MIRA
INFORM REPORT
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Report Date : |
05.06.2007 |
IDENTIFICATION DETAILS
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Name : |
Jinduicheng
Molybdenum Import & Export Corp. |
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Registered Office : |
17/F |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
November 6, 1997 |
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Com. Reg. No.: |
6100001800797 |
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Legal Form : |
State-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 500,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
Jinduicheng
Molybdenum Import & Export Corp.
17/f
TEL :
86 (0) 29-88378772
FAX :
86 (0) 29-88378771
EXECUTIVE SUMMARY
INCORPORATION DATE : november 6, 1997
REGISTRATION NO. : 6100001800797
REGISTERED LEGAL FORM : State-owned
STAFF STRENGTH :
35
REGISTERED CAPITAL : CNY 10,000,000
BUSINESS LINE :
trading
TURNOVER :
CNY 888,270,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 140,840,000 (AS OF DEC. 31, 2006)
PAYMENT : AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY7.65 = US$1 AS OF 2007-5-31
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 state-owned enterprise at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on November 6, 1997.
Company Status: State-owned enterprise This form of business in PR
China is defined as a commodity production or operational units of a
socialist character which in accordance with the law, has autonomy in
management, takes full responsibility for its profits and losses and
practices independent business accounting. It is a legal person established
directly by central / local government or enterprise owned by central or
local government. In theory, the liabilities of this form of enterprise are
ultimately borne by the government, since the adoption of company law in
mid-1994, the Chinese government has planned to separate the ownership from
management and liabilities bearing.
SC’s registered business scope includes importing and exporting various
kinds of commodities and technology, excluding the goods forbidden by the
government, processing with imported materials, processing with imported samples,
assemblying with imported parts, and compensation trade in agreement, counter
trade and entrecote trade.
SC is mainly
engaged in international trade.
Mr. Liu Xinlu has
been general manager of SC since 1997.
SC owns about 35
staff at present
SC is currently
operating at the above stated address, and this address houses its operating
office in the commercial zone of Xi’an. Our checks reveal that SC owns the
total premise about 500 square meters.
http://www.jinduicheng.com/jdc/sale1.htm
The design is professional and the content is well organized. At present the
web site is only in Chinese version.
E-mail: jck@jdcmmc.com
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Jinduicheng Molybdenum Group Co., Ltd. 100
Jinduicheng Molybdenum Group Co., Ltd.:
==============================
Jinduicheng Molybdenum Group Co., Ltd.
(JDCMMC) is located in
l
Legal
Representative and General Manager:
Mr. Liu Xinlu, 39 years old with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 1997 to present Working
in SC as legal representative and general manager.
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Sales Manager:
Mr. Cao Junyi
TEL: +86-29-88378613 88378773
E-mail: mrmd@jdcmmc.com
SC is mainly
engaged in international trade.
SC’s products
mainly include: Moly Metallurgical Raw Material, Moly Metal Products, Moly
Chemical products.
SC sources its materials 100% from domestic
market, mainly
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Suppliers:
==============
Jinduicheng Molybdenum Group 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.
Industrial and Commercial Bank of
AC#：3700024809024904218
Relationship:
Balance Sheet (as
of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
2,032,630 |
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Inventory |
60,540 |
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Accounts
receivable |
195,080 |
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Other Accounts
receivable |
3,190 |
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To be
apportioned expense |
0 |
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Other current
assets |
32,990 |
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Current assets |
2,324,430 |
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Fixed assets net
value |
790 |
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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 |
2,325,220 |
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Short loans |
0 |
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Accounts payable |
2,196,290 |
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Other Accounts
payable |
300 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
-12,210 |
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Current
liabilities |
2,184,380 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
2,184,380 |
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Equities |
140,840 |
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Total
liabilities & equities |
2,325,220 |
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Income Statement (as
of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
888,270 |
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Cost of goods
sold |
861,200 |
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Sales expense |
3,150 |
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Management expense |
0 |
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Finance expense |
0 |
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Profit before
tax |
19,110 |
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Less: profit tax |
0 |
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Profits |
19,110 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 1.06
*Quick ratio 1.04
*Liabilities to
assets 0.94
*Net profit
margin (%) 2.15
*Return on total
assets (%) 0.82
*Inventory
/Turnover ×365 25 days
*Accounts
receivable/Turnover ×365 80 days
*Turnover/Total
assets 0.38
* Cost of goods
sold/Turnover 0.97
PROFITABILITY:
AVERAGE
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The turnover of SC appears fairly good 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 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 normal 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
acceptable level.
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SC has no short-term loan in 2006, but its account
payable appears TOO LARGE.
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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 high.
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The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fair stable.
Over the past 10 years, SC has made a stable growth with satisfactory
profit. However, the accounts payable of SC appears TOO LARGE. A credit line up
to USD 500,000 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%)