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. 70, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
April 30, 1997 |
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Com. Reg. No.: |
4201002141067 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in manufacturing textiles. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Up To usd1,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
no. 70,
TEL :
86 (0) 27-84712911
FAX :
86 (0) 27-84711560
EXECUTIVE SUMMARY
INCORPORATION DATE : april 30, 1997
REGISTRATION NO. : 4201002141067
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
3,600
REGISTERED CAPITAL : CNY60,000,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY594,200,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY365,710,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY7.57 = US$1 AS OF
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
Note: SC’s address should
be the above stated one, instead of the given
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 April 30, 1997.
Company Status: Limited liabilities co. 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 manufacturing, processing and selling purified cotton, organdie,
cloth, terylene thread, knit goods cloth, socks, textile accessories and
various kinds of garment; selling machinery, instruments and components;
product developing; selling garment; auto freight; purchasing and processing
cotton; exporting its products and technology; and importing raw materials,
accessories, instrument, machinery, components and technology.
SC is mainly
engaged in manufacturing textiles.
Mr. Ma Weiwen has
been chairman of SC since 1997.
SC owns about
3,600 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 Wuhan. Our checks reveal
that SC owns the total premise about 289,856 square meters.
http://www.whym.com.cn The design is
professional and the content is well organized. At present the web is both in
Chinese and English versions.
SC is a group company that mainly engages in the manufacture
of cotton textile and incorporates industry, commerce and trade into its
business. And it was awarded as the Brand-name and
Quality Product In Hubei Province, it has been authorized the ISO9000 international
quality system certificate, and has entered into the industry ranks of
“National Advanced Textile Industry”, and has been awarded the following honors
like one of the national top 50 enterprises of foreign exchange and cotton
textile sales, one of Hubei Province top 100 enterprise, etc.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Guangdong Weijia Investment Co., Ltd. 35
Shenzhen Dingneng Group Co., Ltd. 35
Guangzhou Zenan Trade Co., Ltd. 30
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Chairman:
Mr. Ma Weiwen, in his
Working Experience(s):
From 1997 to present Working
in SC as chairman.
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General Manager:
Mr. Zeng Zhongyi, in his
Working Experience(s):
From 1997 to present Working
in SC as general manager.
SC is mainly engaged
in manufacturing textiles.
SC’s products
mainly include: spindles, cotton cloth looms, and knit
goods cloth, etc.
At
present, it has 170,000 spindles, 2000 cotton cloth looms, of which there are 631
shuttleless looms. With annual production capacity of 30000 ton cotton yarn and
above 60 million meters cotton fabrics, the Bangqiu brand combed yarn produced
by it are awarded as the Brand-name and Quality Product In Hubei Province.
SC sources its materials 90% 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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Wuxi Xihai Textile Parts Co., Ltd.
*Major Customer:
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Foshan Shunde Jinfeng Bleaching
and Dyeing Co., Ltd.
SC is
known to have the following subsidiaries:
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#：024201040001477
Relationship:
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
94,540 |
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Inventory |
128,660 |
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Accounts
receivable |
4,150 |
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Accounts payable
in advance |
24,520 |
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Other Accounts
receivable |
365,380 |
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Advance payment |
0 |
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Other current
assets |
14,830 |
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Current assets |
632,080 |
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Fixed assets |
141,110 |
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Fixed assets net
value |
94,160 |
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Projects under
construction |
46,950 |
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Long term
investment |
58,340 |
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Other assets |
980 |
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Total assets |
832,510 |
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Short loans |
238,000 |
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Accounts payable |
1,330 |
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Other Accounts payable |
1,930 |
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Accounts
receivable in advance |
0 |
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Salaries payable |
840 |
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Welfare payable |
660 |
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Taxes payable |
-4,740 |
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Other current
liabilities |
90,360 |
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Current
liabilities |
328,380 |
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Long term
liabilities |
138,420 |
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Other
liabilities |
0 |
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Total
liabilities |
466,800 |
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Equities |
365,710 |
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Total
liabilities & equities |
832,510 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
594,200 |
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Cost of goods
sold |
543,150 |
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Sales expense |
3,740 |
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Management expense |
19,570 |
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Finance expense |
23,100 |
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Profit before
tax |
3,540 |
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Less: profit tax |
0 |
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Profits |
3,540 |
Important
Ratios
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As
of Dec. 31, 2006 |
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*Current ratio |
1.92 |
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*Quick ratio |
1.53 |
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*Liabilities
to assets |
0.56 |
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*Net profit
margin (%) |
0.60 |
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*Return on
total assets (%) |
0.43 |
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*Inventory
/Turnover ×365 |
79 days |
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*Accounts
receivable/Turnover ×365 |
3 days |
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*Turnover/Total
assets |
0.71 |
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* Cost of
goods sold/Turnover |
0.91 |
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 high, comparing with its
turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in a fairly
good level.
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SC’s quick ratio is maintained in a fairly good
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 is TOO LARGE.
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SC’s turnover is in a fairly good 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 low.
Overall financial
condition of the SC: Fairly stable
SC is considered large-sized in its line with fairly stable financial
conditions. The large amount of short-term loan could be a threat of SC’s
financial health. A credit line
up to USD1,000,000 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%)