MIRA
INFORM REPORT
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Report Date : |
26.06.2007 |
IDENTIFICATION DETAILS
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Name : |
shanghai china
best industrial development co., ltd. |
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Registered Office : |
Room 1001, Block 2,
Kery Ever Bright City Tower No. 218, Tianmu West Road, Shanghai 200070 Pr |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Sep. 18, 2003 |
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Com. Reg. No.: |
3101152014915 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged
in importing
and exporting 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 30,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
shanghai china best
industrial development co., ltd.
ROOM 1001, BLOCK 2, KERY EVER BRIGHT CITY TOWER
NO. 218,
TEL: 86 (0) 21-33031109
FAX: 86 (0) 21-63537687
EXECUTIVE SUMMARY
INCORPORATION DATE : sep. 18, 2003
REGISTRATION NO. : 3101152014915
REGISTERED LEGAL FORM : limited liabilities
company
STAFF STRENGTH :
30
REGISTERED CAPITAL : cny5,060,000
BUSINESS LINE :
trading
TURNOVER :
cny183,450,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 5,500,000 (AS OF DEC. 31, 2006)
PAYMENT :
average
RECOMM.
MARKET CONDITION : average
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.65 = US$1 AS OF 2007-06-14
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 SHANGHAI CHINA BEST INDUSTRIAL
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 Sep. 18, 2003.
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 importing and exporting
commodity & technology; development, manufacturing, and sales of computer software
and hardware; relative technical consulting and service; network engineering
design, installation, and maintenance; environmental design consulting, garden
virescence; and selling environmental protection equipment, chemical materials,
knit goods, textile, electromechanical products, toys, textile material,
building materials, hardware, grocery, and handicrafts.
SC is
mainly engaged in importing and exporting garments.
Mr. Lu Wei has
been chairman of SC since 2003.
SC owns about 30
staff at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Shanghai. Our checks reveal that SC
rents the total premise about 400 square meters.
http://www.china-best.cn The design is professional and the
content is well organized. At present the web is only in Chinese version.
E-mail: chinabest@police-military.com
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name % of Shareholding
Lu Wei 80
Lu Yong 20
l
Chairman:
Mr. Lu Wei, in his 40’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2003 to present Working in SC as chairman.
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General Manager:
Mr. Lu Yong, in his 40’s with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2003 to present Working in SC as general manager.
SC is
mainly engaged in importing and exporting garments.
SC’s products mainly include: various of
garment, etc.
SC sources its materials 70% from domestic market,
mainly Mongolia, and 30% from overseas market, mainly South American and
European countries; SC sells its products 70% to overseas market, mainly
American and European countries, and 30% in domestic market, mainly Shanghai.
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 Supplier:
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Chifeng Worldbest Woolen Industry Co., Ltd. *Major Customer:
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Shanghai Xingsong Chemical Fiber
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 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.
Bank of
AC#：12076908091001
Relationship:
Balance Sheet (as of
Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
430 |
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Inventory |
670 |
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Accounts
receivable |
10,050 |
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Other Accounts
receivable |
0 |
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Accounts payable
in advance |
4,010 |
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To be
apportioned expense |
0 |
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Other current
assets |
2,330 |
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Current assets |
17,490 |
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Fixed assets |
560 |
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Long term
investment |
0 |
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Other assets |
60 |
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Total assets |
18,110 |
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Short loans |
0 |
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Bills payable |
0 |
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Accounts payable |
7,380 |
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Accounts
receivable in advance |
360 |
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Other Accounts
payable |
4,780 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
90 |
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Current
liabilities |
12,610 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
12,610 |
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Equities |
5,500 |
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Total
liabilities & equities |
18,110 |
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Income Statement (as
of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
183,450 |
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Cost of goods
sold |
175,660 |
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Sales expense |
5,410 |
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Management expense |
2,220 |
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Finance expense |
240 |
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Profit before
tax |
130 |
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Less: profit tax |
60 |
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Profits |
70 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 1.39
*Quick ratio 1.33
*Liabilities to
assets 0.70
*Net profit
margin (%) 0.04
*Return on total
assets (%) 0.39
*Inventory
/Turnover ×365 1 day
*Accounts receivable/Turnover
×365 20 days
*Turnover/Total
assets 10.13
*Cost of goods
sold/Turnover 0.96
PROFITABILITY:
FAIR
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The turnover of SC appears fairly good
in its line.
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SC’s net profit margin is fair.
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SC’s return on total assets is fair.
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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 fairly good
level.
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The inventory of SC is maintained in a fairly good
level.
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The accounts receivable of SC appears LARGE.
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SC has no short-term loan in 2006.
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SC’s turnover is in a fairly good
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 small-sized in its line with fairly stable financial conditions.
A credit line up to USD30,000 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%)