MIRA
INFORM REPORT
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Report Date : |
22.08.2007 |
IDENTIFICATION DETAILS
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Name : |
RIZHAO YIKANG FOOD STUFF CO., LTD. |
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Registered Office : |
No. 49 Huanghai 1 Road, Shijiu, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Oct. 21, 1997 |
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Com. Reg. No.: |
3711002801381 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in
processing and selling foodstuff. |
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 : |
Up To usd 30,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
RIZHAO YIKANG FOOD STUFF CO., LTD.
NO. 49 HUANGHAI 1 ROAD, SHIJIU, RIZHAO,
TEL : 86 (0)
633-8352588
FAX : 86 (0) 633-8352588
EXECUTIVE SUMMARY
INCORPORATION DATE : OCT. 21, 1997
REGISTRATION NO. : 3711002801381
REGISTERED LEGAL FORM : LIMITED LIABILITIES
COMPANY
STAFF STRENGTH :
120
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
cny 17,450,000 (AS OF DEC. 31, 2006)
EQUITIES :
cny 5,170,000
(AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.59= US$1 AS OF 2007-8-22
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 Oct. 21, 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 dehydrating and preserving
vegetable; processing and selling aquatic products and condiment (health
certificate of authority useful-life: Dec. 11, 2008); selling various daily use
products; importing and exporting common goods.
SC is mainly
engaged in processing and selling foodstuff.
Mr. Zhang Wenfeng has
been chairman of SC since 1997.
SC is known
to have approx. 120 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 Rizhao. Our checks reveal
that SC rents the total premise about 2,000 square meters.
SC is not known to host website of its own at present.
No significant events or changes were found during our checks with local
AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhang Wenfeng 60
Xu Huachang 40
l
Chairman and
General Manager:
Mr. Zhang Wenfeng, in his 50’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1997 to present Working
in SC as chairman and general manager.
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Vice General
Manager:
Mr. Xu Huachang, in his 40’s with university education. He is currently responsible
for the daily management of SC.
Working Experience(s):
From 1997 to present Working in SC as vice general
manager.
SC is mainly
engaged in processing and selling foodstuff.
SC’s products
mainly include: aquatic products, dehydrated vegetable, pickling vegetable,
frozen vegetable, and fresh vegetable.
SC’s main brand is
“Kangsen”.
SC sources its
materials 80% from domestic market, and 20% from the overseas market, mainly
The buying terms of SC include Check, T/T, L/C 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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Ting Hsin International Group
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 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.
Bank of
AC#：406017746008091001
Relationship:
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2006 |
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Cash & bank |
2,270 |
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Accounts paid in
advance |
0 |
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Accounts
receivable |
1,420 |
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Inventory |
2,890 |
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Other
receivables |
0 |
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Other current assets |
170 |
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Current assets |
6,750 |
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Fixed assets net
value |
1,550 |
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Projects under
construction |
80 |
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Long term
investment |
0 |
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Other assets |
550 |
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Total assets |
8,930 |
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Short loans |
2,020 |
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Accounts payable |
1,570 |
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Accounts
received in advance |
390 |
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Taxes payable |
-210 |
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Salaries payable |
0 |
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Other payable |
-10 |
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Other current
liabilities |
0 |
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Current
liabilities |
3,760 |
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Long term
liabilities |
0 |
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Total
liabilities |
3,760 |
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Equities |
5,170 |
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Total
liabilities & equities |
8,930 |
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Income Statement
Unit: CNY’000
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As of Dec. 31,
2006 |
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Turnover |
17,450 |
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Cost of goods
sold |
16,570 |
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Sales expense |
290 |
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Management expense |
340 |
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Finance expense |
130 |
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Profit before
tax |
50 |
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Less: profit tax |
0 |
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Profits |
50 |
Important Ratios
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2006 |
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*Current ratio |
1.80 |
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*Quick ratio |
1.03 |
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*Liabilities
to assets |
0.42 |
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*Net profit
margin (%) |
0.29 |
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*Return on
total assets (%) |
0.56 |
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*Fixed
assets/Total assets |
0.17 |
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*Inventory
/Turnover ×365 |
60days |
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*Accounts
receivable/Turnover ×365 |
30days |
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*Turnover/Total
assets |
1.95 |
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*Cost of goods
sold/Turnover |
0.95 |
PROFITABILITY:
FAIR
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The turnover of SC appears average in 2006.
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SC’s net profit margin is fair in 2006.
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SC’s return on total assets is acceptable in 2006.
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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 normal
level in 2006.
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SC’s quick ratio is maintained in a normal level in
2006.
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The accounts receivable of SC is average.
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The inventory of SC is fairly large.
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The short loans of SC are 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 small-sized in its line with fairly stable financial conditions.
Credit dealings of small amount can be considered for it at present.
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%)