MIRA
INFORM REPORT
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Report Date : |
30.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
GUANGDONG ISR TRADING CO., LTD. |
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Registered Office : |
B-27&28 Guangdong Chemical Town, Dongpu, Tianhe
District, Guangzhou, Guangdong Province, Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
MAY 13, 2003 |
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Com. Reg. No.: |
4400002091976 |
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Legal Form : |
Private Limited Liabilities Company |
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Line of Business : |
Wholesaling
and retailing the chemical products. |
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 : |
Small Company |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
GUANGDONG ISR TRADING CO., LTD.
B-27&28 GUANGDONG CHEMICAL TOWN, DONGPU, TIANHE DISTRICT,
GUANGZHOU, GUANGDONG PROVINCE, PR CHINA
TEL: 0086-20-82550717
FAX: 0086-20-82550350
EXECUTIVE SUMMARY
INCORPORATION DATE :
MAY 13, 2003
REGISTRATION NO. :
4400002091976
REGISTERED LEGAL FORM :
PRIVATE LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MR.YU WEINONG (GENERAL MANAGER)
STAFF STRENGTH :
11
REGISTERED CAPITAL :
CNY 5,000,000
BUSINESS LINE : TRADING
TURNOVER :
CNY 48, 169,400 (AS OF DEC. 31,
2005)
EQUITIES :
CNY 4,970,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO
USD 30,000 (PERIODICAL REVIEW)
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 7.72160=US1$ AS OF 2007-4-30
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 private limited liabilities co. at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on May 13, 2003.
Company Status: Private limited liabilities co. This form
of business in PR China is defined as a legal person. Its registered
capital is contributed jointly by at least 2 shareholders and no more than
thirty. Shareholders bear limited liability to the extent of its total
assets. The private enterprise law requires this form of enterprise employ
not less than 8 employees and to set aside no less than 50% of its
after-tax profits as a production development fund.
SC’s registered business scope
includes selling the chemical products (except the hazardous articles),
textile products, business of importing and exporting (in accordance with the
effective operating certificate of the company).
SC is mainly engaged in wholesaling and retailing the chemical products.
Mr. Yu Weinong has been
general manager of SC since 2003.
SC
owns approximately 11 staff members at present.
SC is currently operating at the above stated address, and this
address houses its operating office in the industrial zone of Guangzhou. Our
checks reveal that SC rents the total premise.
http://www.isr-trading.cn/
It is unable to be landed at present for the technical reason.
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Date of change |
Item |
Before the change |
After the change |
|
2003-09-22 |
Registered business scope |
Selling the selling the chemical products (except the
hazardous articles), textile products |
Selling the chemical products (except the hazardous articles),
textile products, business of importing and exporting(in accordance with the
effective operating certificate of the company) |
|
2004-07-21 |
Legal representative |
Ms. Liu Jianfen |
Mr. Yu Weinong |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Liu Jianfen 49
Yu Weinong 33
Shen Biyun 18
l
General Manager:
Mr. Yu Weinong, born in 1966, with university
education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 2003 to present Working
in SC as general manager.
SC is
mainly engaged in wholesaling and retailing the chemical products.
SC’s products mainly include: polyvinyl alcohol, methylene
dichloride, tetracarp, methylene dichloride.
SC sources its materials 70% from domestic market and 30%
from the overseas market. SC sells 100% of its products in domestic market.
The buying terms of SC include Check, L/C, T/T and Credit of
15-30 days. The payment terms of SC include Check, T/T, and Credit of 15-30
days.
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.
China
CITIC Bank Guangzhou Sub-branch
AC#：74430-2-01823-00012800
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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as
of Dec. 31, 2004 |
as
of Dec. 31, 2005 |
|
Cash
& bank |
1,339.7 |
2,281 |
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Bills
receivable |
0 |
0 |
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Accounts
receivable |
491.8 |
1,180 |
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Other
receivables |
0 |
10 |
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Accounts
payable advance |
7,016.1 |
6,560 |
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Inventory |
868.7 |
3,080 |
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Other
current assets |
0 |
9 |
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------------------ |
------------------ |
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Current
assets |
9,716.3 |
13,120 |
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Fixed assets |
27.9 |
320 |
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Fixed
assets net value |
27.9 |
320 |
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Projects
under construction |
0 |
0 |
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Long
term investment |
0 |
0 |
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Other
assets |
0 |
0 |
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------------------ |
------------------ |
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Total
assets |
9,744.2 |
13,440 |
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============= |
============= |
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Short
loans |
0 |
0 |
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Bills
payable |
0 |
0 |
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Accounts
payable |
375.1 |
2,198 |
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Welfare
payable |
34.5 |
61 |
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Advances
from customers |
92.3 |
79 |
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Accrued
payroll |
39.8 |
22 |
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Tax
payable |
42.2 |
30 |
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Other
payable |
3,990.8 |
6,080 |
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Surcharge
payable |
0 |
0 |
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Other
current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current
liabilities |
4,574.7 |
8,470 |
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Long
term liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
4,574.7 |
8,470 |
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Equities |
5,169.5 |
4,970 |
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------------------ |
------------------ |
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Total
liabilities & equities |
9,744.2 |
13,440 |
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============= |
============= |
Income Statement
Unit: CNY’000
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as of Dec. 31, 2004 |
as of Dec. 31, 2005 |
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Turnover |
22,013.1 |
48,169.4 |
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Cost of goods sold |
20,612.9 |
46,322.7 |
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Sales expense |
1,098.9 |
1,961.6 |
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Management expense |
4.4 |
0 |
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Finance expense |
36.9 |
58.7 |
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Profit before
tax |
250.5 |
-202.2 |
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Less: profit tax |
0 |
0 |
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Profits |
250.5 |
-202.2 |
Important Ratios
=============
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as
of Dec. 31, 2004 |
as
of Dec. 31, 2005 |
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*Current ratio |
2.12 |
1.55 |
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*Quick ratio |
1.93 |
1.19 |
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*Liabilities
to assets |
0.47 |
0.63 |
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*Net profit
margin (%) |
1.14 |
-0.42 |
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*Return on
total assets (%) |
2.57 |
-1.50 |
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*Fixed
assets/Total assets |
0.003 |
0.02 |
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*Inventory
/Turnover ×365 |
15 days |
24 days |
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*Accounts
receivable/Turnover ×365 |
8 days |
9 days |
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*Turnover/Total
assets |
2.26 |
3.58 |
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* Cost of
goods sold/Turnover |
0.94 |
0.96 |
PROFITABILITY:
FAIR
l
The turnover of SC appears fairly good in its line, and it
doubled in 2005.
l
SC’s net profit margin remains fair, even though it decreased in 2005.
l
SC’s return on total assets reduced in 2005,but it still remains fair.
l
SC’s cost of goods sold is fairly high, comparing
with its turnover, which makes the net profit negative.
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 and inventory conversion period appears
acceptable.
l
The accounts receivable of SC appears average.
l
SC’s turnover is in a fairly good level, comparing with the size of its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC is average.
l
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 stable financial
conditions. It is considered a credit line up to USD 30,000 appears 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%)