MIRA
INFORM REPORT
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Report Date : |
01.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
QINGDAO HONGCHUAN LOGISTICS CO., LTD. |
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Registered Office : |
No. 58 Beijing Road, Qingdao Free Trade Zone, Shandong
Province, 266555 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Jun. 6, 2003 |
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Com. Reg. No.: |
3702201800067 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in bonded
storing, international trade, freight forwarding, logistics
distribution. |
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 100,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
QINGDAO HONGCHUAN LOGISTICS CO., LTD.
NO. 58 BEIJING ROAD, QINGDAO FREE TRADE ZONE,
SHANDONG PROVINCE, 266555 PR CHINA
TEL : 86 (0)
532-86959072
FAX : 86 (0) 532-86959633
EXECUTIVE SUMMARY
INCORPORATION DATE : JUN. 6, 2003
REGISTRATION NO. : 3702201800067
REGISTERED LEGAL FORM : LIMITED LIABILITIES
COMPANY
STAFF STRENGTH :
28
REGISTERED CAPITAL : CNY 30,000,000
BUSINESS LINE :
LOGISTICS
TURNOVER :
cny 18,320,000 (AS OF DEC. 31, 2006)
EQUITIES :
cny 30,690,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 100,000 (periodical review)
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.49= US$1
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 limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Jun. 6, 2003.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders
contribute its registered capital jointly. 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 CNY 30,000. 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 30% 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 storing, logistics distribution
(excluding transportation), international freight forwarding, domestic high way
and rail way freight forwarding; international trade, transiting trade, trade
in the free trade zone; processing and finishing business.
SC is mainly
engaged in bonded storing, international trade, freight forwarding, logistics
distribution.
Mr. Liu Qing has
been chairman of SC since 2003.
SC is known
to have approx. 28 staff members at present.
SC is
currently operating at the above stated address, and this address houses its
operating office and free trade warehouse in the free trade zone of Qingdao.
Our checks reveal that SC owns the total premise about 20,000 square meters.
http://www.trade-oriental.com/chn/com.asp?id=73
It is the website of its parent company. 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
Shandong Oriental International Trading
Corp., Ltd. 66.70
Shandong EAST Trading Company Ltd. 33.30
Shandong Oriental International Trading
Corp., Ltd.
Shandong Oriental International Trading
Corp., Ltd is a large scale foreign trade stockholding enterprise, registered
with capital of CNY 50 million.
17-21/F, Shandong International Trades
Mansion, 51, Taiping Road, Qingdao, China.
Tel: 86-532-82971835
Fax: 86-532-82971838
E-Mail: dfcm@trade-oriental.com
Shandong EAST Trading Company Ltd.
Address: 299 Chongqing Zhong Road, Licang
District, Qingdao
Tel.: +86-532-87601711 13326399930
Fax: +86-532-87601154
E-mail: yst@trade-oriental.com
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Chairman:
Mr. Liu Qing, in his 40’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2003 to present Working
in SC as chairman.
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General Manager:
Mr. Jia Shaobin, in his 30’s 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 bonded storing, international trade, freight forwarding, logistics
distribution.
SC’s products
mainly include: textile materials.
SC sources its
materials 80% from domestic market, and 20% from the overseas market, mainly
European countries. SC sells 20% of its products in domestic market, and 80% to
the overseas market, mainly Southeast Asia, American and European countries.
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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Shandong Oriental International Trading
Corp., Ltd.
*Major Supplier:
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Shanxi Ramie Cotton Corp Yuncheng Branch
Tel: 86 0359-2023803
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’s suppliers
declined to make any comments.
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 Development Zone Sub-branch
AC#：2084862210001
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2006 |
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Cash & bank |
4,840 |
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Advances to
suppliers |
0 |
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Accounts
receivable |
11,940 |
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Inventory |
7,170 |
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Other
receivables |
290 |
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Other current
assets |
30 |
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Current assets |
24,270 |
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Fixed assets net
value |
14,670 |
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Projects under
construction |
12,600 |
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Long term
investment |
0 |
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Other assets |
17,270 |
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Total assets |
68,810 |
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Short loans |
25,000 |
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Accounts payable |
13,820 |
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Advances from
clients |
0 |
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Taxes payable |
-780 |
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Salaries payable |
0 |
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Other payable |
40 |
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Other current
liabilities |
40 |
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Current
liabilities |
38,120 |
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Long term
liabilities |
0 |
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Total
liabilities |
38,120 |
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Equities |
30,690 |
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Total
liabilities & equities |
68,810 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2006 |
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Turnover |
18,320 |
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Cost of goods
sold |
15,720 |
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Sales expense |
890 |
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Management expense |
1,680 |
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Finance expense |
40 |
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Profit before
tax |
700 |
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Less: profit tax |
40 |
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Profits |
660 |
Important Ratios
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2006 |
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*Current ratio |
0.64 |
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*Quick ratio |
0.45 |
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*Liabilities
to assets |
0.55 |
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*Net profit
margin (%) |
3.60 |
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*Return on
total assets (%) |
0.96 |
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*Fixed
assets/Total assets |
0.21 |
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*Inventory
/Turnover ×365 |
143days |
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*Accounts
receivable/Turnover ×365 |
238days |
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*Turnover/Total
assets |
0.27 |
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* Cost of
goods sold/Turnover |
0.86 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears average in 2006.
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SC’s net profit margin is fairly good 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 average, comparing with its turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in a fair level in 2006.
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SC’s quick ratio is maintained in a fair level in 2006.
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The accounts receivable and accounts payable of SC appear fairly large.
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The inventory conversion period of SC appears long.
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The short loans of SC are fairly large.
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SC’s turnover is in a fair 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 small-sized in its line with fairly good background. The
large amount of short loans could be a threat to SC’s financial condition. A
credit line up to USD 100,000 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. |
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%)