MIRA
INFORM REPORT
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Report Date : |
12.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
changzhou wanji
wooden co., ltd. |
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Registered Office : |
Industry Park,
Henglin Town, Changzhou City, Jiangsu Province 213103 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
Apr. 23, 2004 |
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Com. Reg. No.: |
3204832108682 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in processing and selling various composite
floors. |
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 8,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
changzhou wanji
wooden co., ltd.
industry park, henglin town, changzhou city
jiangsu province 213103 PR CHINA
TEL :
86 (0) 519-88505888
FAX :
86 (0) 519-82059228
EXECUTIVE SUMMARY
INCORPORATION DATE : apr. 23, 2004
REGISTRATION NO. :
3204832108682
REGISTERED LEGAL FORM : LIMITED
LIABILITIES COMPANY
STAFF STRENGTH :
10
REGISTERED CAPITAL : CNY 2,800,000
BUSINESS LINE :
PROCESSING
TURNOVER :
CNY 1,649,000 (AS OF DEC. 31,
2005)
EQUITIES :
CNY 880,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO
USD 8,000
MARKET CONDITION : average
FINANCIAL CONDITION : stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
7.41 =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 company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Apr. 23, 2004.
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 manufacturing and
processing laminated boards, composite reinforced floors, steel-wood computer
tables & stools, decoration paper, aluminum & plastic composite boards;
importing and exporting commodities.
SC is
mainly engaged in processing and selling various composite floors.
Mr. Chen
Jianlin has been chairman of SC since 2004.
SC is
known to have approx. 10 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 Changzhou. Our checks
reveal that SC owns the total premise about 1,000
square meters.
SC is not known to host website of its own at present.
In 2007, SC increased its registered capital from CNY 880,000 to the
present amount, and the former shareholders are as follows:
Name
% of Shareholding
Chen Jianlin 50
Zhang Huiying 50
MAIN SHAREHOLDERS:
Name
% of Shareholding
Chen Jianlin 60
Chen Jianming 40
l
Chairman and
General Manager:
Mr. Chen Jianlin, 40 years old with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2004 to present Working in SC as chairman and general manager.
l
Assistant manager
Mr. Chen Jianming, 36 years old with
university education. He is currently responsible for the daily management of
SC.
Working Experience(s):
From 2004 to present Working in SC as assistant manager.
SC is
mainly engaged in processing and selling various composite floors.
SC’s products mainly include: laminated
boards, composite and reinforced floors, and steel-wood computer tables &
stools, etc.
SC’ brand is “Depai”.
SC
sources its materials 100% from domestic market, mainly Jiangsu province. SC
sells 60% in domestic market, mainly Jiangsu province, and 40% to overseas
market, mainly European and American countries.
The buying terms of SC include Check, T/T and Credit of
15-30 days. The payment terms of SC include T/T, L/C 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.
Rural
Commercial Bank Cuiqiao Credit
Cooperatives
AC#：8801025000104000017251
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2004 |
As
of Dec. 31, 2005 |
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Cash & bank |
81 |
325 |
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Inventory |
34 |
119 |
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Accounts
receivable |
250 |
45 |
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Other Accounts
receivable |
0 |
0 |
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Advances to suppliers |
0 |
515 |
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To be
apportioned expense |
0 |
0 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
365 |
1,004 |
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Fixed assets |
629 |
645 |
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Long term
investment |
0 |
0 |
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Other assets |
0 |
0 |
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Total assets |
994 |
1,649 |
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============= |
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Short loans |
0 |
0 |
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Accounts payable |
93 |
654 |
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Advance from
clients |
0 |
0 |
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Salaries payable |
14 |
72 |
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Taxes payable |
7 |
-3 |
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Other Accounts
payable |
0 |
45 |
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Withdraw the
expenses in advance |
0 |
0 |
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Other current
liabilities |
5 |
1 |
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------------------ |
------------------ |
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Current
liabilities |
119 |
769 |
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Long term
liabilities |
0 |
0 |
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Other
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
119 |
769 |
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Equities |
875 |
880 |
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Total
liabilities & equities |
994 |
1,649 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2004 |
As of Dec. 31, 2005 |
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Turnover |
278 |
1,649 |
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Cost of goods
sold |
258 |
1,538 |
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Sales expense |
15 |
0 |
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Management expense |
0 |
0 |
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Finance expense |
0 |
0 |
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Profit before
tax |
-2 |
76 |
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Less: profit tax |
3 |
38 |
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Profits |
-5 |
38 |
Important Ratios
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As
of Dec. 31, 2004 |
As
of Dec. 31, 2005 |
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*Current ratio |
3.07 |
1.31 |
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*Quick ratio |
2.78 |
1.15 |
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*Liabilities
to assets |
0.12 |
0.47 |
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*Net profit
margin (%) |
-1.80 |
2.30 |
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*Return on
total assets (%) |
-0.50 |
2.30 |
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*Inventory
/Turnover ×365 |
45 days |
26 days |
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*Accounts
receivable/Turnover ×365 |
328 days |
10 days |
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*Turnover/Total
assets |
0.28 |
1.00 |
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* Cost of
goods sold/Turnover |
0.93 |
0.93 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears fair in 2004 and average in 2005.
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SC’s net profit margin appears fair in 2004 and average in 2005.
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SC’s return on total assets is fair in 2004 and average in 2005.
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SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
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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 normal level.
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The inventory of SC is maintained in an average level.
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The accounts payable of SC appears fairly large.
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SC has no short-term loan in 2006.
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SC’s turnover is in an average 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: Stable.
SC is considered small-sized in its line with a 3 years development
history. A credit line up to USD 8,000
would appear to be within SC’s capacities.
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%)