MIRA
INFORM REPORT
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Report Date : |
24.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
JIANGSU SKYRUN CORPORATION |
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Registered Office : |
Xingye Building,
No. 15, Hubu Street, Nanjing, Jiangsu Province, 210002 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
JUNE 30, 1994 |
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Com. Reg. No.: |
3200001100954 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Engaged in importing and exporting textiles. |
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 3,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & addresss
JIANGSU SKYRUN CORPORATION
xingye building, no. 15, hubu street,
nanjing, jiangsu PROVINCE, 210002 PR CHINA.
TEL: 86 (0) 25-86648112
FAX: 86 (0) 25-84400800
EXECUTIVE SUMMARY
INCORPORATION DATE : JUNE 30, 1994
REGISTRATION NO. : 3200001100954
REGISTERED LEGAL FORM : Shares limited COMPANY
STAFF STRENGTH : 326
REGISTERED CAPITAL : CNY 271,635,000
BUSINESS LINE : IMPORTING AND
EXPORTING
TURNOVER : CNY 2,764,801,000 (AS OF DEC. 31, 2005)
EQUITIES : CNY 665,376,000 (AS OF
DEC. 31, 2005)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 3,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : WELL-KNOWN
EXCHANGE RATE : CNY 7.73 = US$1 AS OF 2007-03-31
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 shares limited company at Jiangsu provincial Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on June 30, 1994.
Company Status: Shares limited co. This
form of business in PR China is defined as a legal person. Its registered
capital is divided into shares of equal par value and the co. raises
capital by issuing share certificates by promotion or by public offer.
Shareholders bear limited liability to the extent of shareholding, and the
co. is liable for its debts only to the extent of its total assets. The
characteristics of the shares limited co. are as follows: The
establishment of the co. requires at least five promoters and at least
three of them must be PR- China controlled legal persons. Natural person can
not be allowed to serve as promoters. The
minimum registered capital of a co. is CNY 10M. while that of the co. with
foreign investment is CNY 30M. The total capital of a co. which propose to
apply for publicly listed must not less than CNY 50M. The
board of directors must consist of an odd number of five to nineteen
directors. If
the co. raises capital by public offer, the promoters must not subscribe
less than 35% of the total shares. the promoters’ shares are restricted to
transfer- within three years of the offer. Directors can not transfer the
shares they hold in the co. during their terms of office. A state-owned enterprise that
is restructured into a shares limited co. must comply with the conditions
& requirements specified under the law & administrative rule.
SC’s
registered business scopes include acting as the agent of importing and
exporting all kinds of commodities and technology, including exporting cotton,
cotton adobe cloth, cotton Dacron adobe cloth, and importing cotton, wool,
acrylic fibers, Dacron, excluding the goods forbidden to exported by the
government, business of processing with the imported materials and compensation
trade agreement, carrying trade and transiting trade, domestic trade, storage,
and highway freight.
SC is mainly engaged
in importing and exporting textiles.
Mr. Jiang Jinhua has been legal representative and chairman of SC since
February 2005.
SC
owns approximately 326 staff at present, including 57 management staff and 187
sales representatives.
SC is currently operating
at the above stated address, and this address houses its operating office in
the commercial zone of Nanjing. Our checks reveal that SC owns the total
premise about 4,582 square meters.
http://www.jstex.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: webmaster@jstex.com
SC’s former chairman was Mr. Chen Shuyang), and the registered capital
was CNY 181,090,000. In February
2005, the registered capital was changed to CNY 271,635,000, and Mr. Chen
Shuyang was taken place by Mr. Jiang Jinhua.
SC’s former company name was China Jiangsu Textiles Import & Export
Group Corporation. In November, 2006, SC’s company name was changed to Jiangsu
Skyrun Corporation .
SC is a listed company in Shanghai Stock Exchange Market with the code
of 600981. And SC has got the certificate of ISO9001.
MAIN SHAREHOLDERS: (as of Dec. 31, 2005)
Name %
of Shareholding
Jiangsu Skyrun International Group Co., Ltd. 62.98
Jiangsu Sainty Co., Ltd. 2.08
Sinotrans Jiangsu Corp. 1.66
Jiangsu Easthigh International Group Co.,
Ltd. 0.94
JiangSu DanMian Group Co., Ltd. 0.83
High Hope Int’l Group Jiangsu Knitwead &
Home-Textiles I & E Co., Ltd. 0.55
Jiangsu Holly Corporation 0.55
Jiangsu Huilong Assets Management Co., Ltd. 0.55
High Hope Int’l Group Jiangsu Woollen Knit
& Garmtex I & E Co., Ltd. 0.44
Wang Sumin 0.15
Other Shareholders 29.27
l
Legal representative and chairman:
Mr. Jiang Jinhua, 43 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 legal representative.
l
General manager:
Ms. Fang Chunling, 53 years old with
university education. She is currently responsible for the daily management of SC.
Working Experience(s):
From 2004 to present Working
in SC as general manager.
l
Vice General Manager:
Ms. Liu Yuzhang, 50 years old with university education. She is
currently responsible for the daily management of SC.
Working Experience(s):
From 2004 to present
Working in SC as vice general
manager.
*Officials:
=======
Name Title
Wu Zongren Director
Chen Shu Director
Gu Xiaochong Supervisor
Gu Songtao Supervisor
Li Ning Vice-general manager
SC is mainly
engaged in importing and exporting textiles.
SC’s products
include:
Raw cotton & other textiles materials,
All kinds of yarns, threads & grey fabrics,
All kinds of finished fabrics,
All kinds of knitwear & home textiles,
All kinds of garments & other ready-made products,
Other commodities & agency services.
SC’s brands
include: “JSTEX”, “Blue Whale”, “Yueji”, “Holiday”, etc.
SC sources its
materials 90% from domestic market, mainly from Jiangsu, and 10% from
international market. SC sells 20% of its products in domestic market and 80%
to Japan, USA, Canada, Hong Kong, and etc.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
Major Suppliers:
=============
JiangSu DanMian Group Co., Ltd.
Jiangsu Sainty Co., Ltd.
Major Clients:
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Jiangsu Skyrun International Group Co., Ltd.
SC is known to have the following subsidiaries:
Changzhou Hongcheng Cotton Industry Co., Ltd.
Jilin Baodeli Insurance Agent Co., Ltd.
Danyang Haojiang Textile Co., Ltd.
Jiangsu Dasheng Co., Ltd.
Hengtai Insurance Brokers Co., Ltd.
Nantong Sutong Textile Unite I&E Corp.
Jinagsu Nantong Taiya Industry Co., Ltd.
Jiangsu Holly Corporation
Jiangsu Sainty Co., Ltd.
Jiangsu Skyrun International Group Light-Industrial Products I&E
Co., Ltd.
Jiangsu Ninghu Expressway Co., Ltd.
Ccommunications Bank Of China
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.
Bank of China Jiangsu Branch
AC#： 044130000881809501
0441300008818241014
Relationship:
Normal.
CONSOLIDATED BALANCE SHEET
Unit: CNY’000
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as of Dec. 31, 2004 |
as of Dec. 31, 2005 |
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Cash & bank |
536,301 |
426,416 |
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Inventory |
177,118 |
266,065 |
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Accounts
receivable |
196,930 |
200,493 |
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Notes receivable |
80 |
1,000 |
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Advances to
supplies |
51,766 |
145,575 |
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Other
receivables |
3,184 |
12,051 |
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A receivable tax
rebate of export |
26,419 |
36,870 |
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Other current
assets |
33 |
0 |
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------------------ |
------------------ |
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Current assets |
991,831 |
1,088,470 |
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Fixed assets |
262,382 |
270,710 |
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Fixed assets net
value |
220,496 |
216,985 |
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Projects under
construction |
5,079 |
37,471 |
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Long-term
investments |
35,018 |
40,565 |
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Intangible and
other assets |
8,335 |
21,820 |
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------------------ |
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Total assets |
1,260,759 |
1,405,311 |
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============= |
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Short loans |
103,401 |
100,000 |
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Accounts payable |
264,476 |
218,037 |
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Other Accounts
payable |
23,188 |
24,513 |
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Notes payable |
33,834 |
47,247 |
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Accrued payroll |
15,103 |
15,184 |
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Taxes payable |
-5,825 |
-23,175 |
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Welfares payable |
9,769 |
11,628 |
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Accrued expenses |
704 |
306 |
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Advances from
customers |
81,096 |
289,472 |
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Other
current liabilities |
31 |
11 |
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----------------- |
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Current
liabilities |
525,777 |
683,223 |
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Long term
liabilities |
60,000 |
20,160 |
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------------------ |
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Total liabilities |
585,777 |
703,383 |
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Minority
Shareholders’ equity |
19,399 |
36,552 |
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Shareholders
equities |
655,583 |
665,376 |
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------------------ |
------------------ |
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Total
liabilities & equities |
1,260,759 |
1,405,311 |
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CONSOLIDATED INCOME STATEMENT
Unit: CNY’000
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as of Dec. 31, 2004 |
as of Dec. 31, 2005 |
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Turnover |
2,654,073 |
2,764,801 |
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Cost of goods
sold |
2,473,993 |
2,582,244 |
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Add:
Income from other operations |
11,770 |
16,272 |
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Sales expense |
83,601 |
81,899 |
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Management expense |
57,321 |
52,317 |
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Finance expense |
2,221 |
-609 |
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Operation Profit |
51,583 |
62,697 |
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Less: profit tax |
11,770 |
20,627 |
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Minority
interest income |
912 |
1,491 |
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Net profit |
38,901 |
40,579 |
Important Ratios
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as of Dec. 31, 2004 |
as of Dec. 31, 2005 |
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*Current ratio |
1.89 |
1.59 |
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*Quick ratio |
1.55 |
1.20 |
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*Liabilities
to assets |
0.46 |
0.50 |
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*Net profit
margin (%) |
1.47 |
1.47 |
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*Return on
total assets (%) |
3.09 |
2.89 |
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*Fixed
assets/Total assets |
0.17 |
0.15 |
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*Inventory
/Turnover ×365 |
24days |
35days |
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*Accounts
receivable/Turnover ×365 |
27days |
26days |
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*Turnover/Total
assets |
2.11 |
1.97 |
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* Cost of
goods sold/Turnover |
0.93 |
0.93 |
PROFITABILITY:
FAIRLY GOOD
l
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 average, 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 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 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: FAIRLY
GOOD
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly good.
Over the past 13 years, SC has made a stable growth with satisfactory
profit. A credit line up to USD 3,000,000 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%)