MIRA
INFORM REPORT
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Report Date : |
24.08.2007 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
13-15/F, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
March 27, 2000 |
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Com. Reg. No.: |
3302061800295 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in selling rubber & plastic products. |
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 20,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
13-15/f,
TEL :
86 (0) 574-87731351
FAX :
86 (0) 574-87730012
EXECUTIVE SUMMARY
INCORPORATION DATE : march 27, 2000
REGISTRATION NO. : 3302061800295
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 13
REGISTERED CAPITAL : CNY 12,000,000
BUSINESS LINE : TRADING
TURNOVER : CNY 888,760,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 3,180,000 (AS OF DEC. 31, 2006)
PAYMENT : AVERAGE
RECOMM.
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : Fairly stable
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
7.59 = US1$ AS OF 2007-8-24
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 March 27, 2000.
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 international trade, transit trade, export processing,
storage in the free trade zone; wholesaling and retailing rubber & plastic
materials, chemical raw materials and products, textile raw materials,
garments, arts & crafts, office equipment, decoration materials,
electromechanical products (excluding automobiles), general merchandise, metal
materials, paper pulp, and wood pulp; consultation
services.
SC is mainly
engaged in selling rubber & plastic products.
Mr. Huang Wencong has been legal representative and chairman of SC since
2000.
SC is
known to have approx. 13 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 Ningbo. Our
checks reveal that SC owns the total premise about 80 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 the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhejiang Grand Import &
Export Co., Ltd. 70
Huang Wencong 11.5
Wu Xiangdong 7.5
Wang Kaihong 5.5
Ge Jianye 1.5
Zhang Ying 1.5
Other 3 individuals 2.5
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Zhejiang Grand Import &
Export Co., Ltd.
Established in July 1994,
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Legal representative and General manager:
Mr. Huang Wencong, 43 years old with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2000 to present Working in SC as chairman and general manager.
SC is mainly
engaged in selling rubber & plastic products.
SC’s products
mainly include general plastics, PVC, and engineering plastics.
SC sources its materials 10%
from domestic market, and 90% from 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 Check, T/T and Credit of 30-60
days.
*Major Customer:
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Zhejiang Grand Import &
Export Co., Ltd.
SC is known to have the following subsidiary:
Shanghai
Branch Office
Tel:
021-61279587 (as given)
Fax:
021-61279584 (as given)
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.
Industrial & Commercial Bank of
AC#：33901020009000003321
Relationship:
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
9,460 |
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Inventory |
20,280 |
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Accounts
receivable |
44,640 |
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Advances to
suppliers |
9,110 |
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Other
receivables |
9,830 |
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Other current
assets |
0 |
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Current assets |
93,320 |
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Fixed assets |
2,080 |
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Fixed assets net
value |
1,600 |
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Projects under
construction |
0 |
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Long term
investment |
430 |
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Other assets |
0 |
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Total assets |
95,350 |
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Short loans |
0 |
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Accounts payable |
86,860 |
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Other payable |
2,800 |
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Taxes payable |
-120 |
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Advances from
customers |
930 |
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Other current
liabilities |
290 |
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Current
liabilities |
90,470 |
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Long term
liabilities |
1,700 |
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Total
liabilities |
92,170 |
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Equities |
3,180 |
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Total
liabilities & equities |
95,350 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
888,760 |
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Cost of goods
sold |
858,720 |
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Add:
Income from other operations |
2,080 |
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Sales expense |
15,260 |
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Management expense |
1,870 |
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Finance expense |
7,150 |
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Profit before
tax |
8,140 |
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Less: profit tax |
2,950 |
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Profits |
5,190 |
Important Ratios
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as
of Dec. 31, 2006 |
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*Current ratio |
1.03 |
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*Quick ratio |
0.81 |
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*Liabilities
to assets |
0.97 |
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*Net profit
margin (%) |
0.58 |
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*Return on total
assets (%) |
5.44 |
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*Fixed
assets/Total assets |
0.02 |
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*Inventory
/Turnover ×365 |
8days |
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*Accounts
receivable/Turnover ×365 |
18days |
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*Turnover/Total
assets |
9.32 |
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*Cost of goods
sold/Turnover |
0.97 |
PROFITABILITY:
FAIRLY GOOD
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The turnover of SC appears fairly good in its line
in 2006.
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SC’s net profit margin is acceptable.
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SC’s return on total assets is average.
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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 an average 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 LARGE.
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The accounts payable 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 small-sized in its line with fairly stable financial
conditions. The large amount of accounts payable could be a threat to SC’s
financial conditions. A credit line up to USD20,000 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%)