MIRA
INFORM REPORT
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Report Date : |
5th
February, 2007 |
IDENTIFICATION
DETAILS
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Name : |
FOSHAN
TAIRONG TRADING DEVELOPMENT CO., LTD. |
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Registered Office : |
No. 14, Pingyuanzhi Street, Fenjiang Nan Lu, Foshan City,
Guangdong Province, 528000 Pr China. |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
26.07.2000 |
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Com. Reg. No.: |
4406001007434 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged
in exporting porcelain. |
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/normal. |
Small |
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Maximum Credit Limit : |
USD 10,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually
Correct |
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Litigation : |
Clear |
Company Name & Address
FOSHAN TAIRONG TRADING DEVELOPMENT CO.,
LTD.
NO. 14, PINGYUANZHI STREET, FENJIANG NAN
LU, FOSHAN CITY, guangdong province, 528000 PR CHINA
TEL :
86 (0) 757-83987988
FAX :
86 (0) 757-83987168
EXECUTIVE SUMMARY
INCORPORATION DATE :
jul. 26, 2000
REGISTRATION NO. :
4406001007434
REGISTERED LEGAL FORM : limited liabilities
company
STAFF STRENGTH :
7
REGISTERED CAPITAL :
rmb 1,000,000
BUSINESS LINE :
trading
TURNOVER :
RMB 65,270,000 (AS OF DEC. 31, 2005)
EQUITIES :
RMB 970,000 (AS OF DEC. 31, 2005)
PAYMENT :
average
RECOMM. CREDIT RANGE :
up to USD 10,000
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND :
FAIRLY steady
GENERAL REPUTATION :
average
EXCHANGE RATE :
RMB 7.78= US$1 AS OF 2007-02-05
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
Note: SC’s registered name should be the above stated one,
and the given name Tairong Industries Limited is SC’s trading name.
SC was registered as a limited liabilities company at local
Administration for Industry & Commerce (The official body of issuing and
renewing business license) on Jul. 26, 2000.
Company Status: Limited liabilities co. This form of business
in PR China is defined as a legal person. At least two shareholders and no
more than fifty 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 listed as follows: -manufacturing
co. : RMB 500,000.00 -trading
&wholesaling co. : RMB 500,000.00 -retailing co. : RMB 300,000.00 -consultancy &
service co. : RMB 100,000.00 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 50% of the registered capital
while contribution by intangible assets must not exceed 20% 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 selling hardware, building material, decoration material, chemical
material of porcelain, metals, and grocery; and consultation service of
commodities; importing and exporting all kinds of commodities and technology,
excluding the goods limited or forbidden by the government.
SC is mainly engaged in exporting
porcelain.
Mr. Liu Tiejun has been chairman of SC since 2000.
SC owns about 7 staff at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Foshan. Our checks reveal that SC
rents the total premise about 100 square
meters.
SC is
not known to host website 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
Liu Tiejun 75
Zheng Yusheng 5
Liu Lijun 20
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Chairman and General
Manager：
Mr. Liu
Tiejun, in his 30’s with university education. He is currently responsible for
the overall management of SC.
Working Experience(s):
From 2000 to present Working in SC as
chairman and general manager.
SC is mainly engaged in exporting
porcelain.
SC’s products mainly include:
porcelain, etc.
SC sources its materials 100% from domestic market, mainly from Guangdong
province. SC sells 100% of its products to international market, mainly to
India.
The
buying terms of SC include T/T and Credit of 30 days. The payment terms of SC
include T/T, L/C and Credit of 30 days.
*Major
Supplier:
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Foshan
Kaili Hardware Product 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.
Construction
Bank of China
中国建设银行
AC#：44001668835050937853
Relationship:
Normal
Balance Sheet (as of Dec. 31, 2005)
Unit: RMB thousand yuan
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Cash & bank |
4,800 |
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Inventory |
0 |
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Accounts receivable |
0 |
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Other Accounts receivable |
300 |
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Accounts payable in advance |
0 |
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To be apportioned expense |
0 |
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Other current assets |
3,600 |
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Current assets |
8,700 |
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Fixed assets |
230 |
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Long term investment |
0 |
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Total assets |
8,930 |
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Short loans |
0 |
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Accounts payable |
490 |
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Accounts receivable in advance |
7,300 |
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Other Accounts payable |
80 |
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Salaries payable |
0 |
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Welfares payable |
0 |
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Taxes payable |
0 |
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Other current liabilities |
90 |
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Current liabilities |
7,960 |
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Long term liabilities |
0 |
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Other liabilities |
0 |
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Total liabilities |
7,960 |
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Equities |
970 |
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Total liabilities &
equities |
8,930 |
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Income Statement (as of Dec. 31, 2005)
Unit: RMB thousand yuan
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Turnover |
65,270 |
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Cost of goods sold |
63,060 |
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Sales expense |
1,490 |
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Management expense |
660 |
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Finance expense |
-6 |
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Non-operating income |
44 |
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Profit before tax |
110 |
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Less: profit tax |
36 |
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Profits |
74 |
Important Ratios (as of Dec. 31, 2005)
*Current ratio 1.09
*Quick ratio 1.09
*Liabilities to
assets 0.89
*Net profit
margin (%) 0.11
*Return on total
assets (%) 0.83
*Turnover/Total
assets 7.31
* Cost of goods
sold/Turnover 0.97
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 fair.
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SC’s return on total assets is fair.
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SC’s cost of goods sold is high, 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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SC has no inventory in 2005
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SC
has no accounts receivable in 2005
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SC has no short-term loan in 2005.
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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 average.
Overall financial condition of
the SC: Fairly stable.
SC is
considered small-sized in its line with fairly stable financial conditions. A
credit line up to USD 10,000 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/normal. |
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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