MIRA
INFORM REPORT
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Report Date : |
29.06.2007 |
IDENTIFICATION DETAILS
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Name : |
RUSHAN SUNGMIN
TEXTILE Co., Ltd. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
December 4, 2003 |
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Com. Reg. No.: |
003812 |
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Legal Form : |
Wholly Foreign-Owned |
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Line of Business : |
Engaged in processing
and selling high-grade textile materials and garments. |
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 200,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
RUSHAN SUNGMIN
TEXTILE Co., Ltd.
TEL :
86 (0) 631-6608889
FAX :
86 (0) 631-6605868
EXECUTIVE SUMMARY
INCORPORATION DATE : december 4, 2003
REGISTRATION NO. : 003812
REGISTERED LEGAL FORM :
WHOLLY FOREIGN-OWNED
STAFF STRENGTH : 100
REGISTERED CAPITAL : usd 3,000,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 28,900,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 31,610,000 (AS OF DEC. 31, 2006)
PAYMENT : AVERAGE
RECOMM.
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
7.62 = US1$ AS OF 2007-6-28
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 December 4, 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 after-treatment processing high-grade textile materials,
processing garments; selling self-made products.
SC is mainly
engaged in processing and selling high-grade textile materials and garments.
Mr. Huang
Jiaozhang has been legal representative and chairman
of SC since 2003.
SC owns approximately 100 staff at present.
SC is currently operating at the above stated address, and this
address houses its operating office and factory in the industrial zone of
Rushan. Our checks reveal that SC owns the total premise about 45,000 square
meters.
SC is not known to host website of its own at present.
SC also use Rushan Sungmin Fabric Co., Ltd. as its trading name
SC started its normal operation in October 2005.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Sungmin Corporation. (
l
Legal representative and chairman:
Mr. Huang Jiaozhang, in his 70’s with high
school education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2003 to present Working in SC as chairman and legal representative.
l
General manager:
Mr. Huang Haozhen, in his 30’s with university
education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 2003 to present Working in SC as general manager.
SC is mainly engaged
in processing and selling high-grade textile materials and garments.
SC sources its materials 100%
from domestic market. SC sells 20% of its products in domestic market, and 80%
to overseas market, mainly Hong Kong and
The buying terms of SC include Check, T/T and Credit of
30-60 days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60
days.
*Major Supplier:
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Shanghai Nengtai Textiles Co., Ltd.
*Major Customer:
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Sungmin Corporation. (
SC is known to have the following subsidiaries:
Shanghai
Office
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.
Agriculture Bank of
AC#：570101040009462
Relationship:
Note: The given bank account – 155701140400008 doesn’t belong to SC.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
1,420 |
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Inventory |
40 |
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Accounts
receivable |
4,210 |
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Advances to
suppliers |
6,430 |
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Subsidies
receivable |
570 |
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Other
receivables |
250 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
12,920 |
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Fixed assets |
24,760 |
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Fixed assets net
value |
24,350 |
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Projects under
construction |
1,700 |
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Long term investment |
0 |
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Other assets |
380 |
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Total assets |
39,350 |
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Short loans |
2,100 |
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Accounts payable |
6,230 |
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Other payable |
20 |
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Taxes payable |
-610 |
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Other current
liabilities |
0 |
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Current
liabilities |
7,740 |
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Long term
liabilities |
0 |
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Total
liabilities |
7,740 |
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Equities |
31,610 |
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Total
liabilities & equities |
39,350 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
28,900 |
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Cost of goods
sold |
24,980 |
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Sales expense |
530 |
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Management expense |
2,530 |
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Finance expense |
-80 |
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Profit before
tax |
930 |
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Less: profit tax |
0 |
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Profits |
930 |
Important Ratios
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as
of Dec. 31, 2006 |
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*Current ratio |
1.67 |
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*Quick ratio |
1.67 |
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*Liabilities
to assets |
0.20 |
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*Net profit
margin (%) |
3.22 |
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*Return on
total assets (%) |
2.36 |
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*Fixed
assets/Total assets |
0.62 |
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*Inventory
/Turnover ×365 |
1days |
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*Accounts
receivable/Turnover ×365 |
53days |
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*Turnover/Total
assets |
0.73 |
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* Cost of
goods sold/Turnover |
0.86 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears average 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 average, comparing with
its turnover.
LIQUIDITY: AVERAGE
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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 fairly good
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
average level.
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SC’s short-term loan is in an average level.
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SC’s turnover is in an acceptable level, comparing
with the size of its total assets.
LEVERAGE: FAIRLY
GOOD
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The debt ratio of SC is low.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
SC is considered medium-sized in its line with stable financial
conditions. Over the past 4 years, SC has made a stable growth with acceptable
profit. A credit line up to USD 200,000 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%)