MIRA
INFORM REPORT
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Report Date : |
6th March, 2007 |
IDENTIFICATION
DETAILS
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Name : |
shandong baolu
metallic material co., ltd. |
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Registered Office : |
No. 34 Daqiao Road, Jinan, Shandong Province, 250001 Pr China |
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Country : |
China |
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Date of Incorporation : |
28.03.2002 |
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Com. Reg. No.: |
3700002801755 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in selling metal materials. |
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 : |
USD 30,000 |
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Status : |
Small Company |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
Company Name & Address
shandong baolu metallic material co., ltd.
NO. 34 DAQIAO ROAD, JINAN, SHANDONG PROVINCE,
250001 PR CHINA
TEL :
86 (0) 531-88270234
FAX :
86 (0) 531-87295006
EXECUTIVE SUMMARY
INCORPORATION DATE : MAR. 28, 2002
REGISTRATION NO. : 3700002801755
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
20
REGISTERED CAPITAL : cny 10,000,000
BUSINESS LINE : TRADING
TURNOVER :
CNY 63,150,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 9,460,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 30,000 (PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY stable
OPERATIONAL TREND : FAIRLY steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
7.75 =US1$ AS OF 2007-3-5
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 Mar. 28, 2002.
Company Status: Limited Liabilities Company 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 processing and selling of steel pipe (excluding casting);
selling metal materials (excluding rare metal), hardware components, petroleum
machinery, petroleum drilling equipments, building
materials, engineering equipment, chemically products (excluding dangerous
chemicals), automobile (excluding cars); storage
services; metal materials technology
development and transiting; goods importing and exporting.
SC is mainly
engaged in selling metal materials.
Mr. Han Guangpei
has been chairman of SC since 2002.
SC owns
approximately 20 staff.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Jinan. Our checks reveal that SC
rents the total premise about 100 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
Han Fengqing 44.5
Hang Guangpei 55.5
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Chairman and
General Manager:
Mr. Hang Guangpei , in his 60’s with
university education. He is currently responsible for the overall management of
SC.
Working Experience(s):
From 2002 to present Working
in SC as chairman and general manager.
SC is mainly
engaged in selling metal materials.
SC’s products mainly include: steel pipe and metal materials.
SC sources its materials 100% from domestic
market. SC sells 70% of its products in domestic market, and 30% to the
overseas market, mainly to Southeast Asia and Europe.
The buying terms of SC include Check, T/T and Credit of
30-60 days. The payment terms of SC include Check, L/C, T/T, and Credit of
30-60 days.
Major Client:
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Changshu Shengda Metal Material 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.
Jinan City Commercial Bank
AC#：000000006004100038744
Relationship:
Normal.
Financial Summary
Unit: CNY’000
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as of Dec. 31, 2005 |
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Cash and banks |
5,390 |
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Account
receivable |
4,280 |
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Account payable
advance |
10,560 |
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Inventory |
970 |
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Other account
receivable |
1,740 |
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Current assets |
22,940 |
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Fix assets |
370 |
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Current
liabilities |
13,850 |
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Equities |
9,460 |
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Total assets |
23,310 |
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Turnover |
63,150 |
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Net profit |
-550 |
Important Ratios
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as
of Dec. 31, 2005 |
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*Current ratio |
1.66 |
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*Quick ratio |
1.59 |
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*Liabilities
to assets |
0.59 |
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*Net profit
margin (%) |
-0.87 |
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*Return on
total assets (%) |
-2.36 |
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*Fixed
assets/Total assets |
0.02 |
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*Inventory
/Turnover ×365 |
6days |
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*Accounts
receivable/Turnover ×365 |
25days |
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*Turnover/Total
assets |
2.71 |
PROFITABILITY:
FAIR
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The turnover of SC appears acceptable 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.
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 inventory of SC is maintained in an average level.
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The accounts receivable of SC is maintained in an average level.
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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 above average.
Overall financial
condition of the SC: Fairly stable.
SC is considered small-sized in its line with fairly stable financial
conditions. It is considered a credit line up to USD 30,000 appears 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%)