MIRA
INFORM REPORT
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Report Date : |
9th March, 2007 |
IDENTIFICATION
DETAILS
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Name : |
GUANGDONG
CMIC IMPORT & EXPORT CO., LTD. |
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Registered Office : |
4/F, No.172, Haoxian Road, Yuexiu District, Guangzhou City,
Guangdong Province 510050 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 : |
31.12.1999 |
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Com. Reg. No.: |
4400001009010 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in selling mechanical products. |
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 : |
USD 30,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Company Name & Address
GUANGDONG CMIC IMPORT & EXPORT
CO., LTD.
4/F, NO.172, HAOXIAN ROAD, YUEXIU DISTRICT, GUANGZHOU CITY,
GUANGDONG PROVINCE 510050 PR CHINA
TEL :
86 (0) 20-83343208
FAX :
86 (0) 20-83328421
EXECUTIVE SUMMARY
INCORPORATION DATE : dec. 30, 1999
REGISTRATION NO. : 4400001009010
REGISTERED LEGAL FORM : limited liabilities
company
STAFF STRENGTH :
37
REGISTERED CAPITAL : CNY 3,000,000
BUSINESS LINE :
trading
TURNOVER :
cny 256,640,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 4,950,000 (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 : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.74 = US$1 AS OF 2007-03-09
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 Dec. 30, 1999.
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
commodities and technologies, excluding the 16 kinds of exported goods and the
14 kinds of imported goods controlled by the government; undertaking
Chinese-foreign equity joint venture enterprise and Chinese-foreign contractual
joint venture enterprise; and compensation trade agreement.
SC is
mainly engaged in selling mechanical products.
Mr. Ji
Hongjun has been chairman of SC since
1999.
SC owns about 37
staff 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 500 square meters.
SC is not known to host web site of its own at present.
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
China Machine-Building International
Corporation (CMIC) 51
Other individuals 49
======================
Founded in 1980, China Machine-Building International
Corporation (CMIC) is a multi-functional international corporation specialized
in the international EPC project in power industry, chemical industry,
metallurgy industry, construction materials industry, water supply and
treatment industry, light and textile industry, foodstuff industry, etc.
ADD : Machinery Mansion, 248 Guang An Men Wai Street, Xuanwu
District, Beijing
TEL : +86-10-63317855
FAX : +86-10-63317733
Website: http://www.cmic.com
E-mail : cmic@cmic.com
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Chairman and
General Manager:
Mr. Ji Hongjun, ID#110102501026237, 57 years old with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 1999 to present Working in SC as chairman and general manager;
At
present
Working as legal representative in China Machine-Building
International Hebei Co., Ltd., and as
legal representative in Beijing Kelin Combustion Engineering Co., Ltd..
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Assistant Manager:
Mr. Liu Yihua, in his 40’s with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 1999 to present Working in SC as assistant manager.
SC is mainly
engaged in selling mechanical products.
SC’s products mainly
include: automatic bottle blowing machine CSD-AB-2P, mould thimble, and
handcart, etc.
SC sources its
materials 80% from domestic market, mainly Guangdong province, and 20% from
overseas market; SC sells its products 10% in domestic market, and 90% to
overseas market.
The buying terms
of SC include T/T, L/C and Credit of 30-60 days. The payment terms of SC
include T/T, L/C and Credit of 15-30 days.
*Major Supplier:
==============
Foshan United Enterprises 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.
China Merchants
Bank
AC#:
0981008510001
Relation: Normal
Balance Sheet (as of Dec. 31, 2005)
Unit: CNY’000
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Cash & bank |
20,680 |
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Inventory |
12,930 |
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Accounts
receivable |
8,340 |
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Other Accounts
receivable |
60 |
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Accounts payable
in advance |
4,790 |
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To be
apportioned expense |
0 |
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Other current
assets |
5,230 |
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Current assets |
52,030 |
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Fixed assets |
480 |
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Long term
investment |
0 |
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Other assets |
10 |
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Total assets |
52,520 |
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Short loans |
0 |
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Accounts payable |
32,560 |
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Accounts
receivable in advance |
13,330 |
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Other Accounts
payable |
1,750 |
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Salaries payable |
400 |
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Welfares payable |
130 |
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Taxes payable |
-1,400 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
800 |
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Current
liabilities |
47,570 |
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Long term liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
47,570 |
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Equities |
4,950 |
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Total
liabilities & equities |
52,520 |
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Income Statement (as of Dec. 31, 2005)
Unit: CNY’000
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Turnover |
256,640 |
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Cost of goods
sold |
248,750 |
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Sales expense |
3,980 |
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Management expense |
2,930 |
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Finance expense |
-380 |
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Non-operating
income |
150 |
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Profit before
tax |
1,510 |
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Less: profit tax |
260 |
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Profits |
1,250 |
Important Ratios (as of Dec. 31, 2005)
*Current ratio 1.09
*Quick ratio 0.82
*Liabilities to
assets 0.91
*Net profit
margin (%) 0.49
*Return on total
assets (%) 2.38
*Inventory /Turnover
×365 18 days
*Accounts
receivable/Turnover ×365 12 days
*Turnover/Total
assets 4.89
*Cost of goods
sold/Turnover 0.97
PROFITABILITY:
FAIRLY GOOD
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The turnover of SC appears fairly good in its line.
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SC’s net profit margin is acceptable.
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SC’s return on total assets is acceptable.
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SC’s cost of goods sold is fairly 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 inventory of SC appears fairly large.
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The accounts receivable is maintained in a
normal level.
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The accounts payable of SC appears TOO LARGE.
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SC’s turnover is in a fairly good 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 above average.
Overall
financial condition of the SC: Fairly stable.
SC is considered small-sized in its line with fairly good financial conditions. A credit line up to USD 30,000 would appear 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%)