MIRA
INFORM REPORT
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Report Date : |
18.06.2007 |
IDENTIFICATION DETAILS
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Name : |
BEIJING LUCKYSTAR CO., LTD |
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Registered Office : |
RM 1503, Bldg. A2, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
03.11.
2004 |
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Com. Reg. No.: |
1101052759772 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in Selling Chemical Raw Materials |
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 : |
USD 3,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
COMPANY NAME &
ADDRESS
BEIJING LUCKYSTAR CO., LTD.
RM 1503, Bldg. A2, sunshine plaza, no. 68, anli road, chaoyang
district,
TEL: 86 (0) 10-64970826
FAX: 86 (0) 10-64973057
EXECUTIVE SUMMARY
INCORPORATION DATE :
November 3, 2004
REGISTRATION NO. : 1101052759772
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE : MR. li fagen (CHAIRMAN)
STAFF STRENGTH : 13
REGISTERED CAPITAL : CNY 1,000,000
BUSINESS LINE : TRADING
TURNOVER : CNY 5,610,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 630,000 (AS OF DEC. 31, 2006)
PAYMENT : AVERAGE
RECOMM.
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : fair
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 7.63 = US1$ AS OF 2007-6-18
Note: SC’s correct company name should be Beijing Luckystar Co., Ltd. instead of the given name-Beijing Werystar Co., Ltd.
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 November 3, 2004.
Company Status: Limited liabilities co. This form of business in PR China is defined as a legal
person. 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 50% of the registered capital while contribution by intangible assets
must not exceed 20% 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 Not to engage in any items prohibited by laws, administrative regulation and State Council; able to engage in items that needs permit according to the regulation of the State Council, after obtaining the permit from relative authorities and the registration in the AIC; and select to deal with any items that do not need any permit.
SC is mainly engaged in selling chemical raw materials.
Mr. Li Fagen has been legal representative and chairman of SC since 2004.
SC owns approximately 13 staff at present.
SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Beijing. Our checks reveal that SC rents the total premise about 200 square meters.
http://www.luckystarchem.com/ The design is professional and the content is well organized. At present it is in Chinese version.
No significant events or changes were found during our checks
with the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name % of Shareholding
Li Fagen 52
Tian Kexin 48
Legal representative and chairman:
Mr. Li Fagen , born in 1956, with university education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2004 to present Working in SC as chairman and legal representative.
General manager:
Mr. Fan Guoqiang, born in 1969, with university education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 2004 to present Working in SC as general manager.
SC is mainly engaged in selling chemical raw materials.
SC’s products mainly include intermediate, pesticide and chemical equipment, etc.
SC sources its materials 20% from domestic market, and 80% from
overseas market, mainly
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
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.
Bank of
AC#：N/A
Relationship:
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
2,250 |
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Inventory |
1,280 |
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Accounts receivable |
0 |
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Other receivables |
210 |
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Other current assets |
0 |
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Current assets |
3,740 |
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Fixed assets |
80 |
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Fixed assets net value |
70 |
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Projects under construction |
0 |
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Long term investment |
0 |
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Other assets |
70 |
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Total assets |
3,810 |
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Short loans |
0 |
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Accounts payable |
1,490 |
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Other payable |
1,650 |
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Advances from customers |
0 |
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Other current liabilities |
40 |
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Current liabilities |
3,180 |
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Long term liabilities |
0 |
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Total liabilities |
3,180 |
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Equities |
630 |
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Total liabilities & equities |
3,810 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
5,610 |
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Cost of goods sold |
5,440 |
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Sales expense |
910 |
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Management expense |
170 |
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Finance expense |
0 |
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Profit before tax |
-890 |
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Less: profit tax |
0 |
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Profits |
-890 |
Important Ratios
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as of Dec. 31, 2006 |
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*Current ratio |
1.18 |
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*Quick ratio |
0.77 |
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*Liabilities to assets |
0.83 |
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*Net profit margin (%) |
-15.9 |
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*Return on total assets (%) |
-23.4 |
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*Fixed assets/Total assets |
0.02 |
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*Inventory /Turnover ×365 |
83days |
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*Accounts receivable/Turnover ×365 |
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*Turnover/Total assets |
1.47 |
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* Cost of goods sold/Turnover |
0.97 |
PROFITABILITY: POOR
The turnover of SC appears fair in its line.
SC’s net profit margin is fairly poor.
SC’s return on total assets is fairly poor.
SC’s cost of goods sold is fairly high, comparing with its turnover.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a fair level.
The inventory of SC is maintained in a fairly large level.
SC’s turnover is in an acceptable level, comparing with the size of its total assets.
LEVERAGE: FAIR
The debt ratio of SC is fairly high.
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 3,000 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%)