MIRA
INFORM REPORT
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Report Date : |
14.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
ZHANGJIAGANG FREE TRADE ZONE YOUTH INT’L TRADE CO., LTD. |
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Trading As: |
TUBES CHINA COMPANY LIMITED |
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Registered Office : |
West Block Of Guomai Mansion, West Renmin Road, Zhangjiagang City, Jiangsu Province 215600 |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
11.07.2003 |
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Com. Reg. No.: |
3205922102874 |
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Legal Form : |
Limited liabilities company |
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Line of Business : |
Exporting of Steel Tubes |
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 8,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
COMPANY NAME &
ADDRESS
ZHANGJIAGANG FREE TRADE ZONE YOUTH INT’L TRADE CO., LTD.
WEST BLOCK OF GUOMAI MANSION, WEST RENMIN ROAD, ZHANGJIAGANG CITY, JIANGSU PROVINCE 215600 PR CHINA
TEL: 86 (0) 512-58321068
FAX: 86 (0) 512-58321138
EXECUTIVE SUMMARY
INCORPORATION DATE : jul. 11, 2003
REGISTRATION NO. : 3205922102874
REGISTERED LEGAL FORM : Limited liabilities company
CHIEF EXECUTIVE : Ms. zhou lihong (CHAIRMAN)
STAFF STRENGTH : 5
REGISTERED CAPITAL : CNY 500,000
BUSINESS LINE : trading
TURNOVER : CNY 26,614,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 621,000 (AS OF DEC. 31, 2006)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 8,000
MARKET CONDITION : average
FINANCIAL CONDITION : stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 7.37 =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 Renminbi
Note: SC’s registered name should be the above stated one, while the given one Tubes China Co., Ltd. is SC’s trade name.
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 Jul. 11, 2003.
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 importing and exporting commodities & technologies; purchasing and selling steel tubes, building materials, and gloves; trade within the enterprises in the free trade zone; and trade related agency business.
SC is mainly engaged in exporting steel tubes.
Ms. Zhou Lihong has been chairman of SC since 2003.
SC is known to have approx. 5 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 Zhangjiagang. Our checks reveal that SC rents the total premise about 100 square meters.
http://www.tubeschina.com The design is professional and the content is well organized. At present it is only in English version.
E-mail: sales@tubeschina.com
No significant events or changes were found during our checks with the local AIC.
MAIN SHAREHOLDERS:
Name % of Shareholding
Zhou Lihong 80
Zhou Huixing 20
Chairman and General Manager:
Ms. Zhou Lihong, 30 years old with university education. She is currently responsible for the overall management of SC.
Working Experience(s):
From 2003 to present Working in SC as chairman and general manager.
Assistant Manager:
Mr. You Yongbin , in his 30’s with university education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 2003 to present Working in SC as assistant manager.
SC is mainly engaged in exporting steel tubes.
SC’s products mainly include: gas cylinder tubes, drill pipes, casing and tubing, line pipes, carbon steel and alloy steel pipes, special shape steel pipes, etc.
SC sources its materials 100% from domestic market, mainly Jiangsu province. SC sells 80% to overseas market, and 20% in domestic market, mainly Jiangsu province.
The buying terms of SC include T/T, 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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Zhangjiagang Asike Building Materials Co., Ltd.
*Major Customer:
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Jiangsu Wuzhong Import and Export 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’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 Free Trade Zone Sub-branch
AC#：32201986255050240944
Relationship: Normal.
Balance Sheet (as of
Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
430 |
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Inventory |
0 |
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Accounts receivable |
210 |
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Other Accounts receivable |
458 |
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Advances to suppliers |
252 |
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To be apportioned expense |
0 |
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Other current assets |
133 |
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Current assets |
1,483 |
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Fixed assets |
306 |
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Long term investment |
0 |
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Other assets |
0 |
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Total assets |
1,789 |
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Short loans |
0 |
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Accounts payable |
793 |
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Other Accounts payable |
81 |
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Advances from clients |
273 |
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Withdraw the expenses in advance |
0 |
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Other current liabilities |
21 |
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Current liabilities |
1,168 |
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Long term liabilities |
0 |
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Other liabilities |
0 |
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Total liabilities |
1,168 |
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Equities |
621 |
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Total liabilities & equities |
1,789 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
26,614 |
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Cost of goods sold |
25,340 |
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Sales expense |
700 |
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Management expense |
625 |
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Finance expense |
20 |
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Profit before tax |
145 |
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Less: profit tax |
48 |
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Profits |
97 |
Important Ratios (as of
Dec. 31, 2006)
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*Current ratio 1.27
*Quick ratio 1.27
*Liabilities to assets 0.65
*Net profit margin (%) 0.36
*Return on total assets (%) 5.42
*Inventory /Turnover ×365 /
*Accounts receivable/Turnover ×365 3days
*Turnover/Total assets 14.88
* Cost of goods sold/Turnover 0.95
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 fairly good.
SC’s cost of goods sold is fairly high, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a fairly good level.
SC has no inventory in 2006.
The accounts receivable of SC is maintained in an average level.
SC has no short-term loan in 2006.
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: Stable.
SC is considered small-sized in its line with stable financial conditions. A credit line up to USD 8,000 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%)