MIRA
INFORM REPORT
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Report Date : |
01.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
shengli oilfield
tongtai international trading co., ltd. |
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Registered Office : |
No. 81, Dongsi
Road, Economic Development Zone, Dongying City Shandong Province 257091 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
19.03.2003 |
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Com. Reg. No.: |
3705001804644 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Exporting petroleum bushing. |
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 50,000 |
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Status : |
Small Company |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
shengli oilfield
tongtai international trading co., ltd.
NO. 81, DONGSI ROAD, ECONOMIC DEVELOPMENT ZONE, DONGYING CITY
SHANDONG PROVINCE 257091 PR
CHINA
TEL: 86 (0) 546-87663704
FAX: 86 (0) 546-87663068
EXECUTIVE SUMMARY
INCORPORATION DATE : mar. 19, 2003
REGISTRATION NO. : 3705001804644
REGISTERED LEGAL FORM : limited liabilities
company
STAFF STRENGTH :
20
REGISTERED CAPITAL : CNY 10,000,000
BUSINESS LINE :
trading
TURNOVER :
cny 24,040,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 9,920,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 50,000 (PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairLY STABLE
OPERATIONAL TREND : FAIRLY steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.75 = US$1 AS OF 2007-02-14
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Ren Min Bi
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 Mar. 19, 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 commodities and technologies;
selling new-type building materials, chemical products, mechanical and
electrical products, petroleum machinery equipment, petroleum component, and
tubular product; development & technical services of oil-gas field.
SC is
mainly engaged in exporting petroleum bushing.
Mr. Sun Kuirong
has been chairman of SC since 2003.
SC owns about 20
staff at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the development zone of Dongying. Our checks reveal that SC
rents the total premise about 500 square meters.
http://www.sltongtai.com The design is professional and the content
is well organized. At present, the web is both in Chinese and English versions.
E-mail: support@sltongtai.com
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name % of Shareholding
Shengli Oilfield Jinrun Agricultural
Development Co., Ltd. 40
Shengli Oilfield Fangyuan Scientific
Industrial & Trade Co., Ltd. 27
Li Dongfang 10
Sun Jixing 10
Guo Fengying 10
Zhang Ruifen 3
l
Chairman and General
Manager:
Mr. Sun Kuirong, 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 and general manager.
SC is mainly
engaged in exporting petroleum bushing.
SC’s products
mainly include: Drill
pipe, Pipe line, Tubing, and Casing, etc.
SC sources its
materials 100% from domestic market, mainly Shandong province and Tianjin; SC
sells its products 90% to overseas market, mainly America, and France, 10% in domestic
market, mainly Shandong province.
The buying terms
of SC include T/T and Credit of 30-60 days. The payment terms of SC include
T/T, L/C and Credit of 30-60 days.
*Major Supplier:
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Dagang Oilfield Group New Century Machinery Manufacturing
Co., Ltd.
Address: West Section, Oilfield Middle Road, Dagang
District, Tianjin
Tel: 022-25965573
*Major Customer:
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Shengli Oilfield Lusheng Petroleum Development 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.
Rural
Credit Cooperative Kenli County Jingxia Sub-branch
AC#: 20100020866
Relation: Normal
Balance Sheet (as of
Dec. 31, 2005)
Unit: CNY’000
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Cash & bank |
1,160 |
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Inventory |
5,570 |
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Accounts
receivable |
2,540 |
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Other Accounts
receivable |
1,640 |
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Accounts payable
in advance |
740 |
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To be
apportioned expense |
10 |
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Other current
assets |
1,540 |
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------------------ |
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Current assets |
13,200 |
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Fixed assets |
6,550 |
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Fixed assets net
value |
6,400 |
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Projects under
construction |
150 |
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Long term
investment |
0 |
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Other assets |
1,400 |
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Total assets |
21,150 |
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Short loans |
4,700 |
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Accounts payable |
5,100 |
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Accounts
receivable in advance |
1,160 |
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Other Accounts
payable |
60 |
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Salaries payable |
0 |
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Welfares payable |
180 |
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Taxes payable |
-20 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
50 |
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Current
liabilities |
11,230 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
11,230 |
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Equities |
9,920 |
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Total liabilities
& equities |
21,150 |
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Income Statement (as
of Dec. 31, 2005)
Unit: CNY’000
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Turnover |
24,040 |
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Cost of goods
sold |
21,680 |
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Sales expense |
480 |
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Management expense |
1,150 |
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Finance expense |
870 |
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Non-operating
income |
94 |
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Profit before
tax |
-46 |
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Less: profit tax |
46 |
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Profits |
-92 |
Important Ratios (as of Dec. 31, 2005)
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*Current ratio 1.18
*Quick ratio 0.68
*Liabilities to
assets 0.53
*Net profit
margin (%) -0.38
*Return on total
assets (%) -0.43
*Inventory
/Turnover ×365 85 days
*Accounts
receivable/Turnover ×365 39 days
*Turnover/Total
assets 1.14
*Cost of goods
sold/Turnover 0.90
PROFITABILITY:
FAIR
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The turnover of SC appears average 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 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 fair level.
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The inventory of SC appears fairly large.
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The accounts receivable of SC is maintained in
a normal level.
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The short-term loan of SC appears fairly large.
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SC’s turnover is in an average 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 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
USD 50,000 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%)
PRIVATE & CONFIDENTIAL : This information
is provided to you at your request, you having employed MIPL for such purpose.
You will use the information as aid only in determining the propriety of giving
credit and generally as an aid to your business and for no other purpose. You
will hold the information in strict confidence, and shall not reveal it or make
it known to the subject persons, firms or corporations or to any other. MIPL
does not warrant the correctness of the information as you hold it free of any
liability whatsoever. You will be liable to and indemnify MIPL for any loss,
damage or expense, occasioned by your breach or non observance of any one, or
more of these conditions