MIRA
INFORM REPORT
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Report Date : |
15.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
DAOYUAN SESAME
CO., LTD. of GUOYANG |
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Registered Office : |
Shuangmiao Town,
Guoyang County, Anhui Province, 233600 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. 28, 1998 |
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Com. Reg. No.: |
3421241000006 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in
processing and selling sesame. |
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 10,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
DAOYUAN SESAME CO.,
LTD. of GUOYANG
SHUANGMIAO TOWN, GUOYANG COUNTY,
ANHUI PROVINCE, 233600 PR CHINA
TEL :
86 (0) 558-7318661
FAX :
86 (0) 558-7317200
EXECUTIVE SUMMARY
INCORPORATION DATE : AUG. 28, 1998
REGISTRATION NO. : 3421241000006
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
42
REGISTERED CAPITAL : CNY 650,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
cny 8,473,000 (AS OF DEC. 31, 2006)
EQUITIES :
cny 1,726,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 10,000 (periodical review)
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIR
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 limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Aug. 28, 1998.
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 processing, purchasing and wholesaling
stripped sesame, cereal (excluding wheat, paddy, corn), and oil materials;
exporting its sesame products and importing materials, machinery, instruments,
and parts needed in its producing and researching.
SC is mainly
engaged in processing and selling sesame.
Mr. Zhang Jiqin
has been chairman of SC since 1998.
SC is known
to have approx. 42 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 Guoyang. Our checks
reveal that SC rents the total premise about 5,000 square meters.
http://www.daoyuansesame.com
. 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:
SC has 11 individual shareholders, following
are the major ones:
Zhang Jiqin
Guo Min
Liu Yan
Hu Donglin
Wang Zhen
l
Chairman and
General Manager:
Mr. Zhang Jiqin, in his 50’s with university education. He is currently responsible
for the overall management of SC.
Working Experience(s):
From 1998 to present Working
in SC as chairman and general manager.
l
Manager:
Ms. Shan Yinshuang, in her 30’s with university education. She is currently
responsible for the daily management of SC.
Working Experience(s):
From 2004 to present Working in SC as manager.
SC is mainly
engaged in processing and selling sesame.
SC’s products mainly include:
hulled sesame seed
washed sesame seed
white sesame seed
roasted sesame
seed
SC sources its
materials 100% from domestic market. SC sells 60% of its products in domestic
market, and 40% to the overseas market, mainly Southeast Asia, American and
European countries.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Client:
===========
Anhui Fengyang Yushan Oil 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 : 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.
Bank of China Guoyang Sub-branch
AC#：106726394621
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2006 |
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Cash & bank |
329 |
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Inventory |
528 |
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Accounts
receivable |
438 |
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Advances to
suppliers |
0 |
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Other
receivables |
215 |
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Other current
assets |
407 |
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------------------ |
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Current assets |
1,917 |
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Fixed assets net
value |
4,362 |
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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 |
6,279 |
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============= |
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Short loans |
521 |
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Accounts payable |
1,769 |
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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 |
892 |
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Other current
liabilities |
1,371 |
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Current
liabilities |
4,553 |
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Long term
liabilities |
0 |
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Total
liabilities |
4,553 |
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Equities |
1,726 |
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Total liabilities
& equities |
6,279 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2006 |
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Turnover |
8,473 |
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Cost of goods
sold |
7,232 |
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Sales expense |
621 |
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Management expense |
366 |
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Finance expense |
-2 |
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Profit before
tax |
231 |
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Less: profit tax |
77 |
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Profits |
154 |
Important Ratios
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2006 |
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*Current ratio |
0.42 |
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*Quick ratio |
0.31 |
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*Liabilities
to assets |
0.73 |
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*Net profit
margin (%) |
1.82 |
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*Return on
total assets (%) |
2.45 |
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*Inventory
/Turnover ×365 |
23days |
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*Accounts
receivable/Turnover ×365 |
19days |
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*Turnover/Total
assets |
1.35 |
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* Cost of
goods sold/Turnover |
0.85 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in 2006.
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SC’s net profit margin is average in 2006.
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SC’s return on total assets is average 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 poor level in 2006.
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SC’s quick ratio is maintained in a poor level in 2006.
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The accounts payable of SC appears LARGE.
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The inventory of SC is maintained in an average level.
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The short loans are maintained in an average level.
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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 above average.
Overall financial
condition of the SC: Fair.
SC is considered small-sized in its line with fair financial conditions.
The large amount of accounts payable 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%)