MIRA INFORM REPORT
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Report No. : |
310638 |
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Report Date : |
04.02.2015 |
IDENTIFICATION DETAILS
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Name : |
LOFTEX INDUSTRIES LTD. |
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Registered Office : |
No. 89 Wutong 6th Road, Binbei, Bincheng District, Binzhou Shandong Province 256600 Pr |
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Country : |
China |
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Date of Incorporation : |
17.01.2002 |
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Com. Reg. No.: |
371600228003247 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Subject is engaged in Manufacturing and
Selling towel Products. |
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No. of Employee : |
1,500 |
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 – 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 and expanded 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 2013 stood as the second-largest economy in the world after the US, having surpassed Japan in 2001. The dollar values of China's agricultural and industrial output each exceed those of the US; China is second to the US in the value of services it produces. 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.
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Source
: CIA |
Company
name and address
LOFTEX INDUSTRIES
LTD.
No. 89 Wutong 6th Road, Binbei, Bincheng District, Binzhou
Shandong Province 256600 PR China
TEL: 86 (0) 543-3512878
FAX: 86 (0) 543-3512688
EXECUTIVE
SUMMARY
Date of Registration : january 17, 2002
REGISTRATION NO. : 371600228003247
LEGAL FORM : Limited
Liability Company
REGISTERED CAPITAL : CNY 110,720,000
staff : 1,500
BUSINESS CATEGORY : MANUFACTURING & TRADING
Revenue :
CNY 2,618,977,000 (AS OF DEC. 31, 2013)
EQUITIES :
CNY 1,586,144,000 (AS OF DEC. 31, 2013)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly
good
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
6.22 = USD 1
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.: 371600228003247 on January 17, 2002.
SC’s Organization Code Certificate
No.: 73471868-7
SC’s Tax No.: 372301734718687
SC’s registered capital: CNY 110,720,000
SC’s paid-in capital: CNY 110,720,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Legal Representative |
Wang Hongxing |
Wang Yanping |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Ruan Chaoying |
10.90 |
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Wang Hongxing |
24.26 |
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Zhang Xulan |
3.69 |
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Ding Liming |
3.28 |
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Cheng Xiuying |
3.69 |
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Wang Yanping |
44.35 |
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Fu Qingmin |
1.23 |
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Xue Aiping |
0.82 |
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Bai Changbing |
2.46 |
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Wang Xingming |
1.51 |
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Zhang Fuyong |
2.99 |
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Li Yanqin |
0.82 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Wang Hongxing 王红星 |
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General Manager |
Zhang Fuyong 张富勇 |
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Director |
Wang Yanping 王延平 |
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Wang Xingming 王兴明 |
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|
Ruan Chaoying 阮超英 |
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Supervisor |
Du
Aiguo 杜爱国 |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Ruan Chaoying 10.90
Wang Hongxing 24.26
Zhang Xulan 3.69
Ding Liming 3.28
Cheng Xiuying 3.69
Wang Yanping 44.35
Fu Qingmin 1.23
Xue Aiping 0.82
Bai Changbing 2.46
Wang Xingming 1.51
Zhang Fuyong 2.99
Li Yanqin 0.82
MANAGEMENT
Wang Hongxing, Legal
Representative and Chairman
--------------------------------------------------------------------------------
Ø
Gender: M
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal
representative and chairman
Zhang
Fuyong, General Manager
-------------------------------------------------------
Ø
Gender: M
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as general manager
Supervisor
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Du Aiguo
BUSINESS
OPERATION
SC’s registered business scope includes processing and
selling cotton; exporting its owned towels and towel products, blankets
products, cotton yarn and textiles, chemical products, clothing and technology;
importing materials, instrument, machinery and equipment, parts and technology
needed for its production; technology development, technical services and
technology transfer of new products,
excluding the goods forbidden by the government.
SC is
mainly engaged in manufacturing and selling towel products.
Brand: LOFTEX
SC’s products
mainly include: towel products.
SC sources its materials 100% from domestic market, mainly Shandong. SC sells 70% of its products in domestic market, and 30% 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 Customers:
==============
JP Imp.
Corporation
Mason Companies
Inc.
Wal Mart Stores,
Inc.
Staff & Office:
--------------------------
SC is
known to have approx. 1,500
staff at present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
RELATED
COMPANY
Loftex
China Ltd.
------------------------------
Date of Registration: January 24, 2006
Registration No.: 371600400001696
Legal Form: Wholly Foreign-Owned Enterprise
Registered Capital: CNY 13,600,000
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 |
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Total assets |
2,731,484 |
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------------- |
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Total
liabilities |
1,145,340 |
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Equities |
1,586,144 |
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------------- |
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Revenue |
2,618,977 |
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Profits |
183,037 |
Important Ratios
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As
of Dec. 31, 2013 |
|
*Liabilities to
assets |
0.42 |
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*Net profit
margin (%) |
6.99 |
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*Return on
total assets (%) |
6.70 |
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*Revenue/Total
assets |
0.96 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIRLY GOOD
l The revenue of SC appears fairly good in its line.
l SC’s net profit margin
is fairly good.
l SC’s return on
total assets is fairly good.
LIQUIDITY:
AVERAGE
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
FAIRLY GOOD
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered large-sized in its line with
fairly good financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.84 |
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|
1 |
Rs.95.14 |
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Euro |
1 |
Rs.69.25 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
ASH |
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 |
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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.