MIRA INFORM REPORT
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Report No. : |
325797 |
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Report Date : |
06.06.2015 |
IDENTIFICATION DETAILS
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Name : |
DEZHOU YUANMAO TEXTILE CO., LTD. |
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Registered Office : |
No. 8 Detong Road, Tianqu Industrial Zone, Dezhou Shandong Province 253000 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
22.10.2007 |
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Com. Reg. No.: |
370000400004902 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Subject is engaged in processing cotton, synthetic textiles; cotton
fiber dyeing and finishing; manufacturing textile and apparel, hats, bags;
selling its owned products; selling clothing, cotton, chemical fiber
textiles, footwear and other commodities. |
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No. of Employees : |
400 |
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 – December 31, 2014
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Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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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 2011 more than 250 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 legislation allowing local governments to issue bonds, further opening several state-owned enterprises to 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
DEZHOU YUANMAO
TEXTILE CO., LTD.
NO. 8 DETONG ROAD, TIANQU INDUSTRIAL ZONE, DEZHOU
SHANDONG PROVINCE 253000 PR CHINA
TEL: 86 (0) 534-5011111
FAX: N/A
EXECUTIVE
SUMMARY
Date of Registration : october 22, 2007
REGISTRATION NO. : 370000400004902
LEGAL FORM : Chinese-foreign equity joint venture
enterprise
REGISTERED CAPITAL : usd
22,000,000
staff :
400
BUSINESS CATEGORY : PROCESSING &
TRADING
Revenue :
CNY 102,424,000 (AS OF DEC. 31,
2014)
EQUITIES :
CNY 81,901,000 (AS OF DEC. 31, 2014)
WEBSITE : www.yuanmaotex.com
E-MAIL :
yuanmao@yuanmaotex.com
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fair
OPERATIONAL TREND :
ORDINARY
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.: 370000400004902 on October 22, 2007.
SC’s Organization Code Certificate No.:
66805630-3
SC’s Tax No.: 371402668056303
SC’s registered capital: usd 22,000,000
SC’s paid-in capital: usd 22,000,000 (CNY 153,822,062.2)
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 |
|
Way Dragon Limited (Hong Kong) |
50.43 |
|
Carnival International Corporation (B.V.I.) |
25.04 |
|
Dezhou Yuanji Textile Co., Ltd. |
24.53 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Qi Weigong |
|
Director |
Lai Yinshui |
|
Wang Hongli |
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|
Lai Zongren |
|
|
Gong Juntai |
|
|
Yan Xuehui |
|
|
Huang Yingkun |
|
|
Supervisor |
Liu Zhongzhen |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Way Dragon Limited (Hong Kong) 50.43
Carnival International Corporation (B.V.I.) 25.04
Dezhou Yuanji Textile Co., Ltd. 24.53
Way Dragon Limited
(Hong Kong)
-----------------------------------------------
Date of Registration: August 29, 2003
CR: 0859478
Dezhou Yuanji
Textile Co., Ltd.
--------------------------------------------
Date of Registration: March 10, 1993
Registration No.: 371400400000371
Registered Capital: USD 27,970,500
MANAGEMENT
Qi Weigong, Legal Representative and Chairman
---------------------------------------------------------------------------
Ø
Gender: M
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal
representative and chairman
Director
-----------
Lai Yinshui
Wang Hongli
Lai Zongren
Gong Juntai
Yan Xuehui
Huang Yingkun
Supervisor
--------------
Liu Zhongzhen
BUSINESS
OPERATION
SC’s registered business scope includes processing cotton,
synthetic textiles; cotton fiber dyeing and finishing; manufacturing textile
and apparel, hats, bags; selling its owned products; selling clothing, cotton,
chemical fiber textiles, footwear and other commodities
SC is mainly
engaged in processing and selling textiles.
Brand: YUANMAO
SC’s products
mainly include: cotton spandex woven, spandex woven, cotton spandex
SC sources its materials 100% from domestic market, mainly Shandong. SC sells 30% of its products in domestic market, and 70% to overseas market, mainly U.S.A.
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*
----------------------
Haggar Clothing
Co.
Staff & Office:
--------------------------
SC is known
to have approx. 400 staff at
present.
SC owns 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
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
9,601 |
16,690 |
|
|
Notes receivable |
0 |
0 |
|
Accounts
receivable |
12,624 |
18,428 |
|
Advances to
suppliers |
3,619 |
8,495 |
|
Other receivable |
467 |
585 |
|
Inventory |
16,461 |
47,661 |
|
Non-current
assets within one year |
0 |
0 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
42,772 |
91,859 |
|
Fixed assets |
79,936 |
75,661 |
|
Construction in
progress |
446 |
85 |
|
Intangible
assets |
11,254 |
10,772 |
|
Long-term
prepaid expenses |
907 |
418 |
|
Deferred income
tax assets |
8,951 |
16,775 |
|
Other
non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
144,266 |
195,570 |
|
|
============= |
============= |
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Short-term loans |
12,200 |
24,480 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
28,981 |
64,630 |
|
Wages payable |
3,909 |
4,254 |
|
Taxes payable |
88 |
187 |
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Advances from
clients |
2,694 |
3,530 |
|
Other payable |
5,396 |
16,588 |
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Other current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Current
liabilities |
53,268 |
113,669 |
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Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
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Total
liabilities |
53,268 |
113,669 |
|
Equities |
90,998 |
81,901 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
144,266 |
195,570 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2014 |
|
Revenue |
102,424 |
|
Cost of sales |
98,105 |
|
Taxes and surcharges |
664 |
|
Sales expense |
6,471 |
|
Management expense |
13,398 |
|
Finance expense |
398 |
|
Non-business
income |
52 |
|
Non-business expenditure |
361 |
|
Profit before
tax |
-16,921 |
|
Less: profit tax |
0 |
|
-16,921 |
Important Ratios
=============
|
|
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
*Current ratio |
0.80 |
0.81 |
|
*Quick ratio |
0.49 |
0.39 |
|
*Liabilities
to assets |
0.37 |
0.58 |
|
*Net profit
margin (%) |
-- |
-16.52 |
|
*Return on
total assets (%) |
-- |
-8.65 |
|
*Inventory /
Revenue ×365 |
-- |
170 days |
|
*Accounts
receivable/ Revenue ×365 |
-- |
66 days |
|
*Revenue/Total
assets |
-- |
0.52 |
|
*Cost of sales
/ Revenue |
-- |
0.96 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIR
l The revenue of SC
appears fairly good in its line.
l SC’s net profit
margin is poor.
l SC’s return on
total assets is fair.
l
SC’s cost of sales is high, comparing with its
revenue.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears large in 2014.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’s short-term loans are in an average level.
l
SC’s revenue is in a fair 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: Fair.
CONCLUSIONS
SC is considered medium-sized in its line with fair financial
conditions. The large amount of inventory may be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.90 |
|
|
1 |
Rs.97.97 |
|
Euro |
1 |
Rs.71.82 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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Report Prepared
by : |
VNT |
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 |
|
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
|
-- |
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.