MIRA
INFORM REPORT
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Report Date : |
02.08.2007 |
IDENTIFICATION DETAILS
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Name : |
shandong shuntian textile co., ltd. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Oct. 23, 2000 |
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Com. Reg. No.: |
3716251801124 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in manufacturing textile. |
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 500,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
shandong shuntian textile co., ltd.
TEL : 86 (0) 543-2123000
FAX : 86 (0) 543-2123138
EXECUTIVE SUMMARY
INCORPORATION DATE : oct. 23, 2000
REGISTRATION NO. : 3716251801124
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
1,200
REGISTERED CAPITAL : CNY105,000,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 177,460,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 143,160,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : competitive
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY7.57 = US$1 AS OF 2007-08-01
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
Note: SC’s correct name should be the above stated one, instead of the given one Shandong Shuntan Textile Co., Ltd.
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 Oct. 23, 2000.
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. :
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 30% 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 manufacturing and selling textiles.
SC is mainly
engaged in manufacturing textile.
Mr. Li Jixu has
been chairman of SC since 2000.
SC owns about
1,200 staff at present.
SC is
currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Binzhou. Our checks
reveal that SC owns the total premise about 250,000 square meters.
http://www.shuntiantex.com The design is
professional and the content is well organized. At present the web is both in
Chinese and English versions.
E-mail: shuntian@shuntiantex.com
SC has
won the honors such as the Class A Tax-paying Credit Enterprise of Boxing
County, and Class AAA Credit Enterprise of Shandong Provincial Agricultural
Development Bank etc
MAIN SHAREHOLDERS:
Name Investment (CNY’000) % of Shareholding
Li Jixu
23,220
22.11
Shu Dazhen 2,210 2.10
Hao Suxiang 1,050 1.00
Zhou
Liu Hongbin 960 0.91
Other individuals 73,520 70.03
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Chairman and
General Manager:
Mr. Li Jixu, born in 1948, 59 years old with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 2000 to present Working
in SC as chairman and general manager.
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Assistant Manager:
Mr. Li Zhigang, 39 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 assistant manager.
SC is mainly
engaged in manufacturing textile.
SC’s products
mainly include: cotton, and twisted yarn, etc.
SC has the capacity
of annually purchasing and processing 500000 dan of cotton, manufacturing
150000 spindles of yarn and twisting 1000 tons of yarns as well.
SC introduced
advanced equipment from abroad, such as blowing-carding unit from Germany,
full-automatic cone winding machine from Italy and Japan, combing machine from
Pacific Group, as well as double-twisting machine and model 312 automatic rotor
spinning machine from Germany. The yarns manufactured by us include
general-combing yarn, fine-combing yarn, polyester-cotton mixed yarn, Anlun
core spun yarn, manifold sewing thread, and gray yarn.
SC sources its materials 70% from domestic
market, mainly
The buying terms of SC include Check, T/T, L/C and Credit of 15-30 days.
The payment terms of SC include Check, T/T, L/C and Credit of 15-30 days.
*Major Supplier:
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Nantong Shuntian Textile 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.
Agricultural Bank of
AC#：734901040004568
Relationship:
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
17,060 |
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Inventory |
22,460 |
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Accounts
receivable |
1,060 |
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Other Accounts
receivable |
118,680 |
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Advance payment |
0 |
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Other current
assets |
580 |
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Current assets |
159,840 |
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Fixed assets |
206,820 |
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Fixed assets net
value |
102,430 |
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Projects under
construction |
104,390 |
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Long term
investment |
0 |
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Other assets |
8,820 |
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Total assets |
375,480 |
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Short loans |
116,700 |
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Accounts payable |
1,090 |
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Other Accounts
payable |
10,030 |
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Bills payable |
9,000 |
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Salaries payable |
0 |
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Welfare payable |
1,990 |
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Taxes payable |
1,610 |
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Withdraw the
expenses in advance |
1,190 |
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Other current liabilities |
30 |
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Current
liabilities |
141,640 |
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Long term
liabilities |
90,680 |
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Other
liabilities |
0 |
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Total
liabilities |
232,320 |
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Equities |
143,160 |
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Total liabilities
& equities |
375,480 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
177,460 |
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Cost of goods
sold |
163,650 |
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Sales expense |
2,630 |
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Management expense |
4,080 |
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Finance expense |
4,510 |
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Profit before
tax |
2,260 |
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Less: profit tax |
750 |
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Profits |
1,510 |
Important
Ratios
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As
of Dec. 31, 2006 |
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*Current ratio |
1.13 |
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*Quick ratio |
0.97 |
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*Liabilities
to assets |
0.62 |
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*Net profit
margin (%) |
0.85 |
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*Return on
total assets (%) |
0.40 |
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*Inventory
/Turnover ×365 |
46 days |
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*Accounts
receivable/Turnover ×365 |
2 days |
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*Turnover/Total
assets |
0.47 |
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* Cost of
goods sold/Turnover |
0.92 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears fairly good in its line.
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SC’s net profit margin is acceptable.
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SC’s return on total assets is acceptable.
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SC’s cost of goods sold is fairly high, 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 a normal level.
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The inventory of SC is maintained in a slightly
large level.
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The accounts receivable of SC is maintained in a
fairly good level.
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The short-term loan of SC appears LARGE.
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SC’s turnover is in an average 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 average.
Overall financial
condition of the SC: Stable.
SC is considered medium-sized in its line with stable financial
conditions. The large amount of short-term loan could be a threat to SC’s financial
condition. A credit line up to USD500,000 would appear to be within SC’s
capacities.
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%)