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MIRA
INFORM REPORT
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Report No. : |
505272 |
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Report Date : |
24.04.2018 |
IDENTIFICATION DETAILS
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Name : |
LOFTEX
INDUSTRIES LTD. |
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Registered Office : |
No. 69 Wutong 7 Road Binbei Bincheng District Binzhou City Shandong
Province, Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2016 |
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Date of Incorporation : |
17.01.2002 |
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Credibility Code : |
913716007347186872 |
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Legal Form : |
Limited liabilities co. |
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Line of Business : |
The subject’s registered
business scope includes processing and selling cotton; exporting self-made
towels and towels products, carpet products, floor mats, spinning and cotton
textiles, chemical fiber products, clothing and technology; importing raw
materials, instruments, meters, mechanical equipment, spare parts and
technology needed in manufacturing and researching by the subject; technology
development, technical service and technology transfer of new products (with
permit if needed) |
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No. of Employees : |
336 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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. China has implemented reforms in a gradualist fashion, resulting in efficiency gains that have contributed to a more than tenfold increase in GDP since 1978. Reforms began with the phaseout 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 continues to pursue an industrial policy, state support of key sectors, and a restrictive investment regime. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2016 stood as the largest economy in the world, surpassing the US in 2014 for the first time in modern history. China became the world's largest exporter in 2010, and the largest trading nation in 2013. Still, China's per capita income is below the world average.
After keeping its currency tightly linked to the US dollar for years, China in July 2005 moved to an exchange rate system that references a basket of currencies. From mid-2005 to late 2008, the renminbi appreciated more than 20% against the US dollar, but the exchange rate remained virtually pegged to the dollar from the onset of the global financial crisis until June 2010, when Beijing announced it would allow a resumption of gradual liberalization. From 2013 until early 2015, the renminbi (RMB) appreciated roughly 2% against the dollar, but the exchange rate fell 13% from mid-2015 until end-2016 amid strong capital outflows in part stemming from the August 2015 official devaluation; in 2017 the RMB resumed appreciating against the dollar – roughly 7% from end-of-2016 to end-of-2017. From 2013 to 2017, China had one of the fastest growing economies in the world, averaging slightly more than 7% real growth per year. In 2015, the People’s Bank of China announced it would continue to carefully push for full convertibility of the renminbi, after the currency was accepted as part of the IMF’s special drawing rights basket. However, since late 2015 the Chinese Government has strengthened capital controls and oversight of overseas investments to better manage the exchange rate and maintain financial stability.
The Chinese Government faces numerous economic challenges including: (a) reducing its high domestic savings rate and correspondingly low domestic household consumption; (b) managing its high corporate debt burden to maintain financial stability; (c) controlling off-balance sheet local government debt used to finance infrastructure stimulus; (d) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and college graduates, while maintaining competitiveness; (e) dampening speculative investment in the real estate sector without sharply slowing the economy; (f) reducing industrial overcapacity; and (g) raising productivity growth rates through the more efficient allocation of capital and state-support for innovation. Economic development has progressed further in coastal provinces than in the interior, and by 2016 more than 169.3 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of China’s population control policy known as the “one-child policy” - which was relaxed in 2016 to permit all families to have two children - 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 urbanization. The Chinese Government is seeking to add energy production capacity from sources other than coal and oil, focusing on natural gas, nuclear, and clean energy development. In 2016, China ratified the Paris Agreement, a multilateral agreement to combat climate change, and committed to peak its carbon dioxide emissions between 2025 and 2030.
The government's 13th Five-Year Plan, unveiled in March 2016, emphasizes the need to increase innovation and boost domestic consumption to make the economy less dependent on government investment, exports, and heavy industry. However, China has made more progress on subsidizing innovation than rebalancing the economy. Beijing has committed to giving the market a more decisive role in allocating resources, but the Chinese Government’s policies continue to favor state-owned enterprises and emphasize stability. Chinese leaders in 2010 pledged to double China’s GDP by 2020, and the 13th Five Year Plan includes annual economic growth targets of at least 6.5% through 2020 to achieve that goal. 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. Chinese leaders also have undermined some market-oriented reforms by reaffirming the “dominant” role of the state in the economy, a stance that threatens to discourage private initiative and make the economy less efficient over time. The slight acceleration in economic growth in 2017—the first such uptick since 2010—gives Beijing more latitude to pursue its economic reforms, focusing on financial sector deleveraging and its Supply-Side Structural Reform agenda, first announced in late 2015.
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Source
: CIA |
Company Name and Address
Company
Name : LOFTEX INDUSTRIES LTD.
Address : NO.
69 WUTONG 7 ROAD BINBEI BINCHENG DISTRICT BINZHOU CITY
SHANDONG PROVINCE, PR CHINA
Telephone : 0086- 543-3512399
Facsimile : 0086- 543-3512688
Website : --
Email :
loftexcw2@loftex.com.cn
REGISTRATION
INFORMATION
Established
Date : 2002-01-17
Credibility Code : 913716007347186872
Legal
Form : Limited liabilities co.
Registration Authority : Administration for Industry &
Commerce (AIC) - Binzhou
Status : Active
Registered
Capital : RMB
110,720,000
Paid
Up
Capital : RMB 110,720,000
Turnover : RMB
677,540,000 (as of Dec. 31, 2016)
Equities : RMB 356,350,000
(as of Dec. 31, 2016)
Chief
Executive : Wang Hongxing
Business
Line : Manufacturer
Manpower : 336
Tax
Registration
Certificate
No. : 913716007347186872
Organization
Code : 73471868-7
HS code : 3712912252
Import & Export code : 3700734718687
Financial
Condition : Fairly Stable
Business
Size : Medium
Enterprise
Payment
:
Regular
Registered
Address
NO. 69 WUTONG 7 ROAD BINBEI BINCHENG
DISTRICT BINZHOU CITY SHANDONG PROVINCE, PR CHINA
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 RMB 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.
Premise
The subject operates from premises
located at the heading address, and this address houses its operating office
and factory in Binzhou. Our checks reveal that the subject rents the total
premise, but the square meters are unknown.
MANAGEMENT
|
Position |
Name |
Nationality |
|
Legal
representative, Chairman |
Wang Hongxing |
Chinese |
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General Manager |
Zhang Fuyong |
Chinese |
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Directors |
Wang Xingming Wang Yanping Ruan Chaoying Zhang Fuyong |
Chinese |
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Supervisors |
Du Aiguo |
Chinese |
MAJOR
SHAREHOLDERS
Name %
Shareholding
Wang
Yanping 44.35%
Wang
Hongxing 24.26%
Ruan
Chaoying 10.90%
Zhang
Xulan 3.69%
Ding
Liming 3.28%
Zhang
Fuyong 2.99%
Bai
Changbing 2.46%
Wang
Xingming 1.93%
Fu Qingmin
1.64%
Li Yongzhi
0.82%
Other
Shareholders 3.68%
KEY EVENTS
No Significant Changes.
BUSINESS
OPERATIONS
The subject’s registered
business scope includes processing and selling cotton; exporting self-made
towels and towels products, carpet products, floor mats, spinning and cotton
textiles, chemical fiber products, clothing and technology; importing raw
materials, instruments, meters, mechanical equipment, spare parts and
technology needed in manufacturing and researching by the subject; technology
development, technical service and technology transfer of new products (with
permit if needed)
The subject is mainly engaged in
manufacturing and selling towel products.
Products:
Solid towels
Printed towels
Embroidered towels
Etc.
The subject sources its materials 70% from domestic
market, and 30% from overseas market. the subject sells 30% of its products in
domestic market, and 70% to overseas market, mainly U.S.A. and Paraguay,
Canada, etc.
The buying terms of the subject include Check, T/T,
L/C and Credit of 30-60 days. The payment terms of the subject include Check,
T/T, L/C and Credit of 30-60 days.
SUPPLIER &
CUSTOMER
*Major
customer:
Wal
Mart Stores Inc. (United States)
Etc.
RELATED COMPANIES
Subsidiaries
Binzhou Baiying Import and Export Co.,
Ltd.
========================
Credibility Code: 913716027238600470
Legal representative: Zhao Liguo
Registered Capital: RMB 10,000,000
Established Date: 2000-05-29
Binzhou Yaguang Computerized Embroidery
Co., Ltd.
========================
Credibility Code: 91371602613835609K
Legal representative: Zhu Anli
Registered Capital: RMB 2,000,000
Established Date: 1996-09-04
Etc.
NEGATIVE
INFORMATION
Lawsuit
Record: No
record.
Trade payment
experience: The subject 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 the subject
was placed to us for collection within the last 6 years.
Customs
administrative penalty: No record.
Equity
freeze information: No record.
Administrative
Penalty: No record.
MORTGAGE
|
Registered
Date |
Registration
Authority |
Amount
(RMB) |
|
|
[2016]00034 |
2016-7-18 |
Administration for Industry & Commerce (AIC)
– Bincheng Binzhou |
22,500,000 |
TRADEMARK
No record.
PATENT
|
Patent name |
Published Application Number |
Application number |
Date of publication |
|
A flexible anti
needling dress |
CN207151974U |
CN201720800622.1 |
2018-03-30 |
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A method for
preparing towels of slub yarn |
CN103054499B |
CN201210594228.9 |
2015-07-29 |
Etc.
BANKING
Industrial and Commercial Bank of China Binzhou Binbei Subbranch
Account No.: 1613021109022166852
ABBREVIATED
FINANCIAL STATEMENT
Financial
Summary
===============
Unit: RMB’000
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As of Dec. 31, 2015 |
As of Dec. 31, 2016 |
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Total assets |
1,646,620 |
671,820 |
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========= |
========= |
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Total liabilities |
1,297,400 |
315,470 |
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Equities |
349,220 |
356,350 |
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-------------- |
-------------- |
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Total liabilities & equities |
1,646,620 |
671,820 |
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========= |
========= |
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Turnover |
724,450 |
677,540 |
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Profits before tax |
14,950 |
19,490 |
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Less: tax |
0 |
4,870 |
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Profits |
14,950 |
14,620 |
Important
Ratios
=============
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As of Dec. 31, 2015 |
As of Dec. 31, 2016 |
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*Liabilities to assets |
0.79
|
0.47
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*Net profit margin (%) |
2.06
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2.16
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*Return on total assets (%) |
0.91
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2.18
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*Turnover/Total assets |
0.44
|
1.01
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PROFITABILITY:
AVERAGE
The turnover of the subject appears fairly good in its line.
the subject’s net profit margin is average.
the subject’s return on total assets is average.
the subject’s turnover is in a fair level in 2015 and average in
2016, comparing with the size of its total assets.
LEVERAGE:
AVERAGE
The debt ratio of the subject is high in 2015 and average in 2016.
The risk for the subject to go bankrupt is average.
TREND ANALYSIS
===========
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2014 |
2015 |
2016 |
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Sales Trend |
-- |
-- |
È |
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Profit margin |
-- |
-- |
Ç |
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Debt to assets ratio |
-- |
-- |
È |
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Overall
Financial Condition |
□Good □Fairly Good
□Stable ■Fairly Stable
□Fair
□Poor |
||
COMMENT
The subject was registered as a Limited liabilities co. at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license).
The subject is considered medium-sized in its line with fairly
stable financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 66.22 |
|
|
1 |
INR 92.84 |
|
Euro |
1 |
INR 81.27 |
|
CNY |
1 |
INR 10.52 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
PRA |
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Report Prepared
by : |
TRU |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.