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 : |
No. 2, Ganhe Western Road, Jiangyan Economic Development Zone,
Jiangyan, Jiangsu Province, 225500 Pr |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
October 9, 2002 |
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Com. Reg. No.: |
3212841103636 |
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Legal Form : |
Sole State-Owned |
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Line of Business : |
Engaged in
manufacturing and selling different sorts of spinning. |
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 50,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
name & address
NO. 2, GANHE WESTERN ROAD, JIANGYAN ECONOMIC DEVELOPMENT ZONE, JIANGYAN, JIANGSU PROVINCE, 225500 PR CHINA.
TEL : 86 (0) 523-8818185
FAX : 86 (0) 523-8818186
EXECUTIVE SUMMARY
INCORPORATION DATE : OCTOBER 9, 2002
REGISTRATION NO. : 3212841103636
REGISTERED LEGAL FORM :
SOLE STATE-OWNED
STAFF STRENGTH : 129
REGISTERED CAPITAL : CNY 580,000
BUSINESS LINE : MANUFACTURING
TURNOVER :
CNY 76,620,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 5,610,000
(AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : average
FINANCIAL CONDITION : FAIRLY GOOD
OPERATIONAL TREND : AVERAGE
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
7.57 = US1$ AS OF
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 sole state-owned enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on October 9, 2002.
Company Status: Sole state-owned enterprise This form of business in PR
China is defined as a commodity production or operational units of a
socialist character which in accordance with the law, has autonomy in
management, takes full responsibility for its profits and losses and
practices independent business accounting. It is a legal person established
directly by central / local government or enterprise owned by central or
local government. In theory, the liabilities of this form of enterprise are
ultimately borne by the government, since the adoption of company law in
mid-1994, the Chinese government has planned to separate the ownership from
management and liabilities bearing. The shareholders of this form
of limited liabilities company are State-owned Assets Supervision and
Administration Commission authorized by the State Council or local
Municipal Government. The regulation is set up by
State-owned Assets Supervision and Administration Commission, or by the
board of directors after approval of State-owned Assets Supervision and
Administration Commission. Sole state-owned enterprise
does not set up board of shareholders, which is replaced by State-owned
Assets Supervision and Administration Commission. State-owned Assets Supervision
and Administration Commission assign the board of directors.
SC’s
registered business scope includes selling rotor spinning, weaving cloth;
manufacturing and selling garments and wires; selling textile raw materials; import
and export of various goods and technologies (excluding the good prohibited or
limited by the country).
SC is mainly
engaged in manufacturing and selling different sorts of spinning.
Mr. Jiang Yuedong has been legal representative and chairman of SC since
2002.
SC owns
approximately 129 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 Jiangyan. Our checks reveal that SC rents the total premise about 3,500
square meters.
SC is not known to host website of its own at present.
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Jiangyan Civil Affairs Bureau 100
l
Legal representative and General manager:
Mr. Jiang Yuedong, in his
Working Experience(s):
From 2002 to present Working in SC as chairman and general manager.
SC is mainly engaged
in manufacturing and selling different sorts of spinning.
SC’s products mainly include electrostatic spinning, vortex
spinning, asbestos fiber spinning, open-end spinning and rotor spinning, etc.
SC sources its materials 100%
from domestic market. SC sells 90% of its products in domestic market, and 10%
to overseas market, mainly
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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*Major Customers:
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Shanghai
Xinke Textile Parts 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
AC#：2227090809101
Relationship:
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
2,620 |
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Inventory |
1,320 |
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Accounts
receivable |
8,040 |
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Notes receivable |
4,600 |
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Other current
assets |
0 |
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Current assets |
16,580 |
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Fixed assets |
11,530 |
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Fixed assets net
value |
8,270 |
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Projects under
construction |
1,290 |
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Long term
investment |
0 |
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Other assets |
0 |
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Total assets |
26,140 |
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Short loans |
0 |
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Accounts payable |
110 |
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Other payable |
15,810 |
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Notes payable |
3,550 |
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Accrued expenses |
980 |
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Other current
liabilities |
80 |
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Current
liabilities |
20,530 |
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Long term
liabilities |
0 |
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Total
liabilities |
20,530 |
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Equities |
5,610 |
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Total
liabilities & equities |
26,140 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
76,620 |
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Cost of goods
sold |
70,260 |
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Add:
Income from other operations |
1,050 |
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Sales expense |
1,340 |
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Management expense |
1,550 |
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Finance expense |
450 |
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Subsidy income |
1,550 |
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Profit before
tax |
5,190 |
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Less: profit tax |
0 |
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Profits |
5,190 |
Important Ratios
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as
of Dec. 31, 2006 |
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*Current ratio |
0.81 |
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*Quick ratio |
0.74 |
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*Liabilities
to assets |
0.78 |
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*Net profit
margin (%) |
6.77 |
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*Return on
total assets (%) |
19.9 |
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*Fixed
assets/Total assets |
0.32 |
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*Inventory
/Turnover ×365 |
6days |
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*Accounts
receivable/Turnover ×365 |
38days |
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*Turnover/Total
assets |
2.93 |
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* Cost of
goods sold/Turnover |
0.92 |
PROFITABILITY:
FAIRLY GOOD
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The turnover of SC appears fairly good in its line.
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SC’s net profit margin is fairly good.
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SC’s return on total assets is fairly good.
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SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in a fair
level.
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SC’s quick ratio is maintained in a fair 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 a
fairly large level.
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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 average.
Overall financial
condition of the SC: Fairly good.
SC is considered medium-sized in its line with favorable market
conditions. Over the past 5 years, SC has made a stable growth with acceptable
profit. A credit line up to USD 50,000 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%)