MIRA
INFORM REPORT
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Report Date : |
27.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
JIANGSU SENDA GROUP CO., LTD. |
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Registered Office : |
No. 888 Jianbao
Road, Jianhu, Jiangsu Province, 224700 Pr |
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Country : |
China |
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Financials (as on) : |
30.09.2005 |
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Date of Incorporation : |
JUL. 12, 1993 |
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Com. Reg. No.: |
3209252101336 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and selling leather products. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Up To USD 5,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
JIANGSU SENDA GROUP CO., LTD.
NO. 888 JIANBAO ROAD, jianhu,
JIANGSU PROVINCE, 224700 PR CHINA
TEL :
86 (0) 515-6290088
FAX :
86 (0) 515-6290077
EXECUTIVE SUMMARY
INCORPORATION DATE : JUL. 12, 1993
REGISTRATION NO. : 3209252101336
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
6,000
REGISTERED CAPITAL : CNY 125,280,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 416,170,000 (AS OF SEP. 30, 2005)
EQUITIES :
CNY 465,790,000 (AS OF SEP. 30, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 5,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.73= US$1 AS OF 2007-3-26
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 Jul. 12, 1993.
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 processing and selling leather
shoes, leather products, labor insurance leather products, light textile products
and chemical products; importing and exporting various goods and
technology.
SC is mainly
engaged in manufacturing and selling leather products.
Mr. Zhu Xianggui
has been chairman of SC since 1993.
SC owns about
6,000 staff.
SC is
currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Jianhu. Our checks
reveal that SC owns the total premise about 120,000 square meters.
www.sendagroup.com . The design
is professional and the content is well organized. At present it is in Chinese
version.
SC got the certificates of ISO 2000 in 2001.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Jianhu County Jinhu Town Nancun Committee 12.64
Union Committee of Jiangsu Senda Group 23.08
Zhu Haidong 17.60
Zhu Haifeng 20.67
Zhu Xianggui 26.01
l
Chairman and
General Manager:
Mr. Zhu Xianggui, in his 50’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1993 to present Working
in SC as chairman and general manager.
l
Vice General
Manager:
Mr. Zhu Haidong, in his 30’s with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2003 to present
Working in SC as vice general
manager.
SC is mainly
engaged in manufacturing and selling leather products.
SC’s products
mainly include: leather shoes.
SC’s brands
include: “Fanciulla” and “Senda”, etc.
SC’s annual out
put will be 30 million pairs in 2007.
SC sources its materials
100% from domestic market. SC sells 70% of its products in domestic market and
30% to the overseas markets, mainly to Southeast Asia, India and Europe.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Clients:
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Hangzhou Liqun Shopping Co., Ltd.
SC is
known to have 3 subsidiaries as following,
Jiangsu
Senda Fashion Co., Ltd.
Jiangsu Senda
Group Sanxia Shoe Industry Co., Ltd.
Yulin
Senda Real Estate Developing Co., 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 refused to release any information of its
suppliers and the trade reference was not available.
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.
Agriculture Bank of China Jianhu Sub-Branch
AC#：51066070061003522375
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As
of Sep. 30, 2005 |
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Cash & bank |
30,900 |
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Accounts
receivable |
121,790 |
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Accounts payable
advance |
760 |
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Other
receivables |
406,900 |
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Inventory |
515,800 |
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Other current
assets |
285,060 |
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Current assets |
1,361,210 |
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Fixed assets net
value |
16,800 |
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Projects under
construction |
4,900 |
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Long term
investment |
395,870 |
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Other assets |
378,290 |
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Total assets |
2,157,070 |
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============= |
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Short loans |
958,840 |
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Accounts payable |
180,000 |
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Accounts
receivable advance |
0 |
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Taxes payable |
125,130 |
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Salaries payable |
35,170 |
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Other payable |
13,410 |
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Other current
liabilities |
378,730 |
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Current liabilities |
1,691,280 |
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Long term
liabilities |
0 |
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Total
liabilities |
1,691,280 |
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Equities |
465,790 |
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Total
liabilities & equities |
2,157,070 |
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Income Statement
Unit: CNY’000
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As of Sep. 30, 2005 |
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Turnover |
416,170 |
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Cost of goods
sold |
251,200 |
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Sales expense |
7,150 |
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Management expense |
33,140 |
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Finance expense |
45,830 |
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Profit before
tax |
9,010 |
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Less: profit tax |
2,150 |
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Profits |
6,860 |
Important Ratios
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as
of Sep. 30, 2005 |
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*Current ratio |
0.80 |
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*Quick ratio |
0.50 |
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*Liabilities
to assets |
0.78 |
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*Net profit
margin (%) |
/ |
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*Return on
total assets (%) |
/ |
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*Fixed
assets/Total assets |
0.01 |
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*Inventory
/Turnover ×365 |
/ |
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*Accounts
receivable/Turnover ×365 |
/ |
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*Turnover/Total
assets |
/ |
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* Cost of
goods sold/Turnover |
0.60 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears fairly good.
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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 fair level.
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SC’s quick ratio is maintained in an acceptable level.
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The accounts receivable of SC is average.
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The inventory of SC is fairly large.
LEVERAGE: AVERAGE
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The debt ratio of SC is fair.
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The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Stable.
SC is considered large-sized in its line with favorable market
conditions. Over the past 14 years, SC has made a stable growth with acceptable
profit. A credit line up to USD 5,000,000 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%)