MIRA INFORM REPORT
|
Report No. : |
344784 |
|
Report Date : |
16.10.2015 |
IDENTIFICATION DETAILS
|
Name : |
Jiangsu Kingday
Textile Co., Ltd |
|
|
|
|
Registered Office : |
North Of Weiwu Road, Lianshui Economic Development Zone, Huai’an
City, Jiangsu Province, 223400 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
19.02.2008 |
|
|
|
|
Com. Reg. No.: |
320800400005507 |
|
|
|
|
Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
|
|
|
|
Line of Business : |
Subject is engaged in manufacturing & selling various kinds of
bedding articles. |
|
|
|
|
No. of Employee : |
500 |
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 : |
Slow but correct |
|
|
|
|
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.
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 for the
first time in modern history. Still, China's per capita income is below the
world average.
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
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 also 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
Jiangsu Kingday Textile
Co., Ltd
North
of Weiwu Road, Lianshui Economic Development Zone,
huai’an
city, jiangsu province, 223400 PR CHINA
TEL:
86 (0) 517-82736085/82736997/82738107
FAX: 86 (0) 517-82739955
EXECUTIVE
SUMMARY
INCORPORATION DATE : FEBRUARY 19, 2008
REGISTRATION NO. : 320800400005507
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
CHIEF EXECUTIVE :
MR. BHAGWANI JAI KISHAN (LEGAL REPRESENTATIVE)
STAFF STRENGTH : 500
REGISTERED CAPITAL : CNY 70,000,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER : CNY
292,520,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 91,150,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION
: FAIRLY STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.3428 =
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 Chinese-foreign equity joint
venture enterprise at local Administration for Industry & Commerce
(AIC - The official body of issuing and renewing business license) on February
19, 2008.
Company Status: Chinese-foreign
equity joint venture enterprise This form of business in PR China is defined as a legal
person. It is a limited co. jointly invested by one or more foreign
companies and one or more PR China controlled companies within the
territories of PR China according to a certain proportion of capital
investment. The investing parties exercise business management, share
profits and bear all risks and liabilities of the co. together. The equity
joint venture law requires that foreign party contribute not less than 25%
of the registered capital, with no maximum. The investing parties are free
to agree on method of profit distribution and liabilities bearing according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of directors excises the high authority. The
joint venture usually has a limited duration of 10 to 50 years. Enterprise
with large investment, long construction periods, low investment returns,
introducing of advanced technology & advanced technology products that
have good competition position in international market may extend beyond
the 50 years limit.
SC’s registered
business scope includes manufacturing, processing and selling kinds of blended,
chemical fiber blankets, carpets and its products, all kinds of bedding
products, various types of raw and auxiliary materials and hand bags for
packaging use. (with permit if needed)
SC
is mainly engaged in manufacturing & selling various kinds of bedding
articles.
Mr. Bhagwani Jai
Kishan is legal representative of SC at present.
SC is known to have
approx. 500 employees at present.
SC is currently
operating at the above stated address, and this address houses its operating
office and factory in the development zone of Lianshui County. The detailed
information of the premise is unspecified.
http://cn.king-day.net The design is professional and the content
is well organized. At present it is in both Chinese and English versions.
Email: wushasha@king-day.net / sales@king-day.net
No significant
changes were found during our checks with the local Administration for Industry
and Commerce.
Organization code:
67203465X
There is no
litigation record of SC for the past two years.
MAIN SHAREHOLDERS:
Name
%
of Shareholding
DB Investments Company
Limited (HK) 81.14
DB
Huai’an Xiangtai
Trading Company Limited (literal translation) 18.86
DB
Investments Company Limited (HK)
DB
==========================
CR No.: 1388978
Company Type:
Private Company limited by shares
Date of
Incorporation:
Huai’an Xiangtai
Trading Company Limited (literal translation)
=================================
Registration
number: 320811000007698
Legal
representative: Qian Feng
Incorporation date:
Tel: 86 (0)
517-83779066
Legal Representative and
Chairman:
Mr. Bhagwani Jai
Kishan, Indian, 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
Jiangsu Kingday Textile Co., Ltd Shanghai Branch as principal.
Vice Chairman:
Mr. Qian Feng is
currently responsible for the daily management of SC.
Working Experience(s):
At present Working in SC as
vice chairman.
Also working in
Huai’an Xiangtai Trading Company Limited as legal representative, executive
director and general manager.
General Manager:
Wu Bin
Director:
Cai Wensheng
Supervisor:
Wang Jing
SC is mainly
engaged in manufacturing & selling various kinds of bedding articles.
SC’s products
mainly include: baby series, diamond series, flannel, flower series, safari
series, wedding sets, etc.
SC sources its
materials 100% from domestic market. SC sells 40% of its products in domestic
market, and 60% to overseas market.
The buying terms of
SC include Check, T/T and Credit of 30-60 days. The payment terms of SC include
Check, T/T, L/C and Credit of 30-60 days.
Note: SC refused to
release its major clients and suppliers.
Trademarks:
|
Trademark |
|
|
Registration No. |
8322962 |
|
Registration Date |
|
Jiangsu Kingday
Textile Co., Ltd Shanghai Branch
======================================
Registration
number: 310000500255036
Principal: Bhagwani
Jai Kishan
Incorporation date:
Tel: 86 (0)
21-62097535
E-mail: ac@prinso.cn
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.
N/A
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2014 |
|
Cash & bank |
950 |
|
Inventory |
|
|
Other receivable |
240 |
|
Accounts
receivable |
79,480 |
|
Advanced to
suppliers |
4,080 |
|
|
------------------ |
|
Current assets |
110,470 |
|
Fixed assets net
value |
50,920 |
|
Projects under
construction |
90 |
|
Long term
investment |
16,000 |
|
Total intangible
and other assets |
4,200 |
|
|
------------------ |
|
Total assets |
181,680 |
|
|
=========== |
|
Short loans |
40,770 |
|
Accounts payable |
45,330 |
|
Accounts advanced
from customers |
730 |
|
Taxes payable |
-2,790 |
|
Other accounts
payable |
170 |
|
Accrued payroll |
2,110 |
|
|
------------------ |
|
Current
liabilities |
86,320 |
|
Long term
liabilities |
4,210 |
|
|
------------------ |
|
Total liabilities |
90,530 |
|
Equities |
|
|
|
------------------ |
|
Total liabilities
& equities |
181,680 |
|
|
=========== |
Income
Statement
|
Unit: CNY’000 |
As of Dec. 31, 2014 |
|
Turnover |
292,520 |
|
Cost of goods
sold |
237,630 |
|
Taxes and additional of main operation |
1,970 |
|
Sales expense |
25,710 |
|
Management expense |
11,900 |
|
Finance expense |
7,190 |
|
Other operating
income |
-1,870 |
|
Non-operating
income |
4,580 |
|
Non-operating expense |
1,970 |
|
Profit before tax |
8,860 |
|
Less: profit tax |
2,280 |
|
Profits |
6,580 |
Important
Ratios
|
|
As of Dec. 31, 2014 |
|
*Current ratio |
1.28 |
|
*Quick ratio |
0.98 |
|
*Liabilities to
assets |
0.50 |
|
*Net profit
margin (%) |
2.25 |
|
*Return on total
assets (%) |
3.62 |
|
*Inventory
/Turnover ×365 |
33 days |
|
*Accounts
receivable/Turnover ×365 |
100 days |
|
*Turnover/Total
assets |
1.61 |
|
* Cost of goods
sold/Turnover |
0.81 |
PROFITABILITY:
AVERAGE
The turnover of SC
appears fairly good.
SC’s net profit
margin is average.
SC’s return on
total assets is average.
SC’s cost of goods
sold is in an average level.
LIQUIDITY:
AVERAGE
The current ratio
of SC is maintained in a normal level.
SC’s quick ratio is
maintained in a normal level.
The inventory of SC
appears average.
SC’s accounts
receivable is large.
SC’s short term
loan is fairly large.
SC’s turnover is in
an average level, comparing with the size of its total assets.
LEVERAGE:
AVERAGE
The debt ratio of
SC is average.
The risk for SC to
go bankrupt is average.
Overall financial condition of the SC: Fairly Stable.
SC is considered
medium-sized in its line with fairly stable financial conditions. The large
amount of accounts receivable could be a
threat to its financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.82 |
|
|
1 |
Rs.100.41 |
|
Euro |
1 |
Rs.74.50 |
INFORMATION DETAILS
|
Analysis Done by
: |
HNA |
|
|
|
|
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.