MIRA
INFORM REPORT
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Report Date : |
9th
June 2006 |
IDENTIFICATION
DETAILS
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Name : |
NINGBO
JINLUN IMPORT AND EXPORT CO., LTD. |
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Registered Office : |
Jinlun Group Office Building, Zonghan
Street, Cixi, Zhejiang
Province, Pr China |
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Country : |
China |
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Financials (as on) : |
31/12/2005 |
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Date of Incorporation : |
Mar.
1, 2001 |
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Com. Reg. No.: |
3302821002527 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged
in international trade. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
NAME & ADDRESS
NINGBO JINLUN IMPORT AND EXPORT CO., LTD.
JINLUN GROUP OFFICE BUILDING, ZONGHAN
STREET, CIXI,
ZHEJIANG PROVINCE, PR CHINA
TEL: 86 (0) 574-63402771
FAX: 86 (0)
574-63201558
EXECUTIVE SUMMARY
INCORPORATION DATE : MAR. 1, 2001
REGISTRATION NO. : 3302821002527
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 20
REGISTERED CAPITAL : RMB 30,000,000
BUSINESS LINE : INTERNATIONAL TRADE
TURNOVER :
RMB 742,870,000 (AS
OF DEC. 31, 2005)
EQUITIES :
RMB 35,760,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 200,000
(PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION
: FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE
RATE : RMB8.02=US$1 AS
OF 2006-6-7
SC was registered as a limited liabilities company at local Administration for Industry
& Commerce (The official body of issuing and renewing business license) on
Mar. 1, 2001.
Company Status: Limited liabilities co. This form of
business in PR China is defined as a legal person. At least two
shareholders and no more than fifty 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 listed as follows: -Manufacturing
co. :
RMB 500,000.00 -Trading
&wholesaling co. : RMB 500,000.00 -Retailing co. : RMB 300,000.00 -Consultancy &
service co. : RMB 100,000.00 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 50% of the registered capital
while contribution by intangible assets must not exceed 20% 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.
SC’s registered business scope includes
operating and acting as an agent of importing and exporting various goods and
technology; processing with the imported materials and compensation trade in
agreement; also operating counter trade and transiting trade.
SC is
mainly engaged in international trade.
Mr. Lu
Hanzhen has been chairman of SC since 2001.
SC owns
about 20 staff.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Ningbo. Our checks reveal that SC rents
the total premise about 250 square meters.
http://www.kingring.com. It is the website
of its parent company. The design is professional and the content is well organized.
At present it is in both Chinese and English versions.
No significant events or changes were found
during our checks with the local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name %
of shareholdings
Ningbo Jinlun Group Co., Ltd. 90
Ningbo Xinghuo Industry Co., Ltd.
10
l
Chairman:
Mr. Lu Hanzhen, in his 50’s with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2001 to present Working in SC as chairman.
Also working in Ningbo Jinlun Group Co., Ltd as
chairman and CEO.
l
General Manager:
Mr. Lu Shuyin , in his 30’s with university
education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 2004 to present Working in SC as general manager.
SC is
mainly engaged in international trade.
SC’s
products mainly include: twill fabrics, automotive tire and motor.
SC
sources its materials 40% from domestic markets and 60% from Europe and
Southeast Asia. SC sells 60% of its products in domestic markets and 40% to
Europe and American Countries.
The buying terms of SC include Check, T/T,
L/C and Credit of 30-60 days. The payment terms of SC include T/T, L/C and
Credit of 30-60 days.
*Major Customers:
===============
Ningbo Jinlun Group Co., Ltd.
*Major Suppliers:
===============
Ningbo Jinlun Group Co., Ltd.
SC is not
known to have any subsidiary at present.
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 records and our debt
collection record concerning SC.
Trade payment experience: A trade enquiry currently conducted with SC's
supplier(s) reveal the following:
Supplier
A
Products
sold: twill fabrics
Date
account opened: 2005
Line of
credit: No comment
Terms: 30-60 days
Average
monthly sales: No comment
Current
balance: No comment
Rating
Key : 3
Any
Special Comments: _______________________________________
Payment
record keys :
1 = Prompt
: Payment made before the credit period expires
2 = As
agreed terms : Payment made upon due date
3 = Slightly
slow but acceptable : Payment made 5 to 20 days beyond agreed terms
4 = Slow
: Payment made 16 to 45 days beyond agreed terms
5 =
Poor : Payment made over 45 days beyond agreed terms
6 = No comment : Account is newly opened
& record is not yet established
Note : In some instances, payment beyond terms can
be the result of disputes over merchandise, lost invoices, disputed accounts
& etc.
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.
CITIC Bank of
China
AC#7336210182100006412
Relationship: Normal.
Balance Sheet
Unit:
RMB’000
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As of Dec. 31, 2005 |
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Cash
& bank |
62,910 |
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Accounts
payable advance |
0 |
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Accounts
receivable |
69,720 |
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Inventory |
9,930 |
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Other
accounts receivable |
-4,190 |
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Expenses to be apportioned |
0 |
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Other
current assets |
90,800 |
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------------------ |
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Current
assets |
229,170 |
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Fixed
assets |
450 |
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Projects
under construction |
0 |
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Other
assets |
11,810 |
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------------------ |
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Total
assets |
241,430 |
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============= |
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Short
loans |
53,000 |
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Accounts
payable |
49,770 |
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Salary
payable |
0 |
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Tax
payable |
-90 |
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Account
receivable advance |
0 |
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Estimated liabilities |
0 |
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Long-term
investment with in one year |
0 |
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Other
accounts payable |
20,100 |
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Drawing-expense
in advance |
0 |
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Other
current liabilities |
82,890 |
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------------------ |
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Current
liabilities |
205,670 |
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Long
term liabilities |
0 |
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Other
liabilities |
0 |
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------------------ |
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Total
liabilities |
205,670 |
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Equities |
35,760 |
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------------------ |
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Total
liabilities & equities |
241,430 |
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============= |
Income Statement
Unit:
RMB’000
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|
As of Dec. 31, 2005 |
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Turnover |
742,870 |
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Profits |
10 |
Important Ratios
=============
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As
of Dec. 31, 2005 |
|
*Current ratio |
1.11 |
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*Quick ratio |
1.07 |
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*Liabilities to assets |
0.85 |
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*Net profit margin (%) |
0.00 |
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*Return on total assets (%) |
0.00 |
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*Inventory /Turnover ×365 |
5 days |
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*Accounts receivable/Turnover ×365 |
34 days |
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*Turnover/Total assets |
3.08 |
PROFITABILITY: FAIR
l
The
turnover of SC appears fairly good in its line.
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SC’s
net profit margin is fair.
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SC’s
return on total assets is fair.
LIQUIDITY: AVERAGE
l
The
current ratio of SC is maintained in a normal level.
l
SC’s
quick ratio is maintained in a normal level.
l
The
inventory of SC is maintained in a fairly good level.
l
The
accounts receivable of SC appears fairly large.
l
SC’s
turnover is in a fairly good level, comparing with the size of its total
assets.
LEVERAGE: FAIR
l
The
debt ratio of SC is fairly high.
l
The
risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered small-sized in its line
with stable financial conditions. A credit line up to USD 200,000 would appear
to be within SC’s capacities upon a periodical review basis.
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
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<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |