MIRA INFORM REPORT
|
Report No. : |
339320 |
|
Report Date : |
03.09.2015 |
IDENTIFICATION DETAILS
|
Name : |
FOSHAN TEXTILES
IMPORT & EXPORT CO., LTD. |
|
|
|
|
Registered Office : |
No. 1 No. 129, Fenjiang Zhong Road, Foshan Guangdong Province 528000 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
30.09.2014 |
|
|
|
|
Date of Incorporation : |
17.12.1984 |
|
|
|
|
Com. Reg. No.: |
440602000066211 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
Subject is
mainly engaged in international trade, mainly include: Textile products,
Wool, Ceramic, Lighting fixture. |
|
|
|
|
No. of Employees : |
50 |
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
FOSHAN TEXTILES IMPORT & EXPORT CO., LTD.
no. 1 no. 129,
fenjiang zhong road, FOSHAN
GUANGDONG PROVINCE
528000 PR CHINA
TEL: 86 (0)
757-83211072/83212285/83211739
FAX: 86 (0)
757-83212185
EXECUTIVE
SUMMARY
Date of Registration : DECember 17, 1984
REGISTRATION NO. : 440602000066211
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : CNY 2,860,000
staff : 50
BUSINESS CATEGORY : trading
REVENUE : CNY 1,342,054,000 (JAN. 1, 2014 TO SEP.
30, 2014)
EQUITIES : CNY
7,435,000 (AS OF SEP. 30, 2014)
WEBSITE : N/A
E-MAIL : N/A
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY stable
OPERATIONAL TREND :
fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
6.25 = 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 limited liabilities company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 440602000066211 on December 17, 1984.
SC’s Organization Code Certificate
No.: 19034181-7
SC’s Tax No.: 440601190341817
SC’s registered capital: CNY 2,860,000
SC’s paid-in capital: CNY 2,860,000
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 |
|
Yan
Guoshan |
13.29 |
|
Ju Boxian |
10.49 |
|
Li Xiuwen |
10.49 |
|
Liu Jian |
7.69 |
|
Wu Xiaoyong |
7.69 |
|
Chen Bohao |
5.59 |
|
Liu Qinghua |
4.2 |
|
Yue
Xinglong |
4.2 |
|
Chen
Xiaohua |
3.5 |
|
Liang
Jieqing |
3.5 |
|
Other 22
Shareholders |
29.36 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal
Representative, Chairman, General Manager |
Yan
Guoshan |
|
Director |
Ju Boxian |
|
Li Xiuwen |
|
|
Liu Jian |
|
|
Supervisor |
Yue
Xinglong |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Yan Guoshan 13.29
Ju Boxian 10.49
Li Xiuwen 10.49
Liu Jian 7.69
Wu Xiaoyong 7.69
Chen Bohao 5.59
Liu Qinghua 4.2
Yue Xinglong 4.2
Chen Xiaohua 3.5
Liang Jieqing 3.5
Other 22 Shareholders 29.36
MANAGEMENT
Yan Guoshan, Legal Representative, Chairman and General Manager
-----------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 53
Ø
ID# 440601196210031816
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal
representative, chairman and general manager
Director
------------
Ju Boxian
ID# 440602195306090310
Li Xiuwen
ID# 440601195605161813
Liu Jian
ID# 440601196205070044
Supervisor
--------------
Yue Xinglong
ID# 44060119571018091X
BUSINESS
OPERATION
SC’s registered
business scope includes importing and
exporting commodities and technology (excluding the commodities privileged or prohibited
by the state); processing with imported materials, processing with imported
samples, assembling with imported parts, and compensation trade in agreement,
counter trade & transit trade; importing wool; domestic trade, supplying
and selling of commodities (excluding the products privileged or prohibited).
SC is mainly
engaged in international trade.
SC’s products mainly include:
Textile products
Wool
Ceramic
Lighting fixture
Etc.
SC sources its products 95% from
domestic market, mainly Guangdong province, and 5% from overseas market. SC
sells 10% of its products in domestic market, and 90% to overseas market,
mainly Southeast Asia.
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, L/C and Credit of 30-60
days.
*Major Customers*
----------------------
World
Sales Group
Tekmaq
S.A.S
Industrias
Guinovart Y Cia Ltda
*Major Supplier*
--------------------
Foshan SANFI Ceramics Co., Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 50 staff at present.
SC
rents an area as its operating office, but the detailed information is unknown.
RELATED
COMPANY
SC should invest in a subsidiary, but the detailed information is not available.
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
Basic Bank
China Construction
Bank Foshan Branch
AC#: 44001668635050883813
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
As of Sep. 30, 2014 |
|
1,798 |
8,385 |
5,786 |
|
|
Notes receivable |
0 |
0 |
0 |
|
Accounts receivable |
52,168 |
28,458 |
31,228 |
|
Advances to suppliers |
489,515 |
767,333 |
809,281 |
|
Other receivable |
42,175 |
62,219 |
60,414 |
|
Inventory |
329 |
295 |
1,617 |
|
Non-current assets within one year |
0 |
0 |
0 |
|
Other current assets |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Current assets |
585,985 |
866,690 |
908,326 |
|
Long-term investment |
0 |
0 |
1,347 |
|
Fixed assets |
1,616 |
1,675 |
1,390 |
|
Construction in progress |
0 |
0 |
0 |
|
Intangible assets |
0 |
0 |
0 |
|
Long-term prepaid expenses |
0 |
0 |
0 |
|
Deferred income tax assets |
0 |
0 |
0 |
|
Other non-current assets |
1,315 |
1,347 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Total assets |
588,916 |
869,712 |
911,063 |
|
|
============= |
============= |
============= |
|
Short-term loans |
55,569 |
67,422 |
72,176 |
|
Notes payable |
11,228 |
8,930 |
10,723 |
|
Accounts payable |
72,030 |
58,171 |
70,633 |
|
Wages payable |
90 |
0 |
46 |
|
Taxes payable |
341 |
-261 |
-477 |
|
Advances from clients |
442,280 |
726,696 |
749,947 |
|
Other payable |
766 |
1,253 |
580 |
|
Other current liabilities |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Current liabilities |
582,304 |
862,211 |
903,628 |
|
Non-current liabilities |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities |
582,304 |
862,211 |
903,628 |
|
Equities |
6,612 |
7,501 |
7,435 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities & equities |
588,916 |
869,712 |
911,063 |
|
|
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
Jan. 1, 2014 to Sep. 30, 2014 |
|
Revenue |
928,968 |
1,718,829 |
1,342,054 |
|
Cost of sales |
-- |
1,704,949 |
1,329,857 |
|
Taxes and surcharges |
-- |
1,673 |
1,276 |
|
Sales expense |
-- |
1,765 |
1,431 |
|
Management expense |
-- |
5,645 |
5,017 |
|
Finance expense |
-- |
2,638 |
3,366 |
|
Profit before tax |
1,551 |
2,254 |
1,212 |
|
Less: profit tax |
0 |
0 |
0 |
|
1,551 |
2,254 |
1,212 |
Important Ratios
=============
|
|
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
As of Sep. 30, 2014 |
|
*Current ratio |
1.01 |
1.01 |
1.01 |
|
*Quick ratio |
1.01 |
1.00 |
1.00 |
|
*Liabilities to assets |
0.99 |
0.99 |
0.99 |
|
*Net profit margin (%) |
0.17 |
0.13 |
0.09 |
|
*Return on total assets (%) |
0.26 |
0.26 |
0.13 |
|
*Inventory / Revenue ×365/270 |
1 day |
1 day |
1 day |
|
*Accounts receivable/ Revenue ×365/270 |
21 days |
7 days |
9 days |
|
*Revenue/Total assets |
1.58 |
1.98 |
1.47 |
|
*Cost of sales / Revenue |
-- |
1.00 |
0.99 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC appears fairly good in its line.
l SC’s net profit
margin is average.
l SC’s return on
total assets is average.
l
SC’s cost of sales is high, comparing with its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears small.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’s short-term loans appear large.
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
FAIR
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered medium-sized in its line with
fairly stable financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.16 |
|
|
1 |
Rs.101.21 |
|
Euro |
1 |
Rs.74.61 |
INFORMATION DETAILS
|
Report Prepared
by : |
ASH |
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.