2015 |
IDENTIFICATION DETAILS
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Name : |
WUHU FUCHUN DYE AND
WEAVE CO.,LTD. |
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Registered Office : |
Qiaobei Industrial Zone, Daqiao Town, Wuhu City, Anhui Province, 241008 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
15.07.2002 |
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Com. Reg. No.: |
340208000007832 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in dyeing and processing silk, yarn and thread,
manufacturing weaving cotton, woven cotton interwoven cloth, clothing, socks;
wholesaling and retailing textiles, knitwear, wire, cable, line construction
metal products. Import and export of various commodities and technologies
(excluding the items prohibited or limited by the country), agricultural
by-products accessories (rice husk) acquisition. |
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No. of Employees : |
790 |
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 – March 31, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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. In 2014 the People’s Bank of China (PBOC) doubled 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 2014 stood as the largest economy in the world, surpassing the US that year... 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 2014 more than 274 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. In 2014 China agreed to begin limiting carbon dioxide emissions by 2030. China implemented several economic reforms in 2014, including passing legislation to allow local governments to issue bonds, opening several state-owned enterprises to further private investment, loosening the one-child policy, passing harsher pollution fines, and cutting administrative red tape.
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Source
: CIA |
Company
Name & address
WUHU FUCHUN DYE AND WEAVE
CO.,LTD.
QIAOBEI INDUSTRIAL ZONE, DAQIAO TOWN, WUHU
CITY,
anhui province, 241008 PR CHINA
TEL: 86 (0) 553-5316999/5315700 FAX: 86 (0) 553-5316555
EXECUTIVE
SUMMARY
INCORPORATION DATE : july 15, 2002
REGISTRATION NO. : 340208000007832
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
chief executive :
he peifu (CHAIRMAN)
STAFF STRENGTH :
790
REGISTERED CAPITAL : CNY 26,000,000
BUSINESS LINE :
MANUFACTURING, processing & TRADING
TURNOVER :
CNY 1,148,140,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 329,050,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : FAIRLY GOOD
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 6.1965 = 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: according to SC’s website, SC is also known as Wuhu Fuchun Dyeing
and Knitting Co., Ltd.
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 July 15, 2002.
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 dyeing and processing silk, yarn
and thread, manufacturing weaving cotton, woven cotton interwoven cloth, clothing,
socks; wholesaling and retailing textiles, knitwear, wire, cable, line
construction metal products. Import and export of various commodities and
technologies (excluding the items prohibited or limited by the country),
agricultural by-products accessories (rice husk) acquisition.
SC is mainly engaged in manufacturing, processing and selling textiles
products.
He Peifu is legal representative, chairman and general manager of SC at
present.
SC is known to have approx. 790 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the Economic and Technological
Development Zone of Wuhu. SC’s employee refused to release the detailed information of the premise.
http://www.wuhufuchun.com/ The design is professional and the content is
well organized. At present it is in both Chinese and English versions.
Email: weiwhfc@yahoo.com.cn
The other website: http://www.fc858.com/
No significant changes were found during our checks with the local AIC.
Organization Code: 740870490
SC has passed Oeko-Tex100 CLASS I, ISO9001 and ISO14001 authentication.
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name Amount
(CNY) % of Shareholding
He Biying 2,000,000 7.69
He Jionggen 700,000 2.69
He Peifu 23,300,000 89.62
Legal representative,
chairman and general manager:
He Peifu is currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal
representative, chairman and general manager.
Also working in Wuhu Fuchun Knitting Co., Ltd., Wuhu Fuchun Textile Co.,
Ltd., Wuhu Fuchun Import and Export Co., Ltd. as legal representative.
Supervisor:
Tang Liying
SC is mainly engaged in manufacturing, processing and selling textiles
products.
SC’s products
mainly include:
Import cotton yarn (100% all cotton)
Mercerized cotton
Cross-stitching thread/sewing thread/tape yarn
All cotton dyed yarn
100% all cotton carded
100% all cotton combed
All cotton semi-combed yarn
Bamboo fiber
Soybean fiber
Acrylic cotton yarn
Dacron cotton yarn
Dacron yarn
Artificial cotton
SC sources its materials 100% from domestic market. SC sells 20% of its
products in domestic market, and 80% 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.
Note: SC refused to release its main suppliers and clients.
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TRADEMARKS & PATENTS |
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Registration No. |
7767627 |
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Registration Date |
Feb. 21, 2011 |
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Trademark Design |
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Hangzhou Fuchun Dye and Weave Co, Ltd.
==============================
Registration no.: 330183000018943
Legal representative: He Biyu
Incorporation date: 1999-04-22
SC is known to
invest in the following companies:
Wuhu Fuchun Knitting Co., Ltd.
======================
Registration no.: 340293000010088
Legal representative: He Peifu 何培富
Incorporation date: 2013-4-18
Wuhu Fuchun Textile Co., Ltd.
=======================
Registration no.: 340208000003532
Legal representative: He Peifu
Incorporation date: 2005-8-15
Wuhu Fuchun Thread Co., Ltd.
======================
Registration no.: 340208000000798
Legal representative: Ye Biao
Incorporation date: 2005-3-28
Wuhu Fuchun Import and Export Co., Ltd.
=========================
Registration no.: 340293000009186
Legal representative: He Peifu
Incorporation date: 2013-1-22
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.
Financial Summary
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Unit: CNY’000
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As of Dec. 31, 2014 |
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Total assets |
495,220 |
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========= |
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Total liabilities |
166,170 |
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Equities |
329,050 |
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-------------- |
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Total liabilities & equities |
495,220 |
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========= |
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Turnover |
1,148,140 |
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Profits |
34,980 |
Note: SC’s
management refused to release its detailed financial reports.
Important Ratios
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As of Dec. 31, 2014 |
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*Liabilities to assets |
0.34 |
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*Net profit margin (%) |
3.05 |
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*Return on total assets (%) |
7.06 |
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*Turnover/Total assets |
2.32 |
PROFITABILITY:
FAIRLY GOOD
· The turnover of SC appears good in its line
· SC’s net profit margin is average.
· SC’s return on total assets is fairly good.
· SC’s turnover is in a fairly good level, comparing with the size of its total assets.
LEVERAGE: FAIRLY
GOOD
· The debt ratio of SC is low.
· The risk for SC to go bankrupt is average.
OVERALL FINANCIAL
CONDITION OF THE SC: FAIRLY GOOD.
SC is considered medium-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.65.22 |
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1 |
Rs.102.23 |
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Euro |
1 |
Rs.72.39 |
INFORMATION DETAILS
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Analysis Done by
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DIV |
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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.