MIRA
INFORM REPORT
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Report Date : |
04.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
HANGZHOU DINGSHENG IMPORT & EXPORT CO., LTD. |
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Registered Office : |
Pingyao Economic & Technology Dev. Zone, Yuhang District,
Hangzhou, Zhejiang Province, 311115 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
MAY 25, 2006 |
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Com. Reg. No.: |
3301842352453 |
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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 : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
Up To usd 10,000 |
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Status : |
Small Company |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
name & address
HANGZHOU DINGSHENG IMPORT & EXPORT CO., LTD.
PINGYAO ECONOMIC & TECHNOLOGY DEV. ZONE, YUHANG DISTRICT,
HANGZHOU, ZHEJIANG PROVINCE, 311115 PR CHINA
TEL : 86 (0)
571-88536411
FAX : 86 (0)
571-88539808
EXECUTIVE SUMMARY
INCORPORATION DATE : MAY 25, 2006
REGISTRATION NO. : 3301842352453
REGISTERED LEGAL FORM : LIMITED LIABILITIES
COMPANY
STAFF STRENGTH :
10
REGISTERED CAPITAL : CNY 1,200,000
BUSINESS LINE :
INTERNATIONAL TRADE
TURNOVER :
cny 28,110,000 (AS OF DEC. 31, 2006)
EQUITIES :
cny 1,840,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 10,000 (PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY stable
OPERATIONAL TREND : FAIRLY steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.74= US$1 AS OF 2007-4-2
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Ren Min Bi
SC was registered as a limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on May 25, 2006.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. 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. : CNY 500,000.00 -trading &wholesaling
co. : CNY 500,000.00 -retailing co. : CNY 300,000.00 -consultancy & service
co. : CNY 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 importing and exporting various
goods.
SC is mainly
engaged in international trade.
Ms. Zhang Miaoqin
has been chairman of SC since 2006.
SC owns about 10
staff.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Hangzhou. Our checks reveal that SC
rents the total premise about 100 square meters.
SC is
not known to host website of its own at present.
No significant events or changes were found during our checks with local
AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhang Miaoqin 91.67
Zhang Miaojuan 8.33
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Chairman and General Manager:
Ms. Zhang Miaoqin, in her 30’s with university education. She is
currently responsible for the overall management of SC.
Working Experience(s):
From 2006 to present Working
in SC as chairman and general manager.
SC is mainly
engaged in international trade.
SC’s products
mainly include: aluminum foil.
SC sources its materials
100% from domestic market. SC sells 20% of its products in domestic market and
80% to the overseas markets, mainly to USA, Canada and Europe.
The buying terms of SC include Check, 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 Client:
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USA York Corp
*Major Supplier:
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Hangzhou Dingsheng Industry 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 and our debt collection record concerning SC.
Trade payment experience : SC refused to release any information of its
suppliers and the trade reference was not available.
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 Hangzhou Branch
AC#：32226808091001
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2006 |
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Cash & bank |
3,040 |
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Accounts payable
advance |
0 |
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Accounts
receivable |
5,100 |
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Inventory |
0 |
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Other receivables |
300 |
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Other current
assets |
2,080 |
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------------------ |
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Current assets |
10,520 |
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Fixed assets net
value |
0 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
0 |
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Total assets |
10,520 |
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Short loans |
10,600 |
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Accounts payable |
-480 |
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Accounts
receivable advance |
0 |
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Taxes payable |
-1,440 |
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Salaries payable |
0 |
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Other payable |
0 |
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Other current
liabilities |
0 |
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Current liabilities |
8,680 |
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Long term
liabilities |
0 |
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Total
liabilities |
8,680 |
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Equities |
1,840 |
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Total
liabilities & equities |
10,520 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2006 |
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Turnover |
28,110 |
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Cost of goods
sold |
26,500 |
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Sales expense |
310 |
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Management expense |
100 |
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Finance expense |
880 |
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Profit before
tax |
900 |
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Less: profit tax |
260 |
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Profits |
640 |
Important Ratios
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as
of Dec. 31, 2006 |
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*Current ratio |
1.21 |
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*Quick ratio |
1.21 |
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*Liabilities
to assets |
0.83 |
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*Net profit
margin (%) |
2.28 |
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*Return on
total assets (%) |
6.08 |
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*Fixed assets/Total
assets |
0.00 |
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*Inventory
/Turnover ×365 |
0 |
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*Accounts
receivable/Turnover ×365 |
66days |
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*Turnover/Total
assets |
2.67 |
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* Cost of
goods sold/Turnover |
0.94 |
PROFITABILITY:
FAIRLY GOOD
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The turnover of SC appears acceptable in 2006.
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SC’s net profit margin is fairly good.
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SC’s return on total assets is fairly good.
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SC’s cost of goods sold is fairly high, comparing with its turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in a normal level.
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SC’s quick ratio is maintained in a normal level.
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The accounts receivable of SC is fairly large.
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The short loans of SC appear TOO LARGE.
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SC’s turnover is in an acceptable level, comparing with the size of its
total assets.
LEVERAGE: FAIR
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The debt ratio of SC is fairly high.
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The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Fairly stable.
SC is considered small-sized in its line with fairly stable financial conditions.
A credit line up to USD 10,000 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 |
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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 |
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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 |
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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 |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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 and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)