MIRA
INFORM REPORT
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Report Date : |
23.08.2007 |
IDENTIFICATION DETAILS
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Name : |
chinatex cotton
import and export corporation |
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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 : |
March 31, 1987 |
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Com. Reg. No.: |
1100001500491 |
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Legal Form : |
State-Owned |
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Line of Business : |
Engaged in
international trade. |
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 1,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
chinatex cotton
import and export corporation
TEL :
86 (0) 10-85112255
FAX :
86 (0) 10-65285011
EXECUTIVE SUMMARY
INCORPORATION DATE : march 31, 1987
REGISTRATION NO. : 1100001500491
REGISTERED LEGAL FORM : State-owned
STAFF STRENGTH :
50
REGISTERED CAPITAL : CNY 31,003,000
BUSINESS LINE :
trading
TURNOVER :
CNY 3,780,520,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 314,220,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : average
FINANCIAL CONDITION : Fairly STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : fairly good
EXCHANGE RATE :
CNY7.59 = US$1 AS OF 2007-8-23
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 state-owned enterprise at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on March 31, 1987.
Company Status: State-owned enterprise This form of business in PR
China is defined as a commodity production or operational units of a
socialist character which in accordance with the law, has autonomy in
management, takes full responsibility for its profits and losses and
practices independent business accounting. It is a legal person established
directly by central / local government or enterprise owned by central or
local government. In theory, the liabilities of this form of enterprise are
ultimately borne by the government, since the adoption of company law in
mid-1994, the Chinese government has planned to separate the ownership from
management and liabilities bearing.
SC’s registered business
scope includes importing and exporting cotton, cotton transportation, packing
materials, storage service, importing and
exporting commodities and technologies, excluding the 16 goods controlled to
export by the government and the 12 goods controlled to import by the companies
with authorization from the government, transit trade, selling agricultural
products and by products, purchasing cotton and soybeans, purchasing and
selling steels and construction materials.
SC is mainly
engaged in international trade.
Mr. Ding Rongxiang
has been general manager of SC since 2005.
SC is known to
have approx. 50 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 Beijing. Our checks reveal that SC
owns the total premise about 500 square meters.
http://www.chinatex.com/sub/mianhua.html
The design is professional and the content is well organized. At present the
web site is both in Chinese and English versions.
E-mail: cotton@chinatex.net
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Chinatex Corporation 100
Chinatex Corporation:
================
The Chinatex Corporation (Chinatex), was
founded in 1951. Chinatex is a large-scale enterprise group engaged mainly in
international trade and production of textiles, with a stable annual turn-over
of USD1.8 billion, and boasting of more than 30 subsidiaries, overseas
enterprises and 40 manufacturing plants of various types.
l
Legal
Representative and General Manager:
Mr. Ding Rongxiang, about 45 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 legal representative and general manager.
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Vice General
Manager:
Mr. Xu Ting’en, about 45 years old with university
education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 2005 to present Working in SC as vice general
manager.
SC is mainly
engaged in international trade.
SC’s products
mainly include: cotton.
SC sources its materials 100% from domestic
market, mainly
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 Suppliers:
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Lianyungang
Chinatex Dongyun Cotton Co., Ltd.
Dongying
Hekou Chinatex Yinxing Cotton Co., Ltd.
Binzhou
Chinatex Yintai Industry Co., Ltd.
SC is
known to have 3 subsidiaries and 4 offices as follows:
Lianyungang
Chinatex Dongyun Cotton Co., Ltd.
Address:
Tel:
0518-5498515
Fax:
0518-5498464
Dongying
Hekou Chinatex Yinxing Cotton Co., Ltd.
Address:
Tel:
0546-3068878
Fax:
0546-3068043
Binzhou
Chinatex Yintai Industry Co., Ltd.
Address:
Tel:
0543-3613708
E-mail: zhongfangyintai@163.com
Chinatex
Cotton Import and Export Corporation
Address:
Tel:
0311-86216421
Chinatex
Cotton Import and Export Corporation
Address:
Room 1106,
Tel: 86
013901580807
Chinatex
Cotton Import and Export Corporation
Address:
15/F,
Tel:
0574-87717128
Chinatex
Cotton Import and Export Corporation
Address:
Room 8614-8620, 6/F
Tel:
0531-82958888-8614
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#：00118208091001
Relationship:
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
57,990 |
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Inventory |
914,640 |
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Accounts
receivable |
5,660 |
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Other Accounts
receivable |
133,640 |
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Prepayment |
1,267,500 |
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To be
apportioned expense |
0 |
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Other current
assets |
247,310 |
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Current assets |
2,626,740 |
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Fixed assets net
value |
4,890 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
61,480 |
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Total assets |
2,693,110 |
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Short loans |
1,172,680 |
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Accounts payable |
229,420 |
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Other Accounts
payable |
791,800 |
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Advances from
customers |
234,600 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
-49,610 |
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Current
liabilities |
2,378,890 |
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Long term liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
2,378,890 |
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Equities |
314,220 |
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Total
liabilities & equities |
2,693,110 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
3,780,520 |
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Cost of goods
sold |
3,501,200 |
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Sales expense |
101,240 |
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Management expense |
29,600 |
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Finance expense |
5,760 |
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Profit before
tax |
174,930 |
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Less: profit tax |
57,730 |
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Profits |
117,200 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 1.10
*Quick ratio 0.72
*Liabilities to
assets 0.88
*Net profit
margin (%) 3.10
*Return on total
assets (%) 4.35
*Inventory
/Turnover ×365 88 days
*Accounts
receivable/Turnover ×365 1 day
*Turnover/Total
assets 1.40
*Cost of goods
sold/Turnover 0.93
PROFITABILITY:
FAIRLY GOOD
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The turnover of SC appears fairly good in its line.
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SC’s net profit margin is fairly good.
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SC’s return on total assets is fairly good.
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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 an average
level.
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SC’s quick ratio is maintained in a fair level.
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The inventory of SC is fairly large.
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The accounts receivable of SC is maintained in an
acceptable level.
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The short-term loan of SC appears TOO LARGE.
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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 medium-sized in its line with fairly stable financial
conditions. The large amount of SC’s short loans could be a threat to SC’s
financial conditions. A credit line up to USD1,000,000
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%)