MIRA
INFORM REPORT
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Report Date : |
27.07.2007 |
IDENTIFICATION DETAILS
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Name : |
JINJIANG HENGREN IMPORT & EXPORT 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 : |
Jul. 25, 2006 |
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Com. Reg. No.: |
3505822808327 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in
international trade. |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Up To usd 10,000 |
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Status : |
Small Company |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
JINJIANG HENGREN IMPORT & EXPORT CO., LTD.
TEL : 86 (0)
595-85639600
FAX : 86 (0) 595-85639288
EXECUTIVE SUMMARY
INCORPORATION DATE : JUL. 25, 2006
REGISTRATION NO. : 3505822808327
REGISTERED LEGAL FORM : LIMITED LIABILITIES
COMPANY
STAFF STRENGTH :
11
REGISTERED CAPITAL : CNY 2,000,000
BUSINESS LINE :
INTERNATIONAL TRADE
TURNOVER :
cny 4,680,000 (AS OF DEC. 31, 2006)
EQUITIES :
cny 1,880,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : fair
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.56= US$1 AS OF 2007-7-26
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 limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Jul. 25, 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 importing and exporting various
goods (shoes, garments, leather, bags, shoes and garments materials).
SC is mainly
engaged in international trade.
Mr. Zhang Yingwen
has been chairman of SC since 2006.
SC owns about 11
staff at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the industrial zone of Jinjiang. Our checks reveal that SC
rents the total premise about 100 square meters.
http://www.hengren.com It is the
website of Jinjiang Hengren Shoes Co., Ltd. The design is professional and the
content is well organized. At present it is in both Chinese and English
versions.
No significant events or changes were found during our checks with local
AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhang Yingwen 100
l
Chairman and
General Manager:
Mr. Zhang Yingwen, in his 40’s 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.
Also working in Jinjiang Hengren Shoes Co., Ltd., as chairman.
SC is mainly
engaged in international trade.
SC’s products
mainly include: slippers.
SC sources its
materials 100% from domestic market. SC sells 100% of its products to the
overseas market, mainly American and European countries.
The buying terms of SC include Check, T/T and Credit of 15-30 days. The payment
terms of SC include T/T, L/C and Credit of 15-30 days.
*Major Supply:
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Jinjiang Hengren Shoes 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 refused to release any information of its
suppliers and the trade reference was not available.
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.
SC’s management
refused to release its bank details.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2006 |
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Cash & bank |
240 |
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Accounts paid in
advance |
0 |
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Accounts
receivable |
0 |
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Inventory |
180 |
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Other
receivables |
1,500 |
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Other current
assets |
20 |
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Current assets |
1,940 |
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Fixed assets net
value |
450 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
0 |
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Total assets |
2,390 |
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============= |
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Short loans |
0 |
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Accounts payable |
280 |
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Accounts
received in advance |
0 |
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Taxes payable |
80 |
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Salaries payable |
20 |
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Other payable |
40 |
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Other current
liabilities |
90 |
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Current
liabilities |
510 |
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Long term
liabilities |
0 |
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Total
liabilities |
510 |
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Equities |
1,880 |
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Total
liabilities & equities |
2,390 |
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Income Statement
Unit: CNY’000
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As of Dec. 31,
2006 |
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Turnover |
4,680 |
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Cost of goods
sold |
4,610 |
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Sales expense |
0 |
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Management expense |
100 |
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Finance expense |
20 |
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Profit before
tax |
-740 |
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Less: profit tax |
0 |
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Profits |
-740 |
Important Ratios
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2006 |
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*Current ratio |
3.80 |
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*Quick ratio |
3.45 |
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*Liabilities
to assets |
0.21 |
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*Net profit
margin (%) |
-15.81 |
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*Return on
total assets (%) |
-30.96 |
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*Fixed
assets/Total assets |
0.19 |
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*Inventory
/Turnover ×365 |
14days |
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*Accounts
receivable/Turnover ×365 |
0 |
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*Turnover/Total
assets |
1.96 |
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* Cost of
goods sold/Turnover |
0.99 |
PROFITABILITY:
POOR
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The turnover of SC appears acceptable in its line.
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SC’s net profit margin is poor in 2006.
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SC’s return on total assets is poor in 2006.
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SC’s cost of goods sold is high, 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 normal level.
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The inventory of SC is maintained in a normal
level.
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SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is average.
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The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Fair.
SC is considered small-sized in its line with fair financial conditions.
A credit line up to USD 10,000 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%)