MIRA
INFORM REPORT
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Report Date : |
12.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
CHINA NATIONAL TOWNSHIP ENTERPRISES CORPORATION |
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Registered Office : |
8/F Jingchao Building, No. 5 South Nongzhan Road, Chaoyang
District, Beijing, 100026 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
May 11, 1983 |
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Com. Reg. No.: |
1000001000132 |
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Legal Form : |
State Owned Enterprise |
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Line of Business : |
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 : |
Up To usd 500,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
CHINA NATIONAL TOWNSHIP ENTERPRISES CORPORATION
8/F JINGCHAO BUILDING, NO. 5 SOUTH NONGZHAN ROAD,
CHAOYANG DISTRICT, BEIJING, 100026 PR CHINA
TEL : 86 (0)
10-64193823
FAX : 86 (0) 10-64193849
EXECUTIVE SUMMARY
INCORPORATION DATE : MAY 11, 1983
REGISTRATION NO. : 1000001000132
REGISTERED LEGAL FORM : STATE OWNED ENTERPRISE
STAFF STRENGTH :
70
REGISTERED CAPITAL : CNY 59,210,000
BUSINESS LINE :
INTERNATIONAL TRADE
TURNOVER :
cny 452,110,000 (AS OF DEC. 31, 2006)
EQUITIES :
cny 79,230,000 (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 : AVERAGE
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 State owned enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on May 11, 1983.
Company Status:
State-owned enterprise This form of business in PR China is defined as a
commodity production or operational units of a socialist character which in
accordance with the law, have autonomy in management, takes full
responsibility for its profits and losses and practices independent
business accounting. It is a legal person established directly by central /
local government or enterprise owned by central or local government. In
theory, the liabilities of this form of enterprise are ultimately borne by
the government, since the adoption of company law in mid-1994, the Chinese
government has planned to separate the ownership from management and
liabilities bearing.
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.
Mr. Wu Peilong has
been chairman of SC since 2001.
SC is known to
have approx. 70 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
owns the total premise about 5,000 square meters.
http://www.cntec.com.cn . 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 Agricultural Development
Group Corp. 100
Add: No. 31 Minfeng Lane, Xidan, Beijing
Tel: 86-10-88067008
Fax: 86-10-88067017
l
Chairman and
General Manager:
Mr. Wu Peilong, in his 50’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2001 to present Working
in SC as chairman and general manager.
l
Vice General
Manager:
Mr. Gong Jipeng, in his 50’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.
Agricultural and fishing plastic raw materials
importation
Agricultural and
fishing plastic raw materials import is one of the main foreign trade
businesses of SC, which has established good trade relationships with more than
30 foreign companies in more than ten countries in the world, and operates
annually more than 100,000 tons of plastic raw materials both by acting as an
agency and as a self-operation.
Textile raw materials importation
Textile raw
material which has been operated for more than 20 years is SC’s traditional
trading section. SC has established close, steady cooperative relationship with
some domestic and international large-scale manufacturers and suppliers. Acting
as an agent or a self-operation, SC annually imports various textile raw
materials, such as wool, chemical fiber etc., which are weighted more than
10,000 tons in total.
Technology and equipment importation
SC imports a great
amount of international advanced agricultural-science technologies and
equipments for agriculture-science research institutes, universities, colleges,
enterprises and companies each year; signs thousands of import contracts each
year, which are equal to more than 50 million dollars; and has undertaken the
work of importing international advanced technologies and equipments for the
“948 Project” of the Ministry of Agriculture, and the“211 Project” of Chinese
Agriculture University, and for the National Species Improvement Center,
Yanshan Petrifaction Engineer Technology Center, and Sanyuan Milk Technology
Center.
Government purchasing project
SC participates
every year in government purchasing bidding which is organized by Ministry of
Business. It undertakes the task of purchasing nearly ten types of products,
such as wool, plastic materials, leather, electromechanical equipment etc.
Agricultural products process and export base
SC has
agricultural products storage, process and export base in Shandong and exports
a great quantity of high-quality vegetable and fruits to the markets in Europe,
Southeast Asia, North America and South America.
Project on nationalization
of Special technology of “fruit quality improvement with special paper-bagging
To raise the
international competitive power of fruit industry in China, SC undertook the
project for promoting and demonstrating Special technology of “fruit quality
improvement with special paper-bagging” nationalization with the support from
the Ministry of Agriculture. On the basis of importing, digesting and
assimilating internationally advanced special paper production technology of
“fruit quality improvement with special paper-bagging”, using quality wood pulp
from Daxing’anling, SC set up a domestically largest bag paper production
enterprise in Inner Mongolia to meet the growing market demand.
The “Desheng”
brand paper bag is well known in markets for its “imported paper quality and
domestic paper price”. The product is widely used in a wide range of
cultivating fruits such as apple, pear, peach, orange and grapefruit.
Industrialization project of “Kuixitong”, the new
national first class veterinary drugs
The new-type of
feed additive --“Kuixitong” was cooperatively developed by SC and Chinese
Academy of Agricultural Sciences Lanzhou Pasturage and Veterinary drugs
Research Institute, which is the Key project of National Science and Technology
Breakthrough during the Eighth Five-Year Plan. After 15-year scientific
research, it was approved and registered as a kind of new veterinary drugs by
the Ministry of Agriculture in August of 2003 and became the first class
chemistry synthesized innovative veterinary drugs in China.
The products have
very strong function of growth promotion and anti-bacteria, so the animals’
weight can be increased up to 10-15%; it can also act as a broad-spectrum
anti-bacterial drug, with which the animals’ diarrhoea can be reduced by 50-70%,
and feed use efficiency can be raised 10%. It is safe and residue-free, and is
the ideal substitute of various medicines extensively promoting growth and
anti-bacteria used at present.
This
industrialization project is being carried out by China Wan Mu New Technology
Co., Ltd.
Forage seeds production base
In order to
improve the environment of the West in China, SC cooperated with China
Agriculture Science institute Lanzhou Pasturage and Veterinary drugs Research
Institute, imported good strains of xenomorphic and super-xenomorphic forage
seeds and advanced seed process equipment and set up 500mu of original seeds
base in Lanzhou and 3,000 mu of enlarged base in Zhangye.
Corn seeds production base
SC set up a 5,000
mu corn production of hybrid seeds base in Inner Mongolia for the purpose of
integrating research, breeding, production and sale of hybrid corn seeds and
special used corn seeds.
Import seeds
Every year, SC manages
importing more than 3,000 tons of agricultural seeds, forage seeds, and flower
seeds by itself or by acting as an agency.
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 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.
SC is
known to have 6 subsidiaries as follow,
BEIJING
JIU JIU JIU GOODS & MATERIALS TRADE CORP.
Tel:
8610-64193802/42
FAX:
8610-64193842
CHINA
FISHERY TIANJING CORP.
Tel：8622-27367678
FAX：8622-27367678
CHINA
WAN MU NEW TECHNOLOGY CORP., LTD.
Tel:
8610-64193840
FAX:
8610-64193814
INNER
MONGOLIA DESHENG PAPER CO., LTD.
Tel:
86470-3307738
FAX:
86470-3307738
LANZHOU
PIONEER TURF&FORAGE CO., LTD.
Tel:
86931-2652538
FAX:
86931-2651951
SUNNY
UNION TECH.DEVELOPMENT CO., LTD.
Tel:
8610-84406135
FAX:
8610-84405366
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 refused to release any information of its
suppliers and the trade reference was not available.
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 Minsheng Bank
AC#：N/A
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2006 |
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Cash & bank |
56,820 |
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Inventory |
63,140 |
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Accounts
receivable |
55,360 |
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Advances to
suppliers |
110,320 |
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Other
receivables |
7,610 |
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Other current
assets |
59,050 |
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------------------ |
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Current assets |
352,300 |
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Fixed assets net
value |
17,490 |
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Projects under
construction |
0 |
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Long term
investment |
58,850 |
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Other assets |
400 |
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Total assets |
429,040 |
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============= |
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Short loans |
32,010 |
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Accounts payable |
125,090 |
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Advances from
clients |
88,810 |
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Taxes payable |
3,580 |
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Salaries payable |
0 |
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Other payable |
35,860 |
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Other current
liabilities |
61,460 |
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------------------ |
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Current
liabilities |
346,810 |
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Long term
liabilities |
3,000 |
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------------------ |
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Total
liabilities |
349,810 |
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Equities |
79,230 |
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Total
liabilities & equities |
429,040 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2006 |
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Turnover |
452,110 |
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Cost of goods
sold |
432,870 |
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Sales expense |
8,390 |
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Management expense |
15,870 |
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Finance expense |
1,280 |
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Profit before
tax |
-1,140 |
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Less: profit tax |
0 |
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Profits |
-1,140 |
Important Ratios
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2006 |
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*Current ratio |
1.02 |
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*Quick ratio |
0.84 |
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*Liabilities
to assets |
0.81 |
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*Net profit
margin (%) |
-0.25 |
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*Return on
total assets (%) |
-0.27 |
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*Fixed
assets/Total assets |
0.04 |
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*Inventory
/Turnover ×365 |
51days |
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*Accounts
receivable/Turnover ×365 |
44days |
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*Turnover/Total
assets |
1.05 |
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* Cost of
goods sold/Turnover |
0.96 |
PROFITABILITY:
FAIR
l
The turnover of SC appears fairly good in 2006.
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SC’s net profit margin is fair in 2006.
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SC’s return on total assets is fair in 2006.
l
SC’s cost of goods sold is fairly high, comparing with its turnover.
LIQUIDITY: AVERAGE
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The current ratio of SC is maintained in a normal level in 2006.
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SC’s quick ratio is maintained in a normal level in 2006.
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The accounts payable of SC appears fairly large.
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The inventory of SC is average.
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The short loans are average.
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SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIR
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The debt ratio of SC is fairly high.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered medium-sized in its line
with favorable background. The large amount of accounts payable could be a threat
to SC’s financial condition. A credit line up to USD 500,000 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%)