MIRA
INFORM REPORT
|
Report Date : |
26th February, 2007 |
IDENTIFICATION
DETAILS
|
Name : |
shenzhen zhongmao
rubber co., ltd. |
|
|
|
|
Registered Office : |
Room 2208 Kerry Center, Renmin South Road, Luohu District, Shenzhen,
Guangdong Province, 518001 Pr China. |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2005 |
|
|
|
|
Date of Incorporation : |
11.12.2003 |
|
|
|
|
Com. Reg. No.: |
4403012129356 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
Engaged in selling rubber products. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 30,000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
Company Name & Address
shenzhen zhongmao rubber co., ltd.
room 2208 kerry center, renmin south road,
luohu district, shenzhen, guangdong PROVINCE, 518001 PR CHINA.
TEL :
86 (0) 755-25181833
FAX :
86 (0) 755-25181033
EXECUTIVE SUMMARY
INCORPORATION DATE : december 11, 2003
REGISTRATION NO. : 4403012129356
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
15
REGISTERED CAPITAL : CNY 1,000,000
BUSINESS LINE :
trading
TURNOVER :
CNY 85,180,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 1,360,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 30,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY7.75 = US$1 AS OF 2007-2-22
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
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 December 11, 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 selling rubber, rubber polymer, domestic commerce; supplying and
selling of commodities, international trade, and new products technical
development.
SC is mainly
engaged in selling rubber products.
Mr. Zhu
Shouhuan has been chairman of SC since
2003.
SC owns about 15
staff at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Shenzhen. Our checks reveal that SC
owns the total premise about 200 square meters.
http://www.zhongmao.net The
design is professional and the content is well organized. At present the web
site is only in Chinese version.
E-mail: info@zhongmao.net
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhu Shouhuan 70
Zhu Xiaozhen 30
l
Chairman:
Mr. Zhu Shouhuan, 44 years old 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.
l
General Manager:
Mr. Tian Run, 44 years old 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 selling rubber products.
SC’s products
mainly include: Butadiene-acrylonitrile rubber and Ethylene-propylene rubber
SC sources its materials 100% from overseas
market, mainly Japan. SC sells 100% of its products in domestic market, mainly
Zhejiang.
The buying terms of SC include T/T, L/C and Credit of 30-45 days. The
payment terms of SC include T/T and Credit of 30-45 days.
*Major Customers:
==============
Zhejiang Dongtian Rubber Chemcial Co., Ltd.
*Major Suppliers:
==============
Japan JSR Co., Ltd.
SC is
known to have a branch at present:
Shenzhen
Zhongmao Rubber Co., Ltd. Shanghai Branch
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.
Industrail and Commercial Bank of China Shenzhen Branch.
AC#：4000021009200010685
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2005)
Unit: CNY’000
|
Cash & bank |
11,950 |
|
Inventory |
5,460 |
|
Accounts
receivable |
7,000 |
|
Other Accounts
receivable |
1,320 |
|
To be
apportioned expense |
0 |
|
Other current
assets |
10 |
|
|
------------------ |
|
Current assets |
25,740 |
|
Fixed assets |
780 |
|
Fixed assets net
value |
580 |
|
Projects under
construction |
0 |
|
Long term
investment |
0 |
|
Other assets |
0 |
|
|
------------------ |
|
Total assets |
26,320 |
|
|
============= |
|
Short loans |
0 |
|
Accounts payable |
2,040 |
|
Other Accounts
payable |
25,680 |
|
Withdraw the
expenses in advance |
0 |
|
Other current
liabilities |
-2,760 |
|
|
------------------ |
|
Current
liabilities |
24,960 |
|
Long term
liabilities |
0 |
|
Other
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
24,960 |
|
Equities |
1,360 |
|
|
------------------ |
|
Total
liabilities & equities |
26,320 |
|
|
============= |
Income Statement (as of Dec. 31, 2005)
Unit: CNY’000
|
Turnover |
85,180 |
|
Cost of goods
sold |
81,760 |
|
Sales expense |
2,210 |
|
Management expense |
890 |
|
Finance expense |
-20 |
|
Profit before
tax |
390 |
|
Less: profit tax |
60 |
|
Profits |
330 |
Important Ratios (as of Dec. 31, 2005)
*Current ratio 1.03
*Quick ratio 0.81
*Liabilities to
assets 0.95
*Net profit
margin (%) 0.39
*Return on total
assets (%) 1.25
*Inventory
/Turnover ×365 23 days
*Accounts
receivable/Turnover ×365 30 days
*Turnover/Total
assets 3.24
* Cost of goods
sold/Turnover 0.96
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is fairly good.
l
SC’s cost of goods sold is fairly high, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC is maintained in an average level.
l
The accounts receivable of SC is maintained in an acceptable level.
l
SC has no short-term loan in 2005.
l
SC’s turnover is in an acceptable level, comparing with the size of its
total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
Over the past 4 years, SC has made a stable growth with acceptable
profit. A credit line up to USD 30,000
would appear to be within SC’s capacities.
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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