MIRA
INFORM REPORT
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Report Date : |
12.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
ZHEJIANG PROVINCIAL LIGHT & TEXTILE IND. GROUP IMP. & EXP.
CO., LTD. |
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Registered Office : |
12/B Fuchun Building, No. 509 Qingtai Street, Hangzhou, Zhejiang
Province, 310009 |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
19.12.2002 |
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Com. Reg. No.: |
3300001009233 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Company is 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 : |
USD 300,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
COMPANY NAME &
ADDRESS
ZHEJIANG PROVINCIAL LIGHT & TEXTILE IND. GROUP IMP. & EXP. CO.,
LTD.
12/B FUCHUN BUILDING, NO. 509 QINGTAI STREET, HANGZHOU, ZHEJIANG
PROVINCE, 310009 PR CHINA
TEL: 86 (0) 571-87812842
FAX: 86 (0) 571-87812849
EXECUTIVE SUMMARY
INCORPORATION DATE : DEC. 19, 2002
REGISTRATION NO. : 3300001009233
REGISTERED LEGAL FORM : LIMITED
LIABILITIES COMPANY
CHIEF EXECUTIVE :
MR. SHEN XIAOXING (CHAIRMAN)
STAFF STRENGTH :
20
REGISTERED CAPITAL : CNY 8,300,000
BUSINESS LINE :
INTERNATIONAL TRADE
TURNOVER :
cny 448,940,000 (AS OF DEC. 31, 2006)
EQUITIES :
cny 24,450,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 300,000
MARKET CONDITION : average
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : well
known
EXCHANGE RATE :
CNY 7.39= 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 registered as a limited liabilities company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Dec. 19, 2002.
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 light textile materials
and products, electromechanical equipment (excluding automobiles), metal
materials, hardware, garments, furniture, electric appliances, crafts, culture
and sports products, chemical products, plastic, rubber products, leather
products, building materials, packaging materials, metal products, instruments,
electronic products, communication products and machinery products; decoration
and information consulting services; importing and exporting various goods.
SC is mainly engaged in international trade.
Mr. Shen Xiaoxing has been chairman of SC since 2002.
SC is known to have approx. 20 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 Hangzhou. Our checks
reveal that SC rents the total premise about 1,000 square meters.
SC is not known to host website of its own at present.
No significant events or changes were found during our checks with local
AIC.
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Zhejiang Provincial Approval Group Co., Ltd. 51.20
Shen Xiaoxing 9.64
Yang Gang 7.23
Lou Gengtai 3.61
Jin Zhirui 3.61
Xu Hui 3.61
Other 11 individuals 21.10
Zhejiang Provincial Approval Group Co., Ltd.
Add: 8# Meihuabei, Hangzhou Zhejiang
Tel: 86 0571-7806666
Fax: 86 0571-7804564
Website: http://www.approval.com.cn
Chairman and General Manager:
Mr. Shen Xiaoxing, in his 40’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2002 to present Working
in SC as chairman and general manager.
Sales
Manager:
Ms. Chen Meiling , in her 30’s with university education. She is
currently responsible for the daily management of SC.
Working Experience(s):
From 2005 to present Working in SC as sales manager.
SC is mainly engaged in international trade.
SC’s products mainly include: textiles, garments, crafts, machinery
products, cereals, oils and native products.
SC sources its materials 80% from domestic market, and 20% from the
overseas market, mainly European countries. SC sells 20% of its products in
domestic market, and 80% to the overseas market, mainly Southeast Asia,
American and European countries.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Client:
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Zhejiang Tianma Dress & Leather 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 refused to release any information of its
suppliers and the trade reference was not available.
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.
Industrial and Commercial Bank of China Hangzhou Branch
AC#：N/A
Relationship: Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2006 |
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Cash & bank |
15,020 |
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Inventory |
15,310 |
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Accounts receivable |
32,850 |
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Advances to suppliers |
9,280 |
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Other receivables |
24,650 |
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Other current assets |
7,970 |
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Current assets |
105,080 |
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Fixed assets net value |
460 |
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Projects under construction |
0 |
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Long term investment |
5,490 |
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Other assets |
0 |
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Total assets |
111,030 |
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Short loans |
21,090 |
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Accounts payable |
32,930 |
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Advances from clients |
23,180 |
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Taxes payable |
2,340 |
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Salaries payable |
0 |
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Other payable |
410 |
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Other current liabilities |
6,630 |
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Current liabilities |
86,580 |
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Long term liabilities |
0 |
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Total liabilities |
86,580 |
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Equities |
24,450 |
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Total liabilities & equities |
111,030 |
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Income Statement
Unit: CNY’000
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As
of Dec. 31, 2006 |
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Turnover |
448,940 |
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Profits |
7,590 |
Important Ratios
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2006 |
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*Current ratio |
1.22 |
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*Quick ratio |
1.05 |
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*Liabilities to assets |
0.77 |
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*Net profit margin (%) |
1.69 |
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*Return on total assets (%) |
6.84 |
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*Inventory /Turnover ×365 |
12days |
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*Accounts receivable/Turnover ×365 |
26days |
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*Turnover/Total assets |
4.04 |
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* Cost of goods sold/Turnover |
/ |
PROFITABILITY: FAIRLY GOOD
The turnover of SC appears fairly good in 2006.
SC’s net profit margin is average.
SC’s return on total assets is fairly good in 2006.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level in 2006.
SC’s quick ratio is maintained in a normal level in 2006.
The accounts receivable of SC appears fairly large.
The inventory of SC is average.
The short loans of SC are fairly large.
SC’s turnover is in a fairly good 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 well-known in its industry with fairly stable financial conditions.
Over the past 5 years, SC has made a stable growth with fairly good profit. A
credit line up to USD 300,000 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%)