MIRA
INFORM REPORT
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Report Date : |
20.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
TIANJIN JUNFENG STEEL
TRADING CO., LTD. |
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Registered Office : |
Xigu Goods Yard, No. 57, Tiantai Road, Hebei District
Tianjin 300231 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
jul. 1, 2004 |
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Com. Reg. No.: |
1201132006105 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in selling steel
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 : |
Up To usd 200,000 |
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Status : |
Small Company |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
name
tianjin junfeng
steel trading co., ltd.
XIGU GOODS YARD, NO. 57, TIANTAI ROAD, HEBEI DISTRICT
TIANJIN 300231 PR CHINA
TEL: 86 (0) 22-26626081
FAX: 86 (0) 22-26220777
EXECUTIVE SUMMARY
INCORPORATION DATE : jul. 1, 2004
REGISTRATION NO. : 1201132006105
REGISTERED LEGAL FORM : limited liabilities
company
STAFF STRENGTH :
20
REGISTERED CAPITAL : CNY 79,800,000
BUSINESS LINE :
trading
TURNOVER :
cny 144,610,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 35,622,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 200,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.74 = US$1 AS OF 2007-03-20
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
Note: SC’s correct address should be the above stated one,
instead of the given one Unit 1109, Bldg. 2, Henghua Mansion, No. 501, Dagu
Road, Hexi District, Tianjin, China。
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 Jul. 1, 2004.
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 selling steel
materials and pig iron.
SC is
mainly engaged in selling steel materials.
Mr. Zhang Wei has
been chairman of SC since 2004.
SC owns about 20
staff at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the industrial zone of Tianjin. Our checks reveal that SC
rents the total premise about 300 square meters.
SC is not known to host web site of its own at present.
In 2006, SC increased its registered capital from CNY 29,800,000 to the
present.
MAIN SHAREHOLDERS:
Name
% of Shareholding
Yuan Lide 60
Wang Wenfeng
40
l
Chairman and
General Manager:
Mr. Zhang Wei, in his 40’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2004 to present Working in SC as chairman and
general manager.
l
Assistant
Manager:
Mr. Liu Yang, in his 40’s with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2004 to present Working in SC as assistant
manager.
SC is mainly
engaged in selling steel materials.
SC’s products mainly
include: Steel bars, hot rolled and cold rolled steel strips, profiled
products, wire products, steel pipes, billets, pig irons and cokes.
SC sources its
materials 100% from domestic market, mainly Tianjin; SC sells its products 80%
in domestic market, mainly Tianjin, and 20% to overseas market, mainly Japan,
Korea, and Italy, etc.
The buying terms
of SC include T/T and Credit of 30-60 days. The payment terms of SC include
T/T, L/C and Credit of 15-30 days.
*Major Supplier:
==============
Tianjin Haotian Steel Group Co., Ltd.
Address: No. 1, Zhongshan Road, Hebei District, Tianjin
022-26271777
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.
Agricultural
Bank
AC#: N/A
Relation: Normal
Balance Sheet (as
of Dec. 31, 2005)
Unit: CNY’000
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Cash & bank |
78,330 |
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Inventory |
11,420 |
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Accounts
receivable |
-10,970 |
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Other Accounts
receivable |
0 |
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Accounts payable
in advance |
64,370 |
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To be apportioned
expense |
0 |
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Other current
assets |
5,010 |
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Current assets |
148,160 |
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Fixed assets |
2 |
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Long term
investment |
0 |
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Other assets |
0 |
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Total assets |
148,162 |
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============= |
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Short loans |
0 |
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Bills payable |
105,380 |
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Accounts payable |
1,980 |
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Accounts
receivable in advance |
0 |
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Other Accounts
payable |
5,150 |
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Salaries payable |
0 |
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Welfares payable |
0 |
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Taxes payable |
5 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
25 |
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Current
liabilities |
112,540 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
112,540 |
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Equities |
35,622 |
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Total liabilities
& equities |
148,162 |
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Income Statement (as
of Dec. 31, 2005)
Unit: CNY’000
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Turnover |
144,610 |
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Cost of goods
sold |
141,240 |
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Sales expense |
1,320 |
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Management expense |
33 |
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Finance expense |
11 |
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Non-operating
income |
14 |
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Profit before
tax |
2,020 |
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Less: profit tax |
0 |
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Profits |
2,020 |
Important Ratios (as of Dec. 31, 2005)
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*Current ratio 1.32
*Quick ratio 1.22
*Liabilities to
assets 0.76
*Net profit
margin (%) 1.40
*Return on total
assets (%) 1.36
*Inventory
/Turnover ×365 29 days
*Accounts
receivable/Turnover ×365 /
*Turnover/Total
assets 0.98
*Cost of goods
sold/Turnover 0.98
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 acceptable.
l
SC’s return on total assets is acceptable.
l
SC’s cost of goods sold is high, comparing with its
turnover.
LIQUIDITY:
AVERAGE
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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 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 fair, 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: Stable.
SC is considered small-sized in its line with stable financial
conditions. A credit line up to USD 200,000
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%)