MIRA
INFORM REPORT
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Report Date : |
18.05.2007 |
IDENTIFICATION DETAILS
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Name : |
GALE PACIFIC TEXTILE ( |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
DEC. 9, 2002 |
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Com. Reg. No.: |
006641 |
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Legal Form : |
Wholly Foreign-Owned |
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Line of Business : |
Manufacturing and
selling special textiles. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
Up To usd 500,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
GALE PACIFIC TEXTILE (
NO.
TEL: 86 (0) 574-56268888
FAX: 86 (0) 574-56262088
EXECUTIVE SUMMARY
INCORPORATION DATE : DEC. 9, 2002
REGISTRATION NO. : 006641
REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED
STAFF STRENGTH :
842
REGISTERED CAPITAL : USD 11,040,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
cny 253,590,000 (AS OF DEC. 31, 2006)
EQUITIES :
cny 126,630,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.68= US$1 AS OF 2007-5-18
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
SC was registered as a wholly foreign-owned enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Dec. 9, 2002.
Company Status: Wholly foreign-owned enterprise This form of business in PR China
is defined as a legal person. It is a limited co. established within the
territories of PR China with capital provided totally by the foreign
investors. More than one foreign investors may jointly invest in a wholly
foreign-owned enterprise. The investing party/parties solely exercise
management, reap profit and bear risks and liabilities by themselves. This
form of companies usually have a limited duration is extendible upon
approval of Examination and Approval Authorities.
SC’s registered business scope includes manufacturing industrial and
civil special textiles and related products; selling its products and providing
the after sale service and technology consulting; import and export of various
goods and technologies.
SC is mainly engaged
in manufacturing and selling special textiles.
Mr. Peter Ronald
McDonald has been chairman of SC since 2002.
SC owns about 842
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 Ningbo. Our checks
reveal that SC owns the total premise about 33,000 square meters.
SC is not known to host website of its own at present.
No significant events or changes were found during our checks with local
AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Gale Pacific Co., Ltd.
l
Chairman:
Mr. Peter Ronald McDonald, Australian, in his 40’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.
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General Manager:
Ms. Xu Saihua in her 30’s with university education. She is currently
responsible for the daily management of SC.
Working Experience(s):
From 2002 to present Working in SC as general manager.
SC is mainly
engaged in manufacturing and selling special textiles.
SC’s products
mainly include: canvas, window curtains and tent.
SC sources its
materials 50% from domestic market and 50% from the overseas markets mainly
from
The buying terms of SC include Check, T/T, L/C 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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Gale Pacific Co., Ltd.
*Major Supplier:
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Shanghai Kingfa Technology 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
AC#：810763018408091001
Relationship:
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2006 |
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Cash & bank |
13,840 |
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Accounts payable
advance |
0 |
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Accounts
receivable |
72,530 |
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Inventory |
57,870 |
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Other
receivables |
1,960 |
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Other current
assets |
0 |
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Current assets |
146,200 |
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Fixed assets net
value |
237,870 |
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Projects under
construction |
27,930 |
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Long term
investment |
0 |
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Other assets |
18,420 |
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Total assets |
430,420 |
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Short loans |
93,460 |
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Accounts payable |
125,940 |
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Accounts
receivable advance |
0 |
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Taxes payable |
-1,920 |
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Salaries payable |
260 |
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Other payable |
29,570 |
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Other current
liabilities |
16,020 |
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Current
liabilities |
263,330 |
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Long term
liabilities |
40,460 |
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Total
liabilities |
303,790 |
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Equities |
126,630 |
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Total
liabilities & equities |
430,420 |
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Income Statement
Unit: CNY’000
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As of Dec. 31,
2006 |
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Turnover |
253,590 |
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Cost of goods
sold |
218,010 |
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Sales expense |
9,110 |
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Management expense |
15,160 |
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Finance expense |
4,560 |
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Profit before
tax |
6,810 |
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Less: profit tax |
0 |
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Profits |
6,810 |
Important Ratios
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2006 |
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*Current ratio |
0.56 |
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*Quick ratio |
0.34 |
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*Liabilities
to assets |
0.71 |
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*Net profit
margin (%) |
2.69 |
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*Return on
total assets (%) |
1.58 |
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*Fixed
assets/Total assets |
0.55 |
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*Inventory
/Turnover ×365 |
83days |
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*Accounts
receivable/Turnover ×365 |
104days |
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*Turnover/Total
assets |
0.59 |
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* Cost of
goods sold/Turnover |
0.86 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears fairly good.
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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: 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 a fair level.
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The accounts receivable of SC appears fairly large.
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The inventory of SC is maintained in a normal
level.
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The short loans are fairly large.
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SC’s turnover is in a normal 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 average.
Overall financial
condition of the SC: Fairly stable.
SC is considered medium-sized in its line with fairly stable financial
conditions. Over the past 5 years, SC has made a stable growth with acceptable
profit. A credit line up to USD 500,000 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%)