MIRA INFORM REPORT
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Report No. : |
341505 |
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Report Date : |
19.09.2015 |
IDENTIFICATION DETAILS
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Name : |
QINGDAO HOMETEX INDUSTRIES CO., LTD. |
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Registered Office : |
Room 1301, No. 39 West Donghai Road, Shinan District, Qingdao,
Shandong Province 266071 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
29.06.2004 |
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Com. Reg. No.: |
370202228126940 |
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Legal Form : |
One-Person Limited Liabilities Company |
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Line of Business : |
Wholesale and retail of towel products, knitwear, textile, chemical
fiber products, plastic products, paper products, general merchandise, importing
and exporting goods and technology. |
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No. of Employees : |
20 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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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) |
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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.
|
Source
: CIA |
Company
name & address
QINGDAO HOMETEX INDUSTRIES CO.,
LTD.
ROOM 1301, NO. 39 WEST DONGHAI ROAD, SHINAN DISTRICT
QINGDAO, SHANDONG PROVINCE 266071 PR CHINA
TEL: 86 (0) 532-85799275/85799238
FAX: 86 (0) 532-85799240
EXECUTIVE
SUMMARY
DATE OF REGISTRATION :
JUNE 29, 2004
REGISTRATION NO. :
370202228126940
LEGAL FORM :
ONE-PERSON LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE :
LIU ZHIQUN (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 1,000,000
STAFF :
20
BUSINESS CATEGORY : TRADING
REVENUE :
CNY 85,670,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 490,000 (AS OF DEC. 31, 2014)
WEBSITE :
N/A
E-MAIL :
CHRISTIAN@QINGDAOHOMETEX.CN
PAYMENT :
AVERAGE
MARKET CONDITION :
FAIR
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : FAIR
GENERAL REPUTATION :
FAIR
EXCHANGE RATE :
CNY 6.36 = 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 on June 29,
2004. However, SC changed to present legal form, and was registered as
one-person limited liabilities company of PRC with State Administration of
Industry & Commerce (SAIC) under registration No.: 370202228126940 on
November 24, 2014.
SC’s Organization Code Certificate No.: 76361410-7
SC’s Tax No. 370202763614107
SC’s registered capital: cny 1,000,000
SC’s paid-in capital: cny 1,000,000
Registration Change Record:-
|
Date |
Change of
Contents |
Before the
change |
After the change |
|
2014-11-24 |
Legal Form |
Limited liabilities company |
One-Person Limited Liabilities Company |
|
Shareholder (s) (% of Shareholding) |
Liu Zhiqun 35% Liu Xuqian 35% Zhang Xiaoming 30% |
Liu Zhiqun 100% |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of
Shareholder (s) |
% of
Shareholding |
|
Liu Zhiqun |
100 |
SC’s Chief
Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Liu Zhiqun |
|
General Manager |
Zhang Xiaoming |
|
Supervisor |
Liu Xuqian |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Liu Zhiqun 100
MANAGEMENT
Liu Zhiqun, Legal Representative and Chairman
---------------------------------------------------------------------------
Gender: M
Qualification: University
Working experience (s):
From 2004 to present, working in SC as legal representative and chairman
Zhang Xiaoming, General Manager
----------------------------------------------------------
Gender: M
Qualification: University
Working experience (s):
At present, working in SC as general manager, also working in Qingdao
Huachen Textiles Co., Ltd. as legal representative
Supervisor
--------------
Liu Xuqian
BUSINESS OPERATION
SC’s registered business scope includes wholesale and
retail of towel products, knitwear, textile, chemical fiber products, plastic
products, paper products, general merchandise, importing and exporting goods
and technology.
SC is mainly engaged in exporting textiles.
SC’s products
mainly include:
Yarn dyed jacquard terry beach towel
Yarn dyed jacquard beach towel
Baby hooded towel
Micro fiber towel
Kids hooded bbeach towel
Beach towel - kid’s hooded towel
SC sources its products 100% from domestic market, mainly Qingdao. SC
sells 100% of its products in to overseas market, mainly U.S.A., Europe and
Australia.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include L/C and Credit of 30-60 days.
*Major Customer:
=============
USA Cosfibel Inc.
*Major Supplier:
=============
Qingdao Huachen Textiles Co., Ltd.
Staff & Office:
--------------------------
SC is known to have approx. 20 staff at present.
SC rents an area as its operating office of approx. 180 sq. meters at
the heading address.
RELATED COMPANY
Qingdao Huachen Textiles Co., Ltd.
------------------------------
Date of Registration: November 26, 2004
Registration No.: 370285400001063
Legal Form: Chinese-foreign equity joint venture enterprise
Chief Executive : Zhang Xiaoming
Registered Capital: CNY 14,100,000
Address: Sunshou Town, Laixi City, Qingdao, Shandong Province
Tel: 86 (0) 532-87483699
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’s suppliers declined to make any comments.
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:
Bank of
China Qingdao Branch
AC#: N/a
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2014 |
|
Cash |
290 |
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Notes receivable |
0 |
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Accounts receivable |
3,110 |
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Advances to suppliers |
2,800 |
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Other receivable |
4,400 |
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Inventory |
3,490 |
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Non-current assets within one year |
0 |
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Other current assets |
2,620 |
|
|
------------------ |
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Current assets |
16,710 |
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Fixed assets |
990 |
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Long-term prepaid expenses |
0 |
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Deferred income tax assets |
0 |
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Other non-current assets |
0 |
|
|
------------------ |
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Total assets |
17,700 |
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|
============= |
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Short-term loans |
0 |
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Notes payable |
0 |
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Accounts payable |
11,550 |
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Advances from clients |
0 |
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Other payable |
5,840 |
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Other current liabilities |
-180 |
|
|
------------------ |
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Current liabilities |
17,210 |
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Non-current liabilities |
0 |
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------------------ |
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Total liabilities |
17,210 |
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Equities |
490 |
|
|
------------------ |
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Total liabilities & equities |
17,700 |
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|
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2014 |
|
Revenue |
85,670 |
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Cost of sales |
71,500 |
|
Sales expense |
3,030 |
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Management expense |
2,640 |
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Finance expense |
260 |
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Profit before tax |
32 |
|
Less: profit tax |
83 |
|
Profits |
-51 |
Important Ratios
=============
|
|
As of Dec. 31,
2014 |
|
*Current ratio |
0.97 |
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*Quick ratio |
0.77 |
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*Liabilities to assets |
0.97 |
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*Net profit margin (%) |
-0.06 |
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*Return on total assets (%) |
-0.29 |
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*Inventory / Revenue ×365 |
15 days |
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*Accounts receivable/ Revenue ×365 |
14 days |
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*Revenue/Total assets |
4.84 |
|
*Cost of sales / Revenue |
0.83 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
The revenue of SC appears average in its line.
SC’s net profit margin is fair.
SC’s return on total assets is fair.
SC’s cost of goods sold is average, comparing with its revenue.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level.
SC’s quick ratio is maintained in a fair level.
The inventory of SC is maintained in an average level.
The accounts receivable of SC is maintained in an average level.
SC has no short-term loans.
SC’s revenue 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: Fair.
CONCLUSIONS
SC is considered small-sized in its line with fair financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.95 |
|
|
1 |
Rs.102.75 |
|
Euro |
1 |
Rs.75.13 |
INFORMATION DETAILS
|
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 |
|
|
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.