MIRA INFORM REPORT
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Report No. : |
323265 |
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Report Date : |
22.05.2015 |
IDENTIFICATION DETAILS
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Name : |
XINFANG GROUP CO., LTD. |
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Registered Office : |
No. 333 Dongliang Road, Zhili Town, Huzhou, Zhejiang Province, 313008 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
13.07.2006 |
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Com. Reg. No.: |
330500000001453 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in industrial investment, sales of textiles and raw materials, log |
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No of Employees : |
11 |
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 Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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 & address
No. 333 Dongliang Road, Zhili Town, Huzhou,
Zhejiang Province, 313008 PR CHINA
TEL: 86 (0) 572-3230175/3230187
FAX: 86 (0) 572-3198017
EXECUTIVE
SUMMARY
INCORPORATION DATE : july 13, 2006
REGISTRATION NO. : 330500000001453
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
11
REGISTERED CAPITAL : CNY 80,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 179,710,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 26,020,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION : average
FINANCIAL CONDITION : Fair
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 6.2041 = usd 1
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 limited liabilities co. at local Administration
for Industry & Commerce (AIC - The official body of issuing and renewing
business license) on July 13, 2006.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders
contribute its registered capital jointly. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to extent of its total assets. The characteristics of this form
of co. are as follows: Upon the establishment of the
co., an investment certificate is issued to the each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is CNY 30,000. Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 30% of the registered capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s registered
business scope includes industrial investment, investment advisory services;
wholesaling textiles and raw materials (excluding silk cocoon, seed cotton); selling
log, metal materials (except precious metal), daily necessities; warehousing
(excluding dangerous goods); office equipment maintenance; computer
maintenance; importing and exporting goods and technology.
SC is mainly
engaged in industrial investment, sales of textiles and raw materials, log,
etc.
Mr. Li Jingui is
legal representative and chairman of SC at present.
SC is known to
have approx. 11 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office in Huzhou. SC’s employee refused to release the
detailed information of the premise.
http://www.xfgroup.com.cn/ The design is professional and the content is
well organized. At present it is in both Chinese and English versions.
Email: xfgroup@xfgroup.com.cn
Changes
of its registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2006-11-30 |
Company’s name |
Huzhou Xinfang Investment Co., Ltd. |
Present one |
|
2007-10-10 |
Registration no. |
3305002049515 |
Present one |
|
2007-12-14 |
Registered capital |
CNY 60,000,000 |
Present amount |
Organization Code: 790977720
See below for SC as executive party (defendant).
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Executed Party |
SC |
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Court |
Huzhou Wuxing District People's Court |
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Date
of Case |
2013-10-24 |
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Case Number |
(2013) 03224 |
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Claim
Amount |
RMB 10,541,875 |
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Executed Party |
SC |
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Court |
Huzhou Wuxing District People's Court |
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Date
of Case |
2013-10-24 |
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Case Number |
(2013) 03223 |
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Claim
Amount |
RMB 1,174,135.2 |
Remark: Due to the lack of information, we are unable to provide the cause of
action, judgment or other information.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Li Jingui 65
Shen Songming 35
l
Legal representative and chairman:
Mr. Li Jingui is currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as
legal representative and chairman.
Also working in Zhejiang Jinnuokang Biology Pharmacy Co., Ltd., Huzhou
Xinghe Energy Co., Ltd., Zhucheng Xinfang Textile and Dyeing Co., Ltd.,
Shanghai Xinfang Development Enterprise Co., Ltd., etc. as legal
representative, and in Xinfang Group Huzhou Import & Export Co., Ltd. as
supervisor.
l
General manager:
Mr. Shen Songming is currently responsible for the daily management of
SC.
Working Experience(s):
At present Working in SC as
general manager.
Also
working in Xinfang Group Huzhou Import & Export Co., Ltd. and Huzhou
Xinfang Textile Co., Ltd. as legal representative.
l
Directors:
Shen Songming
Yao Jianchun
l
Supervisor:
Shen Songqiang
SC is mainly engaged
in industrial investment, sales of textiles and raw materials, log, etc.
SC’s products mainly include:
Ring spinning yarn
OE spinning yarn
Griege series
Yarn-dyed cloth series
Cotton series
Garment series
Leather bag series
Cross-stitch embroidery
Wood plates
SC sources its materials 40% from domestic
market, and 60% from overseas market. SC sells 100% of its products in domestic
market.
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 and
Credit of 30-60 days.
Note: SC’s management declined to release
its main clients and suppliers.
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TRADEMARKS & PATENTS |
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Registration No. |
10880363 |
6204281 |
10880362 |
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Registration Date |
March 14, 2014 |
Jan. 7, 2012 |
March 14, 2014 |
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Trademark Design |
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Zhejiang Jinnuokang Biology Pharmacy Co., Ltd.
=============================
Registration no.: 330506000004403
Legal representative: Li Jingui
Incorporation date: 2008-12-22
Huzhou Xinghe Energy Co., Ltd.
=========================
Registration no.: 330500000002454
Legal representative: Li Jingui
Incorporation date: 2005-12-22
SC is known to invest in the following companies:
Xinfang
Group Huzhou Import & Export Co., Ltd.
====================================
Incorporation
Date: June 23, 2006
Registration
No.: 330503000047974
Legal representative: Shen Songming
Huzhou Xinfang Textile Co., Ltd.
========================
Registration no.: 330503000050355
Legal representative: Shen Songming
Incorporation date: 2004-01-13
Zhucheng Xinfang Textile and Dyeing Co., Ltd.
=======================
Registration no.: 370782228007550
Legal representative: Li Jingui
Incorporation date: 2001-12-22
Shanghai Xinfang Development Enterprise Co., Ltd.
=============================
Registration no.: 310228000723680
Legal representative: Li Jingui
Incorporation date: 2004-5-26
Etc.
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.
SC’s management
declined to release its bank details.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2014 |
|
Cash & bank |
31,730 |
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Inventory |
58,120 |
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Accounts
receivable |
11,290 |
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Bills receivable |
0 |
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Other Accounts
receivable |
66,480 |
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Advances to
suppliers |
0 |
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To be
apportioned expense |
0 |
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Other current
assets |
10 |
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------------------ |
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Current assets |
167,630 |
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Fixed assets net
value |
210 |
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Long-term
investment |
67,830 |
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Intangible and
other assets |
0 |
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------------------ |
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Total assets |
235,670 |
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============= |
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Short loans |
79,410 |
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Accounts payable |
52,610 |
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Advance from
customers |
0 |
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Other Accounts
payable |
40,180 |
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Notes payable |
40,000 |
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Taxes payable |
-2,560 |
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Surcharge
payable |
10 |
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Withdraw the expenses
in advance |
0 |
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Other current
liabilities |
0 |
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------------------ |
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209,650 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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------------------ |
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Total
liabilities |
209,650 |
|
Equities |
26,020 |
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|
------------------ |
|
235,670 |
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============= |
Income Statement
Unit: CNY’000
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|
As of Dec. 31, 2014 |
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Turnover |
179,710 |
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Cost of goods sold |
174,930 |
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Sales expense |
1,740 |
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Management expense |
5,860 |
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Finance expense |
6,960 |
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Profit before
tax |
-9,590 |
|
Less: profit tax |
0 |
|
Profits |
-9,590 |
Important Ratios
=============
|
|
As
of Dec. 31, 2014 |
|
*Current ratio |
0.80 |
|
*Quick ratio |
0.52 |
|
*Liabilities
to assets |
0.89 |
|
*Net profit
margin (%) |
-5.34 |
|
*Return on
total assets (%) |
-4.07 |
|
*Inventory
/Turnover ×365 |
119 days |
|
*Accounts
receivable/Turnover ×365 |
23 days |
|
*Turnover/Total
assets |
0.76 |
|
* Cost of
goods sold/Turnover |
0.97 |
PROFITABILITY:
FAIR
l The turnover of SC
appears fairly good in its line.
l SC’s net profit margin
is fair.
l SC’s return on
total assets is fair.
l SC’s cost of goods
sold is high, comparing with its turnover.
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 is fairly large.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’s short-term loan is large in 2014.
l
SC’s turnover is in a fair level, comparing with
the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
SC is considered small-sized in its line with fair financial conditions.
The large amount of inventory and short loans could be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 63.70 |
|
|
1 |
Rs. 98.91 |
|
Euro |
1 |
Rs. 70.66 |
INFORMATION DETAILS
|
Analysis Done by
: |
RSM |
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Report Prepared
by : |
DPT |
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 |
|
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.