MIRA
INFORM REPORT
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Report Date : |
26.06.2007 |
IDENTIFICATION DETAILS
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Name : |
foshan dihai
trading development co., ltd. |
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Registered Office : |
Room D, 8th
Floor, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
September 20, 2002 |
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Com. Reg. No.: |
4406001010844 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in
international trade. |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Up To usd 10,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
name & address
foshan dihai trading
development co., ltd.
room d, 8th floor,
TEL :
86 (0) 757-83208286
FAX :
86 (0) 757-83208428
EXECUTIVE SUMMARY
INCORPORATION DATE : september 20, 2002
REGISTRATION NO. : 4406001010844
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
16
REGISTERED CAPITAL : CNY 1,000,000
BUSINESS LINE :
trading
TURNOVER :
CNY 128,920,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 1,340,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : average
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : sdeaty
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY7.62 = US$1 AS OF 2007-6-26
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 September 20, 2002.
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 selling chemical raw materials and products, general
merchandise, household appliance, building materials, metal materials, textiles
and raw materials, computer and parts, conventional machinery and parts,
automotive spare parts, motorcycle spare parts, plastic products, operating and
acting as an agent of importing and exporting various kinds of commodities and
technology, excluding the goods forbidden by the government.
SC is mainly
engaged in international trade.
Mr. Chen Youtao
has been chairman of SC since 2002.
SC owns about 16
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 Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Chen Youtao 50
Deng Jin 50
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Chairman and
General Manager:
Mr. Chen Youtao, about 40 years old with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2002 to present Working
in SC as chairman and general manager.
SC is mainly
engaged in international trade.
SC’s products mainly
include: ceramics
SC sources its materials 100% from domestic
market, mainly
The buying terms of SC include Check, T/T and Credit of 30 days. The payment
terms of SC include T/T and Credit of 30 days.
*Major Customer:
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Dongguan Zhongyuan Industry Co., Ltd.
*Major Supplier:
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Taishan Hitom Ceramics 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.
Guangdong Development Bank Foshan Branch
AC#：104-0150-5010-0000-80
Relationship:
Balance Sheet (as of
Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
1,330 |
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Inventory |
0 |
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Accounts
receivable |
3,400 |
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Prepayment |
44,780 |
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Other Accounts
receivable |
-3,790 |
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To be
apportioned expense |
460 |
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Other current
assets |
20 |
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Current assets |
46,200 |
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Fixed assets net
value |
310 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
10 |
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Total assets |
46,520 |
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Short loans |
920 |
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Accounts payable |
0 |
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Other Accounts
payable |
-3,700 |
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Advances from
customers |
47,890 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
70 |
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Current
liabilities |
45,180 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
45,180 |
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Equities |
1,340 |
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Total
liabilities & equities |
46,520 |
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Income Statement (as
of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
128,920 |
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Cost of goods
sold |
119,960 |
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Sales expense |
7,520 |
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Management expense |
910 |
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Finance expense |
450 |
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Profit before
tax |
250 |
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Less: profit tax |
60 |
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Profits |
190 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 1.02
*Quick ratio 1.02
*Liabilities to
assets 0.97
*Net profit
margin (%) 0.15
*Return on total
assets (%) 0.41
*Inventory /Turnover
×365 / days
*Accounts
receivable/Turnover ×365 10 days
*Turnover/Total
assets 2.77
* Cost of goods
sold/Turnover 0.93
PROFITABILITY:
AVERAGE
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The turnover of SC appears fairly good 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: 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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SC has no inventory in 2006.
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The accounts receivable of SC is maintained in an
acceptable level.
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SC’s short-term loan appears fairly 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 fairly high.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
Over the past 5 years, SC has made a stable growth with acceptable profit.
A credit line up to USD 10,000
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%)