MIRA
INFORM REPORT
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Report Date : |
17.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
xinchang xinchen
import & export Co., Ltd. |
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Registered Office : |
No. 100,
Nanmenwai, Chengguan Town, Xinchang County, Shaoxing, Zhejiang Province, 312500
Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
October 28, 1997 |
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Com. Reg. No.: |
3306242100343 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Exporting electromechanical products and textiles. |
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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Maximum Credit Limit : |
Up To USD 30,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
xinchang xinchen
import & export Co., Ltd.
NO. 100, NANMENWAI, CHENGGUAN TOWN, XINCHANG
COUNTY,
shaoxing, ZHEJIANG PROVINCE, 312500 PR CHINA.
TEL :
86 (0) 575-6011751
FAX :
86 (0) 575-6035728
EXECUTIVE SUMMARY
INCORPORATION DATE : OCTOBER 28, 1997
REGISTRATION NO. :
3306242100343
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 7
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 76,470,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 4,650,000
(AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 30,000 (PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
7.73 = US1$ AS OF 2007-4-16
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
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 October 28, 1997.
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 selling electromechanical products(excluding saloon car), bamboo
and wooden crafts, knitting textiles, textile raw materials, garments, local
agro-products, building materials, hardware, chemical
(excluding the hazard products), communication equipments; administrating and
acting as an agent of the import and export of various goods and technologies
(excluding the good prohibited or limited by the country); processing and
compensation trades; management of barter trade and carrying trade.
SC is mainly
engaged in exporting electromechanical products and textiles.
Mr. Zhang Feng has been legal representative and chairman of SC since
2006.
SC owns approximately 7 staff at present.
SC is currently operating at the above stated address, and this
address houses its operating office in the industrial zone of Shaoxing. Our
checks reveal that SC rents the total premise about 30 square meters.
E-mail: zxz@mail.sxptt.zj.cn
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhang Feng 100
l
Legal representative and General manager:
Mr. Zhang Feng, in his 40’s with university education.
He 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 exporting electromechanical products and textiles.
SC’s products
mainly include: silk, bearings, plastic machine & moulds, etc.
SC sources its materials 100%
from domestic market. SC sells 100% of its products in domestic market, mainly
Africa and Europe.
The buying terms of SC include Check, T/T and Credit of
30-60 days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60
days.
*Major Suppliers:
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Taizhou Huangyan Yuankang Machinery 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 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.
Bank of China Xinchang Sub-branch.
AC#：870021317310891001
Relationship:
Normal.
Balance Sheet (as
of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
12,060 |
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Inventory |
140 |
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Accounts
receivable |
4,680 |
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Advances to
suppliers |
1160 |
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Other
receivables |
13,650 |
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Other current
assets |
250 |
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------------------ |
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Current assets |
31,940 |
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Fixed assets |
120 |
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Fixed assets net
value |
100 |
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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 |
32,040 |
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Short loans |
9,500 |
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Accounts payable |
6,600 |
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Other payable |
2,310 |
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Advances from
customers |
8,770 |
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Other current
liabilities |
210 |
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Current
liabilities |
27,390 |
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Long term
liabilities |
0 |
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Total
liabilities |
27,390 |
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Equities |
4,650 |
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Total
liabilities & equities |
32,040 |
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Income Statement (as
of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
76,470 |
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Cost of goods
sold |
73,970 |
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Sales expense |
1,160 |
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Management expense |
1,220 |
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Finance expense |
460 |
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Profit before
tax |
-430 |
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Less: profit tax |
0 |
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Profits |
-430 |
Important Ratios
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as
of Dec. 31, 2006 |
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*Current ratio |
1.17 |
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*Quick ratio |
1.16 |
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*Liabilities
to assets |
0.85 |
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*Net profit
margin (%) |
-0.56 |
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*Return on
total assets (%) |
-1.34 |
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*Fixed
assets/Total assets |
0.003 |
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*Inventory
/Turnover ×365 |
1days |
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*Accounts
receivable/Turnover ×365 |
22days |
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*Turnover/Total
assets |
2.39 |
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* Cost of
goods sold/Turnover |
0.97 |
PROFITABILITY:
FAIR
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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.
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SC’s cost of goods sold is acceptable, comparing with its turnover.
LIQUIDITY: AVERAGE
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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 an average level.
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The inventory of SC is maintained in an average level.
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The accounts receivable of SC is maintained in an average level.
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SC’s short-term loan appears FAIRLY 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 average.
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The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Fair.
SC is considered small-sized in its line with fair financial conditions.
A credit line up to USD 20,000 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%)