MIRA
INFORM REPORT
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Report Date : |
29.05.2007 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
17/F Dihao Building, No. 820 Xiahe Road, Kaiyuan District,
Xiamen, Fujian Province, 361004 Pr |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
SEP. 28, 1994 |
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Com. Reg. No.: |
3502001004581 |
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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 : |
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 usd200,000 |
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Status : |
Good |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
name & address
17/F
TEL : 86 (0)
592-2960118
FAX : 86 (0) 592-2960666
EXECUTIVE SUMMARY
INCORPORATION DATE : SEP. 28, 1994
REGISTRATION NO. : 3502001004581
REGISTERED LEGAL FORM : LIMITED LI
STAFF STRENGTH :
37
REGISTERED CAPITAL : CNY 50,000,000
BUSINESS LINE :
INTERNATIONAL TRADE
TURNOVER :
cny 703,720,000 (AS OF DEC. 31, 2006)
EQUITIES :
cny 68,830,000
(AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.67= US$1 AS OF 2007-5-28
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 Sep. 28, 1994.
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
goods and technology ; counter trade, barter trade & transiting trade;
tobacco (retailing), wholesaling and retailing textiles, garments, shoes, hats,
hardware, chemical materials, building materials, metal materials, mechanical
and electric equipment; storage; foreign trade information consulting service .
SC is mainly
engaged in international trade.
Mr. Guo Qingfeng
has been chairman of SC since 2001.
SC owns about 37
staff.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Xiamen. Our checks reveal that SC
rents the total premise about 600 square meters.
http://www.xiamengulong.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
Xiamen Gulong Group Co., Ltd. 10
Xiamen Gulong Can Foods Co., Ltd. 90
Xiamen Gulong Group Co., Ltd.
17/F
TEL: 86 (0)
592-2960118
FAX: 86 (0) 592-2960666
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Chairman:
Mr. Guo Qingfeng in his 40’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2001 to present Working
in SC as chairman.
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General Manager:
Ms. Lin Shali in her 40’s with university education. She is currently
responsible for the daily management of SC.
Working Experience(s):
From 2001 to present Working in SC as general manager.
SC is mainly
engaged in international trade.
SC’s products
mainly include: can foods.
SC sources its
materials 40% from domestic market and 60% from the overseas markets mainly
from Europe and
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 Suppliers:
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Xiamen Gulong Can Foods 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#：06009311250211
Relationship:
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2006 |
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Cash & bank |
14,580 |
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110 |
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11,790 |
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Inventory |
3,160 |
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Other
receivables |
64,380 |
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Other current
assets |
31,870 |
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Current assets |
125,890 |
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Fixed assets net
value |
6,470 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
1,000 |
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Total assets |
133,360 |
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============= |
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Short loans |
0 |
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40,950 |
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21,740 |
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Taxes payable |
0 |
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Salaries payable |
0 |
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Other payable |
1,240 |
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Other current
liabilities |
600 |
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Current
liabilities |
64,530 |
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Long term
liabilities |
0 |
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Total
liabilities |
64,530 |
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Equities |
68,830 |
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Total
liabilities & equities |
133,360 |
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Income Statement
Unit: CNY’000
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As of Dec. 31,
2006 |
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Turnover |
703,720 |
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Cost of goods
sold |
691,840 |
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Sales expense |
4,960 |
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Management expense |
3,740 |
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Finance expense |
760 |
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Profit before
tax |
2,860 |
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Less: profit tax |
530 |
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Profits |
2,330 |
Important Ratios
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2006 |
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*Current ratio |
1.95 |
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*Quick ratio |
1.90 |
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*Liabilities
to assets |
0.48 |
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*Net profit
margin (%) |
0.33 |
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*Return on
total assets (%) |
1.75 |
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*Fixed
assets/Total assets |
0.05 |
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*Inventory
/Turnover ×365 |
2days |
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* |
6days |
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*Turnover/Total
assets |
5.28 |
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* Cost of
goods sold/Turnover |
0.98 |
PROFIT
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The turnover of SC appears fairly good in 2006.
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SC’s net profit margin is average in 2006.
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SC’s return on total assets is average in 2006.
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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 normal
level in 2006.
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SC’s quick ratio is maintained in a normal level in
2006.
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The accounts receivable of SC is average.
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The inventory of SC is average.
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SC’s turnover is in a fairly good level, comparing
with the size of its total assets.
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There is no short loans.
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 low.
Overall financial
condition of the SC: Stable.
Over the past 13 years, SC has made a stable growth with acceptable profit.
A credit line up to USD 200,000 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%)