MIRA INFORM REPORT

Report No. :	508199
Report Date :	11.05.2018

IDENTIFICATION DETAILS

Name :	ZHEJIANG TAIHE SPINNING MACHINE CO.,LTD.
Registered Office :	Jinlian Village, Pengjie Town, Luqiao District, Taizhou City
Country :	China
Financials (as on) :	31.12.2017
Date of Incorporation :	15.07.2005
Unified Social Credit Code :	91331004778264672R
Legal Form :	Limited Liabilities Company
Line of Business :	Subject is mainly engaged in manufacture and sales of textile machinery and equipment. Its main products are TH-18 air coating machines, TH-16 hank winders, TH-15A high speed winding machines, TH-13A loose winders, TH-13B winders, TH-12A strander/winder machines etc. Its products are widely applied in textile industry.
No. of Employees :	80

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

B

Credit Rating	Explanation	Rating Comments
B	Medium Risk	Business dealings permissible on a regular monitoring basis

Status :	Moderate
Payment Behaviour :	No Complaints
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

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
China	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
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.

Source : CIA

INVESTIGATION RECORD

Name of Interviewee	Ms. Zhu
Tel	(86 576) 82723956; (86) 13968600015
Investigation Way	Telephone

ORDER DETAILS & INVESTIGATION RESULTS

-	Order Information	Verification
Name(English)	ZHEJIANG TAITHE SPINNING MACHINE CO LTD	Correct
Address (English)	GAOXIN DONG ROAD, LOOSE STREET TOWN, LUQIAO TAIZHOU	Inaccurate

BASIC INFORMATION

Name (English)	ZHEJIANG TAIHE SPINNING MACHINE CO.,LTD. (Given by Official Sources)
Unified Social Credit Code	91331004778264672R
AIC registration No.	331004000039845
National Organization Code	778264672
Company Status	Operational
Executive	Luo Bangyou
Registered Capital	CNY 5,800,000.00
Date of Establishment	2005-07-15
Employee	80
Website	www.zjtaihe.cn
Company Size	Small
SIC (China)	3551,Production of Textile Equipment
Import and Export Enterprise Code	3300778264672
Import/Export Permit	Yes
Judicial	3

CONTACTS

Tel	(86 576)82723956
Mobile	(86)13968600015
Address	Gaoxin East Road, Pengjie Town, Luqiao Dist, Taizhou City, Zhejiang Province(Office / Storage / Plant)
Address Post code	318057
Ownership	-

GENERAL COMMENTS

RISK ANALYSIS

Established in July of 2005 with the registered capital of CNY 5,800,000.00, SC is mainly engaged in manufacture and sales of textile machinery and equipment. With a long history, the company has certain industry experience. Currently, SC has average popularity and influence in the industry.

According to its current financial information, SC's operating income of 2017 increased over that of 2016, indicating its business was developed well in 2017. With low net profit margin of 2017, subject's profitability is weak and remains to be improved. As a whole, with high liabilities to assets ratio of 2017, subject’s long-term solvency is weak.

REGISTRATION INFORMATION

Unified Social Credit Code	91331004778264672R
AIC registration No.	331004000039845
Date of Establishment	2005-07-15
Registered Address	Jinlian Village, Pengjie Town, Luqiao District, Taizhou City
Registry	Market Supervision Administration – Luqiao District, Taizhou City
Legal Representative	Luo Bangyou
Legal Form	Limited Liabilities Company
Registered Capital	CNY 5,800,000.00
Paid-in Capital	CNY 5,800,000.00
Latest Year of Annual Report	2017
Operation duration	Perpetual
Business Scope	Manufacture and sales of special equipment and fittings for textile industry, electric machinery, plastic products, fasteners; Import and export of goods and technologies

REGISTRATION CHANGES

-	Date	Item Changed	From	To
1	2010-07-02	Registered capital	CNY500,000.00	CNY5,800,000.00
2	2010-07-02	Name	TAIZHOU TAIHE SPINNING MACHINE CO., LTD	ZHEJIANG TAIHE SPINNING MACHINE CO.,LTD.
3	2007-01-05	Legal representative	Luo Juhua	Luo Bangyou

SHAREHOLDER INFORMATION

-	Name	% Ownership	Capital Contributed	Currency	Investment Way	Paid-in %	Country
1	Luo Bangyou	50.00	2,900,000.00	CNY	Capital	100	China
2	Zhu Haiyuan	50.00	2,900,000.00	CNY	Capital	100	China
Total		100.0	5,800,000

BRANCHES

No branch information of subject is searched out from database.

INVESTMENT IN OTHER COMPANIES

No investment information of subject is searched out from database.

MANAGEMENT

LEGAL REPRESENTATIVE

Name	Luo Bangyou
Country	China
Position	Executive Director; General Manager

INVOLVEMENT IN OTHER COMPANIES

-	Name (English)	License Status	Legal Representative	Position	Type of Engagement
1	Taizhou Jingwei Textile Machinery Co., Ltd.	Operational	NO	-	Investment(34.00%)

Name (English)	Taizhou Jingwei Textile Machinery Co., Ltd.
License Status	Operational
Name Of Legal Representative	Ying Wanping
Registered Capital	CNY 500,000.00
Country	China
Registration No.	331004000075543
Unified Social Credit Code	91331004773134078H
Legal Form	Limited Liabilities Company
Share Holding	170,000.00
Currency Of Share Holding	CNY
Way of Investment	Capital
% Ownership	34.00
Date of Establishment	2005-04-01

MANAGEMENT

-	Name	Position	Gender
1	Luo Bangyou	Executive Director; General Manager	-

DIRECTORS AND SUPERVISORS

-	Name	Position	Gender
1	Luo Bangyou	Executive Director; General Manager	-
2	Zhu Haiyuan	Supervisor	-

JUDICIAL INFORMATION

DEFAULT EXECUTED PARTY

As of the reporting date, no related record about subject is found through below sources:

A. Website of China Court Organization;

B. Websites of local courts of subject's location;

C. Websites of major domestic courts;

SUBJECT AS EXECUTED PARTY

As of the reporting date, no related record about subject is found through below sources:

A. Website of China Court Organization;

B. Websites of local courts of subject's location;

C. Websites of major domestic courts;

CIVIL & COMMERCIAL TRIAL PROCESS

Name	ZHEJIANG TAIHE SPINNING MACHINE CO.,LTD.
Government ID./ AIC Registration No.	91331004778264672r
File No.	(2016) ZHE 0681 Min Cui 2
Position	Party Involved
Hearing Court	People's Court of Zhuji City, Zhejiang Province
Date Type	Delivery time
Date	2016-02-17

Name	ZHEJIANG TAIHE SPINNING MACHINE CO.,LTD.
Government ID./ AIC Registration No.	91331004778264672r
Position	Party Involved
Hearing Court	People's Court of Zhuji City, Zhejiang Province
Date Type	Delivery time
Date	2016-02-17

CIVIL & COMMERCIAL JUDGMENT DOCUMENT

Name	ZHEJIANG TAIHE SPINNING MACHINE CO.,LTD.
Government ID./ AIC Registration No.	91331004778264672r
File No.	(2016) ZHE 0681 Min Cui 2
Hearing Court	People's Court of Zhuji City, Zhejiang Province
Court Type	Grassroots People's Court
Cause of Action	Invalid bill disputes
Plaintiff	ZHEJIANG TAIHE SPINNING MACHINE CO.,LTD.
Value	0
Position	Appellor
Date of Closing	2016-04-20

ADMINISTRATIVE ILLEGAL RECORDS

As of the reporting date, no related record about subject is found through below sources:

A. Website of China Court Organization;

B. Websites of local courts of subject's location;

C. Websites of major domestic courts;

OPERATION INFORMATION

MAIN BUSINESS

Main Business	Manufacture and sales of textile machinery and equipment.
Products & Service	SC is mainly engaged in manufacture and sales of textile machinery and equipment. Its main products are TH-18 air coating machines, TH-16 hank winders, TH-15A high speed winding machines, TH-13A loose winders, TH-13B winders, TH-12A strander/ winder machines etc. Its products are widely applied in textile industry.

OPERATION FACILITIES

Business Address	Gaoxin East Road, Pengjie Town, Luqiao Dist, Taizhou City, Zhejiang Province(Office / Storage / Plant)
Tel	(86 576)82723956
Mobile	(86)13968600015
Post code	318057
Environment	Main industrial area
Ownership	-
Traffic Condition	Acceptable

SALES INFORMATION

Region	Products		Customer Type	Number of Customers	Payment Terms	Region	Percentage
Domestic	Textile machinery and equipment		Yarn manufacturers, traders, etc	Above 10	Advance payment; Prompt payment; Payment according to the contract	All over China	80
International	Textile machinery and equipment		Yarn manufacturers, traders, etc	Above 5	T/T; L/C	Asia, etc.	20
OTHER INFORMATION		SC's products are sold at home and abroad and the company concentrates on the domestic market. Its domestic sales business is developed all over China and the company also exports products to Indonesia, Kampuchea, Bangladesh, Sri Lanka, India and other countries. With years of operation, the company has stable sales channels.

MAJOR CUSTOMERS

-	Name	Legal Form	Country
1	Cong Ty Tnhh San Xuat Thuong Mai Hoang Kim Hung	-	Vietnam
2	Syntech Fibres Pvt Ltdlisyntech Fibres Pvt Ltd.	-	Pakistan

Name (English)	Cong Ty Tnhh San Xuat Thuong Mai Hoang Kim Hung
Country	Vietnam

Name (English)	Syntech Fibres Pvt Ltdlisyntech Fibres Pvt Ltd.
Country	Pakistan

PURCHASE INFORMATION

Region	Main Products Purchased		Number of Suppliers	Payment Terms	Region	Percentage
Domestic	Textile machinery spare parts, production equipment, office supplies, etc.		Above 10	Advance payment; Prompt payment; Payment according to the contract	All over China	90
International	Textile machinery parts, etc.		Above 2	T/T; L/C	Italy, the United States, Japan, etc.	10
OTHER INFORMATION		SC's purchase business is developed at home and abroad and the company concentrates on the domestic market. Its domestic purchase business is mainly developed in East China and the company also imports products from Italy, the United States, Japan, etc. With years of operation, the company has stable purchase channels.

NOTE TO CREDIT RECORD

Note	SC's staff declined to disclose any information of the suppliers due to company secrecy. No information of its suppliers is obtained through public sources. Hence, no payment records can be provided in the report.

ELECTRICITY CONSUMPTION RECORD

No electricity consumption record of subject can be obtained as the electricity consumer may not be filed with subject's name.

QUALIFICATIONS & TRENDS

TRADEMARKS

-	Name	Image	Registration No.	International Classification	Country
1	泰松		7587158	7	China

EXPORT/IMPORT PERMIT

EXPORT/IMPORT PERMIT

Yes

IMPORT/ EXPORT DETAILS

2016 Import / Export Volume (USD 1,000)
Import Volume	Export Volume
0.00	1,621.00

2016 Importing Regions (USD 1,000)
Importing Regions	Import Volume
Sri Lanka	0

2016 Exporting Regions (USD 1,000)
Exporting Regions	Export Volume
Indonesia	801
Kampuchea (Cambodia )	156
Sri Lanka	137
Bangladesh	124
India	96
Other countries	307

2016 Imported Products (USD 1,000)
Imported Products	Import Volume
Other commodities	0

2016 Exported Products (USD 1,000)
Exported Products	Export Volume
Other parts and accessories of machines of heading No.8445 (parts and accessories of machines or machines for preparing textile fibres)	4
Textile winding (including weftwinding) or reeling machines	32
Automatic bobbin winders	1,582
Of an output not exceeding 750 W	3

2015 Import / Export Volume (USD 1,000)
Import Volume	Export Volume
-	1,226.00

2015 Exporting Regions (USD 1,000)
Exporting Regions	Export Volume
India	422
Haiti	221
Indonesia	189
Sri Lanka	135
Bangladesh	115
Other countries	144

2015 Exported Products (USD 1,000)
Exported Products	Export Volume
Automatic bobbin winders	1,223
Other gearing and speed changers	1
Other parts and accessories of machines of heading No.8445 (parts and accessories of machines or machines for preparing textile fibres)	1
Parts and accessories of weaving machines (looms) or of their auxiliary machinery	0
Other	0
Other transmission belts or belting, of vulcanized rubber	1

EMPLOYEE

Employee Number	80
OTHER INFORMATION	SC's staff confirmed the above employee number.

WEBSITES

-	Website	Name	File No	Registrant
1	www.zjtaihe.cn	ZHEJIANG TAIHE SPINNING MACHINE CO.,LTD.	Zhe ICP 12028734-1	Zhu Haiyuan

Website	www.zjtaihe.cn
Name	ZHEJIANG TAIHE SPINNING MACHINE CO.,LTD.
Sponsor Name	ZHEJIANG TAIHE SPINNING MACHINE CO.,LTD.
Hosted By	Enterprise
File No.	Zhe ICP 12028734-1
Registrant	Zhu Haiyuan
Source	Ministry of Industry and Information Technology

ABNORMAL TAX PAYER

As of the reporting date, no related record about subject is found through below sources:

A. Website of Tax Bureau of China;

B. Website of local Tax Bureau of subject's location;

C. Taxpayer information of database.

TAX ARREARS LIST

As of the reporting date, no related record about subject is found through below sources:

A. Website of Tax Bureau of China;

B. Website of local Tax Bureau of subject's location;

C. Taxpayer information of database.

DEBT ARREARS LIST

As of the reporting date, no related record about subject is found through below sources:

A. Major telecommunication operators of China;

B. Telecommunication information of database.

FINANCIAL INFORMATION

DETAILED FINANCIAL INFORMATION (UNIT: CNY 1,000)

Financial Note: Due to the lack of a clear government policy regarding the transparency of enterprise financial information, some financial items might be missing in the financial statements, causing possible inequality between the sum of the provided items and the provided total numbers.

Assets
Year	2016-12-31	2017-12-31
Report Type	Annual Report	Annual Report
Statement Type	Individual	Individual
Source	AIC	AIC
Audited or Not	Unknown	Unknown
Total Assets	42,211	47,131
Liabilities
Year	2016-12-31	2017-12-31
Total Liabilities	32,372	35,675
Total Owner’s Equity	9,839	11,456
Total Liabilities and Owner's Equity	42,211	47,131

Income Statement
Year	2016-12-31	2017-12-31
Operating Income	39,429	58,416
Total Profit	1,942	2,542
Income Tax	486	636
Net Profit	1,456	1,906

GROWTH RATE OF MAJOR FINANCIAL

	2016	Growth(%)	2017
Operating Income	39,429	48.15	58,416
Total Assets	42,211	11.66	47,131
Total Profit	1,942	30.90	2,542
Net Profit	1,456	30.91	1,906
Total Liabilities	32,372	10.20	35,675
Total Owner’s Equity	9,839	16.43	11,456

IMPORTANT RATIO

Profitability	2016	2017
Return on net assets (%)	14.80	16.64
Return on total assets (%)	3.45	4.04
Net profit margin (%)	3.69	3.26
Operation capacity	2016	2017
Turnover of total assets	0.93	1.24
Solvency	2016	2017
Liabilities to assets ratio (%)	76.69	75.69
Development capacity	2016	2017
Yearly Growth of Operating Income (%)	-	48.15
Yearly growth of total assets (%)	-	11.66

FINANCIALS & ANALYSIS

Financial Note

SC's detailed financial information of 2017 and 2016 is unavailable through all available channels. Subject's staff was contacted but declined to provide relevant financial information. Only subject's financial summaries of 2017 and 2016 obtained from AIC source are provided for client's reference.

INDUSTRY INFORMATION

INDUSTRY CODE

SIC (China)	3551,Production of Textile Equipment 【Major】
ISIC	2826,Manufacture of machinery for textile, apparel and leather production
NACE	28.94,Manufacture of machinery for textile, apparel and leather production

INDUSTRY FINANCIAL AVERAGE

-	2016	Subject	Best(10%)	Average	Worst(10%)
Solvency	Liabilities to Assets Ratio (%)	76.69	45.90	52.38	79.56
	Current ratio	-	2.62	1.26	0.57
	Quick ratio	-	1.63	0.79	0.36
Development Capacity	Yearly Growth of Operating Income (%)	-	28.56	13.15	-11.51
	Yearly Growth of Gross Profit (%)	-	27.07	7.82	-9.45
	Yearly Growth of Total Assets (%)	-	13.82	7.50	-8.14
Profitability	Return on net assets (%)	14.80	8.34	1.74	-7.21
	Return on total assets (%)	3.45	4.57	1.52	-4.87
	Gross profit margin (%)	-	24.68	10.65	-4.68
Operation Capacity	Turnover of total assets	0.93	1.83	0.54	0.23
	Turnover of current assets	-	2.40	0.98	0.35
	Turnover days of account receivable	-	30.32	65.47	259.20

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 67.38
UK Pound	1	INR 91.39
Euro	1	INR 79.89
CNY	1	INR 10.59

Note: Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	PRI
Report Prepared by :	NIT

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
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
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
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)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.