MIRA
INFORM REPORT
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Report Date : |
16.08.2007 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
October 8, 2003 |
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Com. Reg. No.: |
3301052103800 |
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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 : |
usd 30,000 |
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Status : |
Small Company |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
name & address
no.525
TEL :
86 (0) 571-88091109
FAX :
86 (0) 571-88095700
EXECUTIVE SUMMARY
INCORPORATION DATE : october 8, 2003
REGISTRATION NO. : 3301052103800
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
15
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE :
trading
TURNOVER :
CNY 6,670,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 5,000,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : average
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly steady
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY7.60 = US$1 AS OF 2007-8-16
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 name should be the above stated one, instead of the given name – ZHEJIANG YINHAO CHEMISTRY DEVELOPEING CO
LTD.
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 8, 2003.
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 raw materials, textiles printing and dyeing
equipments, clothing lining and auxiliary materials, electronic spare parts,
manufacturing and processing textile auxiliary, packaging textile lining.
SC is mainly
engaged in international trade.
Mr. Xu Zhongwei
has been chairman of SC since 2003.
SC is known to
have approx. 15 staff members at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Hangzhou. Our checks reveal that SC
rents the total premise about 200 square meters.
http://www.zjyhhg.com The design is
professional and the content is well organized. At present the web site is only
in Chinese version.
E-mail: zjyhhg-888@163.com
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Xu Zhongwei 80
Jie Dongping 20
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Chairman and
General Manager:
Mr. Xu Zhongwei, 46 years old with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2003 to present Working
in SC as chairman and general manager.
SC is mainly
engaged in international trade.
SC’s products
mainly include: dyestuff, textile auxiliary.
SC sources its materials 100% from domestic
market, mainly
The buying terms of SC include Check, T/T and Credit of 30 days. The
payment terms of SC include T/T, L/C and Credit of 30 days.
*Major Supplier:
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Hangzhou Hengsheng Chemical 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#：1101010901201000145205
Relationship:
Balance Sheet (as
of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
50 |
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Inventory |
360 |
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Accounts
receivable |
2,300 |
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Other Accounts
receivable |
4,670 |
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To be
apportioned expense |
0 |
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Other current
assets |
20 |
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Current assets |
7,400 |
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Fixed assets net
value |
380 |
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Projects under construction |
0 |
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Long term
investment |
0 |
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Other assets |
1,010 |
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Total assets |
8,790 |
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Short loans |
0 |
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Accounts payable |
2,360 |
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Other Accounts
payable |
2,410 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
-980 |
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Current
liabilities |
3,790 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
3,790 |
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Equities |
5,000 |
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Total
liabilities & equities |
8,790 |
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Income Statement (as
of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
6,670 |
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Cost of goods
sold |
5,870 |
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Sales expense |
190 |
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Management expense |
570 |
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Finance expense |
60 |
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Profit before
tax |
-40 |
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Less: profit tax |
0 |
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Profits |
-40 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 1.95
*Quick ratio 1.86
*Liabilities to
assets 0.43
*Net profit
margin (%) -0.60
*Return on total
assets (%) -0.46
*Inventory
/Turnover ×365 20 days
*Accounts
receivable/Turnover ×365 126 days
*Turnover/Total
assets 0.76
* Cost of goods
sold/Turnover 0.88
PROFITABILITY:
FAIR
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The turnover of SC appears average 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 average, comparing with
its turnover.
LIQUIDITY: AVERAGE
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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 an average
level.
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The accounts receivable of SC appears fairly large.
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SC has no short-term loan in 2006.
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SC’s turnover is in an average 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 small-sized in its line with fair stable financial
conditions. A credit line up to USD 30,000
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%)