MIRA
INFORM REPORT
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Report Date : |
25.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
jushi group
jiujiang Co., Ltd. |
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Registered Office : |
No. 450, East
Qianjin Road, Jiujiang, Jiangxi Province, 332005 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
December 10, 2002 |
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Com. Reg. No.: |
3604001012263 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in processing
and selling fiber glass. |
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 500,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
jushi group jiujiang
Co., Ltd.
NO. 450, EAST QIANJIN ROAD, JIUJIANG, JIANGXI PROVINCE,
332005 PR CHINA.
TEL :
86 (0) 792-8267621
FAX :
86 (0) 792-8252011
EXECUTIVE SUMMARY
INCORPORATION DATE : DECEMBER 10, 2002
REGISTRATION NO. : 3604001012263
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 2,000
REGISTERED CAPITAL : CNY 80,000,000
BUSINESS LINE : PROCESSING
AND TRADING
TURNOVER : CNY 311,430,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 157,554,000 (AS OF DEC. 31, 2006)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 500,000 (periodical review)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : well-known
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
CNY - China Yuan Renminbi
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 December 10, 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 exporting self-made products and
technologies; importing machinery, parts, materials and technology, processing
with imported materials, processing with imported samples, assembling with
imported parts, and compensation trade in agreement.
SC is mainly
engaged in processing and selling fiber glass.
Mr. Yu Zhenghua has been legal representative and chairman of SC since
2006.
SC is
known to have approx. 2,000 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
Jiujiang. Our checks reveal that SC owns the total premise about 50,000 square
meters.
http://www.jushi.com/ It is the website of its parent. The design
is professional and the content is well organized. At present the web site is
both in Chinese and English versions.
Email: jiujiang@jushi.com
Changes of its registered information:
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Date of change |
Item |
Before the change |
After the change |
|
2004-11-18 |
Registered capital |
CNY 38,220,000 |
CNY 80,000,000 |
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2006-8-10 |
Legal representative |
Jiang Kunyuan |
Yu Zhenghua |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Jushi Group Co., Ltd. 99
Tongxiang Juzheng Mining Co., Ltd. 1
===========================
Jushi Group Co., Ltd is a
professional fiberglass manufacturer leading fiberglass producing enterprise. It
has been holding the leading position in the aspects of size, technology,
market, profit. Jushi Group is the key and High-Tech enterprise of Zhejiang
province.
The main products of the company
are E-glass and electro-glass fiber yarn used to make woven cloth for electric
laminate, which is the basic material of information processing equipment.
l
Legal representative and chairman:
Mr. Yu Zhenghua, ID # 330425195308280917, 54 years
old with MBA degree. He is currently responsible for the overall management of
SC.
Working Experience(s):
From 2006 to present Working in SC as chairman and legal representative.
l
General manager:
Mr. Shao Huojun, in his 40’s with university education.
He is currently responsible for the daily
management of SC.
Working Experience(s):
From 2000 to present Working in SC as general manager.
SC is mainly
engaged in processing and selling fiber glass.
SC’s products
mainly include dry chopped strands, woven roving, stitch chopped strand, mat,
powder chopped, and so on.
SC sources its materials 80%
from domestic market, and 20% from overseas market, mainly USA and Europe. SC
sells 30% of its products in domestic market, and 70% to overseas market,
mainly Southeast Asian market.
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.
SC’s management
declined to release its bank details.
Balance Sheet
Unit: CNY’000
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as of Dec. 31, 2005 |
as of Dec. 31, 2006 |
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Cash & bank |
76,295 |
64,331 |
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Inventory |
36,926 |
43,376 |
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Accounts
receivable |
42,820 |
59,298 |
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Advances to
supplies |
44 |
856 |
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Other
receivables |
16 |
-510 |
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Notes
receivables |
0 |
8,029 |
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Prepaid expenses |
527 |
-295 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
156,628 |
175,085 |
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Fixed assets |
237,325 |
524,631 |
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Fixed assets net
value |
198,206 |
471,576 |
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Projects under construction |
543 |
444 |
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Long-term
investments |
0 |
0 |
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Intangible and
other assets |
520 |
103 |
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------------------ |
------------------ |
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Total assets |
355,897 |
647,208 |
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============= |
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Short loans |
124,000 |
250,000 |
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Accounts payable |
15,692 |
20,123 |
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Other Accounts
payable |
16,615 |
24,645 |
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Accrued payroll |
1,053 |
1,431 |
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Taxes payable |
6,594 |
5,713 |
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Welfares payable |
808 |
725 |
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Notes payable |
0 |
7,533 |
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Advances from
clients |
1,127 |
115 |
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Other
current liabilities |
326 |
368 |
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----------------- |
----------------- |
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Current
liabilities |
166,215 |
310,654 |
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Long term
liabilities |
49,000 |
179,000 |
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------------------ |
------------------ |
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Total
liabilities |
215,215 |
489,654 |
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Shareholders
equities |
140,682 |
157,554 |
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------------------ |
------------------ |
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Total
liabilities & equities |
355,897 |
647,208 |
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Income Statement
Unit: CNY’000
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as of Dec. 31, 2005 |
as of Dec. 31, 2006 |
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Turnover |
271,281 |
311,430 |
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Cost of goods
sold |
200,263 |
243,443 |
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Add:
Income from other operations |
2,546 |
2,252 |
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Sales expense |
13,124 |
10,963 |
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Management expense |
13,961 |
15,899 |
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Finance expense |
9,641 |
17,095 |
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Operation Profit |
39,592 |
26,585 |
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Less: profit tax |
11,388 |
8,773 |
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Net profit |
28,204 |
17,812 |
Important Ratios
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as of Dec. 31, 2005 |
as of Dec. 31, 2006 |
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*Current ratio |
0.94 |
0.56 |
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*Quick ratio |
0.72 |
0.42 |
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*Liabilities
to assets |
0.60 |
0.76 |
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*Net profit
margin (%) |
10.40 |
5.72 |
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*Return on
total assets (%) |
7.92 |
2.75 |
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*Inventory
/Turnover ×365 |
50 days |
51 days |
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*Accounts
receivable/Turnover ×365 |
58 days |
69 days |
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*Turnover/Total
assets |
0.76 |
0.48 |
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* Cost of
goods sold/Turnover |
0.74 |
0.78 |
PROFITABILITY: AVERAGE
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The turnover of SC appears fairly good in its line, and it increased in 2006.
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SC’s net profit margin is fairly good in 2005 and average in 2006.
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SC’s return on total assets is fairly good in 2005 and average in 2006.
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SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained at a fair level in 2006.
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SC’s quick ratio is maintained at a fair level in 2006
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The inventory of SC appears average in both 2 years.
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The accounts receivable of SC appears average.
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The short loans of SC appear LARGE in 2006.
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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 fairly high.
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The risk for SC to go bankrupt is average.
Overall financial condition of the SC:
Fairly stable.
SC is considered large-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 500,000 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%)