MIRA INFORM REPORT
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Report No. : |
334119 |
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Report Date : |
30.07.2015 |
IDENTIFICATION DETAILS
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Name : |
CHANGZHOU KEXU TEXTILE CO., LTD. |
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Registered Office : |
( |
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Country : |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
27.09.2000 |
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Com. Reg. No.: |
320407000015245 |
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Legal Form : |
Limited Liability
Company |
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Line of Business : |
Subject is engaged in processing and selling textiles. |
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No. of Employee : |
35 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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. 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.
|
Source
: CIA |
company
name and address
CHANGZHOU KEXU
TEXTILE CO., LTD.
(HUAJIA VILLAGE,
HUTANG TOWN) NO. 188 ANDING WEST ROAD
WUJIN DISTRICT,
CHANGZHOU, JIANGSU PROVINCE 213161 PR CHINA
TEL: 86 (0) 519-86569885
FAX: 86 (0) 519-86565735
***Note: SC’s complete
address should be the heading one, instead of the given one-Room Wet to
Huajiazhan Hutang Town Jiangsu Changzhou Jiangsu Province
EXECUTIVE
SUMMARY
DATE OF
REGISTRATION : SEPTEMBER
27, 2000
REGISTRATION NO. : 320407000015245
LEGAL FORM : LIMITED
LIABILITY COMPANY
CHIEF EXECUTIVE : XU HUAPING
(LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 10,000,000
STAFF :
35
BUSINESS CATEGORY : PROCESSING AND TRADING
REVENUE :
CNY 44,260,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 5,780,000 (AS OF DEC. 31, 2014)
WEBSITE : WWW.KEXUTEX.COM
E-MAIL :
N/A
PAYMENT :
AVERAGE
RECOMMENDED CREDIT
LIMIT : UP TO USD 20,000
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION
: FAIR
OPERATIONAL TREND : ORDINARY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.21 = 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.:
320407000015245 on September 27, 2000.
SC’s Organization Code Certificate No.: 72415038-9
SC’s registered capital: CNY 10,000,000
SC’s paid-in capital: CNY 10,000,000
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 |
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Xu Huaping |
40 |
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He Tingxing |
30 |
|
He Yingjie |
30 |
SC’s Chief
Executives:-
|
Position |
Name |
|
Legal Representative, Chairman and General Manager |
Xu Huaping |
|
Supervisor |
He Tingxing |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Xu Huaping 40
He Tingxing 30
He Yingjie 30
MANAGEMENT
Xu Huaping, Legal Representative, Chairman and General Manager
----------------------------------------------------------------------------------------------------
Gender: F
Age: 57
ID# 32042119581022098X
Qualification: University
Working experience (s):
From 2000 to present, working in SC as legal representative, chairman
and general manager
Supervisor
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He Tingxing
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing and
selling geotechnical synthetic material; selling building materials, plastic
raw materials; spinning; weaving; garment processing; selling textile raw
materials, textiles, garments, general machinery, hardware; operating and
acting as an agent of importing and exporting various kinds of commodities and
technology, excluding the goods forbidden by the government.
SC is mainly engaged in processing and selling textiles.
Brand: KEYSTONE
SC’s products
mainly include:
1. Functional fabric:
Pure meta-aramid fabric, meta-aramid/para-aramid/antistatic (IIIA)
fabric, meta-aramid/FR viscose fabric, and other functional fabrics.
2. Meta-aramid yarns/thread:
Pure meta-aramid yarn/thread, meta-aramid/para-aramid/antistatic (IIIA)
yarn/thread, meta-aramid/viscose yarn/thread, and other blended yarn/thread.
SC sources its materials 100% from domestic market, mainly Guangdong. SC sells 40% of its products in domestic market, and 60% to overseas market, mainly USA, Europe, Mid East, Southeast Asia, etc.
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.
*Major Customer:
=============
Cargill Agricola S.A.
Staff &
Office:
--------------------------
SC is known to have approx. 35 staff at present.
SC rents 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
The bank information of SC is not filed in SAIC.
FINANCIALS
Financial Summary
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Unit: CNY’000 |
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
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Total assets |
27,530 |
36,500 |
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------------- |
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Total liabilities |
21,580 |
30,720 |
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Equities |
5,950 |
5,780 |
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------------- |
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Revenue |
31,570 |
44,260 |
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Profit before tax |
-2,280 |
330 |
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Less: profit tax |
0 |
500 |
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Profits |
-2,280 |
-170 |
Important Ratios
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As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
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*Liabilities to assets |
0.78 |
0.84 |
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*Net profit margin (%) |
-7.22 |
-0.38 |
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*Return on total assets (%) |
-8.28 |
-0.47 |
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*Revenue/Total assets |
1.15 |
1.21 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIR
The revenue of SC appears average in its line.
SC’s net profit margin is fair.
SC’s return on total assets is fair.
LIQUIDITY: AVERAGE
SC’s revenue is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIR
The debt ratio of SC is average.
The risk for SC to go bankrupt is above average.
Overall financial condition of the SC: Fair.
CONCLUSIONS
SC is considered small-sized in its line with fair financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.63.89 |
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1 |
Rs.99.71 |
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Euro |
1 |
Rs.70.63 |
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 |
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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.