MIRA
INFORM REPORT
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Report Date : |
26.02.2007 |
IDENTIFICATION
DETAILS
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Name : |
SHANGHAI ZIJIANG INTERNATIONAL TRADING CO., LTD. |
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Registered Office : |
2/F No. 281 Wuxing Road, Xuhui District, Shanghai, 200030
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
01.09.1995 |
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Com. Reg. No.: |
3101121032248 |
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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 : |
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 : |
Up To USD 100,000 |
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Status : |
Small Company |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
name & address
SHANGHAI ZIJIANG INTERNATIONAL TRADING CO., LTD.
2/F NO. 281 WUXING ROAD, XUHUI DISTRICT,
SHANGHAI, 200030 PR CHINA.
TEL: 86 (0) 21-64676900 FAX: 86 (0) 21-64676901
EXECUTIVE SUMMARY
INCORPORATION DATE : SEP. 1, 1995
REGISTRATION NO. : 3101121032248
REGISTERED LEGAL FORM : LIMITED LIABILITIES
COMPANY
STAFF STRENGTH :
50
REGISTERED CAPITAL : CNY 16,000,000
BUSINESS LINE :
TRADING
TURNOVER :
cny 544,950,000 (AS OF DEC. 31, 2005)
EQUITIES :
cny 24,760,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 100,000 (PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.77= US$1 AS OF 2007-2-13
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Ren Min Bi
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 Sep. 1, 1995.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. 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. :
CNY 500,000.00 -trading &wholesaling
co. : CNY 500,000.00 -retailing co. : CNY 300,000.00 -consultancy & service
co. : CNY 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 importing and exporting various
goods and technologies; processing and
compensation trade agreement, and processing with imported materials.
SC is mainly
engaged in international trade.
Mr. Lou Siqi has
been chairman of SC since 2003.
SC owns about 50
staff at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Shanghai. Our checks reveal that SC
rents the total premise about 400 square meters.
http://www.chinaimexp.com The design is professional and the content
is well organized. At present it is in both Chinese and English versions.
No significant events or changes were found during our checks with local
AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Shanghai Zijiang Group Co., Ltd. 90
Shanghai Xinzhuang Investment Operating Co.,
Ltd. 10
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Shanghai Zijiang Group Co., Ltd.
Originally set up in 1981, Zijiang Group is
a privately-owned holding company focusing on industry investment on five
fields of packing, real estate, instrument & apparatus, precision part and
Zizhu Science-based Industrial Park.
Now, the group has two stock listed
companies - Zijiang Enterprise (600210) and Welltech (002058), one national
level high tech development zone - Zizhu Science-based Industrial Park and one
Five-star hotel - Marriott Hongqiao Hotel.
Add: No. 618 Shenfu Road, Xinzhuang
Industrial Zone, Minhang District, Shanghai
Tel: 021-54421100
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Chairman and
General Manager:
Mr. Lou Siqi, in his 50’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2003 to present Working
in SC as chairman and general manager.
SC is mainly
engaged in international trade.
SC’s products
mainly include: chemicals, machinery & mechanical and electrical products,
medical treatment appliance or instrument, foodstuff and home adornment.
SC’s main brands
include: REXROTH, SAMHYDRAULIK, V.P.S. BREVINI, EMB, Deutz AG.
SC sources its
materials 80% from domestic market and 20% from the overseas markets, mainly
from Europe. SC sells 20% of its products in domestic market and 80% to the
overseas markets, mainly to Southeast Asia, American and Europe.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Clients:
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LG Chemical
Mitsubishi Corporation
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 refused to release any information of its
suppliers and the trade reference was not available.
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.
Everbright Bank of China Shanghai Branch
AC#：2109330130091001
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2005 |
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Cash & bank |
33,730 |
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Inventory |
24,500 |
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Accounts
receivable |
60,510 |
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Accounts payable
advance |
36,540 |
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Other
receivables |
1,240 |
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Other current
assets |
10,050 |
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Current assets |
166,570 |
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Fixed assets net
value |
11,680 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
0 |
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Total assets |
178,250 |
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Short loans |
53,000 |
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Accounts payable |
42,990 |
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Accounts receivable
advance |
53,640 |
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Taxes payable |
1,440 |
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Salaries payable |
0 |
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Other payable |
1,240 |
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Other current
liabilities |
1,180 |
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Current
liabilities |
153,490 |
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Long term
liabilities |
0 |
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Total
liabilities |
153,490 |
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Equities |
24,760 |
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Total
liabilities & equities |
178,250 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2005 |
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Turnover |
544,950 |
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Cost of goods
sold |
522,500 |
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Sales expense |
13,460 |
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Management expense |
8,440 |
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Finance expense |
3,240 |
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Profit before
tax |
5,110 |
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Less: profit tax |
1,720 |
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Profits |
3,390 |
Important Ratios
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as
of Dec. 31, 2005 |
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*Current ratio |
1.09 |
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*Quick ratio |
0.93 |
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*Liabilities
to assets |
0.86 |
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*Net profit
margin (%) |
0.62 |
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*Return on
total assets (%) |
1.90 |
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*Fixed
assets/Total assets |
0.07 |
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*Inventory
/Turnover ×365 |
16days |
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*Accounts
receivable/Turnover ×365 |
41days |
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*Turnover/Total
assets |
3.06 |
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* Cost of
goods sold/Turnover |
0.96 |
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 fairly 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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The inventory of SC is maintained in a normal level.
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The accounts receivable of SC appears LARGE.
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The short loans of SC appear TOO 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 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 small-sized in its line with fairly stable financial conditions. A credit line up to USD 100,000 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/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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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%)
PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions