MIRA
INFORM REPORT
|
Report Date : |
13.01.2007 |
IDENTIFICATION DETAILS
|
Name : |
HUANGSHAN GOOD FAITH INDUSTRY & TRADE
CO., LTD. |
|
|
|
|
Registered Office : |
|
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2005 |
|
|
|
|
Date of Incorporation : |
APR. 5, 1999 |
|
|
|
|
Com. Reg. No.: |
3410042300021 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
Engaged
in international trade. |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
Maximum Credit Limit : |
Up To USD 40,000 |
|
|
|
|
Status : |
Small
Company |
|
|
|
|
Payment Behaviour : |
Usually
correct |
|
|
|
|
Litigation : |
Clear |
name & address
HUANGSHAN GOOD FAITH INDUSTRY & TRADE CO.,
LTD.
NO.
TEL: 86 (0) 559-3511941
FAX: 86 (0) 559-3513606
EXECUTIVE SUMMARY
INCORPORATION DATE :
APR. 5, 1999
REGISTRATION NO. :
3410042300021
REGISTERED LEGAL FORM : LIMITED LIABILITIES
COMPANY
STAFF STRENGTH :
14
REGISTERED CAPITAL :
CNY 3,000,000
BUSINESS LINE :
international trade
TURNOVER :
cny 236,840,000 (AS OF DEC. 31, 2005)
EQUITIES :
cny 3,050,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 7.81 = US$1 AS OF 2007-1-12
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
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 Apr. 5, 1999.
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 wholesale of chemical products; importing
and exporting various goods and technologies.
SC is mainly engaged in
international trade.
Mr. Ke Xiaohua has been chairman
of SC since 1999.
SC owns about 14 staff.
SC is
currently operating at the above stated address, and this address houses its
operating office and warehouse in the industrial zone of Huangshan. Our checks
reveal that SC rents the total premise about 30,000 square meters.
http://www.good-faith.cn 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
Ke Xiaohua 64
Chen Yuexiang 36
l
Chairman and General Manager:
Mr. Ke
Xiaohua, in his 30’s 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 and general manager.
SC is mainly engaged in
international trade.
SC’s products mainly include:
Epoxy Resin E-12.equals to DER 663U(for powder coating); Epoxy Resin
E-20/qeuals to DER661(for paints); Epoxy
Resin E-51/qeuals to DER331(for anti-corrosive and electronic use); Polyester Resin(for powder coating); Epoxy
Hardener T-31、593; Trimellitic Anhydride, other chemicals and
pharmaceutical products.
SC sources its materials 70% from
domestic market and 30% from the overseas markets, mainly
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 Client:
============
Huangshan Huamei Fine Chemical 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 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.
Construction
Bank of
AC#：34001696208050355223
Relationship:
Balance Sheet
Unit: CNY’000
|
|
As of Dec. 31,
2005 |
|
Cash & bank |
4,640 |
|
Accounts receivable |
910 |
|
Accounts payable advance |
4,410 |
|
Other receivables |
7,800 |
|
Inventory |
850 |
|
Prepaid expenses |
0 |
|
Other current assets |
8,580 |
|
|
------------------ |
|
Current assets |
27,190 |
|
Fixed assets net value |
1,410 |
|
Projects under construction |
0 |
|
Long term investment |
0 |
|
Other assets |
0 |
|
|
------------------ |
|
Total assets |
28,600 |
|
|
============= |
|
Short loans |
2,650 |
|
Accounts payable |
4,560 |
|
Accounts receivable advance |
6,080 |
|
Taxes payable |
0 |
|
Salaries payable |
0 |
|
Other payable |
2,500 |
|
Accrued expenses |
0 |
|
Other current liabilities |
9,760 |
|
|
------------------ |
|
Current liabilities |
25,550 |
|
Long term liabilities |
0 |
|
|
------------------ |
|
Total liabilities |
25,550 |
|
Equities |
3,050 |
|
|
------------------ |
|
Total liabilities &
equities |
28,600 |
|
|
============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31, 2005 |
|
Turnover |
236,840 |
|
Cost of goods sold |
229,790 |
|
Sales expense |
5,460 |
|
Management expense |
790 |
|
Finance expense |
540 |
|
Profit before tax |
290 |
|
Less: profit tax |
0 |
|
Profits |
290 |
Important Ratios
=============
|
|
as
of Dec. 31, 2005 |
|
*Current ratio |
1.06 |
|
*Quick ratio |
1.03 |
|
*Liabilities
to assets |
0.89 |
|
*Net profit
margin (%) |
0.12 |
|
*Return on
total assets (%) |
1.01 |
|
*Fixed
assets/Total assets |
0.05 |
|
*Inventory
/Turnover ×365 |
2days |
|
*Accounts
receivable/Turnover ×365 |
2days |
|
*Turnover/Total
assets |
8.28 |
|
* Cost of
goods sold/Turnover |
0.97 |
PROFITABILITY: AVERAGE
l
The turnover of SC appears good in its line.
l
SC’s net profit margin appears fair.
l
SC’s return on total assets appears acceptable.
l
SC’s cost of goods sold is fairly high, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal level.
l
SC’s quick ratio is maintained in a normal level.
l
The accounts receivable of SC is maintained in a normal level.
l
The inventory of SC is maintained in a normal level.
l
The short loans of SC appear LARGE.
l
SC’s turnover is in a fairly good level, comparing with the size of its
total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is above 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 40,000 would appear to be within SC’s capacities upon a
periodical review basis.
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|