MIRA INFORM REPORT
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Report No. : |
355778 |
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Report Date : |
30.12.2015 |
IDENTIFICATION DETAILS
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Name : |
QINGDAO WEIFENG FIBRE CO., LTD. |
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Registered Office : |
No. 126 Siliunan Road, Shibei District,
Qingdao, Shandong Province, 266000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
04.07.2003 |
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Com. Reg. No.: |
370200400154964 |
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Legal Form : |
Chinese Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Manufacturing, processing and selling chemical filament fiber, special
polyester fiber and sewing thread; importing and exporting various goods. |
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No. of Employee : |
330 |
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
|
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.
|
Source
: CIA |
Company
name and address
QINGDAO WEIFENG FIBRE CO., LTD.
NO. 126 SILIUNAN ROAD, SHIBEI DISTRICT, QINGDAO,
SHANDONG PROVINCE, 266000 PR CHINA
TEL: 86 (0) 532-84888516/84888383 FAX: 86 (0) 532-84888516
EXECUTIVE
SUMMARY
INCORPORATION DATE : JUL. 4, 2003
REGISTRATION NO. : 370200400154964
REGISTERED LEGAL FORM : CHINESE
FOREIGN EQUITY JOINT VENTURE ENTERPRISE
CHIEF EXECUTIVE :
Wang Lianchun (CHAIRMAN)
STAFF STRENGTH :
330
REGISTERED CAPITAL : CNY
60,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
cny 234,690,000 (AS OF DEC. 31,
2014)
EQUITIES :
cny 112,280,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 700,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND :
steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.4796= USD1 AS OF
Adopted
abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
SC was registered as a Chinese foreign equity joint venture enterprise
at local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on Jul. 4, 2003.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered business scope includes manufacturing, processing and selling
chemical filament fiber, special polyester fiber and sewing thread; importing
and exporting various goods. (excluding import distribution). (with permit if
needed)
SC is mainly engaged in manufacturing and selling high tenacity low
shrinkage and elongation polyester filament yarn.
Wang Lianchun has been legal representative and chairman of SC since
2014.
SC is known to have approx. 330 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in Qingdao. Our checks reveal that SC
owns the total premise about 10,000 square meters.
http://www.weifengfibre.cn/
The design is professional and the content is well organized. At present it is
in English and Chinese versions.
E-mail: sales@weifengfibre.com
Changes of its registered information:
|
Date of change |
Item |
Before the
change |
After the change |
|
|
Legal representative |
Wu Xufeng |
Present one |
Organization Code: 750425913
MAIN SHAREHOLDERS:
Name %
of Shareholding
Qingdao Zhongtai Group Co., Ltd. 37
Hong Kong Hanxiang Trading Limited 25
Wu Xufeng 38
Qingdao Zhongtai Group Co., Ltd.
===================
Registered number: 370200018040310
Incorporated date:
Legal representative: Zhang Zongren
Web: http://www.zhongtai.com.cn/
Legal
representative and Chairman:
Wang Lianchun is currently
responsible for the overall management of SC.
Working
Experience(s):
From 2014 to present Working in SC as legal representative and
chairman.
Also working in Qingdao Zhongtai Xingye Investment Co., Ltd. (literal
translation) as legal representative.
Manager:
Mr. He Shiyuan, with university education, is currently responsible for
the daily management of SC.
Working
Experience(s):
Now Working
in SC as manager.
Directors:
Du Yingchun
Pan Xiaoyan
Zhang Peisong
Wu Xufeng
Supervisor:
Zheng Huaiguang
SC’s products mainly include: core-spun yarn, top-grade high tenacity
twisted yarn, banner material,
coated yarn and conveyer belt
SC sources its materials 100% from domestic market. SC sells 60% of its
products in domestic market, and 40% to the overseas market.
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.
Trademark &
Patents
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Registration No. |
6050365 |
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Registration Date |
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Trademark Design |
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Qingdao Zhongtai Xingye Investment Co., Ltd. (literal translation)
Registered number: 370211018012188
Incorporated date:
Legal representative: Wang Lianchun
Qingdao Zhongsheng Special Fibre Co., Ltd.
Registered number: 370200018035087
Incorporated date:
Legal representative: Zhang Zongren
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 Sifang Sub-branch
AC#：38030251000025372
Relationship: Normal.
Balance
Sheet
Unit: CNY’000
|
|
As of Dec. 31, 2014 |
|
Cash & bank |
16,090 |
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Inventory |
8,730 |
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Accounts receivable |
46,020 |
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Advances to suppliers |
56,020 |
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Other receivables |
55,660 |
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Notes receivable |
1,150 |
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--------------- |
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Current assets |
183,670 |
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Fixed assets net value |
43,460 |
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Projects under construction |
2,380 |
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Intangible assets |
21,430 |
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Other assets |
1,110 |
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--------------- |
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Total assets |
252,050 |
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============ |
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Short loans |
78,000 |
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Accounts payable |
1,550 |
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Advances from clients |
4,220 |
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Taxes payable |
1,070 |
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Other payable |
28,530 |
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Notes payable |
26,400 |
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Current liabilities |
139,770 |
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Long term liabilities |
0 |
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------------------- |
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Total liabilities |
139,770 |
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Equities |
|
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------------------- |
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Total liabilities & equities |
252,050 |
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Income
Statement
Unit: CNY’000
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|
As of Dec. 31, 2014 |
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Turnover |
234,690 |
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Cost of goods sold |
201,430 |
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Taxes and additional of main operation |
950 |
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Sales expense |
5,250 |
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Management expense |
10,300 |
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Finance expense |
7,430 |
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Non-operating expense |
500 |
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Profit before tax |
8,830 |
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Less: profit tax |
2,340 |
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Profits |
6,490 |
Important
Ratios
=============
|
|
As of Dec. 31, 2014 |
|
*Current ratio |
1.31 |
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*Quick ratio |
1.25 |
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*Liabilities to assets |
0.55 |
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*Net profit margin (%) |
2.77 |
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*Return on total assets (%) |
2.57 |
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*Inventory /Turnover ×365 |
14 days |
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*Accounts receivable/Turnover ×365 |
72 days |
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*Turnover/Total assets |
0.93 |
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* Cost of goods sold/Turnover |
0.86 |
PROFITABILITY:
AVERAGE
The turnover of SC appears fairly good in 2014.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a normal level.
The accounts receivable of SC is average.
The inventory of SC is average.
The short term loans are fairly large.
SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
SC is considered medium-sized in its line with fairly stable financial
condition. The fairly large amount of short term loans would be a threat to
SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.37 |
|
|
1 |
Rs.98.91 |
|
Euro |
1 |
Rs.72.85 |
|
CNY |
1 |
Rs.10.23 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
ANK |
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 |
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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 |
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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 |
|
<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.