MIRA
INFORM REPORT
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Report Date : |
21.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
Shanghai China
Textile Resources Co., Ltd. |
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Registered Office : |
33/F Jiali
Mansion, No.1228 Yan An Road (W), Shanghai, 200052 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
august 26, 1994 |
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Com. Reg. No.: |
3101151900724 |
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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 : |
Up To usd 300,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
Shanghai China
Textile Resources Co., Ltd.
33/f jiali mansion, no.1228 yan an road (w),
shanghai, 200052 PR CHINA
TEL : 86 (0) 21-62816666
FAX : 86 (0) 21-62812828
EXECUTIVE SUMMARY
INCORPORATION DATE : august 26, 1994
REGISTRATION NO. : 3101151900724
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
200
REGISTERED CAPITAL : CNY 20,000,000
BUSINESS LINE :
trading
TURNOVER :
CNY 480,040,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 56,270,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 300,000 (PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY7.74 = US$1 AS OF 2007-3-21
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
Note: SC’s correct name should be the above stated one, instead of the given name – China Textile Resources Pudong Ltd.
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 August 26, 1994.
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 operating and acting as an agent of importing and exporting
various kinds of commodities and technology, excluding the goods forbidden by
the government, trade and trade agent between the enterprises in the free trade
zone, storage service in the free trade zone, economic consultation service.
SC is mainly
engaged in international trade.
Mr. Tong Jianfeng
has been chairman of SC since 1994.
SC owns about 200
staff at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Shanghai. Our checks reveal that SC
owns the total premise about 1,500 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
Sinotex Investment & Development Co.,
Ltd. 100
Sinotex Investment & Development Co.,
Ltd.:
=================================
Sinotex Investment & Development Co.,
Ltd. is a company listed in Shanghai Stock Exchange in May 1997 (simplified as
"ZFTZ", with the stock code 600061). The company was registered in
Pudong New Area with a registered capital of CNY 373 Million Yuan. Currently it
has a total capital stock of 37,311,560,000, about 2.4 times of what it had in
IPO. Among them, the negotiable capital has increased by about 310% from
30,000,000 in IPO to 121,680,000. Upon its IPO, Sinotex Investment &
Development Co., Ltd. had a total asset of CNY 384.4 million Yuan including CNY
117.8 Million Yuan of owners' equity.
l
Chairman and General
Manager:
Mr. Tong Jianfeng, 39 years old with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 1994 to present Working in SC as chairman and also working Sinotex Investment & Development
Co.,
Ltd. as general manager.
SC is mainly
engaged in international trade.
SC’s products
mainly include: Soft Bamboo, Tencel, Lenzing Modal, Formotex, Cotton, and Wool.
SC sources its materials 100% from domestic
market, mainly Zhejiang, Shandong and Jiangsu. SC sells 100% of its products to
overseas market, mainly USA, Europe and Southeast Asian market.
The buying terms of SC include Check, T/T and Credit of 30 days. The
payment terms of SC include T/T, L/C and Credit of 30 days.
*Major Customer:
==============
Sinotex Investment & Development 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.
Industrial and Commercial Bank of China Shanghai Branch
AC#：1001278619004678493
Relationship:
Normal.
Balance Sheet (as
of Dec. 31, 2005)
Unit: CNY’000
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Cash & bank |
22,630 |
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Inventory |
71,390 |
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Accounts receivable |
10,200 |
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Other Accounts
receivable |
1,900 |
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To be
apportioned expense |
0 |
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Other current
assets |
32,640 |
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------------------ |
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Current assets |
138,760 |
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Fixed assets net
value |
11,990 |
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Projects under
construction |
8,440 |
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Long term
investment |
0 |
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Other assets |
3,390 |
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Total assets |
162,580 |
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Short loans |
1,150 |
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Accounts payable |
47,990 |
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Other Accounts
payable |
31,610 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
25,560 |
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Current
liabilities |
106,310 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
106,310 |
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Equities |
56,270 |
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Total
liabilities & equities |
162,580 |
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Income Statement (as
of Dec. 31, 2005)
Unit: CNY’000
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Turnover |
480,040 |
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Cost of goods
sold |
461,580 |
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Sales expense |
9,080 |
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Management expense |
5,720 |
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Finance expense |
2,070 |
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Profit before
tax |
4,050 |
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Less: profit tax |
1,340 |
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Profits |
2,710 |
Important Ratios (as of Dec. 31, 2005)
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*Current ratio 1.31
*Quick ratio 0.63
*Liabilities to
assets 0.65
*Net profit
margin (%) 0.56
*Return on total
assets (%) 1.67
*Inventory
/Turnover ×365 54 days
*Accounts
receivable/Turnover ×365 8 days
*Turnover/Total
assets 2.95
* Cost of goods
sold/Turnover 0.96
PROFITABILITY:
AVERAGE
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The turnover of SC appears fairly good 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 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 fair level.
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The inventory of SC appears LARGE.
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The accounts receivable of SC is maintained in an acceptable level.
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SC’s short-term loan is 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 average.
Overall financial condition
of the SC: Fairly stable.
Over the past 13 years, SC has made a stable growth with satisfactory
profit. A credit line up to USD 300,000
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%)