MIRA
INFORM REPORT
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Report Date : |
05.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
SUZHOU GAZZEL LEATHER PRODUCTS CO., LTD. |
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Registered Office : |
West No. 187 South Dongwu Road, Suzhou, Jiangsu Province,
215128 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Apr. 10, 2000 |
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Com. Reg. No.: |
008803 |
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Legal Form : |
Wholly Foreign Owned Enterprise |
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Line of Business : |
Engaged in processing
and selling leather products. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Moderate |
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Payment Behaviour : |
Unknown |
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Litigation : |
Clear |
name & address
SUZHOU GAZZEL LEATHER PRODUCTS CO., LTD.
WEST NO. 187 SOUTH DONGWU ROAD, SUZHOU,
JIANGSU PROVINCE, 215128 PR CHINA
TEL : 86 (0)
512-65251656
FAX : 86 (0) 512-65252975
EXECUTIVE SUMMARY
INCORPORATION DATE : APR. 10, 2000
REGISTRATION NO. : 008803
REGISTERED LEGAL FORM : WHOLLY FOREIGN OWNED
ENTERPRISE
STAFF STRENGTH :
40
REGISTERED CAPITAL : USD 210,000
BUSINESS LINE :
Processing
TURNOVER :
cny 960,000 (AS OF DEC. 31, 2006)
EQUITIES :
cny -760,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : cod
MARKET CONDITION : FAIR
FINANCIAL CONDITION : POOR
OPERATIONAL TREND : FAIR
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.39= 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
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 Apr. 10, 2000.
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 manufacturing and selling
various leather products.
SC is mainly
engaged in processing and selling leather products.
Mr. Bacon Gomez has been chairman of SC
since 2000.
SC is known
to have approx. 40 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 Suzhou. Our checks
reveal that SC rents the total premise about 1,000 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
Younike Leather Products Co.,
Ltd. Australia (Chinese Pinyin) 100
l
Chairman:
Mr. Bacon Gomez, in his
40’s 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.
l
Director:
Mr. Lin Hong, born in 1978 with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2005 to present Working in SC as director.
SC is mainly
engaged in processing and selling leather products.
SC’s products
mainly include: leather clothes.
SC sources its
materials 100% from the overseas market, mainly Australia. SC sells 100% of its
products to the overseas market, mainly Australia.
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:
===========
Lockec Australia
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 China Suzhou Branch
AC#：1183708091001
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2006 |
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Cash & bank |
120 |
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Inventory |
930 |
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Accounts
receivable |
0 |
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Advances to
suppliers |
0 |
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Other
receivables |
130 |
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Other current
assets |
40 |
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Current assets |
1,220 |
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Fixed assets net
value |
230 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
680 |
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Total assets |
2,130 |
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============= |
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Short loans |
0 |
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Accounts payable |
0 |
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Advances from
clients |
2,540 |
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Taxes payable |
0 |
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Salaries payable |
0 |
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Other payable |
210 |
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Other current
liabilities |
140 |
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Current liabilities |
2,890 |
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Long term
liabilities |
0 |
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Total
liabilities |
2,890 |
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Equities |
-760 |
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Total
liabilities & equities |
2,130 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2006 |
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Turnover |
960 |
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Cost of goods
sold |
2,070 |
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Sales expense |
0 |
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Management expense |
700 |
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Finance expense |
80 |
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Profit before
tax |
-1,830 |
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Less: profit tax |
0 |
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Profits |
-1,830 |
Important Ratios
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2006 |
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*Current ratio |
0.42 |
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*Quick ratio |
0.10 |
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*Liabilities
to assets |
1.36 |
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*Net profit
margin (%) |
-190.63 |
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*Return on
total assets (%) |
-85.92 |
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*Inventory
/Turnover ×365 |
354days |
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*Accounts
receivable/Turnover ×365 |
0 |
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*Turnover/Total
assets |
0.45 |
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* Cost of
goods sold/Turnover |
2.16 |
PROFITABILITY:
POOR
l
The turnover of SC appears fair in 2006.
l
SC’s net profit margin is poor in 2006.
l
SC’s return on total assets is poor in 2006.
l
SC’s cost of goods sold is high, comparing with its turnover.
LIQUIDITY: POOR
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The current ratio of SC is maintained in a poor level in 2006.
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SC’s quick ratio is maintained in a poor level in 2006.
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The inventory of SC is large.
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SC’s turnover is in a fair level, comparing with the size of its total
assets.
LEVERAGE: POOR
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The debt ratio of SC is too high.
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The risk for SC to go bankrupt exists.
Overall financial
condition of the SC: Poor.
SC is considered small-sized in its line with poor financial conditions.
Great caution is required in providing credit to SC & COD is recommended.
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%)