MIRA
INFORM REPORT
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Report Date : |
12.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
SHANDONG TIANYUAN ABER CO., LTD. |
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Registered Office : |
No.2 Xinzhu Road, Lixia District, Ji’nan, Shandong
Province, 250100 |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
21.08.2001 |
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Com. Reg. No.: |
370000018069242 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Selling Fiber Products and Textiles |
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 : |
USD 200,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
COMPANY NAME &
ADDRESS
SHANDONG TIANYUAN ABER CO., LTD.
No.2 Xinzhu Road, Lixia District, Ji’nan, Shandong PROVINCE, 250100 PR
CHINA
TEL: 86 (0) 531-82599770
FAX: 86 (0) 531-82599762
EXECUTIVE SUMMARY
INCORPORATION DATE : august 21, 2001
REGISTRATION NO. : 370000018069242
REGISTERED LEGAL FORM : Limited
liabilities company
CHIEF EXECUTIVE :
MR. bai zhigang (CHAIRMAN)
STAFF STRENGTH :
60
REGISTERED CAPITAL : CNY 30,000,000
BUSINESS LINE :
trading
TURNOVER :
CNY 348,710,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 31,150,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 200,000 (periodical review)
MARKET CONDITION : average
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.38 = 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
Note: SC’s correct name should be the above stated
one, instead of the given name – Shangdong Jianyuan Aber Co., Ltd.
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 August 21, 2001.
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 textiles, hardware,
chemical products, steel, timber, cement, paper pulp and cotton, agricultural
science and technology development, international trade.
SC is mainly engaged in selling fiber products and textiles.
Mr. Bai Zhigang has been chairman of SC since 2001.
SC is known to have approx. 60 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 Ji’nan. Our checks reveal
that SC rents the total premise about 500 square meters.
SC is not known to host web site of its own at present.
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Shandong Supply & Marketing Cooperatives Group Corp. 56.33
Shandong Cotton Machinery Company 0.83
Shandong Cotton and Linen Company 17.48
Zou Chunhui 2.67
Zhang Gongwei
1.50
Liu Xingkang 1.50
Jiang Zhong 1.50
Other 20 individuals 18.19
Chairman:
Mr. Bai Zhigang, about 45 years old with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 2001 to present Working
in SC as chairman.
General Manager:
Mr. Guo Mingquan, 43 years old with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
From 2001 to present Working in SC as general manager.
SC is mainly engaged in selling fiber products and textiles.
SC’s products mainly include: fiber products, textiles.
SC sources its materials 100% from domestic market, mainly Shandong. SC
sells 100% of its products to overseas market, mainly USA, Europe and 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 30-60 days.
SC is known to have 4 subsidiaries at present:
Qingdao Tianyuan Cotton Co., Ltd.
Beijing Tianyuan Cotton Co., Ltd.
Yantai Tianyuan Cotton Co., Ltd.
Address: Room 407, Yanzhong Building, NO.49 Huamao Street, Yantai,
Shandong Province
Tel: 86 0535-6206958
Shandong Tengzhou Tianyuan Textiles Co., Ltd.
Address: No.7 Xinhua Street, Zaozhuang, Shandong Province
Tel: 86 0632-5512480
Fax: 86 0632-5512492
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 Ji’nan Branch
AC#：158101040007284
Relationship: Normal.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
112,860 |
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Inventory |
178,790 |
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Accounts receivable |
4,390 |
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Other Accounts receivable |
225,000 |
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To be apportioned expense |
0 |
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Other current assets |
72,440 |
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Current assets |
593,480 |
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Fixed assets net value |
1,980 |
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Projects under construction |
0 |
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Long term investment |
92,580 |
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Other assets |
10 |
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Total assets |
688,050 |
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Short loans |
142,000 |
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Accounts payable |
22,650 |
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Other Accounts payable |
284,170 |
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Advances from clients |
21,780 |
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Withdraw the expenses in advance |
0 |
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Other current liabilities |
156,300 |
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Current liabilities |
626,900 |
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Long term liabilities |
30,000 |
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Other liabilities |
0 |
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Total liabilities |
656,900 |
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Equities |
31,150 |
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Total liabilities & equities |
688,050 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
348,710 |
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Cost of goods sold |
327,050 |
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Sales expense |
7,090 |
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Management expense |
2,740 |
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Finance expense |
10,080 |
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Profit before tax |
50 |
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Less: profit tax |
10 |
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Profits |
40 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 0.95
*Quick ratio 0.66
*Liabilities to assets 0.95
*Net profit margin (%) 0.01
*Return on total assets (%) 0.01
*Inventory /Turnover ×365 187 days
*Accounts receivable/Turnover ×365 5 days
*Turnover/Total assets 0.51
* Cost of goods sold/Turnover 0.94
PROFITABILITY: AVERAGE
The turnover of SC appears fairly good 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, comparing with its turnover.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level.
SC’s quick ratio is maintained in a fair level.
The inventory of SC appears fairly large.
The accounts receivable of SC is maintained in an average level.
SC’s short-term loan appears LARGE.
SC’s turnover is in a fair level, comparing with the size of its total
assets.
LEVERAGE: FAIR
The debt ratio of SC is high.
The risk for SC to go bankrupt is average.
Overall financial condition of the SC:
Fairly stable.
SC is considered medium-sized in its line with favorable background. The
large amount of short loans could be a threat to SC’s financial condition. A
credit line up to USD 200,000
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%)