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MIRA INFORM REPORT
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Report No. : |
492848 |
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Report Date : |
26.02.2018 |
IDENTIFICATION DETAILS
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Name : |
NANTONG HUAQIANG CLOTH CO. LTD. |
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Registered Office : |
No. 188 South Zhongba Road Haian Town Haian County Nantong Jiangsu
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 : |
26.12.2003 |
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Credibility Code : |
913206217573115647 |
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Legal Form : |
Chinese-foreign equity joint venture enterprise |
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Line of Business : |
The subject’s registered
business scope includes manufacturing and selling textiles; weaving, processing
and marketing of chemical fiber; wholesaling, importing and exporting cotton,
textile raw and auxiliary materials, textile equipment (with permit if
needed) |
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No. of Employees : |
1057 |
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 early2015, 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
Given
Name : NANTONG HUAQING CLOTH CO. LTD.
: NO.
188 SOUTH ZHONGBA ROAD HAIAN NANTONG JIANGSU
Company
Name : NANTONG HUAQIANG CLOTH CO. LTD.
Address : NO. 188 SOUTH ZHONGBA ROAD HAIAN town haian county NANTONG
JIANGSU PROVINCE, PR CHINA
Telephone : 0086-513-88966228
Facsimile : --
Website : --
Email :
898011460@qq.com
REGISTRATION INFORMATION
Established
Date : 2003-12-26
Credibility Code : 913206217573115647
Legal
Form : Chinese-foreign equity joint venture
enterprise
Issuing
Authority : Administration for Industry &
Commerce (AIC) - Haian County
Status : Active
Registered
Capital : USD
19,940,000
Paid
Up Capital : USD 19,940,000
Turnover : RMB
536,120,000 (as of Dec. 31, 2016)
Equities : RMB 157,130,000
(as of Dec. 31, 2016)
Chief
Executive : Bian
Tong
Business
Line : Manufacturer
Manpower : 1057
Tax
Registration
Certificate
No. : 913206217573115647
Organization
Code : 75731156-4
HS code : 3206935224
Import & Export code : --
Financial
Condition : Fair
Business
Size : Large
Enterprise
Payment : Regular
Registered
Address
NO. 188 SOUTH ZHONGBA ROAD HAIAN TOWN
HAIAN COUNTY NANTONG JIANGSU PROVINCE, PR CHINA
Company
Status: Chinese-foreign equity joint venture enterprise
This form of business in
PR China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of capital
investment. The investing parties exercise business management, share profits
and bear all risks and liabilities of the co. together. The equity joint
venture law requires that foreign party contribute not less than 25% of the
registered capital, with no maximum. The investing parties are free to agree on
method of profit distribution and liabilities bearing according to the
proportion of capital investment. Each investing parties contributes funds,
tangible assets, technology & etc. The board of directors excises the high
authority. The joint venture usually has a limited duration of 10 to 50 years.
Enterprise with large investment, long construction periods, low investment
returns, introducing of advanced technology & advanced technology products
that have good competition position in international market may extend beyond
the 50 years limit.
Premise
The
subject operates from premises located at the heading address, and this address
houses its operating office and factory in Nantong. Our checks reveal that the
subject owns the total premise, but the square meters are unknown.
MANAGEMENT
|
Position |
Name |
Nationality |
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Legal
representative, Chairman |
Bian
Tong |
Chinese |
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General Manager |
Tang Xiaomei |
Chinese |
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Directors |
Shen Sen Yao Benlin |
Chinese |
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Supervisors |
Qian Yuhong |
Chinese |
MAJOR SHAREHOLDERS
Name %
Shareholding
Nantong
Riyue Investment Co., Ltd. 72.78
Rongshuo
Technology (HK) Limited 27.22
Nantong
Riyue Investment Co., Ltd.
------------------------------------------
Credibility
Code: 913206213465641020
Legal
representative: Bian Xiaoyi
Registered
Capital: RMB 50,000,000
Established
Date: 2015-08-17
KEY EVENTS
No Significant Changes.
BUSINESS OPERATIONS
The subject’s registered
business scope includes manufacturing and selling textiles; weaving, processing
and marketing of chemical fiber; wholesaling, importing and exporting cotton,
textile raw and auxiliary materials, textile equipment (with permit if needed)
The subject is mainly engaged in
manufacturing and selling yarn.
Products:
Siro spinning compact spinning
Compact spinning
Sirospun
Ring spinning
Slub yarn
Stretch yarn
Aerocool
Open-end spinning
Etc.
The subject sources its materials 60% from domestic
market, and 40% from overseas market, mainly India, etc. the subject sells 80%
of its products in domestic market, and 20% to overseas market.
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 Supplier:
Gill Co.Pvt.Ltd. (India)
Bafna Ginning&Pressing Pvt Ltd.
(India)
Etc.
RELATED COMPANIES
Subsidiaries
Nantong Huaqiang Technology Co.,Ltd
========================
Credibility Code: 91320691078293325U
Legal Representative: Bian Tong
Registered Capital: USD 25,300,000
Established Date: 2013-09-30
Nantong Hongsha Textile Technology
Co.,Ltd
========================
Credibility Code: 91320621064576674M
Legal Representative: Bian Tong
Registered Capital: RMB 50,000,000
Established Date: 2013-04-02
Haian Yiyun Cotton Industry Co.,Ltd.
========================
Credibility Code: 91320621664941591U
Legal Representative: Bian Tong
Registered Capital: RMB 20,000,000
Established Date: 2007-07-27
Hai'an Huaqiang Dyeing & Finishing
Co.,Ltd
========================
Credibility Code: 913206217754425174
Legal representative: Zhang Xian
Registered Capital: RMB 20,980,000
Established Date: 2005-06-09
Etc.
NEGATIVE INFORMATION
Lawsuit
Record: No
record.
Trade payment
experience: None in our database.
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
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Registered
Date |
Registration
Authority |
Amount
(RMB) |
|
|
F1-0-2017-0135 |
2017-07-13 |
Haian county market supervision and
Administration Bureau |
20,000,000 |
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F1-0-2017-0033 |
2017-03-15 |
Haian county market supervision and Administration
Bureau |
43,440,155.16 |
Etc.
TRADEMARK
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Registration No. |
Registration Date |
Trademark Design |
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3249065 |
2002-07-22 |
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PATENT
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Patent name |
Published Application Number |
Application number |
Date of publication |
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A cotton
clearing machine |
CN204570115U |
CN201520236045.9 |
2015-08-19 |
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A negative
pressure type compact spinning piecing method |
CN104695071A |
CN201510091155.5 |
2015-06-10 |
Etc.
BANKING
China Agricultural Development Bank Haian Subbranch
Account No.: 20332062100100000349201
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 |
876,790 |
818,680 |
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========= |
========= |
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Total liabilities |
539,390 |
661,550 |
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Equities |
337,400 |
157,130 |
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-------------- |
-------------- |
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Total liabilities & equities |
876,790 |
818,680 |
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========= |
========= |
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Turnover |
1,526,140 |
536,120 |
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Profits before tax |
38,020 |
-12,530 |
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Less: tax |
5,710 |
0 |
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Profits |
32,310 |
-12,530 |
Important
Ratios
=============
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As of Dec. 31, 2015 |
As of Dec. 31, 2016 |
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*Liabilities to assets |
0.62
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0.81
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*Net profit margin (%) |
2.12
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-2.34
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*Return on total assets (%) |
3.69
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-1.53
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*Turnover/Total assets |
1.74
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0.65
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PROFITABILITY:
FAIR
The turnover of the subject appears fairly
good in its line.
the subject’s net profit margin is average
in 2015 but fair in 2016.
the subject’s return on total assets is average in 2015 but fair in 2016.
the subject’s turnover is average in 2015 but fair in 2016,
comparing with the size of its total assets.
LEVERAGE:
FAIR
The debt ratio of the subject is average in 2015 but high 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 |
-- |
-- |
È |
|
Debt to assets ratio |
-- |
-- |
Ç |
|
Overall
Financial Condition |
□Good □Fairly Good □Stable □Fairly Stable ■Fair □Poor |
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COMMENT
The subject was registered as a Chinese-foreign equity joint
venture enterprise at local Administration for Industry & Commerce (AIC -
The official body of issuing and renewing business license).
The subject is considered large-sized in its line with fair
financial conditions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 64.82 |
|
|
1 |
INR 90.40 |
|
Euro |
1 |
INR 79.76 |
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CNY |
1 |
INR 10.24 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
VIV |
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Report Prepared
by : |
TRU |
RATING EXPLANATIONS
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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 |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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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.