MIRA INFORM REPORT
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Report
Date : |
8th
November, 2006 |
IDENTIFICATION
DETAILS
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Name : |
ZHEJIANG TONGXIANG FOREIGN TRADE (GROUP) CO., LTD. |
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Registered
Office : |
No 42 Park Road, Wutong Town, Tongxiang, Zhejiang Province,
314500 Pr China |
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Date
of Incorporation : |
23.03.1998 |
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Com.
Reg. No.: |
3300001001471 |
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Legal
Form : |
Limited Liabilities Company |
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Line
of Business : |
Engaged in international trade. |
RATING & COMMENTS
|
MIRA’s
Rating : |
Ba |
|
41-55 |
Ba |
Overall operation is considered
normal. Capable to meet normal commitments. |
Satisfactory |
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Maximum
Credit Limit : |
UP TO
RMB2,500,000 |
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Status
: |
Satisfactory
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Payment
Behaviour : |
Regular |
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Litigation
: |
Clear |
NAME
ZHEJIANG
TONGXIANG FOREIGN TRADE (GROUP) CO., LTD.
ADDRESS
NO 42 PARK
ROAD, WUTONG TOWN, TONGXIANG,
ZHEJIANG
PROVINCE, 314500 PR CHINA.
TEL : 86 (0) 573-8022927
FAX : 86 (0) 573-8023917
EXECUTIVE SUMMARY
|
INCORPORATION DATE |
MAR 23,
1998 |
|
REGISTRATION
NO. |
3300001001471 |
|
REGISTERED
LEGAL FORM |
LIMITED LIABILITIES COMPANY |
|
STAFF
STRENGTH |
120 |
|
REGISTERED
CAPITAL |
RMB 10,000,000 |
|
BUSINESS
LINE |
IMPORTING
AND EXPORTING |
|
TURNOVER |
RMB 620,510,000 (AS OF DEC. 31, 2003) |
|
EQUITIES |
RMB 23,900,000 (AS OF DEC. 31, 2003) |
|
PAYMENT |
AVERAGE |
|
RECOMM.
CREDIT RANGE |
UP TO
RMB2,500,000 |
|
MARKET CONDITION |
COMPETITIVE |
|
FINANCIAL CONDITION |
STABLE |
|
OPERATIONAL TREND |
STEADY |
|
GENERAL REPUTATION |
AVERAGE |
|
EXCHANGE RATE |
RMB8.26 = US$1 AS OF 2006-11-10 |
Adopted abbreviations
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired
by you)
NA - not available
RMB - China Ren Min Bi Yuan
SC was
reregistered as a limited liabilities company at Tongxiang Municipal Administration
for Industry & Commerce (The official body of issuing and renewing business
license) on Mar 23, 1998.
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 scopes include business of importing and exporting various goods and
technology.
SC is
mainly engaged in international trade.
Mr. Zhang
minzhi has been chairman of SC since 2000. SC owns 120 staff at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the industrial zone of Tongxiang. Our checks reveal that SC
owns the total premise about 450 square meters.
http://www.zjtxft.com/. The design is
professional and the content is well organized. At present it is in Chinese and
English Versions.
E-Mail: zjtxiec@mail.jxptt.zj.cn
No significant
events or changes were found during our checks with local Administration for
Industry and Commerce.
MAIN SHAREHOLDERS
Name %
of Shareholding
Local
Government 30
Shareholders
Union of the Staff 70
Chairman
Mr. Zhang
Minzhi, 53 years old with university education. He is currently responsible for
the overall management of SC.
Working Experience(s)
2000 to
present Working in SC as
chairman.
Also Working
in Tongxiang Municipal Standing Committee
of the National People's
Congress
as deputy director.
General Manager
Mr. Qian
Songkun, 48 years old with university education. He is currently responsible
for the daily management of SC.
Working Experience(s)
From 2000
to present Working in SC as general
manager.
SC is
mainly engaged in international trade.
SC’s
products include garments, medicines, textiles, machinery and equipment and
leather products, etc.
SC sources
its materials 80% from domestic market, 20% from international market, mainly
from European and American Countries. SC sells 20% of its products in domestic
market and 80% to Japan, South Korea, European countries and Southeast Asia
countries, etc.
The buying
terms of SC include Check, T/T, L/C and Credit of 30-90 days. The payment terms
of SC include T/T, Check, L/C and Credit of 30-90 days.
SC’s
suppliers include
Tongxiang
You and Me Flocking Embroiders Co., Ltd.
Jiaxing
Lifeng Knitting Garments Co., Ltd.
Tongxiang
Mingda Clothing Co., Ltd.
SC is known
to have 3 subsidiaries as following,
Jiahua Importing
and Exporting Co., Ltd.
Jiayu
Fashion Co., Ltd.
Shanghai
Jingyuan International Trade Co., Ltd.
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
A trade
enquiry currently conducted with SC's supplier(s) reveal the following:
Products
sold:
Date
account opened:
Line of
credit:
Terms:
Average
monthly sales:
Current
balance:
Rating Key
:
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.
Bank of
China Tongxiang Branch
AC# :
15307208091001
Relationship:
Normal.
Consolidated
Balance Sheet (as of Dec. 31, 2003)
Unit: RMB thousand yuan
|
Cash & bank |
16,250 |
|
Inventory |
2,330 |
|
Accounts receivable |
6,810 |
|
Account payable advance |
0 |
|
Other Accounts receivable |
2,280 |
|
Other current assets |
193,650 |
|
|
------------------ |
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Current assets |
221,320 |
|
Fixed
assets |
9,800 |
|
Fixed assets net value |
5,550 |
|
Projects under construction |
0 |
|
Long term investment |
9,910 |
|
Other assets |
2,400 |
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|
------------------ |
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Total assets |
239,180 |
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|
============= |
|
Short loans |
102,000 |
|
Accounts payable |
68,260 |
|
Account receivable advance |
0 |
|
Other Accounts payable |
1,280 |
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Other current liabilities |
43,740 |
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|
------------------ |
|
Current liabilities |
215,280 |
|
Long term liabilities |
0 |
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Other liabilities |
0 |
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------------------ |
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Total liabilities |
215,280 |
|
Equities |
23,900 |
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|
------------------ |
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Total liabilities & equities |
239,180 |
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|
============= |
Consolidated
Income Statement (as of Dec. 31, 2003)
Unit: RMB thousand yuan
|
Turnover |
620,510 |
|
Cost of goods sold |
583,480 |
|
Sales expense |
15,200 |
|
Management expense |
16,460 |
|
Finance expense |
4,860 |
|
Profit before tax |
2,630 |
|
Less: profit tax |
890 |
|
Profits |
1,740 |
Important Ratios (as of Dec. 31, 2003)
*Current
ratio 1.03
*Quick
ratio 1.02
*Liabilities
to assets 0.90
*Net profit
margin (%) 0.42
*Return on
total assets (%) 1.10
*Total
liabilities / Net assets 9.01
*Fixed
assets/Total assets 0.04
*Inventory
/Turnover ×365 1
days
*Accounts
receivable/Turnover ×365 4
days
*Turnover/Total
assets 2.59
* Cost of
goods sold/Turnover 0.94
Profitability
The
turnover and the profit margin of SC appear acceptable in its line.
Working Capital Control
The current
ratio of SC appears acceptable. With experienced management staff, SC seems to
have no problem in its working capital control.
Liquidity
SC’s quick
ratio is maintained in an average level. However, attention should be given to
the large amount of short loans.
Solvency
Attention
should be given to the large amount of its short loans.
Overall financial condition of the SC
Stable.
Over the
past 6 years, SC has made a stable growth with satisfactory profit. Hence a
credit line up to RMB2,500,000 would appear to be within SC’s capacities upon a
periodical review basis.
RATING EXPLANATIONS
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound
financial base with the strongest capability for timely payment of interest
and principal sums |
Unlimited |
|
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 |
|
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 |
|
<10 |
C |
Absolute credit risk exists.
Caution needed to be exercised |
Credit not recommended |