MIRA INFORM REPORT
|
Report No. : |
334359 |
|
Report Date : |
31.07.2015 |
IDENTIFICATION DETAILS
|
Name : |
HUZHOU KINGDOM
COATING INDUSTRY CO., LTD. |
|
|
|
|
Registered Office : |
No. 908 Jingyi Road,
Economic Development Zone Changxing County, Huzhou, Zhejiang Province 313100
Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
04.09.2001 |
|
|
|
|
Com. Reg. No.: |
330500400006173 |
|
|
|
|
Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
|
|
|
|
Line of Business : |
Subject is engaged in manufacturing and selling coated fabric and
textiles. |
|
|
|
|
No. of Employee : |
450 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
No complaints |
|
|
|
|
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) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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
HUZHOU KINGDOM COATING INDUSTRY CO., LTD.
NO. 908 JINGYI ROAD,
ECONOMIC DEVELOPMENT ZONE
CHANGXING COUNTY,
HUZHOU, ZHEJIANG PROVINCE 313100 PR CHINA
TEL: 86 (0)
572-6290555/6290278/6266066
FAX: 86 (0)
572-6290220
***Note: The (No.1
Block Wenzhou Industry Region Changxing Economic and Technical Development
China) was the former one.
EXECUTIVE
SUMMARY
Date of Registration : sepTEMBER 4, 2001
REGISTRATION NO. : 330500400006173
LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
REGISTERED CAPITAL : USD
2,940,000
staff : 450
BUSINESS CATEGORY :
manufacturing & trading
Revenue : CNY 371,990,000 (AS OF DEC. 31, 2014)
EQUITIES : CNY 46,400,000 (AS
OF DEC. 31, 2014)
WEBSITE : www.king-grp.com
E-MAIL : allen@king-grp.com
PAYMENT : AVERAGE
Recommended Credit Limit : UP TO USD 300,000 (PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND :
fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.20 = 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 Chinese-foreign equity joint venture enterprise of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.:
330500400006173 on September 4, 2001.
SC’s Organization Code Certificate No.:
73152168-6
SC’s Tax No.: 330522731521686
SC’s registered capital: USD 2,940,000
SC’s paid-in capital: USD 2,940,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Shareholder (s) (% of Shareholding) |
Kingtec Group Co., Ltd. 58.09% Australia U.A. Trading Co. 25.91% Zhuang Guobing 6% Li Jinqing 6% Fan Zixiang 4% |
Kingtec Group Co., Ltd. 58.09% Australia U.A. Trading Co. 25.91% Huzhou Youfu Holding Co., Ltd. 10% Li Jinqing 6% |
|
|
Shareholder (s) (% of Shareholding) |
Kingtec Group Co., Ltd. 58.09% Australia U.A. Trading Co. 25.91% Huzhou Youfu Holding Co., Ltd. 10% Li Jinqing 6% |
Kingtec Group Co., Ltd. 74.09% Australia U.A. Trading Co. 25.91% |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Kingtec Group Co., Ltd. |
74.09 |
|
Australia U.A. Trading Co. |
25.91 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman and General
Manager |
Yu Youyi |
|
Vice Chairman |
Lv Liqi |
|
Director |
Bian Bin |
|
Shi Shuiliang |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Kingtec Group Co., Ltd. 74.09
Australia U.A. Trading Co. 25.91
Kingtec Group Co.,
Ltd.
----------------------------------
Date of Registration: October 13, 1993
Registration No.: 330300000017621
Legal Form: Limited Liabilities Company
Add: No. 15 Fushida Road, Lucheng Industrial
Zone, Wenzhou, Zhejiang Province
Tel: 86 (0) 577-88782691/56706000
Fax: 86 (0) 577-88782699/56706066
Web: www.zjcadetech.com
MANAGEMENT
Yu Youyi , Legal Representative, Chairman, and General
Manager
-------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
ID# 330302560810241
Ø
Age: 59
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal
representative, chairman, and general manager
Also working in Kingtec Group Co., Ltd. as
legal representative
Lv Liqi, Vice
Chairman
------------------------------------------
Ø
Gender: M
Ø
Passport No.: 142300839
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as vice chairman
Director
----------------
Bian Bin
Shi Shuiliang
BUSINESS
OPERATION
SC’s registered business
scope includes manufacturing and selling coated fabric and textiles.
SC is mainly
engaged in manufacturing and selling coated fabric and textiles.
SC’s products
mainly include:
Resin for Fabric
Nylon Taffeta
Polyester Satin
Cotton Tape
Polyester Cotton
Polyester Taffeta
Acetate Taffeta
Others
SC sources its materials 80% from domestic
market, and 20% from overseas market. SC sells 30% of its products in domestic
market, and 70% to overseas market, mainly Hong Kong, Vietnam, Malaysia, Peru,
Mauritius, Thailand, Bangladesh, Sri Lanka, Pakistan, and India.
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.
*Major Clients*
------------------
Confecciones Del Valle
S.A. De C.V.
Young Label and
Tag Inc.
Panda
International Trading Of Ny. Inc
Tela Para Imprimir
S M S M
Paxar Peru Sac
Staff & Office:
--------------------------
SC is known
to have approx. 450 staff at present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
RELATED
COMPANY
Dongguan
King Label Fabrics Co., Ltd.
Wenzhou
Kaien Special Printing Co., Ltd.
Shanghai
Dicheng Industry & Trade Co., Ltd.
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
Basic Bank
Industrial
& Commercial Bank of China
AC#: N/a
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
28,362 |
35,260 |
|
|
Notes receivable |
0 |
0 |
|
Accounts
receivable |
99,443 |
92,750 |
|
Advances to
suppliers |
19,008 |
0 |
|
Other receivable |
1,314 |
6,670 |
|
Inventory |
29,873 |
24,010 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
3,050 |
71,130 |
|
|
------------------ |
------------------ |
|
Current assets |
181,050 |
229,820 |
|
Fixed assets |
36,125 |
38,150 |
|
Construction in
progress |
0 |
4,030 |
|
Intangible
assets |
2,927 |
3,440 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
|
Other
non-current assets |
0 |
20 |
|
|
------------------ |
------------------ |
|
Total assets |
220,102 |
275,460 |
|
|
============= |
============= |
|
Short-term loans |
55,332 |
66,780 |
|
Notes payable |
48,385 |
30,360 |
|
Accounts payable |
23,966 |
43,200 |
|
Payroll payable |
5 |
0 |
|
Taxes payable |
1,760 |
0 |
|
Advances from
clients |
11,905 |
0 |
|
Other payable |
39,414 |
81,910 |
|
Accrued expense |
0 |
0 |
|
Other current
liabilities |
0 |
6,810 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
180,767 |
229,060 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total liabilities |
180,767 |
229,060 |
|
Equities |
39,335 |
46,400 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
220,102 |
275,460 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
|
Revenue |
356,616 |
371,990 |
|
Cost of sales |
317,663 |
330,720 |
|
Sales expense |
5,377 |
6,280 |
|
Management expense |
19,193 |
21,150 |
|
Finance expense |
7,702 |
5,690 |
|
Profit before
tax |
5,810 |
8,040 |
|
Less: profit tax |
871 |
1,180 |
|
4,939 |
6,860 |
Important Ratios
=============
|
|
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
*Current ratio |
1.00 |
1.00 |
|
*Quick ratio |
0.84 |
0.90 |
|
*Liabilities
to assets |
0.82 |
0.83 |
|
*Net profit margin
(%) |
1.38 |
1.84 |
|
*Return on
total assets (%) |
2.24 |
2.49 |
|
*Inventory /
Revenue ×365 |
31 days |
24 days |
|
*Accounts
receivable/ Revenue ×365 |
102 days |
92 days |
|
*Revenue /
Total assets |
1.62 |
1.35 |
|
*Cost of sales
/ Revenue |
0.89 |
0.89 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC appears fairly good in its line, and it
increased in 2014.
l SC’s net profit
margin is average in both years.
l SC’s return on
total assets is average in both years.
l
SC’s cost of sales is average, comparing with its revenue.
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 is maintained in an average
level.
l
The accounts receivable of SC appears large.
l
The short-term loans of SC appear large.
l
SC’s revenue is in an average 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.
CONCLUSIONS
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of accounts receivable and short-term loans could
be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.01 |
|
|
1 |
Rs.99.83 |
|
Euro |
1 |
Rs.70.07 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
ANK |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
<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.