MIRA
INFORM REPORT
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Report Date : |
12.07.2007 |
IDENTIFICATION DETAILS
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Name : |
SUMITOMO CORPORATION ( |
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Registered Office : |
Room 2801, 1#
Building Of Exchang Tower, No. 189 Nanjing Road, Heping District, Tianjin, 300051
Pr |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
June 6, 1996 |
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Com. Reg. No.: |
010098 |
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Legal Form : |
Wholly Foreign-Owned |
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Line of Business : |
Engaged in international trade. |
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 1,000,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
SUMITOMO CORPORATION (
room 2801, 1#
Heping DISTRICT,
TEL :
86 (0) 22-23020000
FAX :
86 (0) 22-23312000
EXECUTIVE SUMMARY
INCORPORATION DATE : june 6, 1996
REGISTRATION NO. : 010098
REGISTERED LEGAL FORM : Wholly foreign-owned
STAFF STRENGTH :
50
REGISTERED CAPITAL : usd 2,500,000
BUSINESS LINE :
trading
TURNOVER :
CNY 2,013,270,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 181,480,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY7.57 = US$1 AS OF 2007-7-12
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 wholly foreign-owned enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on June 6, 1996.
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 investor 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 transiting trade, commercial trade, storage
service, export processing goods, commodity exhibition, developing and selling
high-technology products, international trade and relation consultation
service, selling chemical products in
SC is mainly
engaged in international trade.
Mr. kawase shinya has been chairman of SC
since 2007.
SC owns about 50
staff at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Tianjin. Our checks reveal that SC
rents the total premise about 860 square meters.
SC is not known to host web site of its own at present.
Changes of its registered information are as follows:
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Date of change |
Item |
Before the
change |
After the change |
|
2007-4 |
Chairman |
BEPPU TATSUTO (别府辰人) |
kawase shinya (河濑真也) |
MAIN SHAREHOLDERS:
Name %
of Shareholding
SUMITOMO cORPORATION (
l
Chairman and
General Manager:
Mr. kawase shinya, 56
years old with university education. He is currently responsible for the
overall management of SC.
Working Experience(s):
From 2007 to present Working
in SC as chairman and general manager.
SC is mainly
engaged in international trade.
SC’s products
mainly include: chemical products, plastic raw materials.
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 Customer:
==============
Sinopec Materials Guangzhou Corporation
*Major Supplier:
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Shanghai Jinchang Engineering Plastics 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#：800100051508093001
Relationship:
Balance Sheet (as
of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
18,460 |
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Inventory |
442,950 |
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Accounts
receivable |
421,710 |
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Other Accounts
receivable |
840 |
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To be
apportioned expense |
0 |
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Other current
assets |
9,340 |
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Current assets |
893,300 |
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Fixed assets net
value |
1,740 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
1,020 |
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Total assets |
896,060 |
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Short loans |
233,840 |
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Accounts payable |
466,310 |
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Other Accounts
payable |
150 |
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Withdraw the
expenses in advance |
470 |
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Other current
liabilities |
13,810 |
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Current
liabilities |
714,580 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
714,580 |
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Equities |
181,480 |
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Total
liabilities & equities |
896,060 |
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Income Statement (as
of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
2,013,270 |
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Cost of goods
sold |
1,885,670 |
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Sales expense |
28,050 |
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Management expense |
28,570 |
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Finance expense |
1,990 |
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Profit before
tax |
78,850 |
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Less: profit tax |
23,930 |
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Profits |
54,920 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 1.25
*Quick ratio 0.63
*Liabilities to assets 0.80
*Net profit
margin (%) 2.73
*Return on total
assets (%) 6.13
*Inventory
/Turnover ×365 80 days
*Accounts
receivable/Turnover ×365 76 days
*Turnover/Total
assets 2.25
* Cost of goods
sold/Turnover 0.94
PROFITABILITY:
FAIRLY GOOD
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The turnover of SC appears fairly good in its line.
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SC’s net profit margin is fairly good.
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SC’s return on total assets is fairly good.
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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 fair level.
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The inventory of SC is maintained in a fairly large
level.
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The accounts receivable of SC is maintained in a
fairly large level.
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The short-term loan of SC 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: AVERAGE
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The debt ratio of SC is fairly high.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
Over the past 11 years, SC has made a stable growth with satisfactory
profit. 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%)