MIRA
INFORM REPORT
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Report Date : |
13.08.2007 |
IDENTIFICATION DETAILS
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Name : |
henan welong
import & export co., ltd. |
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Registered Office : |
Room 1006, Futian Building,
No. 226 Nanyang Road, Jinshui District, Zhengzhou, Henan Province, 450000 Pr |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
October 1, 2005 |
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Com. Reg. No.: |
4101052104203 |
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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 : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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. |
Small |
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Maximum Credit Limit : |
Up To usd 10,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
henan welong import
& export co., ltd.
room 1006,
TEL :
86 (0) 371-63602352
FAX :
86 (0) 371-63602351
EXECUTIVE SUMMARY
INCORPORATION DATE : october 1, 2005
REGISTRATION NO. : 4101052104203
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
10
REGISTERED CAPITAL : CNY 1,000,000
BUSINESS LINE :
trading
TURNOVER :
CNY 11,000,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 1,040,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : average
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : fair
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY7.56 = US$1 AS OF 2007-8-10
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
Note: SC’s
correct address should be the above stated one, instead of the given address –
No.43 huanghe road, No. 15 jingqi Road, Crossing of Nanyang and
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 October 1, 2005.
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 selling chemical products, light industrial products,
ceramics, agricultural products and by products, operating and acting as an agent
of importing and exporting various kinds of commodities and technology,
excluding the goods limited or forbidden by the government.
SC is mainly
engaged in international trade.
Mr. Liu Yongqian
has been chairman of SC since 2005.
SC owns about 10
staff at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Zhengzhou. Our checks reveal that SC
rents the total premise about 80 square meters.
http://www.we-long.com The design
is professional and the content is well organized. At present the web site is
only in English version.
E-mail: paperco@we-long.com
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Liu Yongqian 35
Liu Yongjun 65
l
Chairman:
Mr. Liu Yongqian, about 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.
l
Sales Manager:
Mr. Li Yihang
SC is mainly
engaged in international trade.
SC’s products mainly
include: chemical products, woodfree offset paper, photocopy paper, cast coated
paper, carbonless paper, offset office paper, kraft paper.
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Inorganic Chemicals Aluminium Sulphate 17% Ammonium
Chloride 99.5% Barium Sulphate 98% Boric Acid 99.5% Borax
99.5% Calcium Carbonate 98% Calcium Carbide Calcium Chloride
Dihydrate Calcium Hypochlorite 65% Carbon Black N330/N660 Sodium
Metabisulphite 64% Sodium Silicofluoride 99% Sodium Bicarbonate 99% Sodium Nitrite 99% Sodium Hexametaphosphate 68% Sodium
Hydrosulphite 85%/88%/90% Sodium
Hyposulphite 99% Manganese
Sulphate 98% Zinc Chloride
98% Zinc Oxide 99%/
99.5%/99.7% Zinc Sulphate
98% Mono/Hepta Zirconium
Oxychloride 36% Zirconium Oxide
99.5% |
Organic
Chemicals Acetic Acid
Glacial Benzoic Acid Tech/BP98 Citric Acid Anhy
BP98 Carboxyl Methyl
Cellulose(CMC) Formic Acid
85%/90% Oxalic Acid
99.6% Pentaerythritol
98% PVC Resins Petroleum Resins Sodium Benzoate
BP98 Stearic Acid
200/400/800 Type |
Pigment&Dyestuff Chrome Yellow Lithopone Iron Oxide Red/Yellow/Black Titanium Dioxide |
Feedstuff Calcium
Hydrophosphate P17% Feed Grade Manganese
Sulphate 98% Feed Grade Zinc Oxide
74%/72%/68% Feed Grade Zinc Sulphate98%
Mono Feed Grade |
SC sources its materials 100% from domestic market,
mainly
The buying terms of SC include Check, T/T and Credit of 15-30 days. The
payment terms of SC include T/T, L/C and Credit of 15-30 days.
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#：624337624878091001
Relationship:
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
1,470 |
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Inventory |
1,900 |
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Accounts
receivable |
0 |
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Other Accounts
receivable |
0 |
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To be
apportioned expense |
0 |
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Other current
assets |
430 |
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Current assets |
3,800 |
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Fixed assets net
value |
20 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
80 |
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Total assets |
3,900 |
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Short loans |
0 |
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Accounts payable |
0 |
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Other Accounts
payable |
0 |
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Advances from
customers |
3,000 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
-200 |
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Current
liabilities |
2,800 |
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Long term
liabilities |
0 |
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Other
liabilities |
60 |
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Total
liabilities |
2,860 |
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Equities |
1,040 |
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Total
liabilities & equities |
3,900 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
11,000 |
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Cost of goods
sold |
8,600 |
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Sales expense |
2,460 |
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Management expense |
110 |
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Finance expense |
10 |
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Profit before
tax |
70 |
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Less: profit tax |
20 |
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Profits |
50 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 1.36
*Quick ratio 0.68
*Liabilities to
assets 0.73
*Net profit
margin (%) 0.45
*Return on total
assets (%) 1.28
*Inventory
/Turnover ×365 63 days
*Accounts
receivable/Turnover ×365 / days
*Turnover/Total
assets 2.82
* Cost of goods
sold/Turnover 0.78
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 average.
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SC’s return on total assets is average.
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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 fairly
good level.
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SC’s quick ratio is maintained in a fair level.
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The inventory of SC appears LARGE.
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SC has no accounts receivable in 2006.
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SC has no short-term loan in 2006.
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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 fairly high.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered small-sized in its line with fairly stable financial
conditions. A credit line up to USD 10,000
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. |
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%)