MIRA
INFORM REPORT
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Report Date : |
12.07.2007 |
IDENTIFICATION DETAILS
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Name : |
CHANGZHOU DEXIANG INTERNATIONAL TRANSPORTATION CO., LTD |
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Registered Office : |
Room 303-2, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
18.01.2006 |
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Com. Reg. No.: |
3204042104928 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Exporting Motorcycles and Components |
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 : |
USD 20,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
COMPANY NAME &
ADDRESS
CHANGZHOU DEXIANG INTERNATIONAL TRANSPORTATION CO., LTD.
ROOM 303-2,
TEL: 86 (0) 519-5161385
FAX: 86 (0) 519-5161385
EXECUTIVE SUMMARY
INCORPORATION DATE : jan. 18, 2006
REGISTRATION NO. : 3204042104928
REGISTERED LEGAL FORM : limited liabilities company
CHIEF EXECUTIVE : Mr. jiang hongcai (chairman)
STAFF STRENGTH : 5
REGISTERED CAPITAL : cny5,000,000
BUSINESS LINE : TRADING
TURNOVER : cny20,370,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 5,020,000 (AS OF DEC. 31, 2006)
PAYMENT : average
RECOMM.
MARKET CONDITION : average
FINANCIAL CONDITION : stable
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 7.58 = US$1 AS OF 2007-07-11
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 Jan. 18, 2006.
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.
: 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 30% 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 international transportation of commodities by ocean, air and land, and express delivery; importing and exporting commodity & technology.
SC is mainly engaged in exporting motorcycles and components.
Mr. Jiang Hongcai has been chairman of SC since 2006.
SC owns about 5 staff at present.
SC is currently operating at the above stated address, and this address houses its operating office in the development zone of Changzhou. Our checks reveal that SC rents the total premise about 100 square meters.
SC is not known to host website of its own at present.
No significant events or changes were found during our checks with the local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name % of Shareholding
Jiang Hongcai 60
Wang Caiying 40
Chairman and General Manager:
Mr. Jiang Hongcai, born in 1939, 68 years old with university education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2006 to present Working in SC as chairman and general manager.
SC is mainly engaged in exporting motorcycles and components.
SC’s products mainly include: motorcycle and component, etc.
SC sources its materials 100% from domestic market, mainly
The buying terms of SC include T/T and Credit of 30-60 days. The payment terms of SC include T/T, L/C and Credit of 15-30 days.
*Major Supplier:
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*Major Customer:
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Shanghai Lipu Electric Lighting 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.
Communication Bank of
AC#：N/A
Relationship:
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
990 |
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Inventory |
0 |
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Accounts receivable |
660 |
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Other Accounts receivable |
4,425 |
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Accounts payable in advance |
0 |
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To be apportioned expense |
0 |
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Other current assets |
-36 |
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Current assets |
6,039 |
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Fixed assets |
41 |
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Long term investment |
0 |
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Other assets |
0 |
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Total assets |
6,080 |
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Short loans |
0 |
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Accounts payable |
250 |
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Accounts receivable in advance |
760 |
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Other Accounts payable |
0 |
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Withdraw the expenses in advance |
0 |
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Other current liabilities |
50 |
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Current liabilities |
1,060 |
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Long term liabilities |
0 |
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Other liabilities |
0 |
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Total liabilities |
1,060 |
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Equities |
5,020 |
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Total liabilities & equities |
6,080 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
20,370 |
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Cost of goods sold |
19,950 |
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Sales expense |
270 |
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Management expense |
140 |
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Finance expense |
-50 |
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Profit before tax |
60 |
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Less: profit tax |
20 |
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Profits |
40 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 5.70
*Quick ratio 5.70
*Liabilities to assets 0.17
*Net profit margin (%) 0.20
*Return on total assets (%) 0.66
*Inventory /Turnover ×365 /
*Accounts receivable/Turnover ×365 12 days
*Turnover/Total assets 3.35
*Cost of goods sold/Turnover 0.98
PROFITABILITY: AVERAGE
The turnover of SC appears fairly
good in its line.
SC’s net profit margin is acceptable.
SC’s return on total assets is acceptable.
SC’s cost of goods sold is fairly high, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a fairly good level.
SC’s quick ratio is maintained in a fairly good level.
SC has no inventory in 2006.
The accounts receivable of SC is maintained in a fairly good
level.
SC has no short-term loan in 2006.
SC’s turnover is in a fairly good level, comparing with the size of its total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is low.
The risk for SC to go bankrupt is above average.
Overall financial condition of the SC: Stable.
SC is considered small-sized in its line with stable financial conditions. A credit line up to USD 20,000 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%)