MIRA
INFORM REPORT
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Report Date : |
03.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
anhui fuyang
plantoil refinery factory |
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Registered Office : |
No. 20, Yingxi
West Road, Fuyang City, Anhui Province 236015 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Oct. 6, 1986 |
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Com. Reg. No.: |
3421051000063 |
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Legal Form : |
Collective-Owned Enterprise |
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Line of Business : |
Engaged in manufacturing and selling vegetable and animal oil. |
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. |
Small |
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Maximum Credit Limit : |
Up To USD 40,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
anhui fuyang
plantoil refinery factory
no. 20, yingxi west road, fuyang city
anhui province 236015 PR CHINA
TEL :
86 (0) 558-2563111
FAX :
86 (0) 558-2562731
EXECUTIVE SUMMARY
INCORPORATION DATE : oct. 6, 1986
REGISTRATION NO. : 3421051000063
REGISTERED LEGAL FORM : collective-owned
enterprise
STAFF STRENGTH :
100
REGISTERED CAPITAL : CNY 5,600,000
BUSINESS LINE :
MANUFACTURING
TURNOVER : CNY 6,392,870 (AS OF DEC. 31, 2006)
EQUITIES : CNY 6,479,629 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 40,000 (periodical review)
MARKET CONDITION : average
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : steady
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 7.47 = 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
Note: SC’s name should be the above stated one, instead of the given one Anhui Fuyang Olants Oil Factory.
SC was registered as a collective-owned enterprise at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on Oct. 6, 1986.
Company Status: Collective-owned enterprise This form of business in PR
China is defined as a legal person. It is a private held entity owned by a
set number of private individuals (usually employees of the co., residents
of a village or town), domestic business organizations or domestic
institutions. The general manager who was appointed by the employees
representative meeting manages the co. The laboring masses work together
based on the principle of distribution according to work, reasonably share
the profit, and win certain accumulated public fund. The collective-owned
enterprise is independent economic organization and legal corporation
engaged in production & operation activities and independent
accounting, with self-management and self-responsibility for the profit and
loss.
SC’s registered business scope includes processing and
selling vegetable oil, animal oil, and flour; exporting its products and
technologies; importing raw materials, instruments, machinery, components, and
technologies; processing with imported materials, processing with imported
samples, assembling with imported parts, and compensation trade in agreement;
purchasing agricultural products and byproducts.
SC is mainly
engaged in manufacturing and selling vegetable and animal oil.
Mr.
Liu Binquan has been chairman of SC since 1986.
SC is known to have approx. 100 staff members 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
Fuyang. Our checks reveal that SC rents the total premise about 7,000 square
meters.
http://oil.und.com.cn The design is
professional and the content is well organized. At present the web is only in
Chinese version.
No significant events or changes were found during our checks with the
local AIC.
MAIN SHAREHOLDERS:
Name % of Shareholding
Staff Capital 100
l
Chairman and
General Manager:
Mr. Liu Binquan, in his 50’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1986 to present Working in SC as chairman and general manager.
Sales Manager:
Mr. Shi Yuanzhao
Tel: 86-0558-2563111
Fax: 86-0558-2562731
SC is mainly
engaged in manufacturing and selling vegetable and
animal oil.
SC’s products mainly include: teal oil, corn oil, peanut oil, salad oil,
etc.
SC’s brand is “Yikang”.
SC sources its materials 100%
from domestic market, mainly Anhui and Shandong province; SC sells its products
40% in domestic market, mainly Anhui, Guangdong province, and Shanghai, and 60%
to overseas market, mainly Hong Kong, and Southeast Asia.
The
buying terms of SC include T/T, check and Credit of 30 days. The payment terms
of SC include T/T, L/C, check and Credit of 15-30 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’s principal declined to
release is bank information.
Balance Sheet (as
of Dec. 31, 2006)
Unit: CNY’000
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Cash
& bank |
989 |
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Inventory |
4,575 |
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Accounts
receivable |
1,350 |
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Other
Accounts receivable |
30 |
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Advances
to suppliers |
2,189 |
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To be
apportioned expense |
0 |
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Other
current assets |
0 |
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Current
assets |
9,133 |
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Fixed assets |
3,026 |
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Fixed
assets net value |
2,110 |
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Projects
under construction |
916 |
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Long
term investment |
0 |
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Other
assets |
348 |
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Total
assets |
12,507 |
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Short
loans |
4,535 |
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Accounts
payable |
388 |
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Advance
from clients |
279 |
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Welfares
payable |
178 |
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Other
Accounts payable |
648 |
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Withdraw
the expenses in advance |
0 |
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Other
current liabilities |
0 |
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Current
liabilities |
6,028 |
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Long
term liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
6,028 |
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Equities |
6,479 |
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Total
liabilities & equities |
12,507 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
6,392 |
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Cost
of goods sold |
5,550 |
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Sales expense |
319 |
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Management expense |
110 |
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Finance expense |
386 |
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Profit
before tax |
23 |
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Less:
profit tax |
0 |
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Profits |
23 |
Important Ratios (as
of Dec. 31, 2006)
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*Current ratio 1.52
*Quick ratio 0.76
*Liabilities to assets 0.48
*Net profit margin (%) 0.36
*Return on total assets (%) 0.18
*Inventory /Turnover ×365 261
days
*Accounts receivable/Turnover ×365 77
days
*Turnover/Total assets 0.51
* Cost of goods sold/Turnover 0.87
PROFITABILITY: AVERAGE
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The turnover of SC appears average in its line.
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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 normal level.
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SC’s quick ratio is maintained in a fair level.
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The inventory of SC appears LARGE.
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The accounts receivable of SC is maintained in an average
level.
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The short-term loan of SC appears 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 stable financial conditions. The large
amount of inventory could be a threat to SC’s
financial condition. A credit line up to USD 40,000 appears 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%)