MIRA
INFORM REPORT
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Report Date : |
12.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
JIAOZUO WANYING TRADE CO., LTD. |
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Registered Office : |
4/F, No.45 Xihuan Road, Jiaozuo, Henan Province, 454000 |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
24.01.2005 |
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Com. Reg. No.: |
4108022000954 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Company is engaged in selling chemical products and raw materials |
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 4,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
COMPANY NAME &
ADDRESS
JIAOZUO WANYING TRADE CO., LTD.
4/F, NO.45 XIHUAN ROAD, JIAOZUO, HENAN PROVINCE, 454000 PR CHINA
TEL: 0086-391-2622106
FAX: 0086-391-2622851
EXECUTIVE SUMMARY
INCORPORATION DATE :
JAN. 24, 2005
REGISTRATION NO. :
4108022000954
REGISTERED LEGAL FORM :
LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MS. MA JIE (CHAIRMAN)
STAFF STRENGTH :
10
REGISTERED CAPITAL :
CNY 660,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 8,170,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 530,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE :
UP TO USD 4,000 (PERIODICAL REVEIW)
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIR
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 7.38000=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
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 Jan. 24, 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 selling chemical products and
raw materials (excluding dangerous chemicals), nonferrous metal, mineral,
plastic products, electric products, building materials, importing
and exporting commodities and technology (excluding commodities limited or prohibited by the state) (able to engage
in items that need permit according to the regulation of the State Council,
after obtaining the permit from relative authorities and the registration in
the AIC).
SC is mainly engaged in selling chemical products and raw materials.
Ms. Ma Jie has been legal representative and chairman of SC since 2005.
SC is known to have approx. 10 staff members at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the commercial zone of Jiaozuo. Our checks
reveal that SC rents the total premise about 90 square meters.
SC is not known to host website of its own at present.
E-Mail: brucewxh-1982@hotmail.com
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Ma Jie 33.34
He Yu 33.33
Ma Zengxiang 33.33
Legal representative and chairman:
Ms. Ma Jie, 26 years old with university education. She is currently responsible
for the overall management of SC.
Working Experience(s):
From 2005 to present Working
in SC as chairman and legal representative.
SC is mainly engaged in selling chemical products and raw materials.
SC’s products mainly include: antibiotic, vitamin, antiphlogistic,
cryolite, aluminium fluoride and potassium fluoride.
SC sources its merchandises 40% from the overseas market and 60% from
domestic market. SC sells 60% of its merchandises in domestic market, and 40%
in the overseas market, mainly in Southeast Asia and Africa.
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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Wujiang Puqiang Medical & Chemical Co., Ltd.
*Major Customer*
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Shanxi Shuguang Pharmaceutical Corporation
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 Jiaozuo Sub-branch.
AC#：41001510516050203062
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 |
0 |
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Other receivables |
0 |
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Advances to suppliers |
210 |
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Inventory |
560 |
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Prepaid expenses |
80 |
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Other current assets |
0 |
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------------------ |
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Current assets |
890 |
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Fixed assets |
410 |
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Fixed assets net value |
410 |
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Projects under construction |
0 |
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Long term investment |
0 |
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Other assets |
0 |
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Total assets |
1,300 |
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Short loans |
0 |
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Bills payable |
0 |
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Accounts payable |
40 |
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Welfare payable |
0 |
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Advances from clients |
0 |
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Accrued payroll |
0 |
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Tax payable |
-10 |
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Other payable |
740 |
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Surcharge payable |
0 |
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Other current liabilities |
0 |
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Current liabilities |
770 |
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Long term liabilities |
0 |
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Total liabilities |
770 |
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Equities |
530 |
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Total liabilities & equities |
1,300 |
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Income Statement
Unit: CNY’000
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as
of Dec. 31, 2006 |
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Turnover |
8,170 |
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Cost of goods sold |
7,890 |
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Sales expense |
130 |
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Management expense |
220 |
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Finance expense |
0 |
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Profit before tax |
-70 |
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Less: profit tax |
0 |
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Profits |
-70 |
Important Ratios
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as
of Dec. 31, 2006 |
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*Current ratio |
1.16 |
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*Quick ratio |
0.43 |
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*Liabilities to assets |
0.59 |
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*Net profit margin (%) |
-0.86 |
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*Return on total assets (%) |
-5.38 |
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*Fixed assets/Total assets |
0.32 |
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*Inventory /Turnover ×365 |
26 days |
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*Accounts receivable/Turnover ×365 |
0 |
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*Turnover/Total assets |
6.28 |
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* Cost of goods sold/Turnover |
0.97 |
PROFITABILITY: FAIR
The turnover of SC appears average in its line.
SC’s net profit margin is fair.
SC’s return on total assets is fair.
SC’s cost of goods sold is high, comparing with its turnover, which
makes the net profit negative.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a fair level.
The inventory of SC appears LARGE.
There’s no accounts receivable of SC.
There’s no short-term loan of SC.
SC’s turnover is in a fairly good level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fair.
SC is considered small-sized in its line with a short history. The large
amount of inventory could be a threat to SC’s financial condition. A credit
line up to USD 4,000 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%)