MIRA INFORM REPORT
|
Report No. : |
342405 |
|
Report Date : |
24.09.2015 |
IDENTIFICATION DETAILS
|
Name : |
DALIAN SHENZHOU TEXTILES CO.,
LTD. |
|
|
|
|
Registered Office : |
No. 5 Liaohe Zhong Road, Economic Technical Development Zone Dalian City, Liaoning Province 116600 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
28.03.1996 |
|
|
|
|
Com. Reg. No.: |
210241400007434 |
|
|
|
|
Legal Form : |
Wholly Foreign-Owned Enterprise |
|
|
|
|
Line of Business : |
Developing and Manufacturing of Various Knitting Yarn, Knitwear and
Related Raw Materials. |
|
|
|
|
No. of Employees : |
220 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
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
DALIAN SHENZHOU TEXTILES CO., LTD.
NO. 5 LIAOHE ZHONG ROAD, ECONOMIC
TECHNICAL DEVELOPMENT ZONE DALIAN CITY, LIAONING PROVINCE 116600 PR CHINA
TEL: 86 (0) 411-87305590/87305573
FAX: 86 (0) 411-87305595
EXECUTIVE
SUMMARY
Date
of Registration :
march 28, 1996
REGISTRATION
NO. : 210241400007434
LEGAL
FORM : Wholly foreign-owned enterprise
REGISTERED
CAPITAL : USD 37,302,124.68
staff :
220
BUSINESS
CATEGORY : manufacturing
Revenue :
CNY 280,790,000 (AS OF DEC. 31, 2014)
EQUITIES :
CNY 219,020,000 (AS OF DEC. 31, 2014)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT
:
AVERAGE
MARKET
CONDITION :
COMPETITIVE
FINANCIAL
CONDITION : FAIR
OPERATIONAL
TREND : Ordinary
GENERAL
REPUTATION : AVERAGE
EXCHANGE
RATE : CNY
6.38 = 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 wholly foreign-owned
enterprise of PRC with State Administration of Industry & Commerce (SAIC)
under registration No.: 210241400007434 on March 28, 1996.
SC’s Organization Code Certificate No.: 60488664-X
SC’s Tax No.: 21021360488664X
SC’s Customs Registration No.: 2102240667
SC’s registered capital: USD
37,302,124.68
SC’s paid-in capital: USD
37,302,124.68
Registration
Change Record:
|
Date |
Change of Contents |
Before the change |
After the change |
|
2011 |
Registration No. |
05370 |
210241400007434 |
|
Legal Representative |
Shicai Xiuyu |
Shi Chunming |
|
|
Shareholder (s) (% of Shareholding) |
Shi Cuihua (Taiwan) 23.53% Shicai Xiuyu (Taiwan) 23.52% Shi Yangrou (Taiwan) 17.65% Shi Chunming (Taiwan) 17.65% Manluodi Co., Ltd. (Cayman Islands) 17.65% |
Shi Cuihua (Taiwan) 31.37% Shi Yangrou (Taiwan) 25.49% Shi Chunming (Taiwan) 25.49% Manluodi Co., Ltd. (Cayman Islands) 17.65% |
|
|
2012-12-19 |
Registered Capital |
USD 26,101,786.13 |
USD 37,302,124.68 |
|
% of Shareholding |
Shi Cuihua (Taiwan) 31.37% Shi Yangrou (Taiwan) 25.49% Shi Chunming (Taiwan) 25.49% Manluodi Co., Ltd. (Cayman Islands) 17.65% |
Shi Cuihua (Taiwan) 31.50% Shi Yangrou (Taiwan) 25.59% Shi Chunming (Taiwan) 25.59% Manluodi Co., Ltd. (Cayman Islands) 17.32% |
Current Co
search indicates SC’s shareholders & chief executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Shi Cuihua
(Taiwan) |
31.50 |
|
Shi Yangrou
(Taiwan) |
25.59 |
|
Shi Chunming
(Taiwan) |
25.59 |
|
Manluodi Co., Ltd. (in Chinese Pinyin)
(Cayman Islands) |
17.32 |
SC’s Chief
Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and
General Manager |
Shi Chunming |
|
Director |
Shi Yangrou |
|
Shi Cuihua |
RECENT
DEVELOPMENT
No recent
development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Shi Cuihua (Taiwan) 31.50
Shi Yangrou (Taiwan) 25.59
Shi Chunming (Taiwan) 25.59
Manluodi Co., Ltd. (in Chinese Pinyin) (Cayman Islands) 17.32
MANAGEMENT
Shi Chunming, Legal
Representative, Chairman and General Manager
-------------------------------------------------------------------------------------------------------
Ø Gender: M
Ø Nationality: Taiwan
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal
representative, chairman and general manager
Also working in Shanghai Flying Dragon Textiles
Co., Ltd. and Dalian Daxiang Forklift Co., Ltd. as legal representative and
chairman
Shi Yangrou, Director
-----------------------------------------
Ø Gender: F
Ø Nationality: Taiwan
Ø Qualification:
University
Also as director of
Shanghai Flying Dragon Textiles Co., Ltd.
Shi Cuihua, Director
---------------------------------------
Ø Gender: F
Ø Nationality: Taiwan
Ø Qualification:
University
Also as director of
Shanghai Flying Dragon Textiles Co., Ltd.
BUSINESS
OPERATION
SC’s registered business scope includes developing and manufacturing
various knitting yarn, knitwear and related raw materials.
SC is mainly engaged in manufacturing and selling
knitting
yarn, knitwear.
SC’s products mainly include: combed cotton
yarn, semi combed yarn and dyed yarn.
SC sources its materials 65% from domestic market, mainly Shandong and Shanghai,
and 35% from overseas market, mainly Taiwan, Australia, USA, India, Zimbabwe,
Brazil, Germany, Japan, and Switzerland. SC sells 71% of its products in
domestic market, and 29% to overseas market, mainly Japan, Hong Kong, Korea,
Vietnam, and other Asian countries.
The buying terms of SC include T/T, L/C and
Credit of 30-60 days. The payment terms of SC include T/T, L/C and Credit of
30-60 days.
*Major Customer:
=============
Authentic Lifestyle
Products LLC.
*Major Supplier:
=============
Shanghai Flying Dragon Textiles Co., Ltd.
Staff
& Office:
--------------------------
SC is known to have approx. 220
staff at present.
SC owns an area as its operating office
& factory of approx. 46,507 sq. meters at the heading address.
RELATED COMPANY
SC
is known to invest in the following company,
Dalian Daxiang
Forklift Co., Ltd.
-----------------------------
Date of
Registration: September 8, 2003
Registration No.:
210241000079338
Legal Form: One-person Limited Liabilities Company
Registered Capital:
CNY 1,000,000
Related Companies:
Shanghai
Flying Dragon Textiles Co., Ltd.
------------------------------
Date of
Registration: October 26, 1990
Registration No.:
310000400007944
Legal Form: Wholly Foreign-Owned Enterprise
Registered Capital:
USD 26,830,000
Alaer Flying Dragon
Textiles Co., Ltd.
---------------------------------
Registration No.: 650000410000616
Etc.
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:
Industrial
and Commercial Bank of China Dalian Branch
AC#: 3400201409024239036
FINANCIALS
Balance
Sheet
|
Unit:
CNY’000 |
As of Dec. 31, 2014 |
|
76,700 |
|
|
Accounts
receivable |
19,030 |
|
Advances to
suppliers |
30,430 |
|
Other
receivable |
15,520 |
|
Inventory |
127,630 |
|
Non-current
assets within one year |
0 |
|
Other
current assets |
11,170 |
|
|
------------------ |
|
Current
assets |
280,480 |
|
Fixed
assets |
50,000 |
|
Construction
in progress |
0 |
|
Long-term
prepaid expenses |
0 |
|
Deferred
income tax assets |
0 |
|
Other
non-current assets |
4,010 |
|
|
------------------ |
|
Total
assets |
334,490 |
|
|
============= |
|
Short-term
loans |
56,900 |
|
Notes
payable |
0 |
|
Accounts
payable |
22,590 |
|
Wages
payable |
0 |
|
Advances
from clients |
3,770 |
|
Other
payable |
23,080 |
|
Other
current liabilities |
9,130 |
|
|
------------------ |
|
Current
liabilities |
115,470 |
|
Non-current
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
115,470 |
|
Equities |
219,020 |
|
|
------------------ |
|
Total
liabilities & equities |
334,490 |
|
|
============= |
Income
Statement
|
Unit: CNY’000 |
As of Dec.
31, 2014 |
|
Revenue |
280,790 |
|
Cost of sales |
296,220 |
|
Sales expense |
7,290 |
|
Management expense |
10,100 |
|
Finance expense |
660 |
|
Profit
before tax |
-33,190 |
|
Less:
profit tax |
0 |
|
-33,190 |
Important Ratios
=============
|
|
As of Dec. 31, 2014 |
|
*Current ratio |
2.43 |
|
*Quick ratio |
1.20 |
|
*Liabilities to assets |
0.35 |
|
*Net profit margin (%) |
-11.82 |
|
*Return on total assets (%) |
-9.92 |
|
*Inventory / Revenue ×365 |
166 days |
|
*Accounts receivable/ Revenue ×365 |
25 days |
|
*Revenue/Total assets |
0.84 |
|
*Cost of sales / Revenue |
1.05 |
FINANCIAL
COMMENTS
PROFITABILITY: POOR
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 goods sold is high, comparing
with its revenue.
LIQUIDITY: AVERAGE
l The current ratio of SC is maintained in a
fairly good level.
l SC’s quick ratio is maintained in a fairly
good level.
l The inventory of SC appears large.
l The accounts receivable of SC is maintained
in an average level.
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: AVERAGE
l The debt ratio of SC is low.
l The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fair.
CONCLUSIONS
SC is considered
medium-sized in its line with fair financial conditions. The large amount of
inventory and short-term loans may be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.97 |
|
|
1 |
Rs.101.19 |
|
Euro |
1 |
Rs.73.38 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
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.