MIRA
INFORM REPORT
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Report Date : |
07.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
ZHOUSHAN LONGYUAN SIFANG FISHMEAL CO., LTD. |
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Registered Office : |
No.1 Lanhua Road, West Dock, Zhoushan, Zhejiang PROVINCE,
316014 |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
24.12.1998 |
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Com. Reg. No.: |
3309022000221 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Processing and Selling Fishmeal |
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 : |
USD 10,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
COMPANY NAME &
ADDRESS
ZHOUSHAN LONGYUAN SIFANG FISHMEAL CO., LTD.
No.1 Lanhua Road, West Dock, Zhoushan, Zhejiang PROVINCE, 316014 PR
CHINA
TEL: 86 (0) 580-8091789
FAX: 86 (0) 580-8091606
EXECUTIVE SUMMARY
INCORPORATION DATE : december 24, 1998
REGISTRATION NO. : 3309022000221
REGISTERED LEGAL FORM : Limited
liabilities company
CHIEF EXECUTIVE :
MR. chen yuansen (CHAIRMAN)
STAFF STRENGTH :
40
REGISTERED CAPITAL : CNY 1,000,000
BUSINESS LINE :
processing
TURNOVER :
CNY 9,020,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 1,560,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 10,000
MARKET CONDITION : average
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.41 = 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 Renminbi
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 December 24, 1998.
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 purchasing seafood, processing
and selling feed and fish oil, manufacturing, processing and selling fishmeal
production equipment, ship parts, wire and cable, textiles, environmental
protection equipment and parts; retailing and wholesaling steel, and commodity.
SC is mainly engaged in processing and selling fishmeal.
Mr. Chen Yuansen has been chairman of SC since 2005.
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 Zhoushan. Our
checks reveal that SC rents the total premise about 1,000 square meters.
SC is not known to host web site of its own at present.
Changes of its registered information are as follows:
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Date of change |
Item |
Before the change |
After the change |
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2002/4/25 |
Chairman |
Lin Yuqi |
Chen Meizhen |
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Shareholders |
Wang Xiufang 15% Lin Yuqi 10% Chen Meizhen 75% |
Chen Meizhen 75% Wang Xiufang 25% |
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2005/3/31 |
Chairman |
Chen Meizhen |
Chen Yuansen |
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Shareholders |
Chen Meizhen 75% Wang Xiufang 25% |
Wang Yongxiang 10% Chen Yuansen 90% |
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Chen Yuansen 90
Wang Yongxiang 10
Chairman and General Manager:
Mr. Chen Yuansen, 44 years old with high school education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 2005 to present Working
in SC as chairman and general manager
SC is mainly engaged in processing and selling fishmeal.
SC’s products mainly include: fishmeal
SC sources its materials 100% from domestic market, mainly Zhejiang. SC
sells 70% of its products in domestic market, and 30% to overseas market, mainly
Southeast Asian market.
The buying terms of SC include Check, T/T and Credit of 30-45 days. The
payment terms of SC include T/T, L/C and Credit of 30-45 days.
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 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.
Agricultural Bank of China Zhoushan Branch
AC#：303011159873003434
Relationship: Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2005 |
As
of Dec. 31, 2006 |
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Cash & bank |
490 |
250 |
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Inventory |
0 |
0 |
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Accounts receivable |
440 |
840 |
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Other Accounts receivable |
1,560 |
1,010 |
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Advances to suppliers |
60 |
40 |
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To be apportioned expense |
0 |
0 |
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Other current assets |
40 |
450 |
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------------------ |
------------------ |
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Current assets |
2,590 |
2,590 |
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Fixed assets net value |
1,200 |
1,830 |
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Long term investment |
0 |
0 |
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Other assets |
1,180 |
750 |
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Total assets |
4,970 |
5,170 |
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============= |
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Short loans |
1,300 |
1,900 |
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Accounts payable |
990 |
430 |
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Other Accounts payable |
750 |
1,050 |
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Advances from clients |
210 |
60 |
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Withdraw the expenses in advance |
0 |
0 |
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Other current liabilities |
250 |
170 |
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------------------ |
------------------ |
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Current liabilities |
3,500 |
3,610 |
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Long term liabilities |
0 |
0 |
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Other liabilities |
0 |
0 |
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------------------ |
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Total liabilities |
3,500 |
3,610 |
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Equities |
1,470 |
1,560 |
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Total liabilities & equities |
4,970 |
5,170 |
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Income Statement
Unit: CNY’000
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As
of Dec. 31, 2005 |
As
of Dec. 31, 2006 |
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Turnover |
8,630 |
9,020 |
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Cost of goods sold |
7,380 |
8,450 |
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Sales expense |
230 |
60 |
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Management expense |
660 |
310 |
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Finance expense |
90 |
120 |
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Profit before tax |
210 |
150 |
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Less: profit tax |
70 |
50 |
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Profits |
140 |
100 |
Important Ratios
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As
of Dec. 31, 2005 |
As
of Dec. 31, 2006 |
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*Current ratio |
0.74 |
0.72 |
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*Quick ratio |
0.74 |
0.72 |
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*Liabilities to assets |
0.70 |
0.70 |
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*Net profit margin (%) |
1.62 |
1.11 |
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*Return on total assets (%) |
2.82 |
1.93 |
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*Inventory /Turnover ×365 |
/ |
/ |
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*Accounts receivable/Turnover ×365 |
19 days |
34 days |
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*Turnover/Total assets |
1.74 |
1.74 |
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* Cost of goods sold/Turnover |
0.86 |
0.94 |
PROFITABILITY: AVERAGE
The turnover of SC appears average in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of goods sold is fairly high in 2006, comparing with its
turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a fair level.
SC’s quick ratio is maintained in an average level.
SC has no inventory in 2006.
The accounts receivable of SC is maintained in an average level.
SC’s short-term loan is LARGE.
SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIR
The debt ratio of SC is fairly high.
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 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.
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%)