MIRA
INFORM REPORT
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Report Date : |
06.08.2007 |
IDENTIFICATION
DETAILS
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Name : |
ZHEJIANG HUALIAN
SHOPPING CENTER Co., Ltd. |
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Registered Office : |
No. 55, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
November 1, 1985 |
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Com. Reg. No.: |
3302811000201 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in
wholesaling and retailing general merchandise and garments. |
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 USD 500,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
ZHEJIANG HUALIAN
SHOPPING CENTER Co., Ltd.
NO. 55,
TEL :
86 (0) 574-62626109
FAX :
86 (0) 574- 62626114
EXECUTIVE SUMMARY
INCORPORATION DATE : NOVEMBER 1, 1985
REGISTRATION NO. : 3302811000201
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 1,100
REGISTERED CAPITAL : CNY 13,000,000
BUSINESS LINE : RETAILING
TURNOVER : CNY 531,390,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 85,650,000 (AS OF
DEC. 31, 2006)
PAYMENT : AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : well-known
EXCHANGE RATE : CNY
7.56 = US1$ AS OF 2007-8-6
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 November 1, 1985.
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 retailing and wholesaling textiles, garments, general
merchandise, stationers goods, sports and apparatus, mechanical equipment,
hardware, electronics, arts & crafts and jewelry; repairing electronic apparatus and clock, leasing counter;
importing and exporting various goods and technologies, excluding the good
prohibited or limited by the country.
SC is mainly
engaged in wholesaling and retailing general merchandise and garments.
Mr. Yang Jun has been legal representative and chairman of SC since
2000.
SC
owns approximately 1,100 staff at present.
SC is currently operating at the above stated address, and this
address houses its operating office and factory in the commercial zone of
Yuyao. Our checks reveal that SC owns the total premise about 8,690 square
meters.
http://www.yyhl.com/ The design is professional and the content
is well organized. At present it is in Chinese version.
Email: admin@zjhl.net
No significant events or changes were found during our checks
with the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Yang Jun 51
Other 46 individuals 49
l
Legal representative and chairman:
Mr. Yang Jun, 43
years old with MBA degree. He is currently responsible for the overall
management of SC.
Working Experience(s):
From 2000 to present Working in SC as chairman and legal representative.
l
General manager:
Mr. Jin Zuoshi, in his 50’s with university
education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 2000 to present Working in SC as general manager.
SC is mainly engaged
in wholesaling and retailing general merchandise and garments.
SC sources its materials 100%
from domestic market and sells 100% of its products in domestic market.
The buying terms of SC include Cash, Check, T/T and Credit
of 30-60 days. The payment terms of SC include Cash, Check, T/T and Credit of
30-60 days.
SC is known to have the following subsidiaries:
Ningbo
Xin Hualian Co., Ltd.
Shanghai
International Health City Management Co., Ltd.
Shanghai
Shanshui Global Digital Technology Co., Ltd.
Ningbo
Zhedong Marketing Supermarket Co., Ltd.
Shanghai
Huamao Investment 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.
Bank
of
AC#：814061579508091001
Relationship:
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
32,840 |
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Inventory |
54,170 |
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Accounts
receivable |
2,120 |
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Advances to
suppliers |
16,180 |
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Prepaid expenses |
3,530 |
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Other
receivables |
54,610 |
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Other current
assets |
1,050 |
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Current assets |
164,500 |
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Fixed assets |
172,030 |
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Fixed assets net
value |
121,440 |
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Projects under
construction |
400 |
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Long term investment |
19,720 |
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Intangible
assets |
33,170 |
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Other assets |
9,890 |
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Total assets |
349,120 |
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Short loans |
50,000 |
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Accounts payable |
91,890 |
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Other payable |
34,070 |
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Taxes unpaid |
2,970 |
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Surcharge
payable |
170 |
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Accrued payroll |
1,940 |
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Accrued expenses |
290 |
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Welfare expenses
payable |
680 |
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Advances from
customers |
47,710 |
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Other current
liabilities |
5,810 |
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Current
liabilities |
235,530 |
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Long term liabilities |
27,940 |
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Total
liabilities |
263,470 |
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Equities |
85,650 |
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Total
liabilities & equities |
349,120 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
531,390 |
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Cost of goods
sold |
486,140 |
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Add:
Income from other operations |
52,400 |
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Sales expense |
33,900 |
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Management expense |
61,710 |
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Finance expense |
4,200 |
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Non-operating income |
4,700 |
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Investment
income |
1,790 |
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Profit before
tax |
3,030 |
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Less: profit tax |
1,000 |
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Profits |
2,030 |
Important Ratios
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as
of Dec. 31, 2006 |
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*Current ratio |
0.70 |
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*Quick ratio |
0.47 |
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*Liabilities to
assets |
0.75 |
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*Net profit
margin (%) |
0.38 |
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*Return on
total assets (%) |
0.58 |
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*Fixed
assets/Total assets |
0.35 |
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*Inventory
/Turnover ×365 |
38days |
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*Accounts
receivable/Turnover ×365 |
2days |
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*Turnover/Total
assets |
1.52 |
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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 fair.
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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 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 an average level.
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SC’s short-term loan appears fairly large.
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SC’s turnover is in an acceptable 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: Fairly stable.
SC is considered large-sized in its line with fairly stable conditions.
A credit line up to USD 500,000 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%)