MIRA
INFORM REPORT
|
Report Date : |
02.11.2007 |
IDENTIFICATION
DETAILS
|
Name : |
yangzhou zhenghe
foreign trade co., ltd. |
|
|
|
|
Registered Office : |
No.4 Jiazhuang
Ximen, Yangzhou, Jiangsu Province, 225100 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
30.09.2007 |
|
|
|
|
Date of Incorporation : |
December 6, 1999 |
|
|
|
|
Com. Reg. No.: |
3210272760091 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
Engaged in
international trade. |
RATING &
COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
Up To usd 30,000 |
|
|
|
|
Status : |
Small Company |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
Litigation : |
Clear |
name & address
yangzhou zhenghe foreign
trade co., ltd.
no.4 jiazhuang ximen, yangzhou,
jiangsu PROVINCE, 225100 PR CHINA
TEL :
86 (0) 514-87342128
FAX :
86 (0) 514- 87344258
EXECUTIVE SUMMARY
INCORPORATION DATE : december 6, 1999
REGISTRATION NO. : 3210272760091
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
17
REGISTERED CAPITAL : CNY 3,300,000
BUSINESS LINE :
trading
TURNOVER :
CNY 19,740,000 (AS OF SEP. 30, 2007)
EQUITIES :
CNY 5,000,000 (AS OF SEP. 30, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 30,000 (PERIODICAL REVIEW)
MARKET CONDITION : average
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY7.45 = 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 Renminbi
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 December 6, 1999.
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 importing and exporting various commodities and technology,
excluding the goods limited or forbidden by the government, selling light
industrial handicrafts, native and livestock products, hardware tools,
instruments, textiles, general merchandise, chemical raw materials, building
materials, metal materials, machinery equipment, leather and commodities.
SC is mainly
engaged in international trade.
Mr. Xu Qinhe has
been chairman of SC since 1999.
SC is known to
have approx. 17 staff members at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Yangzhou. Our checks reveal that SC
rents the total premise about 200 square meters.
http://www.zhenghetrade.com
The design is professional and the content is well organized. At present the
web site is both in Chinese and English versions.
E-mail: zzzhhh@pub.yz.jsinfo.net
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Ma Maoquan 18.03
Shi Xiangqin 15.91
Tong Guoxiang 17.12
Yangzhou Hanjiang Foreign Trade Corp.
1.21
Zhang Hongxiu 15.91
Zhang Huali 15.91
Zhang Zhenhan 15.91
l
Chairman:
Mr. Xu Qinhe, 57 years old with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1999 to present Working
in SC as chairman.
l
General Manager:
Mr. Zhang Zhenhan, 40 years old with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
From 1999 to present Working in SC as general manager.
SC is mainly
engaged in international trade.
SC’s products mainly
include: sport caps, straw hats, knitted hats, shawls, gloves, socks, toys, and
bags.
SC sources its materials 100% from domestic
market, mainly Shandong and Jiangsu. SC sells 100% of its products to overseas
market, mainly Southeast Asian market.
The buying terms of SC include Check, T/T and Credit of 30 days. The
payment terms of SC include L/C and Credit of 30 days.
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 Sep. 30, 2007)
Unit: CNY’000
|
Cash & bank |
16,100 |
|
Inventory |
420 |
|
Accounts
receivable |
3,720 |
|
Other Accounts
receivable |
7,190 |
|
Advances to
suppliers |
40,580 |
|
To be
apportioned expense |
0 |
|
Other current
assets |
1,310 |
|
|
------------------ |
|
Current assets |
69,320 |
|
Fixed assets net
value |
1,550 |
|
Projects under
construction |
0 |
|
Long term
investment |
0 |
|
Other assets |
20 |
|
|
------------------ |
|
Total assets |
70,890 |
|
|
============= |
|
Short loans |
140 |
|
Accounts payable |
1,580 |
|
Other Accounts
payable |
2,860 |
|
Advances from
clients |
46,920 |
|
Withdraw the
expenses in advance |
0 |
|
Other current
liabilities |
14,390 |
|
|
------------------ |
|
Current
liabilities |
65,890 |
|
Long term
liabilities |
0 |
|
Other
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
65,890 |
|
Equities |
5,000 |
|
|
------------------ |
|
Total
liabilities & equities |
70,890 |
|
|
============= |
Income Statement (as of Sep. 30, 2007)
Unit: CNY’000
|
Turnover |
19,740 |
|
Cost of goods
sold |
18,370 |
|
Sales expense |
1,110 |
|
Management expense |
2,470 |
|
Finance expense |
0 |
|
Profit before
tax |
60 |
|
Less: profit tax |
0 |
|
Profits |
60 |
Important Ratios (as of Sep. 30, 2007)
=============================
*Current ratio 1.05
*Quick ratio 1.05
*Liabilities to
assets 0.93
*Net profit margin
(%) 0.30
*Return on total
assets (%) 0.08
*Inventory
/Turnover ×365 8 days
*Accounts
receivable/Turnover ×365 69 days
*Turnover/Total
assets 0.28
* Cost of goods
sold/Turnover 0.93
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC is maintained in an average level.
l
The accounts receivable of SC is maintained in an average level.
l
SC’s short-term loan is in an average level.
l
SC’s turnover is in a fair level, comparing with the size of its total
assets.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high.
l
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 stable financial
conditions. A credit line up to USD 30,000 would appear to be within SC’s
capacities upon a periodical review basis.
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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%)