MIRA
INFORM REPORT
|
Report Date : |
08.12.2007 |
IDENTIFICATION
DETAILS
|
Name : |
ZHEJIANG SAINA GROUP CO., LTD. |
|
|
|
|
Registered Office : |
No. 555 Jixian Road, Economic Development Zone,
Ruian, Zhejiang Province, 325200 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2006 |
|
|
|
|
Date of Incorporation : |
Apr. 15, 1995 |
|
|
|
|
Com. Reg. No.: |
3303811003055 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
Engaged in manufacturing
and selling safety protection shoes. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
up to usd 200,000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
Litigation : |
Clear |
name & address
ZHEJIANG SAINA GROUP CO., LTD.
NO. 555 JIXIAN ROAD, ECONOMIC DEVELOPMENT ZONE, RUIAN,
ZHEJIANG PROVINCE, 325200 PR CHINA
TEL: 86 (0) 577-65130288
FAX: 86 (0) 577-65130888
EXECUTIVE SUMMARY
INCORPORATION DATE : APR. 15, 1995
REGISTRATION NO. : 3303811003055
REGISTERED LEGAL FORM : LIMITED LIABILITIES
COMPANY
STAFF STRENGTH :
2,200
REGISTERED CAPITAL : CNY 63,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
cny 312,000,000 (AS OF DEC. 31, 2006)
EQUITIES :
cny 69,840,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 200,000 (periodical review)
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : fairly steady
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 limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Apr. 15, 1995.
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 shoes,
garments, protective shoes, sporting products, textiles, warp and weft knitted
fabric, leather products, hardware and electric appliances, electronic products
and automotive parts; wholesaling and retailing shoe materials, metal
materials, building materials and chemical materials; importing and exporting
various goods.
SC is mainly
engaged in manufacturing and selling safety protection shoes.
Mr. Chen Zemei has
been chairman of SC since 1995. SC is known to have approx. 2,200
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 Ruian. Our checks reveal
that SC owns the total premise about 44,000 square meters.
http://www.saina.com . The design is
professional and the content is well organized. At present it is in both
Chinese and English versions.
No significant events or changes were found during our checks with local
AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Chen Zemei 19.50
Chen Zhiguang 10.50
Chen Zelin 12.60
Other 14 individuals 57.40
l
Chairman:
Mr. Chen Zemei, in his 50’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1995 to present Working
in SC as chairman.
l
General Manager:
Mr. Chen Zhiguang, in his 60’s with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
From 1995 to present Working in SC as general manager.
SC is mainly engaged
in manufacturing and selling safety protection shoes.
SC’s products
mainly include: safety protection shoes.
SC sources its
materials 20% from domestic market, and 80% from the overseas market, mainly European
countries. SC sells 10% of its products in domestic market, and 90% to the
overseas market, mainly American and European countries.
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:
===========
Tianjin Xinyao Occupational Safety
Technology Co., Ltd.
*Major Supplier:
============
Ruian Dongfang Printing and Package Co.,
Ltd.
SC is
known to have 4 subsidiaries as below,
Ruian
Ansai Shoes Co., Ltd.
Ruian
Saina Importing and Exporting Trading Co., Ltd.
Saina
(Ruian) Machinery Engineering Co., Ltd.
Jiangsu
Saina Labor Safety Products Co., Ltd.
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.
Bank of China Ruian Branch
AC#：820011704708091001
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2006 |
|
Cash & bank |
4,210 |
|
Inventory |
64,490 |
|
Accounts
receivable |
11,220 |
|
Advances to
suppliers |
0 |
|
Other
receivables |
-1,140 |
|
Other current
assets |
340 |
|
|
------------------ |
|
Current assets |
79,120 |
|
Fixed assets net
value |
89,540 |
|
Projects under
construction |
1,950 |
|
Long term
investment |
10,520 |
|
Other assets |
9,960 |
|
|
------------------ |
|
Total assets |
191,090 |
|
|
============= |
|
Short loans |
38,060 |
|
Accounts payable |
41,540 |
|
Bills payable |
9,280 |
|
Advances from
clients |
0 |
|
Taxes payable |
-330 |
|
Salaries payable |
0 |
|
Other payable |
9,580 |
|
Other current
liabilities |
12,220 |
|
|
------------------ |
|
Current
liabilities |
110,350 |
|
Long term
liabilities |
10,900 |
|
|
------------------ |
|
Total
liabilities |
121,250 |
|
Equities |
69,840 |
|
|
------------------ |
|
Total
liabilities & equities |
191,090 |
|
|
============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31, 2006 |
|
Turnover |
312,000 |
|
Profits |
500 |
Important Ratios
=============
|
|
2006 |
|
*Current ratio |
0.72 |
|
*Quick ratio |
0.14 |
|
*Liabilities
to assets |
0.63 |
|
*Net profit
margin (%) |
0.16 |
|
*Return on
total assets (%) |
0.26 |
|
*Inventory
/Turnover ×365 |
75days |
|
*Accounts
receivable/Turnover ×365 |
13days |
|
*Turnover/Total
assets |
1.63 |
|
* Cost of
goods sold/Turnover |
/ |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in 2006.
l
SC’s net profit margin is fair in 2006.
l
SC’s return on total assets is average in 2006.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair level in 2006.
l
SC’s quick ratio is maintained in a POOR level in 2006.
l
The accounts receivable of SC is average.
l
The inventory of SC appears LARGE.
l
The short loans of SC appears average.
l
SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
SC is considered medium-sized in its line with fair financial conditions.
The large amount of inventory could be a threat to SC’s financial condition. A
credit limit of USD 200,000 appears to be within SC’s capacities upon a
periodical review basis.
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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%)