MIRA
INFORM REPORT
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Report Date : |
16.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
SHANDONG TIANYUAN FIBER CO., LTD. |
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Registered Office : |
No. 2 Xinzhu Road, Licheng District, Jinan, Shandong
Province, 250100 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. 21, 2001 |
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Com. Reg. No.: |
370000018069242 |
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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 : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
Up To usd 200,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
SHANDONG TIANYUAN FIBER CO., LTD.
NO. 2 XINZHU ROAD, LICHENG DISTRICT, JINAN,
SHANDONG PROVINCE, 250100 PR CHINA
TEL : 86 (0) 531-82599752
FAX : 86 (0) 531-82599757
EXECUTIVE SUMMARY
INCORPORATION DATE : AUG. 21, 2001
REGISTRATION NO. : 370000018069242
REGISTERED LEGAL FORM : LIMITED LIABILITIES
COMPANY
STAFF STRENGTH :
35
REGISTERED CAPITAL : CNY 30,000,000
BUSINESS LINE :
TRADING
TURNOVER :
cny 348,710,000 (AS OF DEC. 31, 2006)
EQUITIES :
cny 31,150,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 200,000 (periodical review)
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fair
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 Aug. 21, 2001.
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 selling textiles products,
hardware, chemical products, steel materials, cement, paper pulp and cotton; developing
agriculture technology; importing and exporting various goods.
SC is mainly
engaged in international trade.
Mr. Bai Zhigang
has been chairman of SC since 2001.
SC is known
to have approx. 35 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 Jinan. Our checks reveal that SC
rents the total premise about 400 square meters.
SC is not known to host website of its own at present.
No significant events or changes were found during our checks with local
AIC.
MAIN SHAREHOLDERS:
Name % of Shareholding
Shandong Supply & Marketing Cooperative (Group) General Corp. 56.33
Shandong Cotton Machinery Corp 0.83
Shandong Cotton and Linen Corp 17.48
Zou Chunhui 2.67
Zhang Gongwei 1.50
Liu Xingkang 1.50
Jiang Zhong 1.50
Sun Jixian 1.50
Bian Shenggui 1.50
Gai Yongjiu 1.50
Liu Zhigang 1.50
Yan Jingqin 1.50
Sun Longquan 1.50
Other 14 Individuals 9.19
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Chairman and
General Manager:
Mr. Bai Zhigang, in his 40’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. Zhang Gongwei, in his 40’s with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
From 2001 to present Working in SC as vice general manager.
SC is mainly
engaged in international trade.
SC’s products
mainly include: cotton.
SC sources its
materials 100% from the overseas market, mainly Southeast Asia, 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 30-60 days.
*Major Client:
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Shandong Wucheng Tianyuan Cotton Co., Ltd.
*Major Supplier:
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China National Cotton Exchange Co., Ltd.
SC is
known to have 7 subsidiaries as following,
Shandong
Lumian Group Co., Ltd.
Shandong
Tengzhou Tianyuan Textile Co., Ltd.
Shandong Swan Cotton Industrial Machinery Stock Co., Ltd.
Beijing
Lumian Tianyuan Trading Co., Ltd.
Shandong
Lumian Tianyuan Trading Co., Ltd.
Shandong
Lumian Kaiyuan Textile Materials Co., Ltd.
Yantai
Tianyuan Cotton Co., Ltd.
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.
Agriculture Bank of China Heping Sub-branch
AC#：15810104007284
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2006 |
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Cash & bank |
112,860 |
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Inventory |
178,790 |
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Accounts
receivable |
4,390 |
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Advances to
suppliers |
69,440 |
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Other
receivables |
224,990 |
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Other current
assets |
3,010 |
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------------------ |
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Current assets |
593,480 |
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Fixed assets net
value |
1,980 |
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Projects under
construction |
0 |
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Long term
investment |
92,590 |
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Other assets |
0 |
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Total assets |
688,050 |
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Short loans |
142,000 |
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Accounts payable |
22,640 |
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Advances from
clients |
21,770 |
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Taxes payable |
-3,830 |
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Salaries payable |
0 |
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Other payable |
248,170 |
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Other current liabilities |
196,150 |
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Current
liabilities |
626,900 |
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Long term
liabilities |
30,000 |
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Total
liabilities |
656,900 |
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Equities |
31,150 |
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Total
liabilities & equities |
688,050 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2006 |
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Turnover |
348,710 |
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Cost of goods
sold |
327,050 |
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Sales expense |
7,090 |
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Management expense |
2,740 |
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Finance expense |
10,080 |
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Profit before
tax |
40 |
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Less: profit tax |
10 |
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Profits |
30 |
Important Ratios
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2006 |
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*Current ratio |
0.95 |
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*Quick ratio |
0.66 |
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*Liabilities
to assets |
0.95 |
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*Net profit
margin (%) |
0.01 |
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*Return on
total assets (%) |
0 |
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*Inventory
/Turnover ×365 |
187days |
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*Accounts
receivable/Turnover ×365 |
4days |
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*Turnover/Total
assets |
0.51 |
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* Cost of
goods sold/Turnover |
0.94 |
PROFITABILITY: AVERAGE
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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.
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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 fair level in 2006.
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SC’s quick ratio is maintained in a fair level in 2006.
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The accounts receivable of SC is average.
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The inventory of SC is fairly large.
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The short loans of SC are LARGE.
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SC’s turnover is in a fair level, comparing with the size of its total
assets.
LEVERAGE: FAIR
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The debt ratio of SC is high.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
SC is well-known in its industry with fair financial conditions. The
large amount of short loans could be a threat to SC’s financial condition. A
credit line up to USD 200,000 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%)