MIRA
INFORM REPORT
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Report Date : |
26.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
DALIAN DONGLIN SEAFOODS CO., LTD. |
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Registered Office : |
23-H/I International Financial Building, No. 15 Renmin
Road, Dalian, 116001 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
JUN. 26, 2003 |
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Com. Reg. No.: |
010793 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Engaged in
processing and selling aquatic products. |
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 100,000 |
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Status : |
Small Company |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
DALIAN DONGLIN SEAFOODS CO., LTD.
23-H/I INTERNATIONAL FINANCIAL BUILDING, NO. 15 RENMIN ROAD,
DALIAN, 116001 PR CHINA.
TEL : 86 (0) 411-87164996
FAX : 86 (0) 411-87164997
EXECUTIVE SUMMARY
INCORPORATION DATE : JUN. 26, 2003
REGISTRATION NO. : 010793
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY
JOINT VENTURE ENTERPRISE
STAFF STRENGTH :
50
REGISTERED CAPITAL : USD 4,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
cny 74,090,000 (AS OF DEC. 31, 2006)
EQUITIES :
cny 29,310,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 100,000 (PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : FAIRLY steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.73= US$1 AS OF 2007-4-26
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
Note: The correct name of SC should be the heading one instead of “Dalian Donglin Food Co Ltd.” given by client.
SC was registered as a Chinese-foreign equity joint venture enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Jun. 26, 2003.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The joint venture
usually have a limited duration of 10 to 50 years. Enterprise with large
investment, long construction periods, low investment returns, introducing
of advanced technology & advanced technology products which have good
competition position in international market may extend beyond the 50 years
limit.
SC’s registered business scope includes purchasing and processing farm
and sideline products and aquatic products; processing biology chemical
preparation.
SC is mainly engaged
in processing and selling aquatic products.
Mr. Shen Lin has
been chairman of SC since 2003.
SC owns about 50
staff.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Dalian. Our checks reveal that SC
rents the total premise about 200 square meters as its operating office, and
also owns 22,000 square meters of processing area in Shihe Town, Jinzhou
District, Dalian.
http://www.donglin-seafoods.cn
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 local
AIC.
MAIN SHAREHOLDERS:
Name % of Shareholding
USA Safi Fishery Co., Ltd. 61.75
Dlian Lanbao Marine Products Co., Ltd. 38.25
Add: H No. 23 Renmin Road, Zhongshan
District, Dalian.
Tel: 86 411-82507269
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Chairman and
General Manager:
Mr. Shen Lin, in his 40’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2003 to present Working
in SC as chairman and general manager.
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Vice General
Manager:
Mr. Chen Yuguang, in his 50’s with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2003 to present
Working in SC as vice general
manager.
SC is mainly
engaged in processing and selling aquatic products.
SC’s products
mainly include: squid, salmon, pollock, red snow crab, clam, seafood mix,
yellow fin sole and red fish.
SC sources its
materials 100% from domestic market. SC sells 10% of its products in domestic
market and 90% to the overseas markets, mainly to Japan, Europe and American.
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 Clients:
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USA Safi Fishery Co., Ltd.
USA Meto Trading 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.
Agriculture Bank of China Shihe Sub-Branch
AC#：300401040004803
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2006 |
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Cash & bank |
5,640 |
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Accounts payable
advance |
0 |
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Accounts
receivable |
14,190 |
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Inventory |
28,840 |
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Other
receivables |
2,680 |
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Other current
assets |
30 |
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Current assets |
51,380 |
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Fixed assets net
value |
16,360 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
2,810 |
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Total assets |
70,550 |
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Short loans |
19,730 |
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Accounts payable |
12,140 |
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Accounts
receivable advance |
0 |
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Taxes payable |
-370 |
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Salaries payable |
0 |
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Other payable |
8,700 |
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Other current liabilities |
40 |
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Current
liabilities |
40,240 |
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Long term
liabilities |
1,000 |
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Total
liabilities |
41,240 |
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Equities |
29,310 |
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Total
liabilities & equities |
70,550 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2006 |
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Turnover |
74,090 |
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Cost of goods
sold |
67,790 |
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Sales expense |
5,060 |
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Management expense |
2,000 |
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Finance expense |
2,860 |
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Profit before
tax |
-2,550 |
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Less: profit tax |
0 |
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Profits |
-2,550 |
Important Ratios
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as
of Dec. 31, 2006 |
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*Current ratio |
1.28 |
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*Quick ratio |
0.56 |
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*Liabilities
to assets |
0.58 |
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*Net profit
margin (%) |
-3.44 |
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*Return on
total assets (%) |
-3.61 |
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*Fixed
assets/Total assets |
0.23 |
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*Inventory
/Turnover ×365 |
142days |
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*Accounts
receivable/Turnover ×365 |
70days |
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*Turnover/Total
assets |
1.05 |
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* Cost of
goods sold/Turnover |
0.91 |
PROFITABILITY:
FAIR
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The turnover of SC appears average in 2006.
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SC’s net profit margin appears fair.
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SC’s return on total assets appears fair.
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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 fair level.
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The accounts receivable of SC is average.
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The inventory of SC is fairly large.
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The short loans are fairly large.
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SC’s turnover is in an acceptable level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
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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.
The large amount of short loans and inventory could be a threat to SC’s
financial condition. A credit line up to USD 100,000 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%)