MIRA
INFORM REPORT
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Report Date : |
7th March, 2007 |
IDENTIFICATION
DETAILS
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Name : |
RUIHUA LIGHT INDUSTRY ENTERPRISE CO., LTD. |
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Registered Office : |
No. 283 Fengcai Road, Dihai, Sanbu District, Kaiping, Guangdong Province,
529300 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 : |
22.01.1997 |
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Com. Reg. No.: |
4407242000134 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in selling office furniture and materials. |
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 : |
-- |
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Litigation : |
Clear |
Company Name & Address
RUIHUA LIGHT INDUSTRY ENTERPRISE CO., LTD.
NO. 283 FENGCAI ROAD, DIHAI, SANBU DISTRICT, KAIPING, GUANGDONG
PROVINCE, 529300 PR CHINA
TEL :
86 (0) 750-2322189
FAX :
86 (0)
750-2322833
EXECUTIVE SUMMARY
INCORPORATION DATE : JAN.
22, 1997
REGISTRATION NO. :
4407242000134
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
12
REGISTERED CAPITAL : CNY 500,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 620,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 520,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : COD
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : POOR
OPERATIONAL TREND : FAIRLY steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.74 = US$1 AS OF 2007-03-21
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 Jan. 22, 1997.
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
scopes include manufacturing and selling chemical materials, furniture and
decoration materials.
SC is mainly
engaged in selling office furniture and materials.
Mr. Yu Shusen has been chairman of SC since 1997.
SC owns
approximately 12 staff members at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the industrial zone of Kaiping. Our checks reveal that SC
rents the total premise about 200 square meters.
http://www.ruihuaco.com. The
design is professional and the content is well organized. At present it is in
both Chinese and English versions.
E-mail: sales@ruihuaco.com
Changes of its registered information:
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Date of change |
Item |
Before the change |
After the change |
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2006-7-11 |
Shareholders and shareholding |
Li Yiming 20% Situ Xiao’an 80% |
Li Yiming 24% Yu Shusen 76% |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Yu Shusen 76
Li Yiming 24
l
Chairman:
Mr. Yu Shusen, in his 50’s with university education. He is currently responsible
for the overall management of SC.
Working Experience(s):
1997 to present Working in SC as chairman.
l
General manager:
Mr. Li Yiming, in his 40’s with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 1997 to present
Working in SC as general manager.
SC is mainly
engaged in selling office furniture and materials.
SC’s products mainly
include: chairs components, PU components for sanitary ware and medical
appliance, PU armrests, multi-functional adjustable arms, mechanisms, molded
foam, headrests & cushions for bathtub and dental beds.
SC sources its materials 80% from domestic market,
20% from the overseas market. SC sells 70% of its products in domestic market,
and 30% to the overseas market, mainly U.K, Taiwan, and Canada.
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, Check and Credit of 30-60 days.
*Major supplier
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Huiyang Jiali Chemical Co., Ltd.
*Major customer
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Zhongshan East Furniture Co., Ltd.
SC is known to have the following offices:
Ruihua Light Industry Enterprise Co., Ltd.
Shunde Office (顺德)
Tel: 0757-23372654 Fax:
0757-23223721
Ruihua Light Industry Enterprise Co., Ltd.
Beijing Office (北京)
Tel: 010-87609799
Ruihua Light Industry Enterprise Co., Ltd.
Zhejiang Anji Office(浙江安吉)
Tel: 0572-5230405
Ruihua Light Industry Enterprise Co., Ltd.
Shanghai Office(上海)
Tel: 021-68308908 Fax: 68308909
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.
Agriculture Bank of China Kaiping Sub-Branch.
AC#：44400101040007793
Relationship:
Normal.
Balance Sheet
Unit: CNY’ 000
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as
of Dec. 31, 2005 |
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Cash & bank |
100 |
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Accounts
receivable |
210 |
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Other Accounts
receivable |
4,010 |
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Inventory |
400 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
4,720 |
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Fixed assets |
180 |
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Fixed assets net
value |
180 |
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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 |
4,900 |
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============= |
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Short loans |
0 |
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Accounts payable |
360 |
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Other Accounts
payable |
3,890 |
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Other current
liabilities |
130 |
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------------------ |
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Current
liabilities |
4,380 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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------------------ |
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Total
liabilities |
4,380 |
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Equities |
520 |
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Total
liabilities & equities |
4,900 |
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Income Statement
Unit: CNY’000
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as of Dec. 31, 2005 |
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Turnover |
620 |
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Cost of goods
sold |
500 |
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Sales expense |
80 |
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Management expense |
250 |
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Finance expense |
0 |
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Profit before
tax |
-220 |
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Less: profit tax |
0 |
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Profits |
-220 |
Important Ratios
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As
of Dec. 31, 2004 |
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*Current ratio |
1.08 |
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*Quick ratio |
0.99 |
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*Liabilities
to assets |
0.89 |
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*Net profit
margin (%) |
-35.48 |
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*Return on
total assets (%) |
-4.49 |
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*Fixed
assets/Total assets |
0.04 |
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*Inventory
/Turnover ×365 |
235days |
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*Accounts
receivable/Turnover ×365 |
124days |
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*Turnover/Total
assets |
0.13 |
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* Cost of goods
sold/Turnover |
0.81 |
PROFITABILITY:
POOR
l
The turnover of SC appears fair in its line.
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SC’s net profit margin is fairly poor.
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SC’s return on total assets is poor.
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SC’s cost of goods sold is average, 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 inventory of SC appears TOO LARGE.
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The accounts receivable of SC is maintained in an acceptable level.
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SC’s turnover is in a fair level, comparing with the size of its total
assets.
LEVERAGE: FAIR
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The debt ratio of SC is in a fairly high level.
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The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: POOR.
SC is considered small-sized in its line with poor financial conditions.
Credit dealings with SC are not recommended 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%)