MIRA
INFORM REPORT
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Report Date : |
20.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
Quanzhou Yuentai
Stationery Co., Ltd. |
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Registered Office : |
Yuentai Industrial
Park, Fuqiaowanggong, Quanzhou, Fujian Province, 362000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
january 29, 1992 |
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Com. Reg. No.: |
000010 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Manufacturing and selling stationery products. |
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 : |
Up To usd 50,000 |
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Status : |
Small Company |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
name & address
Quanzhou Yuentai
Stationery Co., Ltd.
yuentai industrial park, fuqiaowanggong,
quanzhou,
fujian PROVINCE, 362000 PR CHINA
TEL: 86 (0) 595-22466838
FAX: 86 (0) 595-22466938
EXECUTIVE SUMMARY
INCORPORATION DATE : january 29, 1992
REGISTRATION NO. : 000010
REGISTERED LEGAL FORM : Chinese-foreign equity
joint venture enterprise
STAFF STRENGTH :
101
REGISTERED CAPITAL : CNY 70,000,000
BUSINESS LINE : manufacturing
TURNOVER :
CNY 9,750,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 56,860,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 50,000 (PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY7.74 = US$1 AS OF 2007-3-20
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 Chinese-foreign equity joint venture enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on January 29, 1992.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The joint venture
usually have a limited duration of 10 to 50 years. Enterprise with large
investment, long construction periods, low investment returns, introducing
of advanced technology & advanced technology products which have good
competition position in international market may extend beyond the 50 years
limit.
SC’s registered business
scope includes manufacturing stationery products, plastic products, color
printing.
SC is mainly
engaged in manufacturing and selling stationery products.
Mr. Lin Wenqiao
has been chairman of SC since 1992.
SC owns about 101
staff at present.
SC is
currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Quanzhou. Our checks
reveal that SC owns the total premise about 2,031 square meters.
http://www.houdly.com The design is
professional and the content is well organized. At present the web site is both
in Chinese and English versions.
E-mail: sales@houdly.com
SC has got the certificate ISO9001.
MAIN SHAREHOLDERS:
Name %
of Shareholding
China International Enterprises Co-operative
Corporation 42
Yuentai International Development Industry
Ltd. (HongKong) 58
China International Enterprises Co-operative
Corporation:
=========================================
China International Enterprises Co-operative
Corporation is a large state-owned foreign-related enterprise directly under
the State-owned Assets Supervision and Administration Commission, setting up
with the approval of the State Council of the People's Republic of China. The
integrated economic entity deals with international economic Technical
cooperation and exchange, import and export trade, industry investment and
relevant counseling.
l
Chairman:
Mr. Lin Wenqiao, 51 years old with
university education. He is currently responsible for the overall management of
SC.
Working Experience(s):
From 1992 to present Working
in SC as chairman, and also working in Yuentai International
Development
Industry Ltd. as chairman.
l
General Manager:
Mr. Chen Feng, 41 years old with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 1992 to present
Working in SC as general
manager.
SC is mainly
engaged in manufacturing and selling stationery products.
Brand: HOUDLY
SC’s products
mainly include: Ballpoint pens, jell pens, oil pens, whiteboard market,
mechanical pencil, pencil sharpener, measures, and refills.
SC sources its materials 80% from domestic
market, and 20% from overseas market. SC sells 70% of its products in domestic
market, and 30% to overseas market, mainly Southeast Asian market.
The buying terms of SC include Check, T/T, L/C and Credit of 30 days.
The payment terms of SC include T/T, L/C and Credit of 30 days.
*Major Customer:
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Xiamen Dashi Trade Co., Ltd.
*Major Supplier:
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Xiamen Jintai Chemical 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.
Construction Bank of China Quanzhou Branch
AC#：350658628263019957
Relationship:
Normal.
Balance Sheet (as
of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
510 |
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Inventory |
11,220 |
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Accounts
receivable |
1,940 |
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Other Accounts
receivable |
26,770 |
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To be
apportioned expense |
170 |
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Other current
assets |
51,390 |
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Current assets |
92,000 |
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Fixed assets net
value |
11,230 |
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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 |
103,230 |
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Short loans |
25,500 |
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Accounts payable |
10,890 |
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Other Accounts
payable |
9,420 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
560 |
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Current
liabilities |
46,370 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
46,370 |
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Equities |
56,860 |
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Total
liabilities & equities |
103,230 |
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Income Statement (as
of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
9,750 |
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Cost of goods
sold |
7,550 |
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Sales expense |
410 |
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Management expense |
470 |
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Finance expense |
1,010 |
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Profit before
tax |
370 |
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Less: profit tax |
220 |
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Profits |
150 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 1.98
*Quick ratio 1.74
*Liabilities to
assets 0.45
*Net profit
margin (%) 1.54
*Return on total
assets (%) 0.15
*Inventory
/Turnover ×365 420 days
*Accounts
receivable/Turnover ×365 73 days
*Turnover/Total
assets 0.09
* Cost of goods
sold/Turnover 0.77
PROFITABILITY:
FAIR
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The turnover of SC appears fair in its line.
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SC’s net profit margin is average.
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SC’s return on total assets is average.
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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 fairly good level.
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SC’s quick ratio is maintained in a fairly good level.
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The inventory of SC appears fairly large.
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The accounts receivable of SC is maintained in an acceptable level.
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The short-term loan of SC appears fairly large.
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SC’s turnover is in a fair 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 average.
Overall financial
condition of the SC: Fairly stable.
SC is considered small-sized in its line with fairly stable financial
conditions. A credit line up to USD 50,000
would appear to be within SC’s capacities.
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%)