MIRA
INFORM REPORT
|
Report Date : |
21.11.2007 |
IDENTIFICATION
DETAILS
|
Name : |
cofco grains &
oils import and export corpORATION |
|
|
|
|
Registered Office : |
8 Floor, Tower A,
Cofco Plaza, No. 8, Jianguomennei Avenue, Beijing 100005 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2006 |
|
|
|
|
Date of Incorporation : |
Jan. 30, 1988 |
|
|
|
|
Com. Reg. No.: |
1000001004104 |
|
|
|
|
Legal Form : |
State-Owned Enterprise |
|
|
|
|
Line of Business : |
Engaged in international trade. |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
Up To USD 3,000,000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
name & address
cofco grains &
oils import and export corpORATION
8 FLOOR, TOWER A, COFCO PLAZA, NO. 8,
JIANGUOmenNEI AVENUE
BEIJING 100005 PR CHINA
TEL :
86 (0) 10-85006688
FAX :
86 (0) 10-65278652
EXECUTIVE SUMMARY
INCORPORATION DATE : jan. 30, 1988
REGISTRATION NO. :
1000001004104
REGISTERED LEGAL FORM : STATE-OWNED
ENTERPRISE
STAFF STRENGTH :
100
REGISTERED CAPITAL : CNY 30,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 2,716,640,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 460,780,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE :
UP TO USD 3,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
7.42 =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 State
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Jan. 30, 1988.
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 selling grain
& oil products; and international trade.
SC is
mainly engaged in international trade.
Mr. Li
Ming has been general manager of SC since 2006.
SC is
known to have approx. 100 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 Beijing. Our checks reveal that SC rents the
total premise about 2,000 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
COFCO Limited 100
COFCO Limited
============
Founded in 1952, COFCO is a leading grains,
oils and foodstuff import and export group in China and one of its largest food
manufacturers. Fortune magazine lists it as one of the world's top 500
enterprises.
Address: 11/F, Tower A, COFCO Plaza, 8
Jianguomennei Avenue, Beijing, China
Post Code: 100005
Telephone: +86-10-85006688
Fax: +86-10-65278612
Website: http://www.cofco.com
l
General Manager:
Mr. Li Ming, in his 50’s with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2006 to present Working in SC as general manager.
SC is mainly
engaged in international trade.
SC’s products mainly include: grain and oil products.
SC
sources its materials 80% from domestic market, mainly Beijing, and 20% from
overseas market. SC sells 60% to overseas market, and 40% in domestic market,
mainly Beijing, Tianjin, and Hebei province, etc.
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:
==============
COFCO Limited
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’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.
SC’s
management declined to release its bank information.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2006 |
|
Cash & bank |
428,200 |
|
Inventory |
17,160 |
|
Accounts
receivable |
57,260 |
|
Other Accounts
receivable |
34,440 |
|
Advances to
suppliers |
530,080 |
|
To be
apportioned expense |
0 |
|
Other current
assets |
184,660 |
|
|
------------------ |
|
Current assets |
1,251,800 |
|
Fixed assets |
15,760 |
|
Long term
investment |
0 |
|
Other assets |
174,180 |
|
|
------------------ |
|
Total assets |
1,441,740 |
|
|
============= |
|
Short loans |
384,370 |
|
Accounts payable |
13,630 |
|
Advance from
clients |
405,680 |
|
Other Accounts
payable |
165,900 |
|
Withdraw the
expenses in advance |
0 |
|
Other current
liabilities |
11,380 |
|
|
------------------ |
|
Current
liabilities |
980,960 |
|
Long term
liabilities |
0 |
|
Other
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
980,960 |
|
Equities |
460,780 |
|
|
------------------ |
|
Total
liabilities & equities |
1,441,740 |
|
|
============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31, 2006 |
|
Turnover |
2,716,640 |
|
Cost of goods
sold |
2,577,530 |
|
Sales expense |
78,270 |
|
Management expense |
35,590 |
|
Finance expense |
-11,720 |
|
Profit before
tax |
36,680 |
|
Less: profit tax |
0 |
|
Profits |
36,680 |
Important Ratios
=============
|
|
As of Dec. 31, 2006 |
|
*Current
ratio |
1.28 |
|
*Quick
ratio |
1.26 |
|
*Liabilities
to assets |
0.68 |
|
*Net
profit margin (%) |
1.35 |
|
*Return
on total assets (%) |
2.54 |
|
*Inventory
/Turnover ×365 |
2days |
|
*Accounts
receivable/Turnover ×365 |
8days |
|
*Turnover/Total
assets |
1.88 |
|
*
Cost of goods sold/Turnover |
0.95 |
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 fairly high, comparing with its
turnover.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a normal level.
l
SC’s quick ratio is maintained in a fairly good level.
l
The inventory of SC is maintained in an average level.
l
The accounts receivable of SC is maintained in an average level.
l
The short-term loan of SC appears fairly large.
l
SC’s turnover is in an average 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 average.
Overall
financial condition of the SC: Stable.
SC
is considered medium-sized in its line with good background. A credit line up
to USD 3,000,000 would appear to be within SC’s capacities.
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%)