MIRA
INFORM REPORT
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Report Date : |
23.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
shanghai textile
raw materials corporation |
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Registered Office : |
No.652 Changshou
Road, Shanghai, 200060 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
1956 |
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Com. Reg. No.: |
3101071020782 |
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Legal Form : |
State-Owned Enterprise |
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Line of Business : |
Engaged in selling textile raw materials. |
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 500,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
name & address
shanghai textile raw
materials corporation
no.652 changshou road,
shanghai, 200060 PR CHINA
TEL :
86 (0) 21-62771600
FAX :
86 (0) 21-62770805
EXECUTIVE SUMMARY
INCORPORATION DATE : 1956
REGISTRATION NO. : 3101071020782
REGISTERED LEGAL FORM : State-owned enterprise
STAFF STRENGTH :
60
REGISTERED CAPITAL : CNY 180,700,000
BUSINESS LINE :
trading
TURNOVER :
CNY 762,710,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 95,780,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 500,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY7.73 = US$1 AS OF 2007-3-22
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 state-owned enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on 1956.
Company Status: State-owned enterprise This form of business in PR
China is defined as a commodity production or operational units of a
socialist character which in accordance with the law, has autonomy in
management, takes full responsibility for its profits and losses and
practices independent business accounting. It is a legal person established
directly by central / local government or enterprise owned by central or
local government. In theory, the liabilities of this form of enterprise are
ultimately borne by the government, since the adoption of company law in
mid-1994, the Chinese government has planned to separate the ownership from
management and liabilities bearing.
SC’s registered
business scope includes exporting textile raw materials, chemical fiber raw
materials and cotton, operating and acting as an agent of importing and
exporting various kinds of commodities and technology, business of processing
with the imported materials and compensation trade agreement, carrying trade
and transiting trade, importing terylene and wool, wholesale textiles, retail
textile and general merchandise.
SC is mainly
engaged in selling textile raw materials.
Mr. Zheng Bohua
has been chairman of SC since 2005.
SC owns about 60
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 1,000 square meters.
SC is not known to host web site of its own at present.
SC’s former chairman was Zhou Yue, and it was
changed into Zheng Bohua in March of 2005.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Shangtex Holding Co., Ltd. 100
====================
Shangtex Holding Co., Ltd. is a modern
enterprise with the managing idea of “Guided by science and technology, Supported by
industry, Strengthened by brand marketing and foreign trade”. With a total asset of CNY 26.6 billion and a net
asset of CNY 9.5 billion, Shangtex has an annual business income up to CNY 23.6
billion and an export income U.S. 2 billion. Depending on its textile research
institutes and standard testing centers, Shangtex holds many modern
manufacturing industries engaged in the production of new type chemical fibers
& materials, industrial textiles, high-class fabrics, brand garments and
home textiles. Shangtex also provides a system of modern service in the area of
foreign trade, fashion design and a perfect national-wide marketing network.
The headquarter of Shangtex is now located in the Hongqiao Develop District of
Shanghai.
l
Chairman and
General Manager:
Mr. Zheng Bohua, 54 years old with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2005 to present Working in SC as chairman and general manager, and also working in China
Textile
Machinery Co., Ltd. as vice general manager.
SC is mainly
engaged in selling textile raw materials.
SC’s products
mainly include: garment lining
SC sources its materials 100% from domestic
market, mainly Shanghai. SC sells 100% of its products to overseas market,
mainly USA and Europe.
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 Supplier:
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Shanghai Sanmao Enterprise (Group) Co., Ltd.
SC is
known to have 17 subsidiaries at present, and the following are the major ones.
Jiangsu
Zhonglian Carpet Co., Ltd.
Shanghai
Shen An Textile Co., Ltd.
Wujiang
Shenda Garment Co., Ltd.
Shanghai
Hansen Industry Co., Ltd.
Shanghai
Feima Knitting Co., Ltd.
Shanghai
Chrysanthemum Textile Co., Ltd.
Shanghai
Conch Apparel Ltd.
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 of China Shanghai Branch
AC#：0333762-00871002828
Relationship:
Normal.
Balance Sheet (as
of Dec. 31, 2005)
Unit: CNY’000
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Cash & bank |
223,560
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Inventory |
35,450 |
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Accounts
receivable |
23,690 |
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Other Accounts
receivable |
39,630 |
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To be
apportioned expense |
0 |
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Other current
assets |
63,030 |
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------------------ |
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Current assets |
385,360 |
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Fixed assets net
value |
44,250 |
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Projects under
construction |
0 |
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Long term
investment |
99,760 |
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Other assets |
5,770 |
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Total assets |
535,140 |
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Short loans |
54,550 |
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Accounts payable |
121,460 |
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Other Accounts
payable |
105,010 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
158,340 |
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Current
liabilities |
439,360 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
439,360 |
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Equities |
95,780 |
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Total
liabilities & equities |
535,140 |
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Income Statement (as of Dec. 31, 2005)
Unit: CNY’000
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Turnover |
762,710 |
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Cost of goods
sold |
752,890 |
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Sales expense |
11,650 |
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Management expense |
1,230 |
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Finance expense |
-820 |
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Profit before
tax |
16,170 |
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Less: profit tax |
3,850 |
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Profits |
12,320 |
Important Ratios (as of Dec. 31, 2005)
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*Current ratio 0.88
*Quick ratio 0.80
*Liabilities to
assets 0.82
*Net profit
margin (%) 1.62
*Return on total
assets (%) 2.30
*Inventory /Turnover
×365 17 days
*Accounts
receivable/Turnover ×365 11 days
*Turnover/Total
assets 1.43
*Cost of goods
sold/Turnover 0.99
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 fairly good.
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SC’s return on total assets is fairly good.
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SC’s cost of goods sold is fairly high, comparing with its turnover.
LIQUIDITY: AVERAGE
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The current ratio of SC is maintained in an average level.
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SC’s quick ratio is maintained in an average level.
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The inventory of SC is maintained in an average level.
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The accounts receivable of SC is maintained in an acceptable level.
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SC’s short-term loan appears fairly large.
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SC’s turnover is in an acceptable 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 average.
Overall financial
condition of the SC: Fairly stable.
Over the past 51 years, SC has made a stable growth with satisfactory
profit. A credit line up to USD 500,000
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%)