MIRA
INFORM REPORT
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Report Date : |
26.02.2007 |
IDENTIFICATION
DETAILS
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Name : |
sichuan silk imp.
& exp. group co., ltd. |
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Registered Office : |
5/F Silk Building,
No. 65 Luoguo Lane, Chengdu, Sichuan Province, 610017 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
31.12.1982 |
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Com. Reg. No.: |
5100001801365 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Egaged in international 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 300,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
sichuan silk imp.
& exp. group co., ltd.
5/f silk building, no. 65 luoguo lane,
chengdu,
sichuan PROVINCE, 610017 PR CHINA
TEL: 86 (0) 28-86616921
FAX: 86 (0) 28-86618528
EXECUTIVE SUMMARY
INCORPORATION DATE : december 31, 1982
REGISTRATION NO. : 5100001801365
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
106
REGISTERED CAPITAL : CNY 68,000,000
BUSINESS LINE :
trading
TURNOVER :
CNY 1,060,340,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 252,020,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 300,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY7.75 = US$1 AS OF 2007-2-12
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 Sichuan provincial Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on December 31, 1982.
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 wholesale and retail of goods; international trade;
storage service; transportation agency, in accordance with the license.
SC is mainly
engaged in international trade.
Mr. Wang Kecheng
has been chairman of SC since 2005.
SC owns about 106
staff at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Chengdu. Our checks reveal that SC
owns the total premise about 1,000 square meters.
http://www.ssiec.cn The design is
professional and the content is well organized. At present the web site is both
in Chinese and English versions.
E-mail: ScSilk@Gmail.com
SC has obtained the following honors:
● ‘The
50 Strong Commerce & Trade Enterprise of Sichuan Province’ awarded by
Sichuan Province People’s Government for several years;
● ‘Export
Scale Medal’, ‘Export Increasing Medal’ and ‘Advantaged Enterprise Medal for
Export Working’ awarded by Sichuan Province People’s Government for several
years;
● ‘China
Hugest 500 Enterprises of Import & Export Value’ and ‘China Hugest 200
Enterprises of Export Value’ published by National Business Affairs Department
for several years;
● SC
passed ISO9001: 2000 International Quality System attestation in 2005;
● ‘AA
Class Quality Credit Standing Enterprise’ awarded by Sichuan Province Quality
Technology Supervise Bureau in 2005;
● ‘Jin Ding’
brand products made by SC has been awarded as “ Sichuan Famous Products’ by
Sichuan Province People’s Government continuous three times.
MAIN SHAREHOLDERS:
Name %
of Shareholding
SICHUAN HOIST INC., LTD. 99
Peng Xudong 1
SICHUAN HOIST INC., LTD.
=======================
Sichuan Hoist Inc., Ltd., with the core
business of pharmaceutical and bioengineering, mainly engaged in researching,
developing, manufacturing, and managing of several principal businesses
extending from traditional and western medicine, biological medicine, animal
healthy medicine, ecological agriculture, production and construction. Since
beginning to market its own stocks at Shenzhen Securities Exchange Bureau in
March of 1998, Sichuan Hoist Inc., Ltd. has experience fine operational status
and kept steady growth. By the end of 2001, the total asset of the company had
reached 57.045 million Yuan, and the company earned 222.97 million Yuan of
principal business annual income and realized 22.35 million of net profits.
l
Chairman:
Mr. Wang Kecheng, 44 years old with
university education. He is currently responsible for the overall management of
SC.
Working Experience(s):
From 2005 to present Working
in SC as chairman.
l
General Manager:
Mr. Jiang Zhiyong, 50 years old with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
From 2004 to present
Working in SC as general
manager.
SC is mainly engaged
in international trade.
SC’s products
mainly include: silk fabric, raw silk, garments, etc.
SC sources its materials 100% from domestic
market, mainly Sichuan. SC sells 100% of its products to overseas market,
mainly USA, Canada, Japan, India, Southeast Asian market.
The buying terms of SC include Check, 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 Suppliers:
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Ya’an
Lvshen Zoology Agriculture Industry Co., Ltd.
Lushan
County Lvshen Zoology Agriculture Industry Co., Ltd.
SC is
known to have the following subsidiaries:
Mianyang
Lvshen Zoology Agriculture Industry Co., Ltd.
Chouzhou
Zoology Agriculture Industry Co., Ltd.
Ya’an
Lvshen Zoology Agriculture Industry Co., Ltd.
Lushan
County Lvshen Zoology Agriculture Industry Co., Ltd.
Nanbu
County Lvshen Silk Co., Ltd.
Sichuan
Zitong Lvshen Silk Co., Ltd.
Sichuan
Chuannan Lvshen Zoology Agriculture Industry Co., Ltd.
Neijiang
Shizhong District Lvshen Silk Co., Ltd.
Yanting
Lvshen Silk Co., Ltd.
Sichuan Silk Imp. & Exp. Group Co., Ltd.
Shanghai Branch
Sichuan Silk Imp. & Exp. Group Co., Ltd.
Shenzhen 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.
Bank of China Chengdu Branch
AC#：N/A
Relationship:
Normal.
Balance Sheet (as
of Dec. 31, 2005)
Unit: CNY’000
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Cash & bank |
78,560 |
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Inventory |
10,070 |
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Accounts
receivable |
83,750 |
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Other Accounts
receivable |
122,760 |
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To be
apportioned expense |
440 |
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Other current
assets |
137,470 |
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Current assets |
433,050 |
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Fixed assets |
108,660 |
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Fixed assets net
value |
60,660 |
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Projects under
construction |
0 |
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Long term
investment |
102,250 |
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Other assets |
44,720 |
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Total assets |
640,680 |
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Short loans |
130,130 |
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Accounts payable |
38,220 |
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Other Accounts
payable |
35,910 |
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Advances from
customers |
107,480 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
76,920 |
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Current
liabilities |
388,660 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
388,660 |
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Equities |
252,020 |
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Total
liabilities & equities |
640,680 |
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Income Statement (as
of Dec. 31, 2005)
Unit: CNY’000
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Turnover |
1,060,340 |
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Cost of goods
sold |
1,020,350 |
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Sales expense |
25,990 |
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Management expense |
11,840 |
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Finance expense |
5,000 |
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Profit before
tax |
2,040 |
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Less: profit tax |
0 |
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Profits |
2,040 |
Important Ratios (as of Dec. 31, 2005)
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*Current ratio 1.11
*Quick ratio 1.09
*Liabilities to
assets 0.61
*Net profit
margin (%) 0.19
*Return on total
assets (%) 0.32
*Inventory
/Turnover ×365 3 days
*Accounts
receivable/Turnover ×365 29 days
*Turnover/Total
assets 1.66
*Cost of goods
sold/Turnover 0.96
PROFITABILITY:
AVERAGE
l
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
l
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 an average level.
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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 average.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
SC is considered medium-sized in its line with stable financial
conditions. A credit line up to USD 300,000
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%)
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