MIRA
INFORM REPORT
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Report Date : |
21.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
putian wende
chemical fibre co., ltd. |
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Registered Office : |
Wende Industrial
Zone, Laidian Town, Xianyou County, Putian City Fujian Province 351251 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Sep. 1, 1998 |
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Com. Reg. No.: |
001267 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Engaged in producing
and selling fabric manufacture thread. |
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 usd 120,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
putian wende
chemical fibre co., ltd.
wende industrial zone, laidian town, xianyou
county, putian city
fujian province 351251 PR CHINA
TEL :
86 (0) 594-8662607
FAX :
86 (0) 594-8696688
EXECUTIVE SUMMARY
INCORPORATION DATE : sep. 1, 1998
REGISTRATION NO. : 001267
REGISTERED LEGAL FORM : wholly foreign-owned
enterprise
STAFF STRENGTH :
204
REGISTERED CAPITAL : usd 1,880,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 27,590,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 17,940,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 120,000 (periodical review)
MARKET CONDITION : average
FINANCIAL CONDITION : fair
OPERATIONAL TREND : fairly 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
SC was registered as a wholly foreign-owned enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Sep. 1, 1998.
Company Status: Wholly foreign-owned enterprise. This form of business in PR
China is defined as a legal person. It is a limited co. established within
the territories of PR China with capital provided totally by the foreign
investors. More than one foreign investor may jointly invest in a wholly
foreign-owned enterprise. The investing party/parties solely exercise
management, reap profit and bear risks and liabilities by themselves. This
form of companies usually have a limited duration is extendible upon
approval of Examination and Approval Authorities.
SC’s registered
business scope includes manufacturing chinlon slices, nylon slices, chinlon
yarn, nylon yarn, and polyamide yarn.
SC is mainly
engaged in producing and selling fabric manufacture thread.
Mr. Fu Zhenyue has
been chairman of SC since 1998.
SC is known to
have approx. 204 staff members at present.
SC is currently
operating at the above stated address, and this address houses its operating
office and factory in the industrial zone of Putian. Our checks reveal that SC
rents the total premise about 53,000 square meters.
SC is not known to host web site of its own at present.
Until December 31, 2006, SC’s paid-up capital was CNY 15,500,000.
MAIN SHAREHOLDERS:
Name % of Shareholding
Hong Kong Wende Enterprise Group
Co., Ltd. 100
l
Chairman:
Mr. Fu Zhenyue, Hong Kong resident, in his 50’s with university education.
He is currently responsible for the overall management of SC.
Working Experience(s):
From 1998 to present Working in SC as chairman.
l
General Manager:
Mr. Fu Zhenquan, Hong Kong resident, in his 50’s with university
education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 1998 to present Working in SC as general manager.
SC is mainly
engaged in producing and selling fabric manufacture thread.
SC’s products
mainly include: chinlon slices, nylon slices, chinlon yarn, nylon yarn, and
polyamide yarn.
SC sources its materials 10% from domestic
market, and 90% from overseas market, mainly Japan and South Korea. SC sells
95% to overseas market, mainly Hong Kong, and 5% in domestic market, mainly
Fujian province.
The buying terms of SC include 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 Customer:
============
Hong Kong Wende Enterprise 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
AC#：822001652908091001
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
2,680 |
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Inventory |
10,160 |
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Accounts
receivable |
22,680 |
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Other Accounts
receivable |
3,460 |
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Advances to
suppliers |
0 |
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To be
apportioned expense |
0 |
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Other current
assets |
1,250 |
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------------------ |
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Current assets |
40,230 |
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Fixed assets |
6,620 |
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Long term
investment |
0 |
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Other assets |
1,970 |
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------------------ |
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Total assets |
48,820 |
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============= |
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Short loans |
26,240 |
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Accounts payable |
4,820 |
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Other Accounts
payable |
137 |
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Advances from
clients |
0 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
-317 |
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Current
liabilities |
30,880 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
30,880 |
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Equities |
17,940 |
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Total
liabilities & equities |
48,820 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
27,590 |
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Cost of goods
sold |
26,250 |
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Sales expense |
289 |
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Management expense |
1,130 |
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Finance expense |
1,640 |
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Profit before
tax |
-1,700 |
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Less: profit tax |
40 |
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Profits |
-1,740 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 1.30
*Quick ratio 0.97
*Liabilities to
assets 0.63
*Net profit
margin (%) -6.31
*Return on total
assets (%) -3.56
*Inventory
/Turnover ×365 134days
*Accounts
receivable/Turnover ×365 300days
*Turnover/Total
assets 0.57
*Cost
of goods sold/Turnover 0.95
PROFITABILITY:
FAIR
l
The turnover of SC appears average in its line.
l
SC’s net profit margin is fair.
l
SC’s return on total assets is fair.
l
SC’s cost of goods sold is fairly high, comparing with its
turnover.
LIQUIDITY:
FAIR
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The current ratio of SC is maintained in a normal level.
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SC’s quick ratio is maintained in a normal level.
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The inventory of SC appears fairly large.
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The accounts receivable of SC appears LARGE.
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The short-term loan of SC appears LARGE.
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SC’s turnover is in a fair level, comparing with the size of
its total assets.
LEVERAGE:
AVERAGE
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The debt ratio of SC is average.
l
The risk for SC to go bankrupt is average.
Overall
financial condition of the SC: Fair.
SC is considered medium-sized in its line with fair financial
conditions. The large amount of accounts receivable
and short-term loan could be a threat to SC’s financial
condition. A credit line up to USD 120,000 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%)