MIRA
INFORM REPORT
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Report Date : |
01.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
HEBEI CHILLIES AND SPICE CO., LTD. |
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Registered Office : |
3/F No. 96 Hongda Road, Luancheng, Shijiazhuang, Hebei
Province, 051430 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
01.09.2005 |
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Com. Reg. No.: |
1301242001187 |
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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 : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Small Company |
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Payment Behaviour : |
Satisfactory |
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Litigation : |
Clear |
name & address
HEBEI CHILLIES AND SPICE CO., LTD.
3/F NO. 96 HONGDA ROAD, LUANCHENG, SHIJIAZHUANG,
HEBEI PROVINCE, 051430 PR CHINA
TEL: 86 (0) 311-88666798
FAX: 86 (0) 311-88666798
EXECUTIVE SUMMARY
INCORPORATION DATE : SEP. 1, 2005
REGISTRATION NO. : 1301242001187
REGISTERED LEGAL FORM : LIMITED LIABILITIES
COMPANY
STAFF STRENGTH :
10
REGISTERED CAPITAL : CNY 1,000,000
BUSINESS LINE :
INTERNATIONAL TRADE
TURNOVER :
cny 29,500,000 (AS OF DEC. 31, 2005)
EQUITIES :
cny 310,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UNDER SECURED TERMS
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : fair
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.77 = US$1 AS OF 2007-3-1
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
Note: The correct address of SC should be the above stated one, and the given address pertains to SC’s Tianjin Office.
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. 1, 2005.
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 wholesaling and retailing spice;
importing and exporting various goods and technology.
SC is mainly
engaged in international trade.
Mr. Liu Yutong has
been chairman of SC since 2005.
SC owns about 10
staff at present.
SC is currently
operating at the above stated address, and this address houses its operating
office in the commercial zone of Luancheng. Our checks reveal that SC rents the
total premise about 100 square meters.
SC is
also known to have an office in Tianjin (C-302 Shuixie Huayuan Shuishang North
Road, Tianjin Tel: 86 22-23593839) with total premise about 60 square meters.
SC is not known to host website of its own at present.
No significant events or changes were found during our checks with local
AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Liu Yutong 60
Yu Jie 40
l
Chairman and
General Manager:
Mr. Liu Yutong, in his 30’s 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 and general manager.
SC is mainly
engaged in international trade.
SC’s products
mainly include: dry red pepper.
SC sources its
materials 100% from domestic market. SC sells 100% of its products to the
overseas markets, mainly to Southeast Asia, Korea and Europe.
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 Supplier:
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Tianjin Jinwei Food Seasoning Factory
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 refused to
release any information of its suppliers and the trade reference was not
available.
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.
Industrial and Commercial Bank of China Luancheng Sub-Branch
AC#：0402020019300015424
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2005 |
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Cash & bank |
2,380 |
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Accounts
receivable |
3,940 |
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Accounts payable
advance |
0 |
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Other
receivables |
1,000 |
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Inventory |
0 |
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Other current
assets |
1,000 |
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------------------ |
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Current assets |
8,320 |
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Fixed assets net
value |
0 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
0 |
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Total assets |
8,320 |
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============= |
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Short loans |
0 |
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Accounts payable |
7,140 |
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Accounts
receivable advance |
0 |
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Taxes payable |
-60 |
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Salaries payable |
0 |
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Other payable |
930 |
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Other current
liabilities |
0 |
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Current
liabilities |
8,010 |
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Long term
liabilities |
0 |
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Total
liabilities |
8,010 |
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Equities |
310 |
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Total
liabilities & equities |
8,320 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2005 |
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Turnover |
29,500 |
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Cost of goods
sold |
29,930 |
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Sales expense |
250 |
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Management expense |
0 |
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Finance expense |
10 |
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Profit before
tax |
-680 |
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Less: profit tax |
0 |
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Profits |
-680 |
Important Ratios
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as
of Dec. 31, 2005 |
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*Current ratio |
1.04 |
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*Quick ratio |
1.04 |
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*Liabilities
to assets |
0.96 |
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*Net profit margin
(%) |
-2.31 |
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*Return on
total assets (%) |
-8.17 |
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*Fixed
assets/Total assets |
0.00 |
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*Inventory
/Turnover ×365 |
0 |
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*Accounts
receivable/Turnover ×365 |
49days |
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*Turnover/Total
assets |
4.75 |
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* Cost of
goods sold/Turnover |
1.01 |
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.
l
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: FAIR
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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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The accounts receivable of SC appears large.
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The accounts payable of SC appears TOO LARGE.
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SC’s turnover is in an acceptable level, comparing with the size of its
total assets.
LEVERAGE: FAIR
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The debt ratio of SC is fairly high.
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The risk for SC to go bankrupt is fairly high.
Overall financial
condition of the SC: Fair.
SC is considered small-sized in its line with fair financial conditions.
Credit dealings with SC are recommended under secured terms at present.
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