MIRA
INFORM REPORT
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Report Date : |
09.07.2007 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2004 |
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Date of Incorporation : |
Dec 8, 1998 |
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Com. Reg. No.: |
3702001800325 |
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Legal Form : |
Limited
Liabilities Company |
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Line of Business : |
Manufacturing and selling printing and dyeing products,
garments, sawing products and deep processing products, etc. |
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 RMB 5,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
NAME
ADDRESS
NO.
TEL : 86 (0) 532-84661306
FAX : 86 (0) 532-84612949
EXECUTIVE SUMMARY
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INCORPORATION DATE |
DEC 8, 1998 |
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REGISTRATION NO. |
3702001800325 |
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REGISTERED LEGAL FORM |
LIMITED
LIABILITIES COMPANY |
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STAFF STRENGTH |
606 |
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REGISTERED CAPITAL |
RMB 5,260,000 |
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BUSINESS LINE |
MANUFACTRUING AND SELLING |
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TURNOVER |
RMB 357,630,000
(AS OF DEC. 31, 2004) |
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EQUITIES |
RMB 20,820,000 (AS OF DEC. 31, 2004) |
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PAYMENT |
AVERAGE |
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RECOMM. |
UP TO RMB 5,000,000 |
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MARKET CONDITION |
COMPETITIVE |
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FINANCIAL
CONDITION |
STABLE |
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OPERATIONAL
TREND |
steady |
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GENERAL
REPUTATION |
AVERAGE |
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EXCHANGE RATE |
RMB8.26 = US$1 AS
OF 2007-07-21 |
Adopted abbreviations
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
RMB -
SC was registered as a limited liabilities company at Qingdao Municipal Administration for Industry & Commerce (The official body of issuing and renewing business license) on Dec 8, 1998.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. At least two shareholders and no more
than fifty contribute its registered capital jointly. 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. :
RMB 500,000.00 -trading &wholesaling
co. : RMB 500,000.00 -retailing co. : RMB 300,000.00 -consultancy & service
co. : RMB 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 scopes include manufacturing and selling printing and dyeing products, garments, sawing products and deep processing products; importing and exporting business.
SC is mainly engaged in manufacturing and selling printing and dyeing products, garments, sawing products and deep processing products, etc.
Mr. Dai Shouhua has been chairman of SC since 1998.
SC owns 606 staff.
SC is currently operating at the above stated address, and this address houses its operating office and factory in the industrial zone of Qingdao. Our checks reveal that SC owns the total premise about 6,000 square meters.
http://qdfenghuang.ctiwt.com. The design is professional and the content is well organized. At present the web site is both in Chinese and English versions.
E-mail: jiangjing@mail.ctiqd.com.cn
SC’s former shareholder was Qingdao Textiles General Corp, and in Mar 2005 it was changed to the present ones.
MAIN SHAREHOLDERS
Name % of Shareholding
Shareholder’s
Union of Staff
65
l
Chairman
Mr. Dai Shouhua, 56 years old with university education. He is currently responsible for the overall management of SC.
Working Experience(s)
1998 to present Working in SC as chairman.
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General
Manager
Mr. Wu Xiaofei, 43 years old with university education. He is currently responsible for the daily management of SC.
Working Experience(s)
From 2002 to present
Working in SC as general manager.
SC is mainly engaged in manufacturing and selling printing and dyeing products, garments, sawing products and deep processing products, etc.
SC sources its materials 90% from domestic market, and 10%
from international market, mainly from European Countries. SC sells 100%
of its products to
The buying terms of SC include Check, T/T, L/C and Credit of 30-90 days. The payment terms of SC include T/T, Check, L/C and Credit of 30-90 days.
SC’s clients include
Qingdao Textiles General Corp
SC is known to have 2 subsidiaries as following,
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
A trade enquiry currently conducted with SC's
supplier(s) reveal the following:
Products sold:
Date account opened:
Line of credit:
Terms:
Average monthly sales:
Current balance:
Rating Key :
Any Special Comments: _______________________________________
Payment record keys
1 = Prompt : Payment made before the credit period expires
2 = As agreed terms : Payment made upon due date
3 = Slightly slow but acceptable : Payment made 5 to 20 days beyond
agreed terms
4 = Slow : Payment made 16 to 45 days beyond agreed terms
5 = Poor : Payment made over 45 days beyond agreed terms
6 = No comment : Account
is newly opened & record is not yet established
Note
In
some instances, payment beyond terms can be the result of disputes over
merchandise, lost invoices, disputed accounts & etc.
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 & Commercial Bank of
AC# : 3803025009006655701
Relationship:
Consolidated
Balance Sheet (as of Dec. 31, 2004)
Unit: RMB thousand yuan
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Cash & bank |
8,230 |
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Inventory |
27,600 |
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Accounts receivable |
6,410 |
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Account payable advance |
2,940 |
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Other Accounts receivable |
22,150 |
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Other current assets |
2,990 |
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Current assets |
70,320 |
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Fixed assets |
16,830 |
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Fixed assets net value |
11,770 |
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Projects under construction |
3,120 |
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Long term investment |
18,230 |
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Other assets |
80 |
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Total assets |
103,520 |
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Short loans |
25,550 |
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Accounts payable |
46,490 |
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Account receivable advance |
1,570 |
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Other Accounts payable |
5,380 |
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Other current liabilities |
1,410 |
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Current liabilities |
80,400 |
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Long term liabilities |
2,300 |
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Other liabilities |
0 |
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Total liabilities |
82,700 |
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Equities |
20,820 |
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Total liabilities & equities |
103,520 |
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Consolidated
Income Statement (as of Dec. 31, 2004)
Unit: RMB thousand yuan
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Turnover |
357,630 |
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Cost of goods sold |
325,810 |
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Sales expense |
2,290 |
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Management expense |
16,060 |
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Finance expense |
2,870 |
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Profit before tax |
10,920 |
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Less: profit tax |
3,750 |
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Profits |
7,170 |
Important
Ratios (as of Dec. 31, 2004)
*Current ratio 0.87
*Quick ratio 0.53
*Liabilities to assets 0.80
*Net profit margin (%) 3.05
*Return on total assets (%) 10.55
*Total liabilities / Net assets 3.97
*Fixed assets/Total assets 0.16
*Inventory /Turnover ×365 28 days
*Accounts receivable/Turnover ×365 7 days
*Turnover/Total assets 3.45
* Cost of goods sold/Turnover 0.91
Profitability
The turnover and the profit margin
of SC appear acceptable in its line.
Working Capital Control
The current ratio of SC appears
acceptable. With experienced management staff, SC seems to have no problem in
its working capital control.
Liquidity
SC’s quick ratio is maintained in
a fairly low level. It seems SC may have problems in meeting all its liabilities
in the near future.
Solvency
Over years of development, the
risk for SC to go into solvency is slim and it seems SC is able to meet all its
obligations in the future.
Overall financial
condition of the SC
Stable.
Over the past 7 years, SC has made a stable growth with satisfactory profit. A credit line up to RMB5,000,000 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%)