MIRA
INFORM REPORT
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Report Date : |
26.02.2007 |
IDENTIFICATION
DETAILS
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Name : |
zhejiang huafu
melange yarn co., ltd. |
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Registered Office : |
No. 1088, Renmin
Mid Road, Economic & Technical Development Zone Shangyu City, Zhejiang
Province 312300 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
16.10.2002 |
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Com. Reg. No.: |
002184 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Manufacturing and selling upper-scale textile fabrics. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Up To usd 1,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
NAME & ADDRESS
zhejiang huafu
melange yarn co., ltd.
no. 1088, renmin mid road, economic &
technical development zone
shangyu city, zhejiang province 312300 PR
CHINA
TEL: 86 (0) 575-2189311
FAX: 86 (0) 575-2189388
EXECUTIVE SUMMARY
INCORPORATION DATE : oct. 16, 2002
REGISTRATION NO. : 002184
REGISTERED LEGAL FORM : wholly foreign-owned
enterprise
STAFF STRENGTH :
1,396
REGISTERED CAPITAL : uad 53,000,000
BUSINESS LINE :
manufacturing
TURNOVER :
cny 893,410,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 454,870,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up
to usd 1,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 7.75 = US$1 AS OF 2007-02-09
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 wholly foreign-owned enterprise at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on Oct. 16, 2002.
Company Status: Wholly foreign-owned enterprise. This
form of business in PR China is defined as a legal person. It is a limited co.
established within the territories of PR China with capital provided
totally by the foreign investors. More than one foreign investors may
jointly invest in a wholly foreign-owned enterprise. The investing
party/parties solely exercise management, reap profit and bear risks and
liabilities by themselves. This form of companies usually have a limited
duration is extendible upon approval of Examination and Approval
Authorities.
SC’s
registered business scope includes weaving, dyeing, and processing upper-scale
textile fabrics; manufacturing, processing, and selling special fiber, yarn,
melange yarn, colored fiber, and garment.
SC is
mainly engaged in manufacturing and selling upper-scale textile fabric and
fabrics.
Ms. Chen Lingfen has been chairman of SC
since 2002.
SC
owns about 1,396 staff at present.
SC is currently operating at the above stated address, and this
address houses its operating office and factory in the development zone of
Shangyu. Our checks reveal that SC rents the total premise about 400,000 square
meters.
SC is not known to host web site of its own at present.
Till December 31, 2005, SC’s paid-up capital reached CNY 436,970,000.
MAIN SHAREHOLDERS:
Name % of Shareholding
Hong Kong Huafu Group Co., Ltd. 100
l
Chairman and
General Manager:
Ms. Chen
Lingfen,
in her 40’s with university education. She is currently responsible for the
overall management of SC.
Working Experience(s):
From 2002 to present Working in SC as chairman and
general manager.
SC is mainly
engaged in manufacturing and selling upper-scale
textile fabrics.
SC’s products mainly include: various upper-scale
textile fabric and fabrics, etc.
SC sources its materials 70%
from domestic market, mainly Zhejiang province, and 30% from overseas market,
mainly Australia; SC sells its products 80% in domestic market, mainly Jiangsu
and Zhejiang province, and 20% to overseas market, mainly Hong Kong.
The buying terms of SC include 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 Supplier:
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Zhejiang Huafu Textile Co., Ltd.
*Major Customer:
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Kunshan Liyi Decoration Materials Co., Ltd.Address: No. 15, Chunjiang Road, Lujia Town, Development Zone, Kunshan, Jiangsu provinceTel: 0512-57675568
Fax: 0512-57876377
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.
Industrial and Commercial Bank
AC#：1211022009242002142
Relationship: Normal.
Balance Sheet (as of Dec. 31, 2005)
Unit: CNY’000
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Cash & bank |
145,990 |
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Inventory |
237,190 |
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Bills receivable |
0 |
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Accounts
receivable |
12,830 |
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Other Accounts
receivable |
38,740 |
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Accounts payable
in advance |
228,420 |
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To be
apportioned expense |
0 |
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Other current
assets |
60,950 |
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------------------ |
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Current assets |
724,120 |
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Fixed assets |
207,730 |
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Fixed assets net
value |
206,590 |
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Projects under
construction |
1,140 |
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Long term
investment |
21,250 |
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Other assets |
72,480 |
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Total assets |
1,025,580 |
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Short loans |
230,000 |
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Accounts payable |
34,810 |
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Accounts
receivable in advance |
11,100 |
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Other Accounts
payable |
11,800 |
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Salaries payable |
4,480 |
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Welfares payable |
620 |
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Taxes payable |
300 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
277,600 |
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Current
liabilities |
570,710 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
570,710 |
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Equities |
454,870 |
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Total
liabilities & equities |
1,025,580 |
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Income Statement (as of Dec. 31, 2005)
Unit: CNY’000
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Turnover |
893,410 |
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Cost of goods
sold |
830,760 |
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Sales expense |
23,100 |
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Management expense |
23,260 |
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Finance expense |
12,880 |
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Non-operating
income |
11,610 |
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Profit before
tax |
15,020 |
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Less: profit tax |
0 |
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Profits |
15,020 |
Important Ratios
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As
of Dec. 31, 2005 |
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*Current ratio |
1.27 |
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*Quick ratio |
0.85 |
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*Liabilities
to assets |
0.56 |
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*Net profit
margin (%) |
1.68 |
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*Return on
total assets (%) |
1.46 |
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*Inventory
/Turnover ×365 |
97 days |
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*Accounts
receivable/Turnover ×365 |
5 days |
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*Turnover/Total
assets |
0.87 |
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* Cost of
goods sold/Turnover |
0.93 |
PROFITABILITY: FAIRLY GOOD
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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 fairly good
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 slightly large level.
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The accounts receivable of SC is maintained in an acceptable
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: AVERAGE
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The debt ratio of SC is low.
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The risk for SC to go bankrupt is low.
Overall financial condition of the SC:
Stable.
SC is considered
medium-sized in its line with stable financial conditions. A credit line up to USD 1,000,000 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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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