MIRA
INFORM REPORT
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Report Date : |
5th March, 2007 |
IDENTIFICATION
DETAILS
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Name : |
GUANGZHOU HAIZHU
FOREIGN ECONOMIC DEV. CO., LTD. |
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Registered Office : |
6/27 Gongye Street, Daganwei, Haizhu District, Guangzhou, 510288 Pr
China |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
24.01.1992 |
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Com. Reg. No.: |
4401052004391 |
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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 : |
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 : |
USD100,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Company Name & Address
GUANGZHOU HAIZHU FOREIGN ECONOMIC DEV. CO.,
LTD.
6/27 GONGYE STREET, DAGANWEI, HAIZHU DISTRICT, GUANGZHOU, 510288 PR
CHINA
TEL :
86 (0) 20-84129679
FAX :
86 (0) 20-84304102
EXECUTIVE SUMMARY
INCORPORATION DATE : JAN. 24, 1992
REGISTRATION NO. : 4401052004391
REGISTERED LEGAL FORM : LIMITED LIABILITIES
COMPANY
STAFF STRENGTH :
29
REGISTERED CAPITAL : CNY 10,000,000
BUSINESS LINE :
INTERNATIONAL TRADE
TURNOVER :
CNY 258,560,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 17,620,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 100,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.77= US$1 AS OF 2007-3-3
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 Jan. 24, 1992.
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 various
goods and technology; processing with the imported materials and compensation
trade in agreement; counter trade and transiting trade; wholesaling and
retailing various goods.
SC is mainly
engaged in international trade.
Ms. Wang
Xiaoqing has been chairman of SC since
1992.
SC owns about 26
staff members at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Guangzhou. Our checks reveal that SC
rents the total premise about 460 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 the
local AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Wang Dajun 50
Huang Li 28
Wang Xiaoqing 22
l
Chairman and
General Manager:
Ms. Wang Xiaoqing, in her 30’s with university education. She is
currently responsible for the overall management of SC.
Working Experience(s):
From 1992 to present Working
in SC as general manager.
SC is mainly
engaged in international trade.
SC’s products
mainly include: sporting products, garments, electronics products and building
materials (for exporting); chemical materials (for importing).
SC sources its materials
60% from domestic market and 40% from the overseas markets mainly from Europe.
SC sells 40% of its products in domestic market and 60% to the overseas
markets, mainly to Hong Kong and Europe.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Clients:
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Hong Kong New Henghui Electronics Co., Ltd.
*Major Suppliers:
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Hong Kong Yaohui Electronics 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 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.
Bank of China Haizhu Sub-Branch
AC#：835700105468091001
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2005 |
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Cash & bank |
16,400 |
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Accounts
receivable |
11,820 |
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Accounts payable
advance |
24,800 |
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Other
receivables |
5,130 |
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Inventory |
15,130 |
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Other current
assets |
3,740 |
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------------------ |
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Current assets |
77,020 |
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Fixed assets net
value |
6,160 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
860 |
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Total assets |
84,040 |
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Short loans |
1,690 |
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Accounts payable |
23,560 |
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Accounts
receivable advance |
15,600 |
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Taxes payable |
0 |
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Salaries payable |
0 |
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Other payable |
10,350 |
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Other current
liabilities |
15,220 |
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Current
liabilities |
66,420 |
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Long term
liabilities |
0 |
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Total
liabilities |
66,420 |
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Equities |
17,620 |
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Total
liabilities & equities |
84,040 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2005 |
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Turnover |
258,560 |
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Cost of goods
sold |
251,110 |
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Sales expense |
6,600 |
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Management expense |
3,480 |
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Finance expense |
670 |
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Profit before
tax |
1,850 |
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Less: profit tax |
0 |
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Profits |
1,850 |
Important Ratios
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as
of Dec. 31, 2005 |
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*Current ratio |
1.16 |
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*Quick ratio |
0.93 |
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*Liabilities
to assets |
0.79 |
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*Net profit
margin (%) |
0.72 |
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*Return on
total assets (%) |
2.20 |
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*Fixed
assets/Total assets |
0.07 |
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*Inventory
/Turnover ×365 |
21days |
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*Accounts
receivable/Turnover ×365 |
17days |
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*Turnover/Total
assets |
3.08 |
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* Cost of
goods sold/Turnover |
0.97 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears fairly good in 2005.
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SC’s net profit margin is average in 2005.
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SC’s return on total assets is average in 2005.
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SC’s cost of goods sold is average, 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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The accounts receivable of SC is average.
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The inventory of SC is average.
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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 low.
Overall financial
condition of the SC: Stable.
SC is considered medium-sized in its line with fairly stable financial
conditions. A credit line up to USD100,000 appears to be within SC’s capacities
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%)