MIRA
INFORM REPORT
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Report Date : |
24.01.2007 |
IDENTIFICATION DETAILS
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Name : |
ARCH INTERNATIONAL TRADING ( |
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Registered Office : |
Room |
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Country : |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
MAR. 10, 2003 |
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Com. Reg. No.: |
316763 |
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Legal Form : |
Wholly Foreign Owned |
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Line of Business : |
Engaged in international trade.
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RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Up To USD 20,000 |
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Status : |
Small
Company |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
ARCH INTERNATIONAL TRADING (
ROOM 2027 NO.
TEL :
86 (0) 21-52370811
FAX : 86 (0) 21-52370833
EXECUTIVE SUMMARY
INCORPORATION DATE :
MAR. 10, 2003
REGISTRATION NO. :
316763
REGISTERED LEGAL FORM : WHOLLY FOREIGN OWNED
STAFF STRENGTH :
8
REGISTERED CAPITAL :
USD 200,000
BUSINESS LINE :
INTERNATIONAL TRADE
TURNOVER :
cny 64,870,000 (AS OF DEC. 31, 2005)
EQUITIES :
cny -1,260,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIR
OPERATIONAL TREND :
FAIR
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 7.77 = US$1 AS OF 2007-1-24
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
Note: the telephone number client provided in
the order - 86 512-62876502 belongs to SC’s Suzhou Office. The office’s Address
is No. 9 Qingqiu Street SIP
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 Mar. 10, 2003.
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 international trade, transiting trade, trade
between the enterprises in the free trade zone, commercial simple processing in
the free trade zone, and trade consulting service.
SC is mainly engaged in
international trade.
Mr. Li Xiaohu has been chairman
of SC since 2003.
SC owns about 8 staff.
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 50 square meters. SC is also known to have an
office in 16/L
http://www.archchemicals.com. The
design is professional and the content is well organized. At present it is in
English version.
No
significant events or changes were found during our checks with local AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Arch Asia Holding Co., Ltd.
Headquartered
in
l
Chairman and General Manager:
Mr. Li
Xiaohu, 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, Industrial Biocides and Health and Hygiene Products, Personal Care
Products.
SC sources its materials 20% from
domestic market and 80% from the overseas markets mainly from Europe and
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 and Credit of 30-60 days.
*Major Suppliers:
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Arch Chemicals, Inc.
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.
Shanghai
Bank Waigaoqiao Sub-branch
AC#：3159560008097832
Bank of
AC#：10489908091014
Relationship:
Balance Sheet
Unit: CNY’000
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As of Dec. 31,
2005 |
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Cash & bank |
1,350 |
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Accounts receivable |
17,060 |
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Accounts payable advance |
0 |
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Other receivables |
1,350 |
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Inventory |
18,810 |
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Prepaid expenses |
0 |
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Other current assets |
880 |
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Current assets |
39,450 |
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Fixed assets net value |
1,200 |
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Projects under construction |
0 |
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Long term investment |
0 |
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Other assets |
250 |
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Total assets |
40,900 |
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Short loans |
0 |
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Accounts payable |
41,530 |
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Accounts receivable advance |
20 |
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Taxes payable |
-490 |
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Salaries payable |
0 |
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Other payable |
600 |
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Accrued expenses |
0 |
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Other current liabilities |
500 |
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Current liabilities |
42,160 |
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Long term liabilities |
0 |
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Total liabilities |
42,160 |
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Equities |
-1,260 |
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Total liabilities &
equities |
40,900 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2005 |
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Turnover |
64,870 |
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Cost of goods sold |
60,200 |
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Sales expense |
1,530 |
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Management expense |
0 |
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Finance expense |
-490 |
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Profit before tax |
3,450 |
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Less: profit tax |
0 |
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Profits |
3,450 |
Important Ratios
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as
of Dec. 31, 2005 |
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*Current ratio |
0.94 |
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*Quick ratio |
0.49 |
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*Liabilities
to assets |
1.03 |
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*Net profit
margin (%) |
5.32 |
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*Return on
total assets (%) |
8.44 |
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*Fixed
assets/Total assets |
0.03 |
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*Inventory
/Turnover ×365 |
106days |
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*Accounts
receivable/Turnover ×365 |
96days |
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*Turnover/Total
assets |
1.59 |
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* Cost of
goods sold/Turnover |
0.93 |
PROFITABILITY: AVERAGE
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The turnover of SC appears acceptable in 2005.
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SC’s net profit margin is average in 2005.
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SC’s return on total assets is average in 2005.
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SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
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The current ratio of SC is maintained in a fair level.
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SC’s quick ratio is maintained in a fairly poor level.
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The accounts receivable of SC is fairly large.
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The inventory of SC is fairly large.
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SC’s turnover is in an acceptable level, comparing with the size of its
total assets.
LEVERAGE: FAIR
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The debt ratio of SC is too high.
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The risk for SC to go bankrupt exists.
Overall financial condition of the SC:
Fairly Poor.
SC is considered small-sized in its line with fair financial conditions. Credit dealings with SC should be confined into small amount at present.
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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