MIRA
INFORM REPORT
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Report Date : |
02.05.2007 |
IDENTIFICATION
DETAILS
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Name : |
zhejiang msd warp
knitting & coating co., ltd. |
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Registered Office : |
No. 8-10, Hongqi Road, China Warp Knitting Scientific
& Technical Park Haining City, Zhejiang Province 314419 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
May 28, 2002 |
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Com. Reg. No.: |
002455 |
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Legal Form : |
Chinese Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Manufacturing lamp house cloth. |
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 20,000 |
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Status : |
Moderate |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
name & address
zhejiang msd warp
knitting & coating co., ltd.
NO. 8-10, HONGQI ROAD, CHINA WARP KNITTING SCIENTIFIC & TECHNICAL
PARK
HAINING CITY, ZHEJIANG PROVINCE 314419 PR CHINA
TEL: 86 (0) 573-7223535
FAX: 86 (0) 573-7224545
EXECUTIVE SUMMARY
INCORPORATION DATE : MAY 28, 2002
REGISTRATION NO. : 002455
REGISTERED LEGAL FORM : CHINESE FOREIGN EQUITY JOINT VENTURE ENTERPRISE
STAFF STRENGTH :
200
REGISTERED CAPITAL : cny44,000,000
BUSINESS LINE :
manufacturing
TURNOVER : cny 156,320,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY –12,470,000 (AS OF DEC. 31, 2006)
PAYMENT :
average
RECOMM. CREDIT RANGE : UP TO usd 20,000 (PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairLY POOR
OPERATIONAL TREND : fair
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.74 = US$1 AS OF 2007-04-30
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 was registered as a Chinese-foreign equity joint venture enterprise at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on May 28, 2002.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The joint venture
usually have a limited duration of 10 to 50 years. Enterprise with large
investment, long construction periods, low investment returns, introducing
of advanced technology & advanced technology products, which have good
competition position in international market, may extend beyond the 50
years limit.
SC’s registered
business scope includes manufacturing and selling industrial cloth, lamp house
cloth, garment, knitting cloth, DTY computer filum, PVC Laminated fabric, and tent fabric.
SC is
mainly engaged in manufacturing lamp house cloth.
Mr. Zhu Jingjiang
has been chairman of SC since 2002.
SC owns about 200
staff at present.
SC is
currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Haining. Our checks reveal
that SC rents the total premise about 40,000 square meters.
http://www.zjmsd.com The design is
professional and the content is well organized. At present, the web is both in
English and Chinese versions.
E-mail: manager@zjmsd.com
Till December 31, 2006, SC’s paid-up capital reached CNY37,870,000.
On July 24, 2006, SC changed its legal form from a limited liabilities
company to a Chinese-foreign equity joint venture enterprise.
MAIN SHAREHOLDERS:
Name % of
Shareholding
Zhou Lichun (Hong Kong) 50.0
Zhu Jingjiang 28.5
Haining Hengxin Materials Co., Ltd. 10.0
Zhejiang Harbor Supermarket Chain Co., Ltd. 11.5
l
Chairman and
General Manager:
Mr. Zhu Jingjiang, in his 50’s with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 2002 to present Working in SC as chairman and general
manager.
Sales Manager:
Mr. Jia Zhenhua
Tel: 0573-7985238
Fax: 0573-7985868
Mobile Phone Number: 13506732863
SC is mainly
engaged in manufacturing lamp house cloth.
SC’s products mainly include: FRONTLIT, and BACKLIT, etc.
SC’s brand: “MSD”.
SC sources its materials 100% from domestic
market, mainly Guangdong province and Shanghai; SC sells its products 50% to
overseas market, mainly America and India, and 50% in domestic market, mainly
Shanghai.
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 15-30 days.
*Major Supplier:
==============
Sanshui Nanwei Plastic & Rubber Electric Products Co., Ltd.
*Major Customer:
==============
Shanghai NAR International
Development 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 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.
Haining Huangwan
Rural Credit Cooperative Union
AC#：201000002135210
Relationship:
Normal.
Balance Sheet (as
of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
35,840 |
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Inventory |
13,600 |
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Accounts
receivable |
14,410 |
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Bills receivable |
0 |
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Other Accounts
receivable |
4,380 |
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Accounts payable
in advance |
12,980 |
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To be
apportioned expense |
0 |
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Other current
assets |
1,010 |
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Current assets |
82,220 |
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Fixed assets |
62,740 |
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Fixed assets net
value |
54,820 |
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Projects under
construction |
7,920 |
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Long term
investment |
0 |
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Other assets |
7,390 |
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Total assets |
152,350 |
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Short loans |
47,000 |
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Accounts payable |
12,670 |
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Bills payable |
51,870 |
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Accounts
receivable in advance |
2,140 |
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Other Accounts
payable |
420 |
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Salaries payable |
0 |
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Welfares payable |
0 |
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Taxes payable |
-310 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
1,030 |
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Current
liabilities |
114,820 |
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Long term
liabilities |
50,000 |
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Other
liabilities |
0 |
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Total
liabilities |
164,820 |
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Equities |
-12,470 |
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Total
liabilities & equities |
152,350 |
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Income Statement (as
of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
156,320 |
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Cost of goods
sold |
149,000 |
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Sales expense |
1,480 |
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Management expense |
2,420 |
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Finance expense |
2,690 |
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Non-operating
expense |
50 |
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Profit before
tax |
680 |
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Less: profit tax |
40 |
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Profits |
640 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 0.72
*Quick ratio 0.60
*Liabilities to
assets 1.08
*Net
profit margin (%) 0.41
*Return
on total assets (%) 0.42
*Inventory
/Turnover ×365 32
days
*Accounts
receivable/Turnover ×365 34
days
*Turnover/Total
assets 1.03
*Cost
of goods sold/Turnover 0.95
PROFITABILITY:
AVERAGE
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The turnover of SC appears average in its line.
l
SC’s net profit margin is acceptable.
l
SC’s return on total assets is acceptable.
l
SC’s cost of goods sold is high, comparing with its
turnover.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a fair level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC is maintained
in a normal level.
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The accounts receivable of SC is maintained in
a normal level.
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The short-term loan of SC appears TOO LARGE.
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SC’s turnover is in an average level, comparing with the
size of its total assets.
LEVERAGE:
POOR
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The debt ratio of SC is too high.
l
The risk for SC to go bankrupt is above average.
Overall
financial condition of the SC: Fairly poor.
SC is considered medium-sized in its line with fair financial
conditions. The large amount of short-term
loan could be a threat to SC’s financial condition. A credit line up to US
20,000 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%)