MIRA
INFORM REPORT
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Report Date : |
02.08.2007 |
IDENTIFICATION DETAILS
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Name : |
zhejiang everwin
yarn co., ltd. |
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Registered Office : |
No.163 |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
September 5, 2003 |
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Com. Reg. No.: |
3304241000258 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in manufacturing
and selling textiles, knitgoods and garments. |
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
zhejiang everwin
yarn co., ltd.
no.163
TEL :
86 (0) 573-86181888
FAX :
86 (0) 573-86181088
EXECUTIVE SUMMARY
INCORPORATION DATE : september 5, 2003
REGISTRATION NO. : 3304241000258
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
800
REGISTERED CAPITAL : CNY 56,800,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 4,880,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 11,880,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fair
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY7.56 = US$1 AS OF 2007-8-1
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 September 5, 2003.
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 textiles, knitgoods, and garments, selling textile
raw materials.
SC is mainly
engaged in manufacturing and selling textiles, knitgoods, and garments.
Mr. Yan Zhichao
has been chairman of SC since 2005.
SC owns about 800
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 Haiyan county. Our
checks reveal that SC owns the total premise about 50,000 square meters.
SC is not known to host web site of its own at present.
SC started its normal operation in August 2006.
Changes of its registered information are as follows:
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Date of change |
Item |
Before the change |
After the change |
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2005 |
Chairman |
Ren Dawei |
Yan Zhichao |
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2007-1 |
Registered capital |
CNY 5,500,000 |
CNY 56,800,000 |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Haiyan Guangda Textile Co., Ltd. 84.15
Guo Chuling 15.85
l
Chairman and
General Manager:
Mr. Yan Zhichao, 35 years old with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2005 to present Working
in SC as chairman and general manager.
SC is mainly
engaged in manufacturing and selling textiles, knitgoods, and garments.
SC has started its
normal operation in August 2006.
SC’s products
mainly include: textiles, knitgoods, and clothing
SC sources its materials 100% from domestic
market, mainly
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 Supplier:
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Haiyan Guangda 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#：360101040013054
Relationship:
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
6,770 |
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Inventory |
11,560 |
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Accounts
receivable |
0 |
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Other Accounts
receivable |
20 |
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To be
apportioned expense |
100 |
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Other current
assets |
10 |
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------------------ |
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Current assets |
18,460 |
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Fixed assets net
value |
6,720 |
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Projects under
construction |
0 |
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Intangible
assets |
16,900 |
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Long term
investment |
0 |
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Other assets |
910 |
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Total assets |
42,990 |
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Short loans |
10,500 |
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Accounts payable |
7,330 |
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Other Accounts
payable |
0 |
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Advances from
customers |
15,250 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
-1,970 |
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Current
liabilities |
31,110 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
31,110 |
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Equities |
11,880 |
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Total
liabilities & equities |
42,990 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
4,880 |
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Cost of goods
sold |
4,480 |
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Sales expense |
0 |
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Management expense |
560 |
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Finance expense |
40 |
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Profit before
tax |
-2,410 |
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Less: profit tax |
0 |
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Profits |
-2,410 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 0.59
*Quick ratio 0.22
*Liabilities to
assets 0.72
*Net profit
margin (%) -49.39
*Return on total
assets (%) -5.61
*Inventory
/Turnover ×365 865 days
*Accounts
receivable/Turnover ×365 / day
*Turnover/Total
assets 0.11
*Cost of goods
sold/Turnover 0.92
PROFITABILITY:
FAIR
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The turnover of SC appears fairly poor in its line.
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SC’s net profit margin is poor.
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SC’s return on total assets is 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 fair
level.
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SC’s quick ratio is maintained in a poor level.
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The inventory of SC appears fairly large.
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SC has no accounts receivable in 2006.
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The short-term loan of SC appears LARGE.
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SC’s turnover is in a fair 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: Fair.
SC is considered medium-sized in its line with fair financial
conditions. A credit line up to USD 50,000 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%)