MIRA INFORM REPORT
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Report No. : |
354872 |
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Report Date : |
15.12.2015 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
No. 39 Group, No. 4 Committee, Chengdong Street, Lanxi
County, Suihua City, Heilongjiang
Province, 151500 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
10.08.2006 |
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Com. Reg. No.: |
232325100007352 |
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Legal Form : |
Limited liabilities co. |
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Line of Business : |
Subject is engaged in deep processing and distribution of
linen and linen products, import and export of goods |
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No. of Employee : |
300 |
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 – 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. 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 for the first time in modern history. Still, China's per capita income is below the world average.
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 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 also 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 and address
Lanxi Vega Linen Textile CO., LTD.
NO.
39 GROUP, NO. 4 COMMITTEE, CHENGDONG STREET, LANXI COUNTY,
SUIHUA
CITY, HEILONGJIANG PROVINCE, 151500 PR CHINA
TEL: 86 (0)
455-5653930 FAX: N/A
EXECUTIVE
SUMMARY
INCORPORATION
DATE : AUG. 10, 2006
REGISTRATION
NO. : 232325100007352
REGISTERED
LEGAL FORM : LIMITED LIABILITIES CO.
CHIEF
EXECUTIVE : MR. FU LIJIE (LEGAL REPRESENTATIVE)
STAFF
STRENGTH : 300
REGISTERED
CAPITAL :
CNY 20,000,000
BUSINESS
LINE : PROCESSING
AND TRADING
TURNOVER : CNY 103,360,000
(AS OF DEC. 31, 2014)
EQUITIES : CNY
-2,590,000 (AS OF DEC. 31, 2014)
PAYMENT
: SLOW
MARKET
CONDITION : AVERAGE
FINANCIAL
CONDITION : FAIR
OPERATIONAL
TREND :
FAIR
GENERAL
REPUTATION : AVERAGE
EXCHANGE
RATE : CNY 6.3980 = 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 given number (451-82309971) doesn’t belong to SC, which belongs to SC’s
related company Harbin Sunshine Linen Textile 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 Aug. 10, 2006.
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 deep processing and distribution of linen
and linen products, import and export of goods (with permit if needed).
SC
is mainly engaged in deep processing and selling linen and linen products.
Mr.
Fu Lijie is legal representative, executive director and general manager of SC.
SC is
known to have approx. 300 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in Suihua. The detailed information of the premise
is unspecified.
SC
is not known to host a website of its own at present.
Email:
2690931710@qq.com
No
significant events or changes were found during our checks with local AIC.
Organization
Code: 790521061
For
the past two years there is no record of litigation.
MAIN
SHAREHOLDERS:
Name % of Shareholding
Wang
Shufan 80
Fu
Lijie 20
Legal representative, Executive director and General manager:
Mr.
Fu Lijie is
currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal
representative, executive director and general manager.
Supervisor:
Zhang
Hongzhong
SC
is mainly engaged in deep processing and selling linen and linen products.
SC’s
products mainly include: linen and linen products.
SC
sources its materials 80% from domestic market, and 20% from overseas market.
SC sells 70% of its products in domestic market, and 30% 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.
Note:
SC’s management declined to release its customer and supplier details
Heilongjiang Lanxi Rising-Sun Linen Textile Industry Co., Ltd.
----------------------------------------------------
Reg.
no.: 232325100000046
Legal
representative: Gao Jun
Incorporation
date:
Harbin Sunshine Linen Textile Co., Ltd.
----------------------------------------------------
Reg.
no.: 230199100063408
Legal
representative: Gao Ren
Incorporation
date:
Tel:
86-451-82342712/82284498/82292391
Fax:
86-451-82309971
Web:
http://www.hrbsunshine.com/
SC is known to invest in
the following companies:
Heilongjiang Zhaodong Jianxin Village and Towns Bank Co., Ltd. (literal
translation)
----------------------------------------------------
Reg.
no.: 232303100032776
Legal
representative: Sun Fulai
Incorporation
date:
Harbin Houde Small-Credit Co., Ltd. (literal translation)
----------------------------------------------------
Reg.
no.: 230199101006831
Legal
representative: Wang Shuo
Incorporation
date:
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 any banking information.
Financial Summary
Unit:
CNY’000
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As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
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Total liabilities |
93,170 |
128,510 |
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Equities |
300 |
-2,590 |
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------------------- |
-------------------- |
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Total assets |
93,470 |
125,920 |
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============== |
============= |
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Turnover |
84,450 |
103,360 |
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Profit before tax |
-4,670 |
-2,070 |
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Less: profit tax |
0 |
0 |
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Profits |
-4,670 |
-2,070 |
Note: We can’t get SC’s detailed financial reports for Yr 2013 & 2014 at local
Administration for Industry & Commerce.
Important Ratios
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As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
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*Liabilities to assets |
1.00 |
1.02 |
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*Net profit margin (%) |
-5.53 |
-2.00 |
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*Return on total assets (%) |
-5.00 |
-1.64 |
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*Turnover/Total assets |
0.90 |
0.82 |
PROFITABILITY: FAIR
The
turnover of SC appears average in 2013 and fairly good in 2014.
SC’s
net profit margin is fair.
SC’s
return on total assets is fair.
SC’s
turnover is fair, comparing with the size of its total assets.
LEVERAGE: POOR
The
debt ratio of SC is too high in both years.
The
risk for SC to go bankrupt is fairly high.
Overall financial
condition of the SC: FAIR
SC
is considered medium-sized in its line with fair financial conditions. Credit dealings with SC should be confined into C.O.D. at present.
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.99 |
|
|
1 |
Rs.101.78 |
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Euro |
1 |
Rs.73.47 |
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CNY |
1 |
Rs.10.37 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
TRU |
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 |
-- |
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.