MIRA INFORM REPORT
|
Report No. : |
339674 |
|
Report Date : |
05.09.2015 |
IDENTIFICATION DETAILS
|
Name : |
SANYANG TEXTILE
CO., LTD. |
|
|
|
|
Registered Office : |
No. 106 Liqi
Road, Lijin County, Dongying City Shandong Province 257400 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.03.2014 |
|
|
|
|
Date of Incorporation : |
17.05.2003 |
|
|
|
|
Com. Reg. No.: |
370522018002318 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
Subject is engaged in
manufacturing and selling textiles |
|
|
|
|
No. of Employee : |
3,000 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
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. 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; 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.
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.
|
Source
: CIA |
company
name and address
SANYANG TEXTILE CO., LTD.
NO. 106 LIQI ROAD,
LIJIN COUNTY, DONGYING CITY
SHANDONG PROVINCE
257400 PR CHINA
TEL: 86 (0)
546-5368188/5368058/5368012
FAX: 86 (0)
546-5368001
***Note: The heading address was formerly
known as No. 58 Yongshen Road, Lijin County, Dongying, Shandong Province
58, which is the registered address.
EXECUTIVE
SUMMARY
Date
of Registration : may
17, 2003
REGISTRATION
NO. :
370522018002318
LEGAL
FORM : Limited liabilities company
REGISTERED CAPITAL : CNY 100,000,000
staff :
3,000
BUSINESS CATEGORY : manufacturing &
trading
Revenue :
CNY 1,945,740,000 (AS OF DEC.
31, 2014)
EQUITIES :
CNY -728,780,000 (AS OF DEC. 31, 2014)
WEBSITE : www.sanyanggroup.com
E-MAIL :
sanyang@sanyanggroup.com
PAYMENT :
AVERAGE
MARKET CONDITION :
competitive
FINANCIAL CONDITION :
poor
OPERATIONAL TREND : DOWNWARD
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.20 = 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.: 370522018002318 on May 17, 2003.
SC’s Organization Code Certificate No.: 74988772-3
SC’s Tax No.: 370522749887723
SC’s registered capital: cny 100,000,000
SC’s paid-in capital: cny 100,000,000
Registration
Change Record:-
|
Date |
Change
of Contents |
Before
the change |
After
the change |
|
|
Shareholder (s) (% of Shareholding) |
Lihuayi Group Co., Ltd. 40% Lijin Lineng Investment Co., Ltd. 25% Shandong Lijin Yamei Textile Co., Ltd. 18% Lijin Xinke Chemical Co., Ltd. 17% |
Lihuayi Group Co., Ltd. 42% Lijin Xinke Chemical Co., Ltd. 40% Shandong Lijin Yamei Textile Co., Ltd. 司 18% |
Current
Co search indicates SC’s shareholders & chief executives are as follows:-
|
Name
of Shareholder (s) |
%
of Shareholding |
|
Lihuayi Group Co., Ltd. |
42 |
|
Lijin Xinke Chemical Co., Ltd. |
40 |
|
Shandong Lijin Yamei Textile Co., Ltd. |
18 |
SC’s
Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Xu Yunting |
|
General Manager |
Xu Jianmin |
|
Supervisor |
Cui Zhenfa |
RECENT
DEVELOPMENT
SC has passed ISO
14001:2004, OHSAS 18001:2007, etc.
SC has received an award
such as "The Agricultural Development Bank Most Valuable Customer"
and "China Cotton Textile Industry Most Competitive Top 20
Enterprises"; in combed yarn products have received "China Famous
Brand" award.
SHAREHOLDER
CHART & BACKGROUND
Name % of Shareholding
Lihuayi Group Co., Ltd. 42
Lijin Xinke Chemical Co., Ltd. 40
Shandong Lijin Yamei Textile Co., Ltd. 18
Lihuayi
Group Co., Ltd.
=====================
Registration No.: 370000018015574
Registered Capital: CNY 183,377,250
Legal Representative: Xu Yunting
Tel: 86 (0) 546-5685658
Fax: 86 (0) 546-5621310
Email: lihuayiren@lihuayi.com
Web: www.lihuayi.com
Lijin
Xinke Chemical Co., Ltd.
=========================
Registration No.: 370522018002203
Registered capital: CNY 21,000,000
Legal Representative: Suo Shucheng
Shandong
Lijin Yamei Textile Co., Ltd.
================================
Registration No.: 370522018000025
Registered Capital: CNY 26,080,000
Legal Representative: Qian Weizhong
MANAGEMENT
Xu Yunting, Legal Representative and
Chairman
---------------------------------------------------------------------------
Ø Gender: M
Ø Working experience
(s):
At present, working in SC as legal
representative and chairman
Also working in Lihuayi Group Co., Ltd. as legal
representative
Xu Jianmin , General
Manager
---------------------------------------------------
Ø Gender: M
Ø Working experience
(s):
At present, working in SC as general manager
Also working in Dongying Sanyang Unisafe Garment
Co., Ltd. as legal representative
Cui Zhenfa , Supervisor
------------------------------------------
Ø Gender: M
BUSINESS
OPERATION
SC’s registered business scope includes selling
chemical fiber textile and related product; wholesaling and retailing chemical
products (excluding dangerous chemicals and easily made drugs), rubber
products, textile raw materials, metal materials.
SC is mainly engaged in manufacturing and
selling textiles.
SC’s products mainly include:
Yarn
Fabric
Clothing
SC sources its materials 100% from domestic market. SC sells 60% of its
products in domestic market, and 40% to overseas market, mainly U.S.A., Europe
and Southeast Asian market.
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 Client*
------------------
Cfg Textile Inc.
Staff & Office:
--------------------------
SC is known to
have approx. 3,000 staff at
present.
SC owns an area as its operating office and
factory, but the detailed information is unknown.
RELATED
COMPANY
Shandong Riyuexing Import and Export Co., Ltd.
Registration No.: 370500000000202
Registered Capital: CNY 5,000,000
Legal Representative: Zi Sanfei
Dongying Tianfeng Textile Co., Ltd.
Registration No.: 370522228008858
Registered Capital: CNY 17,300,000
Legal Representative: Li Xiaobing
SC
is known to invest in the following companies,
Shandong Sanyang Hengfeng Thread Company Limited
(in Chinese pinyin)
Registration No.: 370500400001575
Legal Representative: Chen Jianhua
Date of Registration:
Dongying Sanyang Unisafe Garment Co., Ltd.
Registration No.: 370500400000172
Legal Representative: Xu Jianmin
Date of Registration:
Lijin Lineng Thermal Power Co., Ltd.
Registration No.: 370522228006383
Legal Representative: Liu Hucheng
Date of Registration:
CR No.: 0869885
Legal Form: private company limited by shares
Date of Registration:
According to SC’s website, SC has many offices,
such as Tianjin Office, Jinhua Office, Yixing Office, Guangzhou Office,
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
AC#:
37001656101050002817
FINANCIALS
Balance
Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
1,580,440 |
813,600 |
|
|
Notes receivable |
37,030 |
24,680 |
|
Accounts receivable |
234,260 |
556,940 |
|
Advances to suppliers |
301,340 |
73,540 |
|
Other receivable |
494,030 |
52,380 |
|
Inventory |
294,450 |
579,990 |
|
Non-current assets within one
year |
0 |
0 |
|
Other current assets |
43,790 |
6,160 |
|
|
------------------ |
------------------ |
|
Current assets |
2,985,340 |
2,107,290 |
|
Fixed assets |
816,730 |
765,340 |
|
Construction in progress |
1,620 |
0 |
|
Intangible assets |
113,820 |
143,720 |
|
Long-term investment |
19,930 |
15,430 |
|
Deferred income tax assets |
0 |
0 |
|
Other non-current assets |
7,550 |
54,940 |
|
|
------------------ |
------------------ |
|
Total assets |
3,944,990 |
3,086,720 |
|
|
============= |
============= |
|
Short-term loans |
1,772,120 |
2,130,800 |
|
Notes payable |
2,182,890 |
1,345,760 |
|
Accounts payable |
400,710 |
40,430 |
|
Accrued payroll |
230 |
-720 |
|
Taxes payable |
-15,750 |
-6,180 |
|
Advances from clients |
33,270 |
00 |
|
Other payable |
8,040 |
5,260 |
|
Other current liabilities |
1,860 |
49,730 |
|
|
------------------ |
------------------ |
|
Current liabilities |
4,383,370 |
3,565,080 |
|
Non-current liabilities |
88,840 |
250,420 |
|
|
------------------ |
------------------ |
|
Total liabilities |
4,472,210 |
3,815,500 |
|
Equities |
-527,220 |
-728,780 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
3,944,990 |
3,086,720 |
|
|
============= |
============= |
Income
Statement
|
Unit: CNY’000 |
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
Revenue |
2,286,970 |
1,945,740 |
|
Cost of sales |
2,175,810 |
1,931,960 |
|
Sales expense |
59,810 |
47,410 |
|
Management expense |
45,520 |
39,090 |
|
Finance expense |
130,190 |
16,830 |
|
Profit before tax |
-126,150 |
-242,980 |
|
Less: profit tax |
0 |
0 |
|
-126,150 |
-242,980 |
Important Ratios
=============
|
|
As
of Dec. 31, 2013 |
As
of Dec. 31, 2014 |
|
*Current ratio |
0.68 |
0.59 |
|
*Quick ratio |
0.61 |
0.43 |
|
*Liabilities
to assets |
1.13 |
1.24 |
|
*Net profit
margin (%) |
-5.52 |
-12.49 |
|
*Return on
total assets (%) |
-3.20 |
-7.87 |
|
*Inventory /
Revenue ×365 |
47 days |
109 days |
|
*Accounts
receivable / Revenue ×365 |
38 days |
105 days |
|
*Revenue /
Total assets |
0.58 |
0.63 |
|
*Cost of sales
/ Revenue |
0.95 |
0.99 |
FINANCIAL
COMMENTS
PROFITABILITY: FAIR
l
The revenue of SC appears fairly good in its line.
l
SC’s
net profit margin is poor.
l
SC’s return
on total assets is poor.
l SC’s cost of sales is fairly high, comparing
with its revenue.
LIQUIDITY: POOR
l The current ratio of SC is maintained in a
poor level.
l SC’s quick ratio is maintained in a fair
level.
l The inventory of SC appears large.
l The accounts receivable of SC appears large.
l The short-term loans of SC appear large.
l SC’s revenue is in a
fair level, comparing with the size of its total assets.
LEVERAGE: POOR
l The debt ratio of SC is high.
l The risk for SC to go bankrupt is fairly high.
Overall financial condition of the SC: Poor.
CONCLUSIONS
SC is
considered large-sized in its line with poor financial conditions. The large amount of inventory, accounts
receivable and short-term loans may be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.40 |
|
|
1 |
Rs.101.19 |
|
Euro |
1 |
Rs.73.89 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
NIT |
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.