MIRA
INFORM REPORT
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Report Date : |
30.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
TJ TECHNOLOGIES & MATERIALS INC. |
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Registered Office : |
Suite 210 Building 2-6 Lane, No. 1341 South Pudong Road,
Shanghai, 200122 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
JAN. 26, 2005 |
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Com. Reg. No.: |
3101152021355 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in international trade. |
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 10,000 |
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Status : |
Small Company |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
name & address
TJ TECHNOLOGIES & MATERIALS INC.
SUITE 210 BUILDING 2-6 LANE, NO. 1341 SOUTH PUDONG ROAD,
SHANGHAI, 200122 PR CHINA
TEL : 86 (0)
21-51308738
FAX : 86 (0) 21-51308739
EXECUTIVE SUMMARY
INCORPORATION DATE : JAN. 26, 2005
REGISTRATION NO. : 3101152021355
REGISTERED LEGAL FORM : LIMITED LIABILITIES
COMPANY
STAFF STRENGTH :
12
REGISTERED CAPITAL : CNY 1,000,000
BUSINESS LINE :
INTERNATIONAL TRADE
TURNOVER :
cny 11,850,000 (AS OF DEC. 31, 2006)
EQUITIES :
cny 910,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 10,000 (PERIODCIAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.73= US$1 AS OF 2007-4-30
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’s English name should be the above stated one, instead of the one client provided in the order of TJTM (HK) LTD.
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 Jan. 26, 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 storage, transportation in the free
trade zone; importing and exporting various goods; trade in the free trade
zone, commercial simple processing in the free trade zone.
SC is mainly
engaged in international trade.
Mr. Zhou Lihu has
been chairman of SC since 2005.
SC owns about 12
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
rents the total premise about 200 square meters.
http://www.tjtminc.com The design
is professional and the content is well organized. At present it is in both
Chinese and English versions.
No significant events or changes were found during our checks with local
AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhou Lihu 90
Zhou Jindong 10
l
Chairman and
General Manager:
Mr. Zhou Lihu, in his 30’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 international trade.
SC’s products
mainly include:
Rare Earth
Materials
Polishing
Materials
Honeycomb
Ceramics
Refractory
Compounds
Target &
Sputtering target
SC sources its materials
80% from domestic market and 20% from the overseas market, mainly from
American. SC sells 20% of its products in domestic market and 80% to American
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 Client:
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Gansu Rare Earth Group Co., Ltd.
*Major Supplier:
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Yancheng Daguangming Chemical Co., Ltd.
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 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.
Bank of China Pudong Sub-Branch
AC#：13041808091001
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2006 |
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Cash & bank |
2,040 |
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Accounts payable
advance |
0 |
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Accounts
receivable |
70 |
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Inventory |
370 |
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Other
receivables |
780 |
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Other current
assets |
140 |
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Current assets |
3,400 |
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Fixed assets net
value |
450 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
50 |
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Total assets |
3,900 |
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Short loans |
0 |
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Accounts payable |
2,000 |
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Accounts
receivable advance |
0 |
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Taxes payable |
0 |
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Salaries payable |
0 |
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Other payable |
990 |
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Other current liabilities |
0 |
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Current
liabilities |
2,990 |
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Long term
liabilities |
0 |
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Total
liabilities |
2,990 |
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Equities |
910 |
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Total
liabilities & equities |
3,900 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2006 |
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Turnover |
11,850 |
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Cost of goods
sold |
10,160 |
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Sales expense |
1,050 |
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Management expense |
690 |
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Finance expense |
40 |
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Profit before tax |
-110 |
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Less: profit tax |
0 |
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Profits |
-110 |
Important Ratios
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2006 |
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*Current ratio |
1.14 |
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*Quick ratio |
1.01 |
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*Liabilities
to assets |
0.77 |
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*Net profit
margin (%) |
-0.93 |
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*Return on
total assets (%) |
-2.82 |
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*Fixed
assets/Total assets |
0.12 |
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*Inventory
/Turnover ×365 |
11days |
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*Accounts
receivable/Turnover ×365 |
2days |
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*Turnover/Total
assets |
3.03 |
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* Cost of
goods sold/Turnover |
0.86 |
PROFITABILITY:
FAIR
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The turnover of SC appears fairly good 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 average, comparing with its turnover.
LIQUIDITY: AVERAGE
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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 average.
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The accounts receivable of SC is average.
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The accounts payable of SC appears 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 good.
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The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Fairly stable.
SC is considered small-sized in its line with fairly stable financial
conditions. A credit line up to USD 10,000 would appear to be within SC’s
capacities upon a periodical review basis.
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%)