MIRA
INFORM REPORT
|
Report Date : |
19.12.2007 |
IDENTIFICATION
DETAILS
|
Name : |
zhangjiagang ka
kwong tien import & export trading co., ltd. |
|
|
|
|
Registered Office : |
No. 1, Southern Renmin Road, Tangqiao Town, Zhangjiagang, Jiangsu Province,
215611 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2006 |
|
|
|
|
Date of Incorporation : |
October 18, 2004 |
|
|
|
|
Com. Reg. No.: |
3205822108419 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
Engaged in importing and exporting textiles. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
|
Maximum Credit Limit : |
Up To USD 100,000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
Litigation : |
Clear |
name & address
zhangjiagang ka
kwong tien import & export trading co., ltd.
no. 1, southern
renmin road, tangqiao town, zhangjiagang,
jiangsu PROVINCE,
215611 PR CHINA.
TEL: 86 (0) 512-58438822
FAX: 86 (0) 512-58441448
EXECUTIVE SUMMARY
INCORPORATION DATE : october
18, 2004
REGISTRATION NO. :
3205822108419
REGISTERED
LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF
STRENGTH : 16
REGISTERED
CAPITAL : CNY 50,000,000
BUSINESS
LINE : trading
TURNOVER : CNY 26,170,000.00
(AS OF DEC. 31, 2006)
EQUITIES : CNY 50,550,000.00 (AS OF DEC.
31, 2006)
PAYMENT : AVERAGE
RECOMM.
CREDIT RANGE : UP TO USD 100,000
(periodical review)
MARKET
CONDITION : AVERAGE
FINANCIAL
CONDITION : FAIRLY STABLE
OPERATIONAL
TREND : FAIRly steady
GENERAL
REPUTATION : AVERAGE
EXCHANGE
RATE : CNY 7.38 = US1$
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
RMB - China Ren Min Bi Yuan
SC was registered as a limited liabilities company at local Municipal Administration for Industry & Commerce (The official body of issuing and renewing business license) on October 18, 2004.
Company Status: Limited Liabilities Company 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 goods and technology, purchasing and selling textile raw
materials, textiles, lint cotton, metal materials, hardware, plastic products,
wool, packaging materials, textile machinery and apparatus.
SC is mainly engaged in importing and exporting
textiles.
Mr. Xiao Jingyao has been chairman of SC since 2004.
SC is known to have approx. 16 staff members at present.
SC is currently operating at the above
stated address. This address houses its operating office in the industrial zone
of Zhangjiagang. Our checks reveal that SC rents the total premise about 50
square meters.
SC is not known to host website of its own at
present.
SC started its normal operation
since July 2006.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Huafang
Group Jintian Textiles Co., Ltd. 40
Huafang
Group Co., Ltd. 60
==============
Huafang
Group is a joint-stock enterprise specializing in textile with total asset of 5
billion Yuan and 1.5 million square meter area. Huafang Group can produce
worsted cotton yarn, cotton blend yarn, span spandex yarn, roller yarn, yarn
dyed fabric, printing dyed cloth, knitted cloth, worsted woolenet, knitted
clothes and other textile products and large scale manufacture of copper. The
company passed ISO9002 Quality Authentication, ISO14000 Environmental
Management Authentication.
Add: No. 1 South of Renmin Road, Tangqiao,
Zhangjiagang, Jiangsu Province,
Tel: 0512-58438808/58438807
Fax: 0512-58441073
Website: www.hfang.com
E-mail: office@hfang.com
l
Legal representative, Chairman and
general manager:
Mr. Xiao Jingyao,
ID # 320582680501337, 39 years old with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2004 to present Working in SC as legal representative,
chairman and general manager.
SC is mainly engaged in importing and exporting
textiles.
SC’s products
mainly include: textiles and
cotton yarn.
SC sources its materials 10%
from domestic market, and 90% from overseas market, mainly USA and India. SC
sells 60% of its products in domestic market, and 40% to overseas market,
mainly Hong Kong and Macao.
The buying terms of SC include Check, T/T, L/C and Credit of
30-60 days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60
days.
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.
Agriculture Bank of China Tangqiao Sub-branch.
AC#：527701040005602
Relationship: Normal.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
|
Cash & bank |
3,490 |
|
Inventory |
0 |
|
Accounts
receivable |
0 |
|
Other current
assets |
0 |
|
|
-------- |
|
Current assets |
3,490 |
|
Fixed assets |
10 |
|
Fixed assets net
value |
10 |
|
Projects under
construction |
0 |
|
Long term
investment |
0 |
|
Other assets |
0 |
|
|
-------- |
|
Total assets |
3,500 |
|
|
============= |
|
Short loans |
0 |
|
Accounts payable |
0 |
|
Other payable |
-47,140 |
|
Other current
liabilities |
90 |
|
|
------------------ |
|
Current
liabilities |
-47,050 |
|
Long term
liabilities |
0 |
|
|
--------- |
|
Total
liabilities |
-47,050 |
|
Equities |
50,550 |
|
|
--------- |
|
Total
liabilities & equities |
3,500 |
|
|
============= |
Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
|
Turnover |
26,170 |
|
Cost of goods
sold |
26,090 |
|
Sales expense |
140 |
|
Management expense |
40 |
|
Finance expense |
580 |
|
Investment
income |
1,430 |
|
Profit before
tax |
750 |
|
Less: profit tax |
150 |
|
Profits |
500 |
Important Ratios
=============
|
|
as
of Dec. 31, 2006 |
|
*Current ratio |
-0.07 |
|
*Quick ratio |
-0.07 |
|
*Liabilities
to assets |
-13.4 |
|
*Net profit margin
(%) |
1.91 |
|
*Return on
total assets (%) |
14.3 |
|
*Inventory
/Turnover ×365 |
/ |
|
*Accounts
receivable/Turnover ×365 |
/ |
|
*Turnover/Total
assets |
7.48 |
|
* Cost of
goods sold/Turnover |
1.00 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is fairly good.
l
SC’s cost of goods sold is high, comparing with its turnover.
LIQUIDITY: AVERAGE
l
Sc has no inventory, short loans and accounts receivable in 2006.
l
SC’s turnover is in a fairly good level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
l
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fairly stable.
SC is considered small-sized in its line with a fairly stable financial
condition. A
credit line up to USD 100,000 would appear to be within SC’s capacities upon a
periodical review basis.
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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%)