MIRA INFORM REPORT
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Report No. : |
339410 |
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Report Date : |
09.09.2015 |
IDENTIFICATION DETAILS
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Name : |
ZIBO FEISHI TOWELS CO.,
LTD. |
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Registered Office : |
No. 11, Mishan Road, Zhoucun District, Zibo, Shandong Province 255300
Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
28.06.1999 |
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Com. Reg. No.: |
370300018508117 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Manufacturing and selling towels, knitting, clothing, textile raw
materials and auxiliary materials, textile machinery equipment and spare
parts; wholesaling, retailing building materials and ceramics; importing and
exporting goods (with permit if needed). |
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No. of Employees : |
380 |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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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
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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 |
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.
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Source
: CIA |
Company
Name & address
ZIBO FEISHI TOWELS CO., LTD.
NO. 11, MISHAN ROAD, ZHOUCUN DISTRICT, ZIBO,
SHANDONG PROVINCE 255300 PR CHINA
TEL: 86 (0) 533-6810495/6811817 FAX: 86 (0) 533-6810495
EXECUTIVE
SUMMARY
INCORPORATION DATE : JUN. 28, 1999
REGISTRATION NO. : 370300018508117
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MR. ZHAO GANG (CHAIRMAN)
STAFF STRENGTH :
380
REGISTERED CAPITAL : CNY 4,310,000
BUSINESS LINE :
MANUFACTURING & TRADING
TURNOVER :
CNY 50,900,000 (AS OF DEC. 31,
2014)
EQUITIES :
CNY -28,540,000 (AS OF DEC. 31, 2014)
PAYMENT :
AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.37= 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 Jun. 28, 1999.
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 manufacturing and selling
towels, knitting, clothing, textile raw materials and auxiliary materials,
textile machinery equipment and spare parts; wholesaling, retailing building
materials and ceramics; importing and exporting goods (with permit if needed).
SC is mainly engaged in manufacturing and selling towels.
Mr. Zhao Gang is legal representative, chairman and general manager of
SC at present.
SC is known to have approx. 380 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the industrial zone of Zibo. The
detailed premise information is unspecified.
http://www.zbfs.cn/ The design is professional and the content is
well organized. At present the web site is in Chinese and English versions.
E-mail: feishilsr@163.com
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
Organization code: 267176734
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name Investment amount (CNY’0000) % of Shareholding
Labor Union Committee of Zibo Feishi Towels Co., Ltd. 415.104 96.31
Zhao Gang 7.896 1.83
Lei Tongyu 4 0.93
Li Shirui 4 0.93
Legal
representative, chairman and general manager:
Mr. Zhao Gang is currently responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as legal representative, chairman and general manager.
Also working in Zibo Sanxingbanshang Towel Blankets Co., Ltd. as legal
representative.
Supervisors:
-----------------------
Zhang Ling
Han Qianxiang
Directors:
-----------------------
Lei Tongyu
Li Shirui
SC is mainly engaged in manufacturing and selling towels.
SC’s products mainly
Towel blanket series
Bath towel series
Towel series
Set towel series
Rectangular towel series
SC sources its materials 60% from domestic market and 40% from overseas
market. SC sells 70% of its products in domestic market and 30% 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, T/T, L/C and Credit of 30-60 days.
Note: SC declined to release its major suppliers and clients.
Trademark & Patents
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Registration No. |
232533 |
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Registration Date |
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Trademark Design |
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Branch:
Zibo Feishi Towels Co., Ltd.
Sale Branch
Registered no.: 370300119505743
Establishment date:
Subsidiaries:
Zibo Sanxingbanshang Towel Blankets Co., Ltd.
Registered no.: 370300400003065
Legal representative: Zhao Gang (赵刚)
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 accountant refused to release the bank details.
Balance Sheet
Unit: CNY’000
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As of Dec. 31, 2014 |
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Cash & bank |
1,840 |
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Inventory |
13,550 |
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Accounts receivable |
60 |
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Other receivables |
4,640 |
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Other current assets |
0 |
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------------------ |
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Current assets |
20,090 |
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Fixed assets net value |
18,700 |
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Long term investment |
3,000 |
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Projects under construction |
0 |
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Intangible and other assets |
12,670 |
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------------------ |
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Total assets |
54,460 |
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=========== |
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Short loan |
35,300 |
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Accounts payable |
7,430 |
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Advances from clients |
0 |
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Other Accounts payable |
39,810 |
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Other current liabilities |
460 |
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------------------ |
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Current liabilities |
83,000 |
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Long term liabilities |
0 |
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------------------ |
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Total liabilities |
83,000 |
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Equities |
-28,540 |
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------------------ |
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Total liabilities & equities |
54,460 |
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=========== |
Income Statement
Unit: CNY’000
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As of Dec. 31, 2014 |
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Turnover |
50,900 |
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Cost of goods sold |
40,890 |
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Sales expense |
1,720 |
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Management expense |
4,060 |
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Finance expense |
3,160 |
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Profit before tax |
40 |
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Less: profit tax |
0 |
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Profits |
40 |
Important Ratios
=============
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As of Dec. 31, 2014 |
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*Current ratio |
0.24 |
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*Quick ratio |
0.08 |
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*Liabilities to assets |
1.52 |
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*Net profit margin (%) |
0.08 |
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*Return on total assets (%) |
0.07 |
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*Inventory /Turnover ×365 |
98 days |
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*Accounts receivable/Turnover ×365 |
1 day |
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*Turnover/Total assets |
0.93 |
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* Cost of goods sold/Turnover |
0.80 |
PROFITABILITY:
AVERAGE
The turnover of SC appears average.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: POOR
The current ratio of SC is maintained in a poor level.
SC’s quick ratio is maintained in a poor level.
The inventory of SC appears fairly large.
The accounts receivable of SC appears small.
The short-term loan of SC appears large.
SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIR
The debt ratio of SC is high.
The risk for SC to go bankrupt is above 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 inventory and short-term loan could be a threat
to SC’s financial condition.
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.60 |
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|
1 |
Rs.102.30 |
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Euro |
1 |
Rs.74.61 |
INFORMATION DETAILS
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Analysis Done by
: |
KAR |
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Report Prepared
by : |
TPT |
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 |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
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.