MIRA
INFORM REPORT
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Report Date : |
30.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
lanzhou sunrising
metallurgy charging co., ltd. |
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Registered Office : |
No. 57, Xueaizi,
Qilihe District, Lanzhou City Gansu Province 730046 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
dec. 5, 2005 |
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Com. Reg. No.: |
6201032203237 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Processing and wholesaling metallurgy charging. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Up To usd 2,000 |
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Status : |
Small Company |
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Payment Behaviour : |
Unknown |
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Litigation : |
Clear |
name & address
lanzhou sunrising
metallurgy charging co., ltd.
no. 57, xueaizi, qilihe district, lanzhou city
gansu PROVINCE 730046 PR CHINA
TEL :
86 (0) 931-8334788
FAX :
86 (0) 931-8334766
EXECUTIVE SUMMARY
INCORPORATION DATE : dec. 5, 2005
REGISTRATION NO. : 6201032203237
REGISTERED LEGAL FORM : limited liabilities
company
STAFF STRENGTH :
8
REGISTERED CAPITAL : cny500,000
BUSINESS LINE :
processing
TURNOVER :
cny 530,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 481,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up
to usd2,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fair
OPERATIONAL TREND : FAIR
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 7.72 = US$1 AS OF 2007-04-29
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 registered name should be the above stated one, and the given one - Lanzhou Sunrising Ferroalloy Co., Ltd. is SC’s trade name.
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 Dec. 5, 2005.
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, wholesaling, and retailing
metallurgy charging.
SC is
mainly engaged in processing and wholesaling metallurgy charging.
Mr. Liu
Zongwen has been chairman of SC since 2005.
SC
owns about 8 staff at present.
SC is currently operating at the above stated address, and this
address houses its operating office and factory in the industrial of Lanzhou.
Our checks reveal that SC rents the total premise about 400 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
Liu
Zongwen 60
Lu Zumin 40
l
Chairman and
General Manager:
Mr. Liu Zongwen, in his 40’s 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.
SC is mainly
engaged in processing and wholesaling metallurgy
charging.
SC’s products mainly include: ferrous silicon,
white residue, and silicon carbide, etc.
SC sources its materials 100% from
domestic market, mainly Sichuan province. SC sells 20% of its products in
domestic markets, mainly Gansu province, and 80% to overseas market, mainly
Pakistan.
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 30-60 days.
*Major Customer:
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Gansu New Legend Metals Trading Co., Ltd.
Address: Room 102, No. 382, Jiuzhou Middle Road, Jiuzhou Development Zone, Lanzhou
Tel: 0931-8334733/8334788Fax: 0931-8334766
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.
Communications Bank of China
AC#：621060105018010017659
Relationship: Normal.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
139 |
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Inventory |
165 |
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Accounts
receivable |
1,040 |
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Other Accounts
receivable |
0 |
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Accounts payable
in advance |
0 |
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To be
apportioned expense |
0 |
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Other current
assets |
1 |
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Current assets |
1,345 |
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Fixed assets |
106 |
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Long term
investment |
0 |
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Other assets |
0 |
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Total assets |
1,451 |
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Short loans |
0 |
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Accounts payable |
53 |
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Accounts
receivable in advance |
0 |
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Taxes payable |
8 |
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Welfares payable |
5 |
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Other Accounts
payable |
920 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
-16 |
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Current
liabilities |
970 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total liabilities |
970 |
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Equities |
481 |
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Total
liabilities & equities |
1,451 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
530 |
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Cost of goods
sold |
400 |
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Sales expense |
27 |
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Management expense |
60 |
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Finance expense |
0 |
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Non-operating
expense |
61 |
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Profit before
tax |
-18 |
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Less: profit tax |
0 |
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Profits |
-18 |
Important Ratios
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As
of Dec. 31, 2006 |
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*Current ratio |
1.39 |
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*Quick ratio |
1.22 |
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*Liabilities
to assets |
0.67 |
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*Net profit
margin (%) |
-3.40 |
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*Return on
total assets (%) |
-1.24 |
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*Inventory
/Turnover ×365 |
114 days |
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*Accounts
receivable/Turnover ×365 |
716 days |
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*Turnover/Total
assets |
0.37 |
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* Cost of
goods sold/Turnover |
0.75 |
PROFITABILITY: FAIR
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The turnover of SC appears fair in its line.
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SC’s net profit margin is fair.
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SC’s return on total assets is fair.
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SC’s cost of goods sold is acceptable, 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 normal level.
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The inventory of SC is maintained in a fair level.
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The accounts receivable of SC appears TOO LARGE.
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SC has no short-term loan in 2006.
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SC’s turnover is in a fair 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 above fairly high.
Overall financial condition of the SC:
Fair.
SC is considered
small-sized in its line with fair financial conditions. A credit line up to
USD2,000 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%)