MIRA
INFORM REPORT
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Report Date : |
05.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
QINGDAO QINGDA HUANGHUAI PRODUCT CO., LTD. |
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Registered Office : |
Jiaobei Town, Jiaozhou, Qingdao, Shandong Province, Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Mar. 30, 2005 |
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Com. Reg. No.: |
3702001808575 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged
in manufacturing and selling capsorubin and capsicum oleoresin. |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Up To USD 10,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
QINGDAO QINGDA HUANGHUAI PRODUCT CO., LTD.
JIAOBEI TOWN, JIAOZHOU, QINGDAO, SHANDONG PROVINCE, PR CHINA
TEL : 0086-532-89093201
FAX :
0086-532-89093200
EXECUTIVE SUMMARY
INCORPORATION DATE :
MAR. 30, 2005
REGISTRATION NO. :
3702001808575
REGISTERED LEGAL FORM :
LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MR. ZHANG MING (CHAIRMAN)
STAFF STRENGTH :
26
REGISTERED CAPITAL :
CNY 6,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 6,100,000 (AS OF DEC. 31,
2006)
EQUITIES :
CNY 4,210,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE :
UP TO USD 10,000 (PERIODICAL REVIEW)
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIR
OPERATIONAL TREND :
FAIR
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 7.41429=US1 $
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
Note: Instead of the given name, SC’s complete name should be the heading one.
SC was registered as a
limited liabilities co. at local Administration for Industry
& Commerce (AIC - The official body of issuing and renewing business
license) on Mar. 30, 2005.
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 manufacturing and
selling food additives, such as capsorubin and capsicum oleoresin; importing and exporting commodities and technology (with permit if needed).
SC is
mainly engaged in manufacturing and selling capsorubin and capsicum oleoresin.
Mr.
Zhang Ming has been legal representative and chairman of SC since 2005.
SC is known to have approx. 26 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
Jiaozhou. Our checks reveal that SC owns the total premise about 34,000 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 the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Qingdao Kerui Bioengineering
Co., Ltd. 50
Du Chunqi 50
l
Legal representative and chairman:
Mr. Zhang Ming, in his 40’s with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 2005 to present Working in SC as chairman and legal representative.
l
Vice-General manager:
Ms. Sui Xiao, 39 years old, with university education. She 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 manufacturing and selling capsorubin and capsicum oleoresin.
SC’s products mainly include: xanthin, cochineal, capsorubin
and capsicum oleoresin.
SC sources its materials 50% from domestic market and 50%
from the overseas market. SC sells 20% of its products to overseas market, mainly in Japan and America,
and 80% in domestic market.
The buying terms of SC include Check, L/C, T/T and Credit of
30-60 days. The payment terms of SC include Check, T/T, and Credit of 30-60
days.
*Major Supplier*
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Qingdao Zhiyue Trade Co., Ltd.
*Major Customer*
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Wuhan President Enterprises Food 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.
China
Construction Bank Qingdao High Tech Park Sub-branch.
AC#：37101986827051007442 (as given)
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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as
of Dec. 31, 2006 |
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Cash
& bank |
40 |
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Bills
receivable |
0 |
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Accounts
receivable |
2,590 |
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Other
receivables |
-3,340 |
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Advances to
suppliers |
3,130 |
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Inventory |
1,070 |
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Other
current assets |
0 |
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Current
assets |
3,490 |
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Fixed assets |
6,300 |
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Fixed
assets net value |
6,300 |
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Projects
under construction |
0 |
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Long
term investment |
0 |
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Other
assets |
2,090 |
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Total
assets |
11,880 |
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Short
loans |
5,010 |
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Bills
payable |
0 |
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Accounts
payable |
2,100 |
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Welfare
payable |
100 |
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Advances from
clients |
0 |
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Accrued
payroll |
0 |
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Tax
payable |
40 |
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Other
payable |
420 |
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Surcharge
payable |
0 |
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Other
current liabilities |
0 |
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Current
liabilities |
7,670 |
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Long
term liabilities |
0 |
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Total
liabilities |
7,670 |
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Equities |
4,210 |
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Total
liabilities & equities |
11,880 |
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Income Statement
Unit: CNY’000
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as of Dec. 31, 2006 |
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Turnover |
6,100 |
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Cost of goods
sold |
5,070 |
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Sales expense |
340 |
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Management expense |
2,470 |
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Finance expense |
0 |
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Profit before
tax |
-1,790 |
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Less: profit tax |
0 |
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Profits |
-1,790 |
Important Ratios
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as
of Dec. 31, 2006 |
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*Current ratio |
0.46 |
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*Quick ratio |
0.32 |
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*Liabilities
to assets |
0.65 |
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*Net profit
margin (%) |
-29.34 |
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*Return on
total assets (%) |
-15.07 |
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*Fixed
assets/Total assets |
0.53 |
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*Inventory
/Turnover ×365 |
65 days |
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*Accounts
receivable/Turnover ×365 |
155 days |
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*Turnover/Total
assets |
0.51 |
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* Cost of
goods sold/Turnover |
0.83 |
PROFITABILITY:
FAIR
l
The turnover of SC appears average in its line.
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SC’s net profit margin is poor.
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SC’s return on total assets is poor.
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SC’s cost of goods sold is average, comparing with its
turnover.
LIQUIDITY:
FAIR
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The current ratio of SC is maintained in a poor level.
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SC’s quick ratio is maintained in a fair level.
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The inventory of SC appears average.
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The accounts receivable of SC appears fairly large.
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SC’s short-term loan appears large.
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SC’s turnover is in a fair 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 above average.
Overall
financial condition of the SC: Fair.
SC is considered small-sized in its line with fair financial
conditions. The large amount of short loans could be a threat to SC’s financial
condition. A credit line up to USD 10,000 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%)