MIRA
INFORM REPORT
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Report Date : |
05.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
JIAOZUO XIANDA TRADE CO., LTD. |
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Registered Office : |
Room 305, Building A, Chuangye Center, Shenzhou Road,
Gaoxin District, Jiaozuo, Henan Province, Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Mar. 31, 2002 |
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Com. Reg. No.: |
4108001050286 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged
in importing and exporting medicine raw materials and fine chemicals. |
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 20,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
JIAOZUO XIANDA TRADE CO., LTD.
ROOM 305, BUILDING A, CHUANGYE CENTER, SHENZHOU ROAD,
GAOXIN DISTRICT, JIAOZUO, HENAN PROVINCE, PR CHINA
TEL : 0086-391-3560505
FAX :
0086-391-3560515
EXECUTIVE SUMMARY
INCORPORATION DATE :
MAR. 31, 2002
REGISTRATION NO. :
4108001050286
REGISTERED LEGAL FORM :
LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MS. JIN XIA (CHAIRMAN)
STAFF STRENGTH :
15
REGISTERED CAPITAL :
CNY 3,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 16,350,000 (AS OF DEC. 31,
2006)
EQUITIES :
CNY 2,990,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE :
UP TO USD 20,000
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 7.46921=US1$
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 co. at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Mar. 31, 2002.
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 wholesaling and
retailing chemical materials and products (excluding flammable, explosive, precursor chemicals and other dangerous
articles), nonferrous metal (not including specially operated and controlled
commodities), mineral (excluding specially controlled commodities), plastic,
mechanical and electronic products, light industry products, hardware,
importing and exporting building materials (with permit if needed).
SC is
mainly engaged in importing and exporting medicine raw materials and fine
chemicals.
Ms.
Jin Xia has been legal representative and chairman of SC since 2002.
SC is known to have approx. 15 staff members at
present.
SC is currently operating at the above stated address, and this
address houses its operating office in the industrial zone of Jiaozuo. Our
checks reveal that SC rents the total premise about 45 square meters.
SC is not known to host website of its own at present.
E-mail：jzpgzy@yahoo.com.cn
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Jin Xia 40
Meng Hongfang 30
Ma Ronghua 30
l
Legal representative and chairman:
Ms. Jin Xia, born in 1946 with university education. She is
currently responsible for the overall management of SC.
Working Experience(s):
From 2002 to present Working in SC as chairman and legal representative.
SC is
mainly engaged in importing and exporting medicine raw materials and fine
chemicals.
SC’s products mainly include: Amoxicillin, Cefalexin, Oxytetracycline, Chloramphenicol, Erythromycin, Furazolidone, Metronidazole and Norfloxacin.
SC sources its merchandises 30% from the overseas market and
70% from domestic market. SC sells 100% of its merchandises in domestic market.
The buying terms of SC include Check, L/C, T/T and Credit of
15-30 days. The payment terms of SC include Check, T/T, and Credit of 15-30
days.
*Major Supplier*
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Shouguang Fukang
Pharmaceutical Co., LTD.
*Major Customer*
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Huangshan China-king Pharmaceutical 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: A
trade enquiry currently conducted with SC's supplier(s) reveal the following:
Supplier
A
Products sold: medicine
raw materials
Date account opened: 2002
Line of credit: CNY 200,000 to CNY
300,000
Terms: T/T,
Credit of 15-30 days
Average monthly sales: N/A
Current balance: No comments
Rating Key: 2
Any Special Comments:
_______________
Payment record keys :
1 = Prompt : Payment made before
the credit period expires
2 = As agreed terms : Payment
made upon due date
3 = Slightly slow but acceptable
: Payment made 5 to 20 days beyond agreed terms
4 = Slow : Payment made 16 to 45
days beyond agreed terms
5 = Poor : Payment made over 45
days beyond agreed terms
6 = No comment : Account is newly opened & record is not yet
established
Note : In some instances, payment beyond terms can
be the result of disputes over merchandise, lost invoices, disputed accounts
& etc.
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 Jiaozuo Sub-branch
AC#：638206551508091001
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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as
of Dec. 31, 2005 |
as
of Dec. 31, 2006 |
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Cash
& bank |
1,560 |
150 |
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Bills
receivable |
0 |
0 |
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Accounts
receivable |
1,520 |
250 |
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Other
receivables |
0 |
0 |
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Advances to
suppliers |
0 |
0 |
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Inventory |
550 |
2,550 |
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Other
current assets |
0 |
10 |
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------------------ |
------------------ |
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Current
assets |
3,630 |
2,960 |
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Fixed assets |
40 |
40 |
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Fixed
assets net value |
40 |
40 |
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Projects
under construction |
0 |
0 |
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Long
term investment |
0 |
0 |
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Other
assets |
0 |
0 |
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Total
assets |
3,670 |
3,000 |
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============= |
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Short
loans |
0 |
0 |
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Bills
payable |
0 |
0 |
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Accounts
payable |
60 |
320 |
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Welfare
payable |
30 |
40 |
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Advances from
clients |
0 |
0 |
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Accrued
payroll |
0 |
0 |
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Tax
payable |
10 |
-350 |
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Other
payable |
600 |
0 |
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Surcharge
payable |
0 |
0 |
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Other
current liabilities |
0 |
0 |
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Current
liabilities |
700 |
10 |
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Long
term liabilities |
0 |
0 |
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------------------ |
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Total
liabilities |
700 |
10 |
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Equities |
2,970 |
2,990 |
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Total
liabilities & equities |
3,670 |
3,000 |
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Income Statement
Unit: CNY’000
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as of Dec. 31, 2005 |
as of Dec. 31, 2006 |
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Turnover |
19,070 |
16,350 |
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Cost of goods
sold |
18,480 |
15,980 |
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Sales expense |
280 |
120 |
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Management expense |
240 |
190 |
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Finance expense |
50 |
40 |
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Profit before
tax |
2 |
2 |
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Less: profit tax |
1 |
1 |
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Profits |
1 |
1 |
Important Ratios
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as
of Dec. 31, 2005 |
as
of Dec. 31, 2006 |
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*Current ratio |
5.19 |
296 |
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*Quick ratio |
4.40 |
41 |
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*Liabilities
to assets |
0.19 |
0.003 |
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*Net profit
margin (%) |
0.005 |
0.006 |
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*Return on
total assets (%) |
0.03 |
0.03 |
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*Fixed
assets/Total assets |
0.01 |
0.01 |
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*Inventory
/Turnover ×365 |
11 days |
57 days |
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*Accounts
receivable/Turnover ×365 |
30 days |
6 days |
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*Turnover/Total
assets |
5.20 |
5.45 |
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* Cost of goods
sold/Turnover |
0.97 |
0.98 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in its line, and it
decreased in 2006.
l
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 high, comparing with its
turnover.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a normal level.
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SC’s quick ratio is maintained in a normal level.
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The inventory of SC appears LARGE.
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The accounts receivable of SC appears average.
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SC’s turnover is in a fairly good level, comparing with the
size of its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC is low.
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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. Credit dealings with SC in small amount appear acceptable.
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%)