MIRA
INFORM REPORT
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Report Date : |
26.02.2007 |
IDENTIFICATION
DETAILS
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Name : |
Zhejiang topchance
group co., ltd. |
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Registered Office : |
No. 798 Jiangcheng
Road, Hangzhou, Zhejiang Province, 310009 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
16.11.1999 |
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Com. Reg. No.: |
3300001006184 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Import
and export of cotton and chemical fiber products.
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RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Up To USD 1,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
Zhejiang topchance
group co., ltd.
no. 798 jiangcheng road, hangzhou,
zhejiang province, 310009 PR CHINA
TEL: 86 (0) 571-87827117
FAX: 86 (0) 571-87827000
EXECUTIVE SUMMARY
INCORPORATION DATE : NOV. 16, 1999
REGISTRATION NO. : 3300001006184
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
55
REGISTERED CAPITAL : cny 116,000,000
BUSINESS LINE : INTERNATIONAL
TRADE
TURNOVER :
CNY 1,010,400,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 380,470,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 1,000,000 (PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : stable
OPERATIONAL TREND : steady
GENERAL REPUTATION : WELL KNOWN
EXCHANGE RATE :
CNY
7.75 =US1$ AS OF 2007-2-9
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 limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Nov. 16, 1999.
Company Status: Limited liabilities company 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 trading of cotton (including lint), hemp, knitting and
textiles products, garments, hardware, textile raw materials and products
(except the dangerous chemicals), arts and crafts, steel, cement, metal
materials, lumber, cotton yarn, China grass cloth, gunny bag, cocoon machinery,
processing of cotton, hemp and cocoon, machinery and components; also dealing
with import and export business (in accordance with the official documents
indicated by Foreign Economic and Trade Department).
SC is mainly
engaged in import and export of cotton and chemical
fiber products.
Mr. Jin Jinsong
has been chairman of SC since 1999.
SC owns
approximately 55 staff at present.
SC is
currently operating at the above stated address, and this address houses its operating
office in the commercial zone of Hangzhou. Our checks reveal that SC rents the
total premise about 900 square meters.
http://www.chinatopchance.com The design is
professional and the content is well organized. At present it is in both
Chinese and English versions.
E-mail: chzjtc@mail.hz.zj.cn
No significant events or changes were found according to our checks with
the local AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhejiang Xinghe Group Co., Ltd. 56
Zhejiang Topchance Group Co., Ltd.
Shareholders Union of the staff 23.97
Jin Jinsong 6.56
Chen Langui 4.49
Zheng Jianping 4.49
Xu Yanbin 4.49
l
Chairman and
general manager:
Mr. Jin Jinsong, born in 1952, with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 1999 to present Working
in SC as chairman.
l
Vice general manager:
Mr. Chen Langui, born in 1959, with university
education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 2005 to present Working
in SC as vice general manager.
SC is mainly
engaged in import and export of cotton and chemical
fiber products.
SC’s products mainly include: T/R yarns, cotton and polyester chips,
polyester stable fibers and cotton yarns.
SC’s products also include: suit case, channel steel, deformed steel
bar.
SC sources its materials 100% from domestic
market. SC sells 50% of its products in domestic market and 50% in the overseas
market, mainly to Japan, South Korea, Hongkong and Europe Country.
The buying terms of SC include Check, T/T and Credit of
30-60 days. The payment terms of SC include Check, L/C, T/T, and Credit of
30-60 days.
*Major Suppliers:
==============
Zhejiang Topchance Group Tianye Cotton Co., Ltd.
Zhejiang Topchance Group Tiandi Cotton Co., Ltd.
Zhejiang Galaxy Textile Raw Materials Co., Ltd.
SC is known to have the following subsidiaries:
Zhejiang Milkyway Co., Ltd.
Zhejiang Topchance Group Tianye Cotton Co., Ltd.
Zhejiang Topchance Group Tiandi Co., Ltd.
Zhejiang Galaxy Textile Raw Materials Co., Ltd.
Zhejiang Topchance Group Metal Materials Co., Ltd
Zhejiang Topchance Group Petrochemical Products Co., Ltd.
Zhejiang Huamian Textile Raw Materials Co., Ltd
Zhejiang Xiamen Yintian Trading Co., Ltd
Zhejiang Topchance Group Textiles Co., Ltd.
Zhejiang Jinneng Trading Co., Ltd
Zhejiang Topchance Group Cotton Distributing Center
Zhejiang Jojoy Leisure Products Co., Ltd.
Zhejiang Topchance Group Sunworld I/E Co., Ltd
Zhejiang Topchance Group Shengyuan Trading Co., Ltd
Ningbo Warehousing & Transportation Company of Zhejiang Cooperative
Union
Zhejiang Xinghe Men’s Fashion Plaza Co., Ltd
Ningbo Xinghe Containers Co., Ltd
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.
Agriculture Bank of China Jiangsu Branch
AC#：044138090010000350
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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as
of Dec. 31, 2004 |
as
of Dec. 31, 2005 |
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Cash & bank |
125,340 |
135,400 |
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Inventory |
143,270 |
185,570 |
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Bills receivable |
12,400 |
10,940 |
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Accounts
receivable |
64,170 |
62,630 |
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Accounts payable
advance |
64,130 |
62,680 |
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A receivable tax
rebate of export |
5,900 |
11,470 |
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Other
receivables |
407,540 |
351,510 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
822,750 |
820,200 |
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Fixed assets |
180,390 |
195,670 |
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Fixed assets net
value |
164,450 |
177,370 |
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Projects under
construction |
6,980 |
1,330 |
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Long term
investment |
120,630 |
145,850 |
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Other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
1,114,810 |
1,144,750 |
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============= |
============= |
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Short loans |
372,460 |
230,190 |
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Bills payable |
181,700 |
171,000 |
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Accounts payable |
35,820 |
32,390 |
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Accounts receivable
advance |
66,900 |
77,720 |
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Other payable |
113,660 |
241,210 |
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Salary payable |
3,020 |
3,020 |
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Welfare payable |
2,940 |
3,530 |
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Tax payable |
-6,530 |
-6,870 |
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Other current
liabilities |
20 |
10 |
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------------------ |
------------------ |
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Current
liabilities |
769,990 |
752,200 |
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Long term
liabilities |
12,080 |
12,080 |
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------------------ |
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Total
liabilities |
782,070 |
764,280 |
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Equities |
332,740 |
380,470 |
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------------------ |
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Total
liabilities & equities |
1,114,810 |
1,144,750 |
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Income Statement
Unit: CNY’000
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as of Dec. 31, 2004 |
as of Dec. 31, 2005 |
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Turnover |
786,740 |
1,010,400 |
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Cost of goods
sold |
767,150 |
971,800 |
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Sales expense |
12,740 |
16,090 |
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Management expense |
7,770 |
17,800 |
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Finance expense |
5,310 |
6,510 |
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Profit before
tax |
1,280 |
17,610 |
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Less: profit tax |
60 |
2,550 |
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Profits |
1,210 |
15,060 |
Important Ratios
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as
of Dec. 31, 2004 |
as
of Dec. 31, 2005 |
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*Current ratio |
1.07 |
1.09 |
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*Quick ratio |
0.88 |
0.84 |
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*Liabilities
to assets |
0.70 |
0.67 |
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*Net profit
margin (%) |
0.15 |
1.49 |
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*Return on
total assets (%) |
0.11 |
1.32 |
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*Fixed
assets/Total assets |
0.16 |
0.17 |
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*Inventory
/Turnover ×365 |
66days |
67days |
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*Accounts
receivable/Turnover ×365 |
30days |
23days |
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*Turnover/Total
assets |
0.71 |
0.88 |
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* Cost of goods
sold/Turnover |
0.98 |
0.96 |
PROFITABILITY:
AVERAGE
l
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 appears fairly large.
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The accounts receivable of SC is maintained in an acceptable 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: AVERAGE
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The debt ratio of SC is average.
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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
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