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MIRA INFORM REPORT
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Report No. : |
495631 |
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Report Date : |
08.03.2018 |
IDENTIFICATION DETAILS
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Name : |
YIXING ZHONGDA TEXTILE CO., LTD. |
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Registered Office : |
Baihechang Road, Park of Science and Tech, Yixing,
Jiangsu Province |
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Country : |
China |
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
01.09.2005 |
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Unified Social
Credit Code : |
91320282776448232X |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Subject includes manufacturing
textile fabrics and special textiles for engineering, research, development
and technology services of textile fabrics. |
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No. of Employees : |
170 |
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
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COMPANY NAME |
Yixing Zhongda Textile Co., Ltd. |
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CURRENT ADDRESS |
No. 18
Baihechang Road, Park of Science and Tech, Yixing, Jiangsu Province 214200 PR
China |
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REGISTERED ADDRESS |
Baihechang Road,
Park of Science and Tech, Yixing, Jiangsu Province |
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TEL. NO. |
86 (0)
510-81703058 |
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FAX NO. |
86 (0)
510-87428668 |
EXECUTIVE
SUMMARY
Date of Registration : september 1, 2005
UNIFIED SOCIAL CREDIT CODE : 91320282776448232X
LEGAL FORM : Chinese-foreign equity joint venture
enterprise
REGISTERED CAPITAL : USD 6,996,819
staff : 170
BUSINESS CATEGORY : manufacturing & TRADING
Revenue : CNY 450,080,000 (AS OF DEC. 31, 2017)
EQUITIES : CNY 173,810,000 (AS OF DEC. 31, 2017)
WEBSITE : www.zhongdatex.com.cn
E-MAIL : n/a
PAYMENT : Regular
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : fairly steady
GENERAL REPUTATION : AVERAGE
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 Chinese-foreign equity joint venture enterprise of PRC with State
Administration of Industry & Commerce (SAIC) under Unified Social Credit
Code: 91320282776448232X.
SC’s registered capital: USD 6,996,819
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2017-10-24 |
Registered
Capital |
USD 3,728,441 |
USD 6,996,819 |
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Registration
No./ Unified
Social Credit Code |
320282400004346 |
91320282776448232X |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
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Name of Shareholder (s) |
% of Shareholding |
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Yixing Qingfeng Textile Co., Ltd. |
8.05 |
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Hong Kong Artmax Textile Co., Limited |
91.95 |
SC’s Chief Executives:-
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Position |
Name |
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Legal
Representative and Chairman |
Chen Yeqing |
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Vice
Chairman and General Manager |
Jiang Xuelin |
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Director |
Jiang Shan |
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Supervisor |
Jiang Yan |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Yixing Qingfeng Textile Co., Ltd. 8.05
Hong Kong Artmax Textile Co., Limited 91.95
Yixing Qingfeng
Textile Co., Ltd.
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Unified Social Credit Code:
91320282732517574C
Date of Registration: December 10, 2001
Legal Form: Limited Liabilities Company
Registered Capital: CNY 500,000
Legal Representative: Jiang Xuelin
Hong Kong Artmax
Textile Co., Limited
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CR.: 0919650
Date of Registration: August 27, 2004
Legal Form: Private
Status: Live
MANAGEMENT
Chen Yeqing, Legal Representative and Chairman
-----------------------------------------------------------------------------
Ø
Gender: M
Ø
Nationality: China
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal
representative and chairman
Jiang Xuelin, Vice Chairman and
General Manager
-----------------------------------------------------------------------------
Ø
Gender: M
Ø
Nationality: China
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as vice chairman
and general manager
Also working in Yixing Qingfeng Textile Co.,
Ltd. as legal representative
Director
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Jiang Shan
Supervisor
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Jiang Yan
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing
textile fabrics and special textiles for engineering, research, development and
technology services of textile fabrics.
SC is mainly
engaged in manufacturing and selling textile fabrics.
The products
mainly include:
Fancy fabrics
Blended fabrics
Chenille fabrics
Color spinning
fabrics
Other fabrics
SC sources its materials 100% from domestic market.
SC sells 60% of its products in domestic market and 40% to overseas market,
mainly U.S.A., etc.
The buying terms
of SC include T/T and Credit of 30-60 days. The payment terms of SC include
T/T, L/C and Credit of 30-60 days.
Major Customers,
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Benartex Inc.
Ureblock Sa De Cv
Staff & Office:
--------------------------
SC is known
to have approx. 170 staff at
present.
SC rents an area
as its operating office and factory, but the detailed information is unknown.
RELATED
COMPANY
SC is not known to have any subsidiary at present.
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 records 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.
BANKING
Basic Bank:
Bank
of China Yixing Sub-branch
AC#:
17593208091001
FINANCIALS
Financial Summary
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Unit: CNY’000 |
As of Dec. 31, 2017 |
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Total assets |
318,410 |
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Total liabilities |
144,600 |
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Equities |
173,810 |
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Revenue |
450,080 |
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Profits |
71,860 |
Important Ratios
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As of Dec. 31, 2017 |
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*Liabilities to assets |
0.45 |
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*Net profit margin (%) |
15.97 |
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*Return on total assets (%) |
22.57 |
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*Revenue / Total assets |
1.41 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIRLY GOOD
l The revenue of SC
appears fairly good in its line.
l SC’s net profit
margin is fairly good.
l SC’s return on
total assets is fairly good.
LIQUIDITY: AVERAGE
l
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered medium-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 64.96 |
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|
1 |
INR 90.34 |
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Euro |
1 |
INR 80.75 |
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CNY |
1 |
INR 10.27 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
NIS |
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Report Prepared
by : |
NIT |
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.