MIRA
INFORM REPORT
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Report Date : |
22.06.2007 |
IDENTIFICATION DETAILS
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Name : |
qingdao delta
international trade co., ltd. |
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Registered Office : |
Room 710-711,
Block A, World Trade Center No. 6, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
March 3, 1993 |
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Com. Reg. No.: |
3702022800439 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in operating import 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 50,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
qingdao delta
international trade co., ltd.
ROOM 710-711, BLOCK A,
NO. 6,
TEL :
86 (0) 532-85918867
FAX :
86 (0) 532-85918794
EXECUTIVE SUMMARY
INCORPORATION DATE : march 3, 1993
REGISTRATION NO. : 3702022800439
REGISTERED LEGAL FORM : limited liabilities
company
STAFF STRENGTH :
7
REGISTERED CAPITAL : cny5,000,000
BUSINESS LINE :
trading
TURNOVER :
cny16,690,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 5,420,000 (AS OF DEC. 31, 2006)
PAYMENT :
average
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : stable
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.62 = US$1 AS OF 2007-06-22
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 March 3, 1993.
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 wholesaling and retailing knit
goods, textile, garments, hardware, chemical products, standard machinery,
apparatus and instruments, handicraft, cultural and office supplies, steel
materials, lumber, rubber, paper and its products; importing and exporting
commodities & technology; processing with imported materials, processing
with imported samples, assembling with imported parts, and compensation trade
in agreement; barter trade &
transiting trade.
SC is mainly
engaged in operating import trade.
Mr. Zhang Bingrang
has been chairman of SC since 1993.
SC owns about 7
staff at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Qingdao. Our checks reveal that SC
rents the total premise about 300 square meters.
http://www.delta21.com The design
is professional and the content is well organized. At present the web is both
in Chinese and English versions.
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name % of Shareholding
Zhang Chengxiang 60
Zhang Bingrang 20
Zhang Tinglin 20
l
Chairman and
General Manager:
Mr. Zhang Bingrang, in his 40’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1993 to present Working in SC as chairman and general manager.
Salesman:
Ms. Wan Xinling
Tel: 0532-85918867
Fax: 0532-85918794
Mobile Telephone Number: 13165425148
E-mail: wanxinling98@yahoo.com.cn
SC is mainly
engaged in operating import trade.
SC’s products mainly include: garment, green tyres, Compound rubber, steel cord friction, and
rubber friction.
SC sources its materials 20% from domestic
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 and Credit of 15-30 days.
*Major Supplier:
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*Major Customer:
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Qingdao Shengsha
Garment 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.
Bank of
AC#：381068301508091001
Relationship:
Balance Sheet (as
of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
2,980 |
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Inventory |
3,190 |
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Accounts
receivable |
0 |
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Other Accounts
receivable |
510 |
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Accounts payable
in advance |
260 |
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To be
apportioned expense |
0 |
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Other current
assets |
420 |
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Current assets |
7,360 |
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Fixed assets |
530 |
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Fixed assets net
value |
350 |
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Projects under
construction |
180 |
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Long term investment |
0 |
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Other assets |
-10 |
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Total assets |
7,880 |
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Short loans |
0 |
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Accounts payable |
1,950 |
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Accounts
receivable in advance |
0 |
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Taxes payable |
-130 |
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Other Accounts
payable |
620 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
20 |
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Current
liabilities |
2,460 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
2,460 |
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Equities |
5,420 |
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Total
liabilities & equities |
7,880 |
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Income Statement (as
of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
16,690 |
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Cost of goods
sold |
14,900 |
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Sales expense |
1,490 |
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Management expense |
360 |
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Finance expense |
0 |
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Non-operating
income |
65 |
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Profit before
tax |
5 |
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Less: profit tax |
1 |
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Profits |
4 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 2.99
*Quick ratio 1.70
*Liabilities to
assets 0.31
*Net profit
margin (%) 0.02
*Return on total
assets (%) 0.05
*Inventory
/Turnover ×365 70 days
*Accounts
receivable/Turnover ×365 /
*Turnover/Total
assets 2.12
*Cost of goods
sold/Turnover 0.89
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 acceptable.
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SC’s return on total assets is acceptable.
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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 fairly large
level.
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SC has no accounts receivable in 2006
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SC has no short-term loan in 2006.
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SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIRLY GOOD
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The debt ratio of SC is low.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
SC is considered small-sized in its line with stable financial
conditions. A credit line up to USD50,000 would appear to be within SC’s
capacities.
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%)