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MIRA INFORM REPORT
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Report No. : |
485941 |
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Report Date : |
17.01.2018 |
IDENTIFICATION DETAILS
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Name : |
LDZ NEW AOSHEN SPANDEX COMPANY LIMITED |
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Registered Office : |
No.8 Kunlunshan Road, Economic &
Technical Development Zone, Lianyungang, Jiangsu Province, 222047 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2016 |
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Date of Incorporation : |
12.08.2005 |
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Credibility Code
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91320700776433102A |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Registered business scope includes production of spandex fiber and its
series and related products; research and development of related products and
technologies; import and export of raw materials related to spandex fiber
production as well as technical support and consulting services related to
technical research and development. (excluding the items prohibited or
limited by the country, does not involve state-owned trade, import and export
quota permits, export quota bidding, export licenses and other special
approval of the commodity. With permit if needed) |
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No. of Employees : |
512 |
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 (30.06.2017) |
Current Rating (30.09.2017) |
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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 allowed resumption of a gradual liberalization. In 2015, the People’s Bank of China announced it would continue to carefully push for full convertibility of the renminbi (RMB) after the currency was accepted as part of the IMF’s special drawing rights basket. After engaging in one-way, large-scale intervention to resist appreciation of the RMB for a decade, China’s 2016 intervention in foreign exchange markets has sought to prevent a rapid RMB depreciation that would have negative consequences for the United States, China, and the global economy.
China’s economic growth has slowed since 2011. The Chinese Government faces numerous economic challenges including: (a) reducing its high domestic savings rate and correspondingly low domestic household consumption; (b) servicing its high corporate debt burdens to maintain financial stability; (c) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and college graduates, while maintaining competitiveness; (d) dampening speculative investment in the real estate sector; (e) reducing industrial overcapacity; and (f) raising productivity growth rates through the more efficient allocation of capital. 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 only marginal progress toward these rebalancing goals. Under President XI Jinping, Beijing has signaled its understanding that China's long-term economic health depends on giving the market a more decisive role in allocating resources, but has moved slowly on market-oriented reforms because of potential negative consequences for stability and short-term economic growth. He has also increased state-control over key sectors and Party control over state-owned enterprises. 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.
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Source
: CIA |
Company
name and address
LDZ New Aoshen Spandex Company Limited
NO. 8 KUNLUNSHAN ROAD, ECONOMIC & TECHNICAL DEVELOPMENT ZONE,
LIANYUNGANG, JIANGSU PROVINCE, 222047 PR CHINA
TEL: 86 (0) 518-82340999/ 82340817
FAX: N/A
EXECUTIVE
SUMMARY
INCORPORATION DATE :
AUG. 12, 2005
Credibility code : 91320700776433102A
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE
ENTERPRISE
STAFF STRENGTH :
512
REGISTERED CAPITAL :
USD 50,552,000
BUSINESS LINE :
R&D, MANUFACTURING & TRADING
TURNOVER :
CNY 310,303,000 (AS OF DEC. 31, 2016)
EQUITIES :
CNY 477,328,000 (AS OF DEC. 31, 2016)
PAYMENT :
REGULAR
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
AVERAGE
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 Chinese-foreign equity joint venture
enterprise at local Administration for Industry & Commerce (AIC-The
official body of issuing and renewing business license) on Aug. 12, 2005.
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.
SC’s registered
business scope includes production of spandex fiber and its series and related
products; research and development of related products and technologies; import
and export of raw materials related to spandex fiber production as well as
technical support and consulting services related to technical research and
development. (excluding the items prohibited or limited by the country, does
not involve state-owned trade, import and export quota permits, export quota
bidding, export licenses and other special approval of the commodity. With
permit if needed)
SC is mainly engaged
in R&D, production and sales of spandex fiber and related products.
Yang Long has been
the legal representative and chairman of SC since Dec. of 2015.
SC is known to
have approx. 512 employees at
present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the Economic & Technical Development Zone
of Lianyungang. Detailed premise information is not available at present.
http://www.ldz.cn/
The design is professional and the content is well organized. At present, the
web is both in Chinese and English versions.
E-mail: yangy@ldz.cn
"Aoshen" spandex wins the title of "China Top
Brand".
Changes
of its registered information:
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Date of change |
Item |
Before the change |
After the change |
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2014-09-30 |
Registered capital |
USD 15,000,000 |
Present amount |
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2015-12-31 |
Legal representative |
Jiang Huafu |
Present one |
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Shareholders |
Berenger Profits Limited 25% |
Present ones |
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Unknown |
Registration no. |
320700400004709 |
91320700776433102A |
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name % of
Shareholding
Lianyungang
Industry Investment Group Co., Ltd. 75
Lianyungang Industry Investment Group Co.,
Ltd.
======================================
Credibility code: 913207007040440951
Legal representative: Yang Long
Incorporation date: 1998-08-21
l
Legal representative, chairman:
Yang Long is currently responsible for the overall management of SC.
Working Experience(s):
From Dec. of 2015 to present Working in SC as legal representative and chairman.
Also working in Lianyungang Industry
Investment Group Co., Ltd., Lianyungang Fiber New Materials Research Institute
Co., Ltd. (literal translation) and Jinqiao Wilmar Chlor-Alkali (Lianyungang)
Co., Ltd. as legal representative.
l
General manager:
Zhang Bin is currently responsible for the daily management of SC.
Working Experience(s):
At present Working
in SC as general manager.
l
Directors:
Zhang Bin
Xu Bing
Liang Jinhai
l
Supervisors:
Xu Zhengliang
Hu Ruifang
Wang Ruiqing
SC is mainly
engaged in R&D, production and sales of spandex fiber and related products.
SC’s products mainly include:
Heat- resistant Spandex
General Spandex
Super- soft Spandex
Colorful Spandex
High Load-power Spandex
DYE-ABLE SPANDEX
Hygienic Spandex
Chlorine-resistant Spandex
Diapers series
Miscellaneous
Covering yarn
SC sells its products in domestic market,
and to overseas market.
The payment terms of SC include Check, T/T, L/C and Credit of 30-60
days.
Note: SC refused to release its main
suppliers and clients.
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Registration No. |
4972675 |
3248480 |
787660 |
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Registration
Date |
2009-03-14 |
2003-10-14 |
1995-10-28 |
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Trademark Design |
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Industry code: 2820
Industry name: Synthetic Fiber Manufacturing
The gross domestic product of China in 2016 which is 74412.72 billion
that is increased 6.7% than previous year.
From January to June of 2016, the chemical
fiber production value reached 24,517,800 tons, a 8.39% increase compared to
the same period last year, according to National Bureau of Statistics. It is
considered in a moderate growth-rate range. The chemical fiber industry reached
the total profit of CNY 12.68 billion, a 6.48% decrease compared to the same
period last year. The profitability weakened compared to the same period last
year. There are obvious distinctions in different sub-sectors:
A. Viscose filament and staple fiber have
strong profitability.
B. The price of spandex industry has been
falling. Its profit margins are getting
smaller and inventory are getting larger. But the investors’ enthusiasm is not
reduced.
C. Polyester industry showed signs of
rebounding; however, there is no significant increase in downstream demand.
D. Regenerated fiber industry and bio based
fiber industry lose the raw material price advantage, and the operation is
difficult.
E. Because the terminal market demand is
lower than expected, Nylon industry benefits continue to weaken, and the market
is sluggish.
F. The market situation of Acrylic fiber
industry has improved since the implementation of anti-dumping.
Lianyungang Fiber New Materials Research
Institute Co., Ltd. (literal translation)
========================================
Credibility code: 91320700323997765R
Legal representative: Yang Long
Incorporation date: 2014-12-18
Jinqiao Wilmar Chlor-Alkali (Lianyungang)
Co., Ltd.
==================================
Credibility code: 91320700560260513K
Legal representative: Yang Long
Incorporation date: 2010-08-05
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.
Bank of Jiangsu Lianyungang
Puzhong Sub-branch
AC#：11560188000096784
Relationship:
Normal.
Financial Summary
===============
Unit: CNY’000
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As of Dec. 31, 2016 |
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Total assets |
801,253 |
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========= |
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Total liabilities |
323,925 |
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Equities |
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-------------- |
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Total liabilities & equities |
801,253 |
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========= |
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Turnover |
310,303 |
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Profit before tax |
14,002 |
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Less: profit tax |
0 |
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Profits |
14,002 |
Note:
we did not find SC’s detailed financial reports.
Important Ratios
=============
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As
of Dec. 31, 2016 |
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*Liabilities
to assets |
0.40 |
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*Net profit
margin (%) |
4.51 |
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*Return on
total assets (%) |
1.75 |
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*Turnover/Total
assets |
0.39 |
PROFITABILITY:
AVERAGE
l The turnover of SC
appears fairly good in its line.
l SC’s net profit
margin appears average.
l SC’s return on
total assets appears average.
l
SC’s turnover is in a fair level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is fairly low.
l
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 63.76 |
|
|
1 |
INR 87.91 |
|
Euro |
1 |
INR 78.20 |
|
CNY |
1 |
INR 9.94 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
VIV |
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Report Prepared
by : |
SYL |
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.