MIRA
INFORM REPORT
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Report Date : |
13.06.2007 |
IDENTIFICATION DETAILS
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Name : |
foshan ceramics
import & export company of |
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Registered Office : |
3/F, No. 19, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
June 2, 1987 |
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Com. Reg. No.: |
4406001008085 |
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Legal Form : |
State-Owned |
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Line of Business : |
Importing and exporting chemical materials. |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Unknown |
name & address
foshan ceramics
import & export company of
3/f, no. 19,
TEL
86 (0) 757-82271173
FAX
86 (0) 757-82281553
EXECUTIVE SUMMARY
INCORPORATION DATE : june 2, 1987
REGISTRATION NO. : 4406001008085
REGISTERED LEGAL FORM : state-owned
STAFF STRENGTH :
4
REGISTERED CAPITAL : CNY 3,030,000
BUSINESS LINE :
TRADING
TURNOVER :
cny 2,060,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY-8,900,000 (AS OF DEC. 31, 2006)
PAYMENT : AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : poor
OPERATIONAL TREND : downward
GENERAL REPUTATION : fair
EXCHANGE RATE :
CNY 7.65 = US$1 AS OF 2007-06-06
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
Note: SC’s concrete name should be the above stated one, instead
of the given one - Foshan Ceramics Imports Company of
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 June 2, 1987.
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 exporting ceramics and non-metal minerals; importing
ceramics and machinery; and operating compensation trade.
SC is
mainly engaged in importing and exporting chemical materials.
Mr. Wu Xinzhuo has been chairman of SC since 1987.
SC
owns about 4 staff at present.
SC is currently operating at the above stated address, and this
address houses its operating office in the commercial zone of Foshan. Our checks reveal that SC rents the total premise about 200 square meters.
SC is not known to host web site of its own at present.
No significant events or changes were found during our checks with the
local AIC.
MAIN SHAREHOLDERS:
Name
% of Shareholding
Foshan Zhongli Assets Operation &
Management Company 100
l
General Manager:
Mr. Wu Xinzhuo, in his 50’s with university education. He
is currently responsible for the overall management of SC.
Working Experience(s):
From 1987 to present Working in SC as general manager.
SC is mainly
engaged in importing and exporting chemical
materials.
SC’s products mainly include: ceramics, etc.
SC sources its materials 30% from
domestic market, and 70% from overseas market, mainly
The buying terms of SC include T/T, L/C and Credit of 30-60
days. The payment terms of SC include T/T, L/C and Credit of 15-30 days.
*Major Customer:
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Guangdong Foshan Zhaoyi Group Company 
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.
Agricultural Bank of
AC#：44431501040000446
Relationship:
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
290 |
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Inventory |
0 |
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Accounts
receivable |
6,140 |
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Other Accounts
receivable |
0 |
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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 |
10 |
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Current assets |
6,440 |
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Fixed assets |
1,030 |
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Long term
investment |
0 |
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Other assets |
0 |
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Total assets |
7,470 |
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Short loans |
15,000 |
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Accounts payable |
0 |
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Accounts receivable
in advance |
0 |
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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 |
1,370 |
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Current
liabilities |
16,370 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
16,370 |
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Equities |
-8,900 |
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Total
liabilities & equities |
7,470 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
2,060 |
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Cost of goods
sold |
3,260 |
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Sales expense |
140 |
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Management expense |
380 |
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Finance expense |
0 |
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Non-operating
income |
10 |
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Profit before
tax |
-1,710 |
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Less: profit tax |
0 |
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Profits |
-1,710 |
Important Ratios
(as of Dec. 31, 2006)
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*Current ratio 0.39
*Quick ratio 0.39
*Liabilities to assets 2.19
*Net profit margin (%) -83.01
*Return on total assets (%) -22.89
*Inventory /Turnover ×365 /
*Accounts receivable/Turnover ×365 1088
days
*Turnover/Total assets 0.28
* Cost of goods sold/Turnover 1.58
PROFITABILITY: POOR
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The turnover of SC appears fair in its line.
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SC’s net profit margin is poor.
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SC’s return on total assets is poor.
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SC’s cost of goods sold is very high, comparing with its turnover.
LIQUIDITY: POOR
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The current ratio of SC is maintained in a
poor level.
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SC’s quick ratio is maintained in a poor level.
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SC has no inventory in 2006.
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The accounts receivable of SC appears TOO LARGE.
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The short-term loan of SC appears TOO LARGE.
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SC’s turnover is in a fair level,
comparing with the size of its total assets.
LEVERAGE: POOR
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The debt ratio of SC is very high.
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The risk for SC to go bankrupt is high.
Overall financial condition of the SC:
Poor.
SC is considered
small-sized in its line with poor financial conditions. The large amount of short-term loan and accounts receivable could be a
threat to SC’s financial condition. Great caution is required in providing
credit to SC & COD is recommended.
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%)