MIRA INFORM REPORT
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Report No. : |
345797 |
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Report Date : |
23.10.2015 |
IDENTIFICATION DETAILS
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Name : |
EBH SPANDEX CO., LTD. |
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Registered Office : |
No. 5388, Jiangdong 4th Road (E), Jiangdong Industrial
Park, Xiaoshan Economic & Technological Development Zone, Hangzhou
City, Zhejiang Province, 311222 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
03.09.2003 |
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Com. Reg. No.: |
330100400007663 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Manufacturing Spandex Fiber; Selling Self-Made Products. |
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No. of Employees : |
430 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
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. 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 & address
EBH SPANDEX CO., LTD.
NO. 5388, JIANGDONG 4TH ROAD (E), JIANGDONG INDUSTRIAL PARK, XIAOSHAN
ECONOMIC & TECHNOLOGICAL DEVELOPMENT ZONE, HANGZHOU CITY, ZHEJIANG
PROVINCE, 311222 PR CHINA
TEL: 86
(0) 571-22883888/22883899/22883822 FAX:
86 (0) 571-22883811/22883869
EXECUTIVE
SUMMARY
INCORPORATION DATE :
SEP. 3, 2003
REGISTRATION NO. :
330100400007663
REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED ENTERPRISE
CHIEF EXECUTIVE :
MR. XING BOLONG (CHAIRMAN)
STAFF STRENGTH : 430
REGISTERED CAPITAL :
USD 31,000,000
BUSINESS LINE :
MANUFACTURING AND TRADING
TURNOVER :
CNY 772,937,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 424,250,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.3597=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 Ren Min Bi
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 Sep. 3, 2003, and has been under present legal form since Aug. 31, 2007.
Company Status: Wholly foreign-owned enterprise This form of business in PR
China is defined as a legal person. It is a limited co. established within
the territories of PR China with capital provided totally by the foreign
investors. More than one foreign investor may jointly invest in a wholly
foreign-owned enterprise. The investing party/parties solely exercise
management, reap profit and bear risks and liabilities by themselves. This
form of companies usually have a limited duration is extendible upon
approval of Examination and Approval Authorities.
SC’s registered business scope includes manufacturing
spandex fiber; selling self-made products.
SC is mainly engaged in manufacturing and selling spandex fiber.
Mr. Xing Bolong is legal representative and chairman of SC at present.
SC is known to have approx. 430 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the industrial park of Hangzhou.
Detailed premise information is not available at present.
www.ebh.com.cn
The design is professional and the content is well organized. At present it is
in Chinese and English versions.
E-mail: sale@ebh.com.cn
Changes
of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2005-7-19 |
Registered capital |
USD 12,000,000 |
USD 22,000,000 |
|
Shareholder and shareholdings |
Hangzhou Shenshi Chemical Fiber Co., Ltd. , 15%; Hangzhou Meibang Chemical Fiber Co., Ltd. 21%; Hangzhou Yinan Chemical Fiber Co., Ltd. 24%;Well State Trading Limited (Hong Kong) 40% |
Hangzhou Shenshi Chemical Fiber Co., Ltd. 18.75%; Well State Trading Limited (Hong Kong) 25%; Zhejiang Meibang
Industrial Group Co., Ltd. 26.25%; Zhejiang Yinan Chemical Fiber Group Co.,
Ltd. 30% |
|
|
2007-06-12 |
Registered capital |
USD 22,000,000 |
USD 31,000,000 |
|
Shareholder and shareholdings |
Hangzhou Shenshi Chemical Fiber Co., Ltd. 18.75%; Well State Trading Limited (Hong Kong) 25%; Zhejiang Meibang
Industrial Group Co., Ltd. 26.25%; Zhejiang Yinan Chemical Fiber Group Co.,
Ltd. 30% |
Hangzhou Shenshi Chemical Fiber Co., Ltd. 13.31%; Well State Trading Limited (Hong Kong) 25%; Zhejiang Meibang
Industrial Group Co., Ltd. 28.43%; Zhejiang Yinan Chemical Fiber Group Co.,
Ltd. 33.26% |
|
|
2007-08-31 |
Registration No. |
005318 |
Present one |
|
Shareholder and shareholdings |
Hangzhou Shenshi Chemical Fiber Co., Ltd. 13.31%; Well State Trading Limited (Hong Kong) 25%; Zhejiang Meibang
Industrial Group Co., Ltd. 28.43%; Zhejiang Yinan Chemical Fiber Group Co.,
Ltd. 33.26% |
Asian Spandex Co., Ltd. (Literal Translation) 100% |
|
|
Legal form |
Chinese-foreign equity joint venture enterprise |
Present one |
|
|
2008-06-19 |
Shareholder and shareholdings |
Asian Spandex Co., Ltd. (Literal Translation) 100% |
Well State Trading Limited (Hong Kong) 100% |
|
2011-03-22 |
Shareholder’s name |
Well State Trading Limited (Hong Kong) |
Present one |
Organization Code: 751739949
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of shareholdings
EBH Industry Group Limited (Hong Kong) 100
Incorporation Date :
2003-3-21
Registration No. :
0840486
Registered Legal Form : Private
company limited by shares
Active Status : Live
Previous name : Well State Trading
Limited (Hong Kong)
Legal Representative and Chairman:
Mr. Xing Bolong is currently responsible for the overall management of
SC.
Working Experience(s):
At present Working in SC
as legal representative and chairman.
General Manager:
Ding Jiansong is currently
responsible for the daily management of SC.
Working Experience(s):
At present Working in SC
as general manager.
Directors:
Shen Zheping
Shen Zhehong
Shen Zhehao
Supervisor:
Shen Shilong
SC is mainly engaged in manufacturing and selling spandex fiber.
SC’s products mainly include: spandex fiber.
SC sources its materials 97% from domestic market, and 3% from overseas
market. SC sells 99% of its products in domestic market, and 1% to overseas
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, L/C, T/T, L/C and Credit of 30-60 days.
Note: SC declined
to release its major suppliers and clients.
TRADEMARKS &
PATENTS
Registration No. 4290946
Registration Date 2008-06-28
Trademark Design 
Registration No. 4290950
Registration Date 2008-06-28
Trademark Design 
Registration No. 4290954
Registration Date 2008-06-28
Trademark Design 
Registration No. 5887708
Registration Date 2010-01-14
Trademark Design 
Zhejiang Yinan Chemical Fiber Group Co., Ltd.
=================================
Registered no.: 330181000159151
Legal representative: Sun Aiwen
Establishment date: 1997-12-11
Tel.: 86 (0) 571-82796752
Fax: 86 (0) 571-82796759
E-mail: yinanhxjt@163.com
Website: http://www.cnyinan.com/
Hangzhou Yililong Textile Co., Ltd.
==========================
Registered no.: 330181400007024
Legal representative: Sun Aiwen
Establishment date: 2003-07-07
Tel.: 86 (0) 571-82756857/ 82797181
Fax: 86 (0) 571-82756857
Zhejiang Yinan Fiber Technology Co., Ltd.
=================================
Registered no.: 330522000059708
Legal representative: Shen Zhehong沈浙宏
Establishment date: 2010-12-14
Tel.: 86 (0) 572-6811860
Fax: 86 (0) 572-6811628
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
|
|
As of Dec. 31,
2014 |
As of Dec. 31,
2013 |
|
Cash & bank |
321,747 |
/ |
|
Inventory |
57,642 |
/ |
|
Accounts receivable |
256,675 |
/ |
|
Advances to suppliers |
23,830 |
/ |
|
Other accounts receivable |
268,565 |
/ |
|
Notes receivable |
84,579 |
/ |
|
|
------------------ |
------------------ |
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Current assets |
1,013,038 |
/ |
|
Fixed assets net value |
278,066 |
/ |
|
Project under construction |
342 |
/ |
|
Long-term deferred expense |
10,085 |
/ |
|
Long term investment |
0 |
/ |
|
Intangible and other assets |
9,618 |
/ |
|
|
------------------ |
------------------ |
|
Total assets |
1,311,149 |
1,442,824 |
|
|
============= |
============= |
|
Short loans |
403,433 |
/ |
|
Accounts payable |
64,273 |
/ |
|
Advances from clients |
11,577 |
/ |
|
Taxes payable |
4,998 |
/ |
|
Other accounts payable |
5,906 |
/ |
|
Accrued payroll |
4,383 |
/ |
|
Other fees payable |
290 |
/ |
|
Accrued expenses |
3,288 |
/ |
|
Notes payable |
388,751 |
/ |
|
|
------------------ |
------------------ |
|
Current liabilities |
886,899 |
/ |
|
Long-term liabilities |
0 |
/ |
|
|
------------------ |
------------------ |
|
Total liabilities |
886,899 |
1,031,997 |
|
Equities |
424,250 |
410,827 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
1,311,149 |
1,442,824 |
|
|
============= |
============= |
Income
Statement
Unit: CNY’000
|
|
As of Dec. 31, 2014 |
As of Dec. 31, 2013 |
|
Turnover |
772,937 |
741,866 |
|
Cost of goods sold |
632,733 |
/ |
|
Taxes and additional of main operation |
5,333 |
/ |
|
Sales expense |
11,594 |
/ |
|
Management expense |
19,461 |
/ |
|
Finance expense |
43,263 |
/ |
|
Other operating profit |
34 |
/ |
|
Investment income |
134 |
/ |
|
Subsidy income |
1,497 |
/ |
|
Non-operating income |
113 |
/ |
|
Non-operating expenses |
107 |
/ |
|
Profit before tax |
62,224 |
30,254 |
|
Less: profit tax |
0 |
0 |
|
Profits |
62,224 |
30,254 |
Note:
the detailed financial of Year 2013 is not available at present.
Important
Ratios
=============
|
|
As of Dec. 31,
2014 |
As of Dec. 31,
2013 |
|
*Current ratio |
1.14 |
/ |
|
*Quick ratio |
1.08 |
/ |
|
*Liabilities to assets |
0.68 |
0.72 |
|
*Net profit margin (%) |
8.05 |
4.08 |
|
*Return on total assets (%) |
4.75 |
2.10 |
|
*Inventory /Turnover ×365 |
28 days |
/ |
|
*Accounts receivable/Turnover ×365 |
122 days |
/ |
|
*Turnover/Total assets |
0.59 |
0.51 |
|
* Cost of goods sold/Turnover |
0.82 |
/ |
PROFITABILITY:
FAIRLY GOOD
The turnover of SC appears fairly good in its line.
SC’s net profit margin appears average in 2013, and fairly good in 2014.
SC’s return on total assets appears average in both years.
SC’s cost of goods sold is average in 2014, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level in 2014.
SC’s quick ratio is maintained in a normal level in 2014.
The inventory of SC appears average in 2014.
The accounts receivable of SC appears fairly large in 2014.
The short-term loan of SC appears large in 2014.
SC’s turnover is in a fair 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 short-term loan and the fairly large amount of
accounts receivable could be a threat to SC’s financial condition. After our
research and based on the information obtained.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.15 |
|
|
1 |
Rs.100.54 |
|
Euro |
1 |
Rs.73.97 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
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Report Prepared
by : |
TPT |
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 |
-- |
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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.