MIRA
INFORM REPORT
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Report Date : |
12.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
CHINA GRAINS OILS AND FEEDSTUFFS CO., LTD |
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Registered Office : |
No. 208 Andingmenwai Street, Dongcheng District, Beijing, 100011 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
25.03.1988 |
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Com. Reg. No.: |
1100001500509 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged in international trade |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 500,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name and address
CHINA GRAINS OILS
AND FEEDSTUFFS CO., LTD.
NO. 208 ANDINGMENWAI STREET, DONGCHENG DISTRICT,
BEIJING, 100011 PR CHINA
TEL: 86 (0) 10-66596688 FAX: 86 (0) 10-66016871
EXECUTIVE SUMMARY
INCORPORATION DATE : MAR. 25, 1988
REGISTRATION NO. : 1100001500509
REGISTERED LEGAL FORM
: LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE : MS. YANG LI (CHAIRMAN)
STAFF STRENGTH : 27
REGISTERED CAPITAL : CNY 19,000,000
BUSINESS LINE : INTERNATIONAL TRADE
TURNOVER : cny 1,382,160,000 (AS OF DEC. 31, 2006)
EQUITIES : cny 48,100,000 (AS OF DEC. 31, 2006)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : up to usd 500,000 (periodical review)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : well known
EXCHANGE RATE : CNY 7.41= 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 Mar. 25, 1988.
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 goods and technology; processing with imported materials, processing with imported samples, assembling with imported parts, and compensation trade in agreement. (
SC is mainly engaged in international trade.
Ms. Yang Li has been chairman of SC since 1997.
SC is known to have approx. 27 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 Beijing. Our checks reveal that SC rents the total premise about 400 square meters.
http://www.gofco.com.cn/index.htm 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
China National Native Produce and Animal By-Products Import & Export Corporation 70
Beijing Ruitai Shiqiao Economic Technology Cooperation Co., Ltd. 25
Shareholders’ Union of Staff of China Cereals & Oils Corp. Co., Ltd. 5
China National Native Produce and Animal By-Products Import & Export Corporation
Established on Nov. 23, 1949, China National Native Produce and Animal By-Products Import & Export Corporation (CHINA TUHSU) is China’s first large-scaled comprehensive foreign trade state enterprise engaged in such lines as native produce, animal by-products, teas and processed goods based on them. China Tuhsu, with its headquarter in Beijing, solely owns and holds majority interests or joint shares of scores of businesses and subsidiaries at home and abroad, and also has its own marine fleets linking up itself closely with its clients worldwide.
Add: No.208, An Ding Men Wai Street, Beijing, 100011, P. R. China
Tel: 010 51236060
Fax: 010 64204099
E-mail: tuhsu@tuhsu.com.cn
Chairman and General Manager:
Ms. Yang Li in her 40’s with university education. She is currently responsible for the overall management of SC.
Working Experience(s):
From 1997 to present Working
in SC as chairman and general manager.
Vice General Manager:
Mr. Ma Huibin in his 30’s with university education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 2004 to present
Working in SC as vice general
manager.
SC is mainly engaged in international trade.
SC’s products mainly include:
*Fish meal \ soya meal \ feed grade barley\wheat\corn\additives
*Peruvian FAQ fishmeal\SD fismlea\standard SD\prime SD\super prime SD
*Imports of soyabean, rapeseed(canola), peanut, cottonseed, malting barley, fruits, sugar, etc．
*Imports of pain oil, soya oil, coconut oil, castor bean oil, tallow, milk curd and spray dried whey
protein etc．
*Exports of beet pulp pellets, rapeseed meal and other oil seed meals, all kinds of beans, small oil-bearing crops, etc.
SC sources its materials 40% from domestic market, and 60% from the overseas market, mainly Southeast Asia and European countries. SC sells 60% of its products in domestic market, and 40% to the overseas market, mainly 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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Guangzhou Qiaoyi Freight Forwarding Co., Ltd.
*Major Supplier:
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Jilin Maize Center Wholesaling Market
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.
China Everbright Bank Dongcheng Sub-branch
AC#：30101166
Relationship: Normal.
Balance Sheet
Unit: CNY’000
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As of Dec. 31, 2006 |
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Cash & bank |
9,130 |
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Inventory |
205,350 |
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Accounts receivable |
54,280 |
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Advances to suppliers |
74,280 |
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Other receivables |
72,700 |
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Other current assets |
15,410 |
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Current assets |
431,150 |
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Fixed assets net value |
1,660 |
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Projects under construction |
0 |
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Long term investment |
0 |
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Other assets |
11,710 |
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Total assets |
444,520 |
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Short loans |
340,640 |
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Accounts payable |
24,650 |
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Advances from clients |
24,590 |
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Taxes payable |
2,500 |
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Salaries payable |
0 |
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Other payable |
3,960 |
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Other current liabilities |
80 |
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Current liabilities |
396,420 |
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Long term liabilities |
0 |
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Total liabilities |
396,420 |
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Equities |
48,100 |
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Total liabilities & equities |
444,520 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2006 |
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Turnover |
1,382,160 |
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Cost of goods sold |
1,328,870 |
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Sales expense |
25,220 |
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Management expense |
9,440 |
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Finance expense |
9,160 |
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Profit before tax |
15,310 |
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Less: profit tax |
5,480 |
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Profits |
9,830 |
Important Ratios
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2006 |
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*Current ratio |
1.09 |
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*Quick ratio |
0.57 |
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*Liabilities to assets |
0.89 |
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*Net profit margin (%) |
0.71 |
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*Return on total assets (%) |
2.21 |
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*Fixed assets/Total assets |
0.004 |
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*Inventory /Turnover ×365 |
54days |
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*Accounts receivable/Turnover ×365 |
14days |
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*Turnover/Total assets |
3.11 |
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* Cost of goods sold/Turnover |
0.96 |
PROFITABILITY:
AVERAGE
The turnover of SC appears fairly good in 2006.
SC’s net profit margin is average in 2006.
SC’s return on total assets is average in 2006.
SC’s cost of goods sold is fairly high, comparing with its turnover.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a normal level in 2006.
SC’s quick ratio is maintained in a fair level in 2006.
The accounts receivable of SC is average.
The inventory of SC appears LARGE.
The short loans of SC appears LARGE.
SC’s turnover is in a fairly good level, comparing with the size of its total assets.
LEVERAGE: FAIR
The debt ratio of SC is high.
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fairly stable.
SC is well-known in its industry with favorable background. The large amount of short loans & inventory could be a threat to SC’s financial condition. A credit line up to USD 500,000 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%)