MIRA
INFORM REPORT
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Report Date : |
28.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
suzhou textiles,
silk, LIGHT INDUSTRIAL PRODUCTS, ARTS AND CRAFTS IMPORT & EXPORT CO.,
LTD. |
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Registered Office : |
No. 6, Xihuan Road, Suzhou City, Jiangsu Province 215004 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Jun. 1, 1992 |
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Com. Reg. No.: |
3205001102489 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
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 : |
Up To usd 170,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
suzhou textiles,
silk, LIGHT INDUSTRIAL PRODUCTS, ARTS AND CRAFTS
IMPORT & EXPORT
CO., LTD.
NO. 6, XIHUAN ROAD, SUZHOU CITY
JIANGSU PROVINCE 215004 PR CHINA
TEL :
86 (0) 512-68622068
FAX :
86 (0) 512-68626980
EXECUTIVE SUMMARY
INCORPORATION DATE : jun. 1, 1992
REGISTRATION NO. : 3205001102489
REGISTERED LEGAL FORM : limited liabilities
company
STAFF STRENGTH :
26
REGISTERED CAPITAL : cny 10,000,000
BUSINESS LINE :
trading
TURNOVER :
CNY 355,180,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 12,700,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 170,000
MARKET CONDITION : competitive
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 Renminbin
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 Jun. 1, 1992.
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
scopes include importing
and exporting commodities and technologies, excluding the 16 goods controlled
to export by the government and the 14 goods controlled to import by the
companies with authorization from the government; processing
with imported materials, processing with imported samples, assembling with
imported parts, and compensation trade in agreement; counter trade & transit trade.
SC is mainly
engaged in international trade.
Mr. Chen Zhenhao
has been chairman of SC since 1992.
SC is
known to have approx. 26 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 Suzhou. Our checks reveal that SC
owns the total premise about 600 square meters.
http://www.sztsla.com The design is
professional and the content is well organized. At present, the web is in
English version.
E-mail: sztsla@public1.sz.js.cn
No significant events or changes were found during our checks with the
local AIC.
MAIN SHAREHOLDERS:
Name
% of Shareholding
Suzhou Import & Export (Group) Co., Ltd. 12.6
SC’s labor Union 38.4
Ding Shu 7.00
Xu Haonan 34.0
Xu Ming 7.00
Zhang Lusheng 1.00
Suzhou Import & Export (Group) Co., Ltd.
is one of key import and export enterprises in Jiangsu Province. In 2003, the
group was appraised as National Advanced Quality & Profit Enterprise of
Foreign Trade. It is an energetic and potential enterprise with wide market,
strong finance and excellent talents. It was ranked No. 78 among Top 200 export
enterprises of China, and No. 136 among Top 500 import & export enterprises
of China.
Website: http://www.szieg.com
Address: No. 1638, Xihuan Road, Suzhou
Tel: 0512-68621756
Fax: 0512-68621759
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Chairman and
General Manager:
Mr. Chen Zhenhao, 58 years old with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 1992 to present Working in SC as chairman and general manager.
SC is mainly
engaged in international trade.
SC’s products
mainly include: garments, and chemical products.
SC sources its
materials 80% from domestic market, mainly Jiangsu, and 20% from overseas market.
SC sells its products 5% in domestic market, mainly Jiangsu, and 95% to
overseas market, mainly European and American countries.
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.
*Major supplier:
==============
Suzhou Xiangcheng Hongda Electronics Co.,
Ltd.
*Major customer:
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CINKO LIMITED US
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’s suppliers
declined to make any comments.
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.
Huaxia
Bank Suzhou Branch
AC#：4170200001836100000227
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
3,290 |
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Inventory |
7,310 |
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Accounts
receivable |
21,070 |
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Other Accounts
receivable |
2,430 |
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Advances to
suppliers |
36,300 |
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To be apportioned
expense |
0 |
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Other current
assets |
27,260 |
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------------------ |
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Current assets |
97,660 |
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Fixed assets |
4,870 |
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Long term
investment |
0 |
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Other assets |
120 |
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------------------ |
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Total assets |
102,650 |
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Short loans |
23,780 |
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Accounts payable |
21,470 |
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Advance from
clients |
41,770 |
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Other Accounts
payable |
760 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
2,170 |
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Current
liabilities |
89,950 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
89,950 |
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Equities |
12,700 |
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Total
liabilities & equities |
102,650 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
355,180 |
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Cost of goods
sold |
338,080 |
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Sales expense |
10,440 |
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Management expense |
3,520 |
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Finance expense |
1,340 |
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Profit before
tax |
2,090 |
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Less: profit tax |
690 |
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Profits |
1,400 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 1.09
*Quick ratio 1.00
*Liabilities to
assets 0.88
*Net profit
margin (%) 0.39
*Return on total
assets (%) 1.36
*Inventory /Turnover
×365 8days
*Accounts
receivable/Turnover ×365 22days
*Turnover/Total
assets 3.46
* Cost of goods
sold/Turnover 0.95
PROFITABILITY:
AVERAGE
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The turnover of SC appears fairly good 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:
AVERAGE
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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 is maintained in an
average level.
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The accounts receivable of SC is maintained in an average level.
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The short-term loan of SC appears large.
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SC’s turnover is in a fairly good 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 low.
Overall
financial condition of the SC: Fairly stable.
SC is considered small-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 170,000 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%)