MIRA INFORM REPORT
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Report No. : |
356108 |
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Report Date : |
24.12.2015 |
IDENTIFICATION DETAILS
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Name : |
SHAOYANG TEXTILE MACHINERY CO., LTD. |
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Registered Office : |
No. 162, Baoqing West Road, Shaoyang, Hunan Province, 422000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
28.06.2002 |
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Com. Reg. No.: |
430500000011795 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Subject includes designing, manufacturing and selling textile
machinery, selling its components, importing and exporting business on related
technologies; manufacturing and selling electromechanical equipment
(excluding cars), general machinery, engineering machinery, chemical
machinery; manufacturing and selling wood packing products; designing,
manufacturing and installing business on public work. |
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No. of Employees : |
2,000 |
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 : |
Slow but correct |
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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
SHAOYANG TEXTILE
MACHINERY CO., LTD.
NO. 162, BAOQING WEST ROAD, SHAOYANG,
HUNAN PROVINCE, 422000 PR CHINA
TEL: 86 (0) 739-5502258 FAX: 86 (0) 739-5324671/5323649
EXECUTIVE
SUMMARY
INCORPORATION DATE :
JUN. 28, 2002
REGISTRATION NO. :
430500000011795
REGISTERED LEGAL FORM : ONE-PERSON LIMITED LIABILITY COMPANY
STAFF STRENGTH :
2,000
REGISTERED CAPITAL :
CNY 121,500,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER :
CNY 575,640,000 (AS OF DEC. 31,
2014)
EQUITIES :
CNY 739,380,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.48= 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 Ren Min Bi
SC was registered as a sole state-owned
enterprise at local Administration for Industry & Commerce (AIC-The
official body of issuing and renewing business license) on Jun. 28, 2002, and
has been under the current ownership since 2010.
Company Status: One-Person
Limited Liability Company Single person LLC refers to a
limited liability company set up by only one natural person or legal person
as the single shareholder of it. The minimum registered capital
of Single person LLC is CNY100,000. The shareholder’s capital contributes,
as set out by the articles of associations should be a lump-sum payment in
full. One natural person can only
invest in and set up one limited liability company, which is not permitted
to invest in and set up a new Single person LLC. As to any one-person limited
liability company, the sole-investor nature of the natural person or legal
person shall be indicated in the registration documents of the company and
shall be indicated in the business license thereof as well. The regulation of Single person
LLC should be set up by the shareholder The
regulation of Single person LLC has no shareholder meeting.
SC’s registered business scope includes designing, manufacturing and
selling textile machinery, selling its components, importing and exporting
business on related technologies; manufacturing and selling electromechanical
equipment (excluding cars), general machinery, engineering machinery, chemical
machinery; manufacturing and selling wood packing products; designing,
manufacturing and installing business on public work. (Any project that needs
to be approved by law can only be carried out after getting approval by
relevant authorities).
SC is mainly
engaged in manufacturing and selling textile machinery equipment.
Mr. Yang Jianjun has been legal representative, chairman and
general manager of SC since 2015.
SC is known to have approx. 2,000 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Shaoyang. Our checks
reveal that SC owns the total premise about 200,000 square meters.
http://www.syefj.com The website is unable to be landed at present
for the technical reason.
E-mail: syefjxs@syefj.com
SC
is based on Shaoyang No.2 Textile Machinery Manufactory after reformed. It is a
leading corporation in national textile machinery industry, and a high-tech
corporation in Hunan. SC is awarded as Province Advanced unit and Top 100 of
Hunan Industry Corporation during 1990 to 1998. SC has passed ISO9001 Quality
Certificate Standard.
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Registration No. |
4305001002345 |
The present one |
|
2010-12-20 |
Legal form |
Sole state-owned enterprise |
The present one |
|
2011-3-22 |
Legal
representative |
Tang Lei |
Li Xinqiao |
|
2011-12-21 |
Shareholder
& % of shareholding |
China Hengtian Group Co., Ltd. 100% |
The present one |
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Registered capital |
CNY 81,000,000 |
Present amount |
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|
2015-12-1 |
Legal
representative |
Li Xinqiao |
The present one |
Organization Code: 738992528
Credibility Code: 91430500738992528E
See below for SC as executive party (defendant).
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Executed Party |
SC |
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Court |
Jiangsu Province Dongtai City People's
Court |
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Date of Case |
2010-1-4 |
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Case Number |
(2010) 00070 |
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Claim Amount |
RMB 26,000 |
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Case Status |
Completed |
Remark: Due to the lack of information, we are unable to provide the cause of
action, judgment or other information.
MAIN
SHAREHOLDERS:
Name % of Shareholding
CHTC Jove Heavy Industry Co., Ltd.
100
CHTC Jove Heavy Industry Co., Ltd. is the
subsidiary of Stated-owned Corporation CHTC Group and a national support
high-tech enterprise in research, production and sales for construction
machinery, new textile machinery and new materials equipment.
Reg. No.: 430194000000579
Legal representative: Tang Lei
Incorporation date: Feb. 8, 2007
l Legal
Representative, Chairman and General Manager:
Mr. Yang Jianjun is currently responsible for the overall
management of SC.
Working Experience(s):
From 2015 to present Working in SC as legal
representative, chairman and general manager
l Supervisor:
Zhong Yaosong
SC is mainly
engaged in manufacturing and selling textile machinery equipment.
SC’s products mainly include: dyeing
machine, setting machine, chemical fiber equipment, finishing equipment, bobbin
winder, non-woven fabric production line, etc.
SC sources its materials 90% from domestic
market and 10% from overseas market; SC sells its products 60% in domestic
market, and 40% to overseas market.
Trademark & Patents
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Registration No. |
7000747 |
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Registration Date |
June 7, 2010 |
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Trademark Design |
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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 refused
to release its major suppliers and customers.
SC is not known to have any subsidiary at present.
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.
Industrial and Commercial Bank of China
AC#：1906028009022103052
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
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as of Dec. 31, 2014 |
|
Cash & bank |
154,110 |
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Notes receivable |
13,000 |
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Inventory |
422,160 |
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Accounts receivable |
289,440 |
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Advances to suppliers |
38,430 |
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Other receivables |
431,690 |
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Other current assets |
12,020 |
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------------------ |
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Current assets |
1,360,850 |
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Fixed assets net value |
64,930 |
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Projects under construction |
153,430 |
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Long term investment |
0 |
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Investment real estate |
264,330 |
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Intangible assets |
75,340 |
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Financial assets available for sale |
3,940 |
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Other assets |
4,230 |
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------------------ |
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Total assets |
1,927,050 |
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============= |
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Short loans |
159,300 |
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Notes payable |
233,320 |
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Accounts payable |
239,890 |
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Other payable |
41,720 |
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Taxes payable |
1,940 |
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Advances from clients |
245,750 |
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Accrued payroll |
38,410 |
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Other current liabilities |
6,440 |
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------------------ |
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Current liabilities |
966,770 |
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Long term liabilities |
220,900 |
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------------------ |
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Total liabilities |
1,187,670 |
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Equities |
739,380 |
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------------------ |
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Total liabilities & equities |
1,927,050 |
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============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31, 2014 |
|
Turnover |
575,640 |
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Cost of goods sold |
450,650 |
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Taxes and additional of main operation |
3,290 |
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Sales expense |
45,220 |
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Management expense |
80,130 |
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Finance expense |
16,330 |
|
Asset impairment loss |
11,600 |
|
Profit before tax |
-31,510 |
|
Less: profit tax |
0 |
|
Profits |
-31,510 |
Important Ratios
=============
|
|
as of Dec. 31, 2014 |
|
*Current ratio |
1.41 |
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*Quick ratio |
0.97 |
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*Liabilities to assets |
0.62 |
|
*Net profit margin (%) |
-5.47 |
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*Return on total assets (%) |
-1.64 |
|
*Inventory /Turnover ×365 |
268 days |
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*Accounts receivable/Turnover ×365 |
184 days |
|
*Turnover/Total assets |
0.30 |
|
* Cost of goods sold/Turnover |
0.78 |
PROFITABILITY:
FAIR
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is fair.
l
SC’s return on total assets is fair.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: AVERAGE
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 fairly large in 2014.
l
The accounts receivable collection period of SC
appears long.
l
SC’s short-term loan is in an average level.
l
SC’s turnover is in a poor level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is average.
Overall financial condition of the SC:
Fairly stable.
SC is considered large-sized in its line with fairly stable financial conditions.
The large amount of inventory and accounts receivable could be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.20 |
|
|
1 |
Rs.98.30 |
|
Euro |
1 |
Rs.72.41 |
|
CNY |
1 |
Rs.10.19 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
HEE |
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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 |
|
|
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.