MIRA INFORM REPORT
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Report No. : |
342409 |
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Report Date : |
28.09.2015 |
IDENTIFICATION DETAILS
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Name : |
HEBEI XINDADONG TEXTILE CO., LTD. |
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Registered Office : |
No. 21 Industrial Road, Jinzhou City, Hebei Province, 052260 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
10.08.1998 |
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Com. Reg. No.: |
130100000173802 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing, processing and selling of denim and textile. |
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No. of Employee : |
700 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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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
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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 and address
HEBEI XINDADONG TEXTILE CO., LTD.
NO. 21 INDUSTRIAL ROAD, JINZHOU CITY, HEBEI
PROVINCE, 052260 PR CHINA
TEL: 86
(0) 311-84313703 FAX: 86 (0)
311-84313704
EXECUTIVE
SUMMARY
INCORPORATION DATE : AUG. 10, 1998
REGISTRATION NO. : 130100000173802
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE : WANG YUHUI (LEGAL REPRESENTATIVE)
STAFF STRENGTH : 700
REGISTERED CAPITAL :
CNY 90,000,000
BUSINESS LINE :
MANUFACTURING, PROCESSING AND TRADING
TURNOVER : CNY 546,930,000
(AS OF DEC. 31, 2014)
EQUITIES : CNY 239,070,000 (AS OF DEC. 31, 2014)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 1,000,000 (periodical review)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : 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 Aug. 10, 1998.
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, processing and
selling of denim, clothing, spinning, cotton, textile, semi-finished products,
textile equipment, textile accessories; wholesale and retail of textile
materials, textile accessories; import and export of goods and technology;
import and export of raw materials necessary for the enterprise, mechanical
equipment and spare parts (if needed with permit)
SC is mainly engaged in manufacturing, processing and selling of denim and textile.
Wang Yuhui is legal representative and chairman of SC at present.
SC is known to have approx. 700 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 Jinzhou.
Detailed premise information is not available at present.
http://www.xindadong.com The design is professional and the content
is well organized. At present it is in Chinese and English versions.
Email: hr@xindadong.com ; yarndept@xindadong.com
For the past two years there is no record of litigation.
Changes
of its registered information are as follows:
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Date of change |
Item |
Before the change |
After the change |
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2015-2-5 |
Shareholders |
Zhang Wei 0.5% Wang Yuhui 59.7% Wang Xiaopin 39.8% |
Present ones |
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2015-5-6 |
Registered capital |
CNY 20,000,000 |
CNY 40,000,000 |
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2015-6-12 |
Registered capital |
CNY 40,000,000 |
Present amount |
Organization Code: 700887749
MAIN SHAREHOLDERS:
Name %
of Shareholding
Wang Yuhui 60
Wang Xiaoping 40
Legal
Representative and Chairman:
Wang Yuhui is currently responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as legal representative and chairman.
Also working in Hebei Spring Textiles Co., Ltd. as director and working
in Hebei Xindadong Textiles Printing & Dyeing Co., Ltd. as legal
representative and executive director.
Vice
Chairman:
Wang Xiaoyun is currently responsible for the daily management of SC.
Working
Experience(s):
At present Working
in SC as vice chairman.
Also working in Hebei Spring Textiles Co., Ltd. as director.
Director:
Hou Hegang
Supervisors:
Zhang Wei
Jia Shuxia
Wang Sanwei
Also working in Hebei Spring Textiles Co., Ltd. as legal representative,
chairman and executive director.
SC is mainly engaged in manufacturing, processing and selling of denim
and textile.
SC’s products mainly include: cotton denim, stretch denim, mercerized
denim, new fiber denim, coated denim and cotton yarn
SC sources its materials from domestic market and overseas market. SC
sells 50% of its products to overseas market and 50% of its products in
domestic 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
N/A
Hebei Spring Textiles Co., Ltd.
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Registration no.: 130131000003307
Incorporated date: 2000-5-17
Legal representative: Wang Sanwei
Hebei Xindadong Textiles Printing & Dyeing Co., Ltd.
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Registration no.: 130105000002273
Incorporated date: 1999-8-26
Legal representative: Wang Yuhui
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.
Financial
Summary
===============
Unit: CNY’000
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As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
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Total liabilities |
405,080 |
471,010 |
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Equities |
239,400 |
239,070 |
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-------------------- |
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Total assets |
644,480 |
710,080 |
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Turnover |
332,850 |
546,930 |
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Profit before tax |
-810 |
-330 |
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Profits |
-810 |
-330 |
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Note:
SC’s management refused to release its detailed financial reports.
Important
Ratios
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As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
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*Liabilities to assets |
0.63 |
0.66 |
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*Net profit margin (%) |
-0.24 |
-0.06 |
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*Return on total assets (%) |
-0.13 |
-0.05 |
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*Turnover/Total assets |
0.52 |
0.77 |
PROFITABILITY:
FAIR
The turnover of SC appears fairly good in its line in both years and increased in 2014.
SC’s net profit margin is fair
in both years.
SC’s return on total assets is fair
in both years.
SC’s turnover is in a fair level in both
years, comparing with the size of its total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average in both
years.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
SC is considered medium-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.66.10 |
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1 |
Rs.100.89 |
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Euro |
1 |
Rs.73.96 |
INFORMATION DETAILS
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Analysis Done by
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KAR |
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Report Prepared
by : |
ANK |
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.