MIRA
INFORM REPORT
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Report Date : |
29.06.2007 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
26/F International
Trade Centre, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
June 12, 1992 |
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Com. Reg. No.: |
3303002004440 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Exporting clothing and textiles. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
Up To usd 100,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
26/f international trade centre,
TEL :
86 (0) 577-28807082
FAX :
86 (0) 577-28807085
EXECUTIVE SUMMARY
INCORPORATION DATE : june 12, 1992
REGISTRATION NO. : 3303002004440
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
82
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE :
trading
TURNOVER :
CNY 1,573,180,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 8,630,000 (AS OF DEC. 31,
2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY7.62 = US$1 AS OF
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
Note: SC’s correct name should be the above stated one, instead of the given name – Wenzhou N And C Foreign Trade Co., Ltd.
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 June 12, 1992.
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 commodities and technologies, , excluding 16 export commodities under state-unified operation and 12 import commodities operated by the state-designated companies; processing
and compensation trade agreement, foreign trade materials storage and
transportation service.
SC is mainly
engaged in exporting clothing and textiles.
Mr. Ye Suigui has
been chairman of SC since 1992.
SC owns about 82
staff at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Wenzhou. Our checks reveal that SC
owns the total premise about 2,000 square meters.
http://www.srxb.com The design is
professional and the content is well organized. At present the web site is only
in English version.
E-mail: srxb@srxb.com
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Ye Suigui 50
Zhu Rubi 30
Ji Yonghua 20
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Chairman:
Mr. Ye Suigui, 59 years old with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1992 to present Working
in SC as chairman.
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General Manager:
Ms. Zhu Rubi, 56 years old with university education. She is currently
responsible for the daily management of SC.
Working Experience(s):
From 1992 to present Working in SC as general manager.
SC is mainly engaged
in exporting clothing and textiles.
SC’s products
mainly include: clothing.
SC sources its materials 100% from domestic
market, mainly
The buying terms of SC include Check, T/T and Credit of 30 days. The
payment terms of SC include T/T, L/C and Credit of 30 days.
*Major Supplier:
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Wnezhou Willhope Fashion 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 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.
Bank of
AC#：23214008093001
Relationship:
Balance Sheet (as
of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
22,640 |
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Inventory |
150 |
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Accounts
receivable |
4,360 |
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Other Accounts
receivable |
50,150 |
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Prepayment |
83,080 |
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To be
apportioned expense |
0 |
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Other current
assets |
530 |
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Current assets |
160,910 |
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Fixed assets net
value |
7,960 |
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Projects under
construction |
0 |
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Long term
investment |
380 |
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Other assets |
10 |
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Total assets |
169,260 |
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Short loans |
0 |
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Accounts payable |
105,670 |
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Other Accounts
payable |
12,280 |
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Advances from
customers |
75,000 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
-32,480 |
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Current
liabilities |
160,470 |
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Long term
liabilities |
150 |
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Other
liabilities |
10 |
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Total
liabilities |
160,630 |
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Equities |
8,630 |
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Total
liabilities & equities |
169,260 |
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Income Statement (as
of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
1,573,180 |
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Cost of goods
sold |
1,537,990 |
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Sales expense |
33,220 |
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Management expense |
8,230 |
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Finance expense |
-2,520 |
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Profit before
tax |
5,960 |
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Less: profit tax |
2,440 |
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Profits |
3,520 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 1.00
*Quick ratio 1.00
*Liabilities to
assets 0.95
*Net profit
margin (%) 0.22
*Return on total
assets (%) 2.08
*Inventory /Turnover
×365 1 day
*Accounts
receivable/Turnover ×365 2 days
*Turnover/Total
assets 9.29
* Cost of goods
sold/Turnover 0.98
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: FAIR
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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 an average
level.
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The accounts receivable of SC is maintained in an
acceptable level.
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SC has no short-term loan in 2006, but its accounts
payable appears 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 above average.
Overall financial
condition of the SC: Fairly stable.
SC is considered small-sized in its line with fairly stable fianncial
conditions. The large amount of accounts payable could be a threat to SC’s
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%)