MIRA
INFORM REPORT
|
Report Date : |
19.11.2007 |
IDENTIFICATION
DETAILS
|
Name : |
china textile
resources nanjing corp. |
|
|
|
|
Registered Office : |
No. 187, Zhujiang
Road, Nanjing City, Jiangsu Province 210008 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2006 |
|
|
|
|
Date of Incorporation : |
Apr. 10, 1990 |
|
|
|
|
Com. Reg. No.: |
3200001100003 |
|
|
|
|
Legal Form : |
State-Owned Enterprise |
|
|
|
|
Line of Business : |
Engaged
in international trade. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
Up To USD 200,000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
Litigation : |
Clear |
name & address
china textile
resources nanjing corp.
no. 187, zhujiang road, nanjing city
jiangsu province 210008 PR CHINA
TEL :
86 (0) 25-83605601
FAX :
86 (0) 25-83368233
EXECUTIVE SUMMARY
INCORPORATION DATE : apr. 10, 1990
REGISTRATION NO. :
3200001100003
REGISTERED LEGAL FORM : STATE-OWNED
ENTERPRISE
STAFF STRENGTH :
53
REGISTERED CAPITAL : CNY 27,741,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 285,990,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 38,260,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE :
UP TO USD 200,000 (PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
7.43 =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 state-owned enterprise at Jiangsu provincial
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Apr. 10, 1990.
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, has 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 wholesaling and
retailing textile materials, textiles, and textile equipment; consulting
services of textile technology; supplying storage services; importing and
exporting commodities & technologies; processing
with imported materials, processing with imported samples, assemblying with
imported parts, and compensation trade in agreement; counter trade & transit trade.
SC is
mainly engaged in international trade.
Mr.
Zheng Yaokun has been general manager of SC since 1990.
SC is
known to have approx. 53 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 Nanjing. Our checks reveal that SC
owns the total premise about 1,500 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 the
local AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
China Textile Resources Corporation 100
China Textile Resources Corporation is
directly under State-owned Assets Supervision and Administration Commission of
the State Council (original the ministry of Textile Industry), and ranks 24th
at the largest 500 enterprises of resources circulation in China.
Address: No. 19, Huixin West Street,
Chaoyang District, Beijing
Tel: 010-52021809
Fax: 010-52021877
Website: http://www.ctrc.com.cn
E-mail: ctrc@ctrc.com.cn
l
General Manager:
Mr. Zheng Yaokun, in his 50’s university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 1990 to present Working in SC as general manager.
l
Assistant Manager:
Mr. Yang Xiaoxiong, in his 40’s university
education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 1990 to present Working in SC as assistant manager.
SC is
mainly engaged in international trade.
SC’s products mainly include: textile materials, textiles, textile equipment,
etc.
SC
sources its materials 30% from domestic market, mainly Jiangsu and Zhejiang
province, and 70% from overseas market. SC sells 60% to overseas market, mainly
Australia, New Zealand, Uruguay, UK, USA, and Italy, and 40% in domestic
market, mainly Jiangsu province.
The buying terms of SC include T/T, L/C, Check and Credit of
15-30 days. The payment terms of SC include T/T, L/C, Check and Credit of 15-30
days.
*Major Supplier:
==============
Dongtai Changfeng Bedding Products Co., Ltd.
*Major Customer:
==============
Suqian Jianlu Wool Factory
SC is
known to have a subsidiary at present, as follows:
Nanjing
Woolen Market Co., Ltd.
Address:
4/F No. 187 Zhujiang Road, Nanjing, Jiangsu Province
Tel: 86
025-83615741
Fax: 86
025-83615254
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.
Industrial
and Commercial Bank of China
AC#：4301015909001138169
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2006 |
|
Cash & bank |
1,280 |
|
Inventory |
60,970 |
|
Accounts
receivable |
2,210 |
|
Other Accounts
receivable |
3,220 |
|
Advances to
suppliers |
35,100 |
|
To be
apportioned expense |
0 |
|
Other current
assets |
8,400 |
|
|
------------------ |
|
Current assets |
111,180 |
|
Fixed assets |
14,660 |
|
Long term investment |
730 |
|
Other assets |
0 |
|
|
------------------ |
|
Total assets |
126,570 |
|
|
============= |
|
Short loans |
39,430 |
|
Accounts payable |
6,300 |
|
Advance from
clients |
36,490 |
|
Other Accounts
payable |
2,690 |
|
Withdraw the expenses
in advance |
0 |
|
Other current
liabilities |
3,400 |
|
|
------------------ |
|
Current
liabilities |
88,310 |
|
Long term
liabilities |
0 |
|
Other
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
88,310 |
|
Equities |
38,260 |
|
|
------------------ |
|
Total
liabilities & equities |
126,570 |
|
|
============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31, 2006 |
|
Turnover |
285,990 |
|
Cost of goods
sold |
280,490 |
|
Sales expense |
3,960 |
|
Management expense |
4,810 |
|
Finance expense |
1,560 |
|
Profit before
tax |
1,660 |
|
Less: profit tax |
260 |
|
Profits |
1,400 |
Important Ratios
=============
|
|
As of Dec. 31, 2006 |
|
*Current
ratio |
1.26 |
|
*Quick
ratio |
0.57 |
|
*Liabilities
to assets |
0.70 |
|
*Net
profit margin (%) |
0.49 |
|
*Return
on total assets (%) |
1.11 |
|
*Inventory
/Turnover ×365 |
78days |
|
*Accounts
receivable/Turnover ×365 |
3days |
|
*Turnover/Total
assets |
2.26 |
|
*
Cost of goods sold/Turnover |
0.98 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is high, comparing with its
turnover.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a normal level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC appears LARGE.
l
The accounts receivable of SC is maintained in an average level.
l
The short-term loan of SC appears LARGE.
l
SC’s turnover is in a fairly good level, comparing with the
size of its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC is fairly high
l
The risk for SC to go bankrupt is low.
Overall
financial condition of the SC: Fairly stable.
SC is considered medium-sized in its line with favorable
background. The large amount of inventory could be
a threat to SC’s financial condition. A credit line up
to USD 200,000 appears to be within SC’s capacities upon a periodical review
basis.
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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%)