MIRA
INFORM REPORT
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Report Date : |
30.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
shanghai yihai
commercial trading co., ltd. |
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Registered Office : |
26/F, Huaneng
United Building, No. 958, Lujiazui Huan Road, Pudong New Zone, Shanghai 200120
Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
May 16, 2006 |
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Com. Reg. No.: |
041164 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Engaged in international trade. |
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 600,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
shanghai yihai
commercial trading co., ltd.
26/f, huaneng united building, no. 958,
lujiazui huan road
pudong new zone, shanghai 200120 PR CHINA
TEL :
86 (0) 21-68865150
FAX :
86 (0) 21-68865105
EXECUTIVE SUMMARY
INCORPORATION DATE : may 16, 2006
REGISTRATION NO. : 041164
REGISTERED LEGAL FORM : wholly foreign-owned
enterprise
STAFF STRENGTH :
60
REGISTERED CAPITAL : USD 8,000,000
BUSINESS LINE :
TRADING
TURNOVER : CNY 1,217,884,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 110,913,000 (AS OF DEC. 31, 2006)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 600,000 (periodical review)
MARKET CONDITION : average
FINANCIAL CONDITION : FAIRLY stable
OPERATIONAL TREND : steady
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 7.40 = US$1
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Ren Min Bi
Note: SC’s concrete name should be the above stated one,
instead of the given one Shanghai Yihai Commercial Co., Ltd.
SC was registered as a wholly foreign-owned enterprise at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on May 16, 2006.
Company Status: Wholly foreign-owned enterprise. This form of business in PR
China is defined as a legal person. It is a limited co. established within
the territories of PR China with capital provided totally by the foreign
investors. More than one foreign investor may jointly invest in a wholly
foreign-owned enterprise. The investing party/parties solely exercise
management, reap profit and bear risks and liabilities by themselves. This
form of companies usually have a limited duration is extendible upon
approval of Examination and Approval Authorities.
SC’s
registered business scope includes wholesaling cereals, industrial and
daily-used animal & plant grease and oil, byproducts, deep-processed
products, feed grease, cotton, feedstuff, additives, packaging materials, and
daily used chemical synthetic detergent; commission agency; purchasing
agricultural products; importing and exporting above commodities and relative
technologies; and commodity information consulting services.
SC is
mainly engaged in international trade.
Mr. Guo Kongfeng has been chairman of SC since 2006.
SC is known to have approx. 60 staff members at
present.
SC is currently operating at the above stated address, and this
address houses its operating office in the development zone of Shanghai. Our
checks reveal that SC owns the total premise about 2,000 square meters.
SC is not known to host website of its own at present.
Until December 31, 2006, SC’s paid-up capital was CNY 64,132,000.
MAIN SHAREHOLDERS:
Name % of Shareholding
Yihai Investment Ltd.
(Singapore) 100
l
Chairman and
General Manager:
Mr. Guo Kongfeng, Singaporean, in his 50’s with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2006 to present Working in SC as chairman and general manager.
SC is mainly
engaged in international trade.
SC’s products mainly include: rice, wheat, animal & plant grease, etc.
SC sources its materials 60% from
domestic market, mainly Shandong, Liaoning, Jiangsu, and Shanghai, and 40% from
overseas market; SC sells its products 50% to overseas market, mainly India,
Indonesia, and Malaysia, and 50% in domestic market, mainly Hebei, Shandong,
and Shanghai.
The
buying terms of SC include T/T, L/C, check and Credit of 30-60 days. The
payment terms of SC include T/T, L/C, check and Credit of 30-60 days.
*Major Supplier:
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Yihai (Yancheng) Grains & Oils Industry Co., Ltd.
*Major Customer:
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Qinhuangdao Jinhai Grains & Oils Industry 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’s suppliers
declined to make any comments.
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.
SC’s
management declined to release its bank information.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
10,846 |
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Inventory |
253,636 |
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Accounts
receivable |
27,447 |
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Other Accounts
receivable |
11,705 |
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Advances to
suppliers |
131,209 |
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To be
apportioned expense |
15 |
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Other current
assets |
48,095 |
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Current assets |
482,953 |
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Fixed assets |
43,015 |
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Long term
investment |
500 |
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Other assets |
8,709 |
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Total assets |
535,177 |
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Short loans |
147,900 |
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Accounts payable |
111,936 |
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Advance from
clients |
134,681 |
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Taxes payable |
-7,539 |
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Other Accounts
payable |
36,595 |
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Withdraw the
expenses in advance |
77 |
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Other current
liabilities |
614 |
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Current
liabilities |
424,264 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
424,264 |
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Equities |
110,913 |
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Total
liabilities & equities |
535,177 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
1,217,884 |
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Cost of goods
sold |
1,160,674 |
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Sales expense |
13,330 |
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Management expense |
10,233 |
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Finance expense |
2,641 |
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Profit before
tax |
50,818 |
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Less: profit tax |
7,636 |
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Profits |
43,182 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 1.14
*Quick ratio 0.54
*Liabilities to
assets 0.79
*Net profit
margin (%) 3.55
*Return on total
assets (%) 8.07
*Inventory /Turnover
×365 76days
*Accounts
receivable/Turnover ×365 8days
*Turnover/Total
assets 2.28
* Cost of goods
sold/Turnover 0.95
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line.
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SC’s net profit margin is average.
l
SC’s return on total assets is fairly good.
l
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 a normal level.
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SC’s quick ratio is maintained in a fair level.
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The inventory of SC appears fairly large.
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The accounts receivable of SC is maintained in an average
level.
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The short-term loan of SC appears LARGE.
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SC’s turnover is in an average 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 short loans could be a threat to SC’s financial
condition. A credit line up to USD 600,000 appears 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%)