MIRA
INFORM REPORT
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Report Date : |
02.08.2007 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
4F Huiyuan Buidling, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Jun. 1, 2000 |
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Com. Reg. No.: |
3301812711398 |
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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 : |
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 100,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
name & address
4F HUIYUAN BUIDLING, NO.
XIAOSHAN DISTRICT,
TEL : 86 (0) 571-82768999
FAX : 86 (0) 571-8276822
EXECUTIVE SUMMARY
INCORPORATION DATE : JUN. 1, 2000
REGISTRATION NO. :
3301812711398
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
80
REGISTERED CAPITAL : CNY 12,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 520,073,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 23,392,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 7.57 =US1$ AS OF 2007-8-2
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
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 Jun. 1, 2000.
Company Status: Limited liabilities company This form of business in PR
China is defined as a legal person. No more than fifty shareholders 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 CNY 30,000. 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 selling industrial products, textiles, knitting goods,
garments, chemical products (excluding hazardous
goods), hardware and mineral, electromechanical products, instruments and
meters, oil and grain, native and animal products, farm and sideline products;
importing and exporting commodities and technology, excluding the goods limited
or prohibited by the state; processing with imported materials, processing with
imported samples, assembling with imported parts, and compensation trade in
agreement.
SC is mainly
engaged in international trade.
Mr. Chen Hua has
been chairman of SC since 2000.
SC owns
approximately 80 staff at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Xiaoshan District. Our checks reveal
that SC rents the total premise about 600 square meters.
www.hz-trading.com The design is
professional and the content is well organized. At present it is in both
Chinese and English versions
E-mail: hzxsjchk@hz-trading.com
Changes of its registered information:
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Date of change |
Item |
Before the change |
After the change |
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2000-6-8 |
Name of the company |
Xiaoshan Imp. & Exp. Co., Ltd. |
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2002-1-29 |
Registered capital |
CNY 5,000,000 |
CNY 8,000,000 |
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2003-4-16 |
Registered capital |
CNY 8,000,000 |
CNY 10,000,000 |
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2004-12-28 |
Registered capital |
CNY 10,000,000 |
CNY 12,000,000 |
MAIN SHAREHOLDERS:
Name % of
Shareholding
Chen Hua 80
Zheng Feng 20
l
Chairman and
general manger:
Mr. Chen Hua, born in 1960, 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.
SC is mainly
engaged in international trade.
SC’s products mainly include: upholstery fabric, curtain panels, bedding
products, embroidery and macramé.
SC sources its materials 80% from domestic
market, and 20% from overseas market. SC sells 70% of its products in domestic
market, and 30% to overseas market.
The buying terms of SC include Check, L/C, T/T and Credit of
30-60 days. The payment terms of SC include Check, L/C, T/T, and Credit of
30-60 days.
SC is known to have the following subsidiaries:
No.1 Business Department (Home Textile)
Tel: 086-571-82768999-8913
Mail: boy@living-furnishings.com
Web site: http://www.living-furnishings.com
No.2 Business Department (Fabric)
Tel: 086-571-82768999-8921
Mail: downy@hz-trading.com
No.3 Business Department
Tel: 086-571-82768999-8965
Mail: swift@hz-trading.com
Web site: www.hz-clothing.com
No.4 Business Department (Woven)
Tel: 086-571-82768999-8901
Mail: shemini@candarn.com
Web site: http://www.candarn.com
No.5 Business Department (Tools)
Tel: 086-571-82768999-8951
Mail: gaffilai@tools-machinery.com
Web site: http://www.tools-machinery.com
No. 8 Business Department
Tel: 086-571-82768999-8981
Mail: effie@candarn.com
Hangzhou Kaida Garments Co., Ltd.
Hangzhou Dingsheng Machinery Co., Ltd.
Wuhu Aidiya Industrial Co., Ltd.
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.
CITIC Bank Xiaoshan
Sub-branch
AC#：94882300000715
Relationship:
Balance Sheet
Unit: CNY’000
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as
of Dec. 31, 2005 |
as
of Dec. 31, 2006 |
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Cash & bank |
33,622 |
29,103 |
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Accounts
receivable |
54,137 |
50,561 |
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Other
receivables |
46,509 |
38,731 |
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Inventory |
6,048 |
29,299 |
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Other current
assets |
439 |
426 |
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------------------ |
------------------ |
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Current assets |
140,755 |
148,120 |
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Fixed assets |
4,713 |
6,011 |
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Fixed assets net
value |
3,122 |
3,654 |
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Projects under
construction |
0 |
0 |
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Long term
investment |
2,624 |
15,976 |
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Other assets |
1,353 |
1,285 |
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Total assets |
147,854 |
169,035 |
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============= |
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Short-term loans |
62,148 |
41,299 |
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Bills payable |
25,351 |
41,000 |
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Accounts payable |
29,346 |
45,588 |
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Accounts
receivable advance |
2,769 |
14,227 |
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Other payable |
6,586 |
7,099 |
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Salaries payable |
874 |
381 |
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Welfare payable |
186 |
389 |
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Tax payable |
-826 |
-4,562 |
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Accrued expenses |
1,061 |
83 |
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Other current
liabilities |
169 |
139 |
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------------------ |
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Current
liabilities |
127,664 |
145,643 |
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Long term
liabilities |
0 |
0 |
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------------------ |
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Total
liabilities |
127,664 |
145,643 |
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Equities |
20,190 |
23,392 |
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Total
liabilities & equities |
147,854 |
169,035 |
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Income Statement
Unit: CNY’000
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as of Dec. 31,
2005 |
as of Dec. 31,
2006 |
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Turnover |
407,085 |
520,073 |
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Cost of goods
sold |
394,705 |
504,514 |
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Sales expense |
7,739 |
10,092 |
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Management expense |
4,461 |
5,695 |
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Finance expense |
2,062 |
466 |
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Profit before
tax |
377 |
483 |
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Less: profit tax |
111 |
156 |
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Profits |
266 |
327 |
Important Ratios
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as
of Dec. 31, 2005 |
as
of Dec. 31, 2006 |
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*Current ratio |
1.10 |
1.02 |
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*Quick ratio |
1.06 |
0.82 |
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*Liabilities
to assets |
0.86 |
0.86 |
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*Net profit
margin (%) |
0.07 |
0.06 |
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*Return on
total assets (%) |
0.18 |
0.19 |
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*Fixed
assets/Total assets |
0.03 |
0.04 |
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*Inventory
/Turnover ×365 |
5days |
21days |
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*Accounts receivable/Turnover
×365 |
49days |
35days |
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*Turnover/Total
assets |
2.75 |
3.08 |
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* Cost of
goods sold/Turnover |
0.97 |
0.97 |
PROFITABILITY:
AVERGE
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The turnover of SC appears fairly good in its line,
and it increased in 2006.
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SC’s net profit margin remains in fair level.
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SC’s return on total assets remains in fair level.
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SC’s cost of goods sold is 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 inventory of SC appears fairly large.
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The accounts receivable of SC appears LARGE.
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The short loans of SC appears TOO LARGE.
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SC’s turnover is in a fairly good 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 medium-sized in its line with fairly stable financial
conditions. The large amount of short loans could be a threat to SC’s financial
condition. A credit line up to USD100,000 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%)