MIRA
INFORM REPORT
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Report Date : |
14.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
ZHEJIANG CATHAYA TRADE AND DEVELOPMENT CO., LTD. |
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Registered Office : |
No. 115, Tiyuchang Road, Hangzhou City, Zhejiang Province
311200 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Jan. 1, 1999 |
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Com. Reg. No.: |
3300001005368 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in international
trade. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
Up To USD200,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
ZHEJIANG CATHAYA TRADE AND DEVELOPMENT CO., LTD.
NO. 115, TIYUCHANG ROAD, HANGZHOU CITY
ZHEJIANG PROVINCE 311200 PR CHINA
TEL : 86 (0) 571-82891105
FAX : 86 (0) 571-83711153
EXECUTIVE SUMMARY
INCORPORATION DATE :
JAN. 1, 1999
REGISTRATION NO. :
3300001005368
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
38
REGISTERED CAPITAL : CNY6,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY930,480,000 (AS OF DEC. 31,
2006)
EQUITIES :
CNY 23,340,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO
USD200,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY GOOD
OPERATIONAL TREND : STEADy
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY7.37= 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 reregistered as a limited liabilities company at local Municipal Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on Jan. 1, 1999.
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 scopes include operating import & export business; and selling machinery,
light industry products for daily use, textile, building materials, household
electric appliance, handicraft, communication equipment, hardware, packing
materials, chemical products, feedstuff, and additive agent.
SC is mainly
engaged in international trade.
Mr. Wu Jin’gen has
been chairman of SC since 1999.
SC owns
approximately 38 staff at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Hangzhou. Our checks reveal that SC
rents the total premise about 500 square meters.
http://www.zj-cathaya.com The design is
professional and the content is well organized. At present the web is only in
English version.
E-mail: frankchen@cathaya.cn
No significant events or changes were found during our checks with the
local AIC.
MAIN SHAREHOLDERS:
Name
% of Shareholding
Zhejiang Silk Group Co., Ltd. 51
Shareholder's Union of Staff 49
l
Chairman and
General Manager:
Mr. Wu Jin’gen, in his 40’s with university education. He is currently responsible
for the overall management of SC.
Working Experience(s):
From 1999 to present Working in SC as chairman and general manager.
SC’s sales manager:
Ms. Hong Yan
Tel: 86-0571-82674958
Mobile Tel: 13516713653
Fax: 86-0571-82674958
SC is mainly
engaged in international trade.
SC’s products mainly include:
chemical products, baby crib, baby stroller, baby walker, and baby jogger &
umbrella stroller, etc.
SC’s brand is “CATHAYA”.
SC sources its
materials 90% from domestic market, mainly Zhejiang province, and 10% from
overseas market. SC sells 5% in domestic market, mainly Zhejiang province, and
95% to overseas market, mainly Hong Kong, European and American countries.
The buying terms of SC include Check, T/T, L/C, Check and Credit of 30-60 days. The payment terms of SC
include T/T, L/C, Check and Credit of 30-60 days.
*Major Supplier:
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HANGZHOU YM HARDWARE
MANUFACTURING FACTORY
*Major Customer:
==============
Zhejiang Tongtianxing Group 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 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.
Bank of China Xiaoshan Sub-branch
AC#：803000128918093001
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
29,000 |
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Inventory |
150 |
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Bills receivable |
0 |
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Accounts
receivable |
3,900 |
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Other Accounts
receivable |
65 |
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Accounts payable
in advance |
123,570 |
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To be
apportioned expense |
0 |
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Other current
assets |
15,315 |
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Current assets |
172,000 |
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Fixed assets |
2,810 |
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Long term
investment |
0 |
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Other assets |
0 |
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Total assets |
174,810 |
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Short loans |
10,000 |
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Bills payable |
0 |
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Accounts payable |
12,240 |
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Taxes payable |
1,670 |
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Accounts
received in advance |
126,120 |
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Other Accounts
payable |
890 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
550 |
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Current
liabilities |
151,470 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
151,470 |
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Equities |
23,340 |
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Total
liabilities & equities |
174,810 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
930,480 |
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Cost of goods
sold |
885,770 |
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Sales expense |
27,670 |
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Management expense |
7,620 |
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Finance expense |
500 |
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Profit before
tax |
11,540 |
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Less: profit tax |
3,920 |
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Profits |
7,620 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 1.14
*Quick ratio 1.13
*Liabilities to
assets 0.87
*Net profit
margin (%) 0.82
*Return on total
assets (%) 4.36
*Inventory
/Turnover ×365 1 day
*Accounts
receivable/Turnover ×365 2 days
*Turnover/Total
assets 5.32
* Cost of goods
sold/Turnover 0.95
PROFITABILITY:
FAIRLY GOOD
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The turnover of SC appears fairly good in its line.
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SC’s net profit margin is acceptable.
l
SC’s return on total assets is fairly good.
l
SC’s cost of goods sold is high, comparing with its
turnover.
LIQUIDITY:
FAIRLY GOOD
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The current ratio of SC is maintained in a fairly good
level.
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SC’s quick ratio is maintained in a fairly good level.
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The inventory of SC is maintained in a fairly good level.
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The accounts receivable of SC is maintained in a fairly good
level.
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The short-term loan of SC appears normal.
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SC’s turnover is in a fairly good level, comparing with the
size of its total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is fairly high.
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The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly good.
SC is considered small-sized in its line with fairly good financial
conditions. A credit line up to USD200,000 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%)