MIRA
INFORM REPORT
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Report Date : |
20.08.2007 |
IDENTIFICATION DETAILS
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Name : |
LONGBIRD CORPORATION CO., LTD. |
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Registered Office : |
Danya Industrial Zone, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
26.04.1999 |
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Com. Reg. No.: |
3310811006143 |
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Legal Form : |
One-Person Limited Liability Company |
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Line of Business : |
Manufacturing and Selling Coated Aluminum Coil |
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 : |
USD 500,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
COMPANY NAME &
ADDRESS
LONGBIRD CORPORATION CO., LTD.
DANYA INDUSTRIAL ZONE,
TEL: 86 (0) 576-86412965
FAX: 86 (0) 576-86421501
EXECUTIVE SUMMARY
INCORPORATION DATE : APR. 26, 1999
REGISTRATION NO. : 3310811006143
REGISTERED LEGAL FORM : ONE-PERSON LIMITED LIABILITY COMPANY
CHIEF EXECUTIVE :
MR. ruan jianrong (CHAIRMAN)
STAFF STRENGTH :
420
REGISTERED CAPITAL : cny 131,280,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
cny 399,300,000 (AS OF DEC. 31, 2006)
EQUITIES :
cny 149,670,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : stable
OPERATIONAL TREND : steady
GENERAL REPUTATION : FAIRLY GOOD
EXCHANGE RATE :
CNY 7.56= US$1 AS OF 2007-8-13
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 one-person
limited liability company at local Administration for Industry &
Commerce (AIC - The official body of issuing and renewing business license) on
Apr. 26, 1999.
Company Status: One-person Limited Liability Company Single person LLC refers to a limited liability company set
up by only one natural person or legal person as the single shareholder of
it. The minimum registered capital of Single person LLC is
CNY100,000. The shareholder’s capital contributes, as set out by the
articles of associations should be a lump-sum payment in full. One natural person can only invest in and set up one
limited liability company, which is not permitted to invest in and set up a
new Single person LLC. As to any one-person limited liability company, the
sole-investor nature of the natural person or legal person shall be
indicated in the registration documents of the company and shall be
indicated in the business license thereof as well. The regulation of Single person LLC should be set up by the
shareholder The regulation of Single person LLC has no shareholder
meeting.
SC’s registered business scope includes manufacturing and selling
aluminum foil, aluminum plastics board, aluminum ceiling; wholesaling and
retailing decoration materials, building materials, metal materials, shoes and
garments; importing and exporting various goods and technology and acting as an
agent for it; land transportation; real estate development; industry
investmwnt; selling automotives.
SC is mainly engaged in manufacturing and selling coated aluminum coil.
Mr. Ruan Jianrong has been chairman of SC since 1999.
SC is known to have approx. 420 staff members 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 Wenling. Our
checks reveal that SC owns the total premise about 230,000 square meters.
http://www.longbird.com . The
design is professional and the content is well organized. At present it is in
both Chinese and English versions.
The legal form of SC was changed from limited liabilities company to the
present one at the end of 2006.
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Ruan Jianrong 100
Chairman:
Mr. Ruan Jianrong , in his 40’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1987 to 1993 Worked in Huangyan Baobao Hardware
Machine Factory
From 1993 to 1997 Worked in Wenling Xinlei Stone Materials
Co., Ltd.
From 1997 to 2001 Worked in
From 1999 to present Working in
SC as chairman.
General Manager:
Mr. Hu Weitong in his 30’s with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2004 to present Working in SC as general manager.
SC is mainly engaged in manufacturing and selling coated aluminum coil.
SC’s products mainly include: coated aluminum coil.
SC now has 26 coated aluminum coil producing lines. Its annual output
can reach 120,000 tons.
SC sources its materials 100% from domestic market. SC sells 90% of its
products in domestic market, and 10% to the overseas market, mainly to American
and European countries.
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 Client:
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Inner Mongolia Luck-Group Co., Ltd.
*Major Supply:
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Jiangsu Yatai Aluminum Co., Ltd.
SC is known to have one subsidiary as following,
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 refused to
release any information of its suppliers and the trade reference
was not available.
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.
Construction Bank of
AC#：012210000000286
Relationship:
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2006 |
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Cash & bank |
550 |
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Accounts paid in advance |
70,130 |
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Accounts receivable |
180,310 |
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Inventory |
46,980 |
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Other receivables |
15,860 |
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Other current assets |
98,020 |
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Current assets |
411,850 |
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Fixed assets net value |
92,680 |
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Projects under construction |
0 |
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Long term investment |
990 |
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Other assets |
0 |
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Total assets |
505,520 |
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Short loans |
130,390 |
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Accounts payable |
3,930 |
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Accounts received in advance |
76,130 |
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Taxes payable |
0 |
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Salaries payable |
0 |
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Other payable |
59,370 |
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Other current liabilities |
86,030 |
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Current liabilities |
355,850 |
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Long term liabilities |
0 |
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Total liabilities |
355,850 |
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Equities |
149,670 |
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Total liabilities & equities |
505,520 |
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Income Statement
Unit: CNY’000
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As
of Dec. 31, 2006 |
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Turnover |
399,300 |
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Cost of goods sold |
385,130 |
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Sales expense |
11,360 |
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Management expense |
6,930 |
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Finance expense |
3,800 |
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Profit before tax |
1,380 |
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Less: profit tax |
460 |
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Profits |
920 |
Important Ratios
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2006 |
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*Current ratio |
1.16 |
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*Quick ratio |
1.03 |
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*Liabilities to assets |
0.70 |
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*Net profit margin (%) |
0.23 |
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*Return on total assets (%) |
0.18 |
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*Fixed assets/Total assets |
0.18 |
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*Inventory /Turnover ×365 |
43days |
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*Accounts receivable/Turnover ×365 |
165days |
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*Turnover/Total assets |
0.79 |
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* Cost of goods sold/Turnover |
0.96 |
PROFITABILITY: AVERAGE
The turnover of SC appears fairly good in 2006.
SC’s net profit margin is acceptable in 2006.
SC’s return on total assets is acceptable in 2006.
SC’s cost of goods sold is fairly high, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level in 2006.
SC’s quick ratio is maintained in a normal level in 2006.
The accounts receivable of SC appears TOO LARGE.
The inventory of SC is maintained in a normal level.
SC’s short loans are LARGE.
SC’s turnover is in a fairly good level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
The risk for SC to go bankrupt is fairly low.
Overall financial condition of the SC:
Stable.
SC is well-known in its industry with stable financial conditions. A
credit line up to USD 500,000 would appear to be within SC’s capacities.
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%)