MIRA
INFORM REPORT
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Report Date : |
28.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
harbin fangtong
xinglong wood industry co., ltd. |
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Registered Office : |
No.10 Nanzhi Road,
Fangzheng County, Harbin, Heilongjiang Province, 150800 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
September 13, 2001 |
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Com. Reg. No.: |
H01548 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Engaged in
manufacturing and selling pencil boards and pencil. |
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 : |
Up To usd 20,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
harbin fangtong
xinglong wood industry co., ltd.
no.10 nanzhi road, fangzheng county, harbin,
heilongjiang PROVINCE, 150800 PR CHINA
TEL :
86 (0) 451-57114333
FAX :
86 (0) 451-57114111
EXECUTIVE SUMMARY
INCORPORATION DATE : september 13, 2001
REGISTRATION NO. : h01548
REGISTERED LEGAL FORM : Chinese-foreign equity
joint venture enterprise
STAFF STRENGTH :
350
REGISTERED CAPITAL : CNY 2,000,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 40,560,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 3,050,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 20,000 (perioeidal review)
MARKET CONDITION : average
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.32 = 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 Chinese-foreign equity joint venture enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on September 13, 2001.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing according
to the proportion of capital investment. Each investing parties contributes
funds, tangible assets, technology & etc. The board of directors
excises the high authority. The joint venture usually has a limited
duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered
business scope includes manufacturing and selling pencil boards, pencil and
wood products.
SC is mainly
engaged in manufacturing and selling pencil boards and pencil.
Mr. Chuanyue
Zhenghui has been chairman of SC since 2001.
SC is known to
have approx. 350 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 Harbin. Our checks
reveal that SC rents the total premise about 7,600 square meters.
SC is not known to host web site of its own at present.
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Fangzheng County Hongyuan Wood Industry Co.,
Ltd. 50
Chuanyue Zhenghui (Japanese)
50
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Chairman:
Mr. Chuanyue Zhenghui (Chinese pinyin), Chinese Japanese, 35 years old
with university education. He is currently responsible for the overall
management of SC.
Working Experience(s):
From 2001 to present Working
in SC as chairman.
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General Manager:
Mr. Lu Bingwu, 51 years old with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2001 to present Working in SC as general manager.
SC is mainly
engaged in manufacturing and selling pencil boards and pencil.
SC’s products
mainly include: various pencil.
SC sources its materials 100% from domestic
market, mainly Heilongjiang. SC sells 100% of its products to overseas market,
mainly Czech, USA, Pakistan.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include 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.
Agricultural Bank of China Harbin Branch
AC#：009201040002532
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
2,200 |
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Inventory |
22,470 |
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Accounts
receivable |
4,920 |
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Other Accounts
receivable |
0 |
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To be
apportioned expense |
0 |
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Other current
assets |
1,120 |
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Current assets |
30,710 |
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Fixed assets net
value |
9,140 |
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Projects under
construction |
690 |
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Long term
investment |
0 |
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Other assets |
7,910 |
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Total assets |
48,450 |
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Short loans |
14,000 |
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Accounts payable |
10,310 |
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Other Accounts
payable |
21,000 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
80 |
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Current
liabilities |
45,390 |
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Long term
liabilities |
0 |
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Other
liabilities |
10 |
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Total
liabilities |
45,400 |
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Equities |
3,050 |
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Total
liabilities & equities |
48,450 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
40,560 |
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Cost of goods
sold |
34,110 |
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Sales expense |
2,150 |
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Management expense |
2,140 |
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Finance expense |
980 |
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Profit before
tax |
1,420 |
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Less: profit tax |
0 |
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Profits |
1,420 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 0.68
*Quick ratio 0.18
*Liabilities to
assets 0.94
*Net profit margin
(%) 3.50
*Return on total
assets (%) 2.93
*Inventory
/Turnover ×365 202 days
*Accounts
receivable/Turnover ×365 44 days
*Turnover/Total
assets 0.84
* Cost of goods
sold/Turnover 0.84
PROFITABILITY:
AVERAGE
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The turnover of SC appears average in its line.
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SC’s net profit margin is average.
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SC’s return on total assets is average.
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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 in a fair level.
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SC’s quick ratio is maintained in a poor level.
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The inventory of SC appears large.
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The accounts receivable of SC is maintained in an average level.
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SC’s short-term loan appears large.
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SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIR
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The debt ratio of SC is 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 medium-sized in its line with fairly stable financial
conditions. The large amount of short loans could be a threat to SC’s financial
condition. A credit line up to USD 20,000 appears 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%)