MIRA
INFORM REPORT
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Report Date : |
09.06.2007 |
IDENTIFICATION DETAILS
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Name : |
wuxi yuexin
leather products 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 : |
November 5, 2001 |
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Com. Reg. No.: |
005222 |
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Legal Form : |
Wholly Foreign-Owned |
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Line of Business : |
Manufacturing
and selling leather gloves, handbags, 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 60,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
wuxi yuexin leather
products co., ltd.
no.5
TEL :
86 (0) 510-85627028
FAX :
86 (0) 510-85627038
EXECUTIVE SUMMARY
INCORPORATION DATE : november 5, 2001
REGISTRATION NO. : 005222
REGISTERED LEGAL FORM : Wholly foreign-owned
STAFF STRENGTH :
190
REGISTERED CAPITAL : usd 1,000,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 31,590,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 9,490,000 (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 2007-6-7
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 November 5, 2001.
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 manufacturing and processing leather gloves, handbags,
garments, selling self-made products, in accordance with the license.
SC is mainly
engaged in manufacturing and selling leather gloves, handbags, and garments.
Mr. Guo Aiqing has
been chairman of SC since 2001.
SC owns about 190
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 Wuxi. Our checks reveal that SC
owns the total premise about 6,000 square meters.
http://www.gloveyx.com The design is
professional and the content is well organized. At present the web site is only
in English version.
E-mail: yuexing2121@vip.sina.com
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Moscow Yuexin Trade Co., Ltd. 100
l
Chairman and General
Manager:
Mr. Guo Aiqing, 50 years old with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2001 to present Working
in SC as chairman and general manager.
SC is mainly
engaged in manufacturing and selling leather gloves, handbags, and garments.
SC’s products
mainly include: Ladies Glove, Mens Glove, Sports & Casual Glove, Fleece
accessories, Acrylic accessories, Driving & Riding gloves, Wedding and
Formal Gloves.
SC sources its materials 100% from domestic
market, mainly
The buying terms of SC include Check, T/T and Credit of 30-45 days. The
payment terms of SC include T/T, L/C and Credit of 30-45 days.
*Major Customers:
==============
(
*Major Suppliers:
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Zhejiang Fubang Group Import & Export Co., Ltd.
SC is
known to have a branch at present:
Wuxi
Yuexin Leather Products Co., Ltd. Nanquan Branch
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 records 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#：1103025119000061703
Relationship:
Balance Sheet (as
of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
5,520 |
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Inventory |
6,960 |
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Accounts
receivable |
70 |
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Other Accounts
receivable |
10 |
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Short term
investment |
10,000 |
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To be
apportioned expense |
20 |
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Other current
assets |
60 |
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Current assets |
22,640 |
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Fixed assets net
value |
6,810 |
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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 |
30,470 |
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Short loans |
12,550 |
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Accounts payable |
6,150 |
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Other Accounts
payable |
80 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
2,200 |
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Current
liabilities |
20,980 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
20,980 |
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Equities |
9,490 |
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Total
liabilities & equities |
30,470 |
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Income Statement (as of
Dec. 31, 2006)
Unit: CNY’000
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Turnover |
31,590 |
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Cost of goods
sold |
28,620 |
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Sales expense |
790 |
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Management expense |
1,140 |
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Finance expense |
130 |
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Profit before
tax |
970 |
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Less: profit tax |
120 |
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Profits |
850 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 1.08
*Quick ratio 0.75
*Liabilities to
assets 0.69
*Net profit
margin (%) 2.69
*Return on total
assets (%) 2.79
*Inventory /Turnover
×365 80 days
*Accounts
receivable/Turnover ×365 1 day
*Turnover/Total
assets 1.04
* Cost of goods
sold/Turnover 0.91
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 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 an average
level.
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The accounts receivable of SC is maintained a
normal level.
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The short-term loan of SC appears TOO LARGE.
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SC’s turnover is in an acceptable 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: Fairly stable.
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of short loans could be a threat to SC’s financial
condition. A credit line up to USD
60,000 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%)