MIRA
INFORM REPORT
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Report Date : |
12.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
SHANGHAI HCH TRADE CO., LTD. |
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Registered Office : |
Room 119 No. 2 Lane 3825 Dushi Road, Shanghai, 201108 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Aug. 22, 2005 |
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Com. Reg. No.: |
3101122097510 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in international trade. |
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 3,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & trade
SHANGHAI HCH TRADE CO., LTD.
ROOM 119 NO. 2 LANE 3825 DUSHI ROAD,
SHANGHAI, 201108 PR CHINA
TEL : 86 (0)
21-34070038
FAX : 86 (0) 21-34075038
EXECUTIVE SUMMARY
INCORPORATION DATE : AUG. 22, 2005
REGISTRATION NO. : 3101122097510
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
4
REGISTERED CAPITAL : CNY 500,000
BUSINESS LINE :
TRADING
TURNOVER :
cny 1,100,000 (AS OF DEC. 31, 2006)
EQUITIES :
cny 450,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 3,000
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fair
OPERATIONAL TREND : fairly 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 limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Aug. 22, 2005.
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.
SC is mainly
engaged in international trade.
Ms. Sun Yongying has
been chairman of SC since 2005.
SC is known
to have approx. 4 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 Shanghai. Our checks reveal that SC
rents the total premise about 90 square meters.
http://www.hchtrading.com . The
design is professional and the content is well organized. At present it is in
Chinese version.
No significant events or changes were found during our checks with local
AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Sun Yongying 80
Cheng Zhi 20
l
Chairman and General
Manager:
Ms. Sun Yongying, in her 50’s with university education. She is
currently responsible for the overall management of SC.
Working Experience(s):
From 2005 to present Working
in SC as chairman and general manager.
SC is mainly
engaged in international trade.
SC’s products
mainly include: tea and condiments.
Royal Kensington
Breakfast Tea
Broken Orange
Pekoe
Mountainman
Teabags
Kara Coconut Cream
Mountainman Black
Pepper Berrirs
Charcoal
SC sources its
materials 20% from domestic market, and 80% from the overseas market, mainly
Southeast Asia and European countries. SC sells 100% of its products in
domestic market.
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 and Credit of 15-30 days.
*Major Client:
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Shanghai Jiadeli Super 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 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.
Construction Bank of China Shanghai Branch
AC#：21030093001202
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2006 |
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Cash & bank |
10 |
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Inventory |
330 |
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Accounts
receivable |
630 |
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Advances to
suppliers |
0 |
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Other
receivables |
0 |
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Other current
assets |
20 |
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Current assets |
990 |
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Fixed assets net
value |
110 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
0 |
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Total assets |
1,100 |
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============= |
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Short loans |
0 |
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Accounts payable |
290 |
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Advances from
clients |
0 |
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Taxes payable |
0 |
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Salaries payable |
0 |
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Other payable |
0 |
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Other current
liabilities |
360 |
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Current
liabilities |
650 |
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Long term
liabilities |
0 |
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Total
liabilities |
650 |
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Equities |
450 |
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Total
liabilities & equities |
1,100 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2006 |
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Turnover |
1,100 |
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Cost of goods
sold |
870 |
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Sales expense |
60 |
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Management expense |
200 |
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Finance expense |
0 |
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Profit before
tax |
-20 |
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Less: profit tax |
0 |
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Profits |
-20 |
Important Ratios
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2006 |
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*Current ratio |
1.52 |
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*Quick ratio |
1.02 |
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*Liabilities
to assets |
0.59 |
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*Net profit
margin (%) |
-1.82 |
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*Return on
total assets (%) |
-1.82 |
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*Fixed
assets/Total assets |
0.10 |
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*Inventory
/Turnover ×365 |
110days |
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*Accounts
receivable/Turnover ×365 |
209days |
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*Turnover/Total
assets |
1.00 |
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* Cost of
goods sold/Turnover |
0.79 |
PROFITABILITY:
FAIR
l
The turnover of SC appears fair 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.
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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 in 2006.
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SC’s quick ratio is maintained in a normal level in 2006.
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The accounts receivable of SC appears large.
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The inventory conversion period of SC appears long.
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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: Fair.
SC is considered small-sized in its line with a short history. The large
amount of accounts receivable could be a threat to SC’s financial condition.
Credit dealings of small amount can be considered for it at present.
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%)