MIRA
INFORM REPORT
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Report Date : |
25.05.2007 |
IDENTIFICATION DETAILS
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Name : |
typical
international trading Co., Ltd. |
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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 : |
August 7, 2003 |
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Com. Reg. No.: |
6101001401679 |
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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 : |
Regular |
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Litigation : |
Clear |
name & address
typical
international trading Co., Ltd.
no.
TEL: 86 (0) 29-88279092
FAX: 86 (0) 29-88249915
EXECUTIVE SUMMARY
INCORPORATION DATE : august 7, 2003
REGISTRATION NO. : 6101001401679
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
38
REGISTERED CAPITAL : CNY 10,000,000
BUSINESS LINE :
trading
TURNOVER :
CNY 346,640,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 5,330,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fair
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY7.65 = US$1 AS OF 2007-5-25
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 limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on August 7, 2003.
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 importing and exporting various kinds of commodities and
technology, excluding the goods forbidden by the government.
SC is mainly
engaged in international trade.
Ms. Geng Liping
has been chairman of SC since 2003.
SC owns about 38
staff at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Xi’an. Our checks reveal that SC
rents the total premise about 500 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
Typical Sewing Machine Wanping Machinery
Co., Ltd. 20
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As a leading company in the field of sewing
equipment manufacturing in China, Xi’an Typical Industry Co., Ltd. (hereinafter
referred to as Typical Industry) has history of 60 years. It is not only a
state-level hi-tech enterprise, but also a mechanical and electrical product
export base authorized by the State Economic and Trade Commission, PRC.
Majoring in research and manufacturing, development, production and sales of
series of sewing machines, Xi’an Typical
Industry Co., Ltd. is not only the holding company of the Typical Group
Company, but also the core enterprise of the group. It was established in 1999
and was formally listed in Shanghai Stock Exchange in 2000. Being located in
Xi’an, the central city of Western China, Xi’an Typical Industry Co., Ltd.
boasts not only the unique state level technical center in the field, but also
complete sales headquarters and independent international trade company. Sewing
machine production is distributed in three well-arranged and clearly-defined
producing bases, covering 1000 mu of land and with annual production capacity
of industry sewing machines more than 700,000 sets. In which, Xi’an Lintong
Base of Typical Industry for researching and incubating new products and new
technologies, covering a land of 510 mu, is a base for manufacturing series of
sewing machines; Typical Industry Park in west suburb of Xi’an, covering a land
of 281 mu, is a hi-tech producing base targeting at domestic top market and
international market; Wanping Producing Base of Jiangsu Province is the largest
domestic base for producing medium cloth or thick cloth industry sewing
machines, and has long been honored as “Medium Cloth or Thick Cloth Industry
Sewing Machines Star of China” .
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Chairman:
Ms. Geng Liping, 44 years old with university education. She is
currently responsible for the overall management of SC.
Working Experience(s):
From 2003 to present Working in SC as chairman, and also working in Xi'an Typical Industries Co., Ltd.
as
general manager.
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General Manager:
Mr. Chen Jinshan, 32 years old with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
From 2003 to present Working in SC as general manager.
SC is mainly
engaged in international trade.
Brand: TYPICAL
SC’s products mainly
include: lockstitch sewing machine series, overlock sewing machine series,
chainstitch sewing machine series, special sewing machine series, embroidery
machine series, high speed, 2-needle lockstitch sewing machine series.
SC sources its materials 100% from domestic
market, mainly
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 30-45 days.
*Major Suppliers:
==============
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.
SC declined to release
its bank details.
Balance Sheet (as
of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
1,330 |
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Inventory |
13,460 |
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Accounts
receivable |
76,810 |
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Other Accounts
receivable |
350 |
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To be apportioned
expense |
0 |
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Other current
assets |
9,020 |
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Current assets |
100,970 |
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Fixed assets net
value |
60 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
0 |
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Total assets |
101,030 |
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Short loans |
0 |
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Accounts payable |
100,460 |
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Other Accounts
payable |
870 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
-5,630 |
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Current
liabilities |
95,700 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
95,700 |
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Equities |
5,330 |
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Total
liabilities & equities |
101,030 |
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Income Statement (as
of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
346,640 |
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Cost of goods
sold |
326,870 |
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Sales expense |
15,370 |
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Management expense |
2,020 |
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Finance expense |
350 |
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Profit before
tax |
-1,140 |
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Less: profit tax |
0 |
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Profits |
-1,140 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 1.06
*Quick ratio 0.91
*Liabilities to
assets 0.95
*Net profit
margin (%) -0.33
*Return on total
assets (%) -1.13
*Inventory
/Turnover ×365 14 days
*Accounts
receivable/Turnover ×365 81 days
*Turnover/Total
assets 3.43
* Cost of goods
sold/Turnover 0.94
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 fairly high, comparing
with its turnover.
LIQUIDITY: AVERAGE
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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 normal 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 a
fairly high level.
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SC has no short-term loan in 2006, but account
payable is extremely high.
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SC’s turnover is in a fairly good level, comparing
with the size of its total assets.
LEVERAGE: FAIR
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The debt ratio of SC is fairly high.
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The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Fair.
SC is considered small-sized in its line with fair 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%)