MIRA
INFORM REPORT
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Report Date : |
04.10.2007 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
No. 5, |
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Country : |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
07.11.1981 |
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Com. Reg. No.: |
3200001104501 |
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Legal Form : |
State-Owned |
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Line of Business : |
Engaged in contracting international and domestic projects, labor
cooperation, import and export trade, and development of real estate. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Up To USD 2,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
NO. 5,
TEL: 86 (0) 25-83310555
FAX: 86 (0) 25-83304526
EXECUTIVE SUMMARY
INCORPORATION DATE : nov. 7, 1981
REGISTRATION NO. : 3200001104501
REGISTERED LEGAL FORM : state-owned
STAFF STRENGTH :
500
REGISTERED CAPITAL : cny300,000,000
BUSINESS LINE :
constructing
TURNOVER :
CNY 3,458,190,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 382,010,000 (AS OF DEC. 31, 2005)
PAYMENT :
average
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : sTABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : well-known
EXCHANGE RATE :
CNY7.74= US$1
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
SC was registered as a state-owned enterprise at local Administration for Industry & Commerce (The official body of issuing and renewing business license) on Nov. 7, 1981.
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 contracting all kinds of internal and overseas
projects; undertaking items of external economics assistance, and consultation,
reconnaissance, design and superintendence of various projects of industrial
and civilian use; and development and management of real estate; exporting equipments
and materials need by contracted projects; dispatching labors of engineering,
manufacturing and service; investing all kinds of non-trading enterprises
abroad; domestic trade; restaurant and services; import and export trade;
designing, constructing and consulting service of environmental projects;
designing, manufacturing, and installing steel structure and wire table
projects, and supplying relative technological services; manufacturing and
selling electronic products and telecommunication equipment and supplying
relative services of technology and consultation; designing and installing
computer network engineering; selling and providing technological services of
computer and related equipments; and selling automobiles (including saloon
cars); also installing and repairing air-conditioning and refrigerating
equipment.
SC is mainly engaged in contracting international and domestic projects,
labor cooperation, import and export trade, and development of real estate.
Mr. Kong Xinning
has been chairman of SC since 1981.
SC owns about 500
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 8,000 square meters.
http://www.zjgj.com It is the website
of its parent company, the design is professional and the content is well
organized. At present, the web is in Chinese version.
E-mail: cjietcc@jinteco.com
SC is one of the Top 500 important enterprises in
MAIN SHAREHOLDERS:
Name % of Shareholding
Jiangsu Province People’s Government 100
l
Chairman
Mr. Kong Xinning, 53 years old with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 1981to present Working in SC as chairman.
SC is mainly engaged in contracting international and domestic projects,
labor cooperation, import and export trade, and development of real estate.
The buying terms of SC include T/T, L/C and Credit of 30-90 days. The
payment terms of SC include T/T, L/C and Credit of 30-90 days.
SC’s contracted projects including:
SC is known to have the following
subsidiaries: (Domestic branches in the first line, Overseas branches in the
second line and holding companies in the third line.)
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 did not provide
any name of trade/service suppliers and we have no other sources to conduct the
enquiry at present.
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.
Jiangsu Province
Bank of
AC#：N/A
Relationship:
Balance Sheet (as
of Dec. 31, 2005)
Unit: CNY’000
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Cash & bank |
363,890 |
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Inventory |
194,470 |
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Accounts
receivable |
219,700 |
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Other Accounts
receivable |
163,450 |
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Accounts payable
in advance |
29,040 |
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To be
apportioned expense |
3,270 |
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Other current
assets |
247,590 |
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Current assets |
1,221,410 |
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Fixed assets |
43,420 |
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Long term
investment |
0 |
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Other assets |
269,250 |
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Total assets |
1,534,080 |
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Short loans |
144,740 |
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Accounts payable |
133,880 |
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Accounts
receivable in advance |
259,710 |
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Other Accounts
payable |
183,300 |
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Salaries payable |
25,720 |
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Welfares payable |
10,470 |
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Taxes payable |
-15,750 |
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Withdraw the
expenses in advance |
43,670 |
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Other current
liabilities |
242,250 |
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Current
liabilities |
1,027,990 |
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Long term
liabilities |
124,080 |
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Other
liabilities |
0 |
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Total
liabilities |
1,152,070 |
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Equities |
382,010 |
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Total
liabilities & equities |
1,534,080 |
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Income Statement (as
of Dec. 31, 2005)
Unit: CNY’000
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Turnover |
3,458,190 |
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Cost of goods
sold |
3,292,210 |
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Sales expense |
66,520 |
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Management expense |
67,300 |
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Finance expense |
15,710 |
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Non-operating
expense |
380 |
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Profit before
tax |
16,070 |
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Less: profit tax |
0 |
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Profits |
16,070 |
Important
Ratios
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As
of Dec. 31, 2005 |
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*Current ratio |
1.19 |
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*Quick ratio |
1.00 |
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*Liabilities
to assets |
0.75 |
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*Net profit
margin (%) |
0.46% |
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*Return on
total assets (%) |
1.05% |
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*Inventory /Turnover
×365 |
21 days |
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*Accounts
receivable/Turnover ×365 |
23 days |
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*Turnover/Total
assets |
2.25 |
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* Cost of
goods sold/Turnover |
0.95 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears fairly good
in its line.
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SC’s net profit margin is acceptable.
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SC’s return on total assets is
acceptable.
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SC’s cost of goods sold is fairly high,
comparing with its turnover.
LIQUIDITY:
AVERAGE
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The current ratio of SC is maintained
in a normal level.
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SC’s quick ratio is maintained in a
normal level.
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The inventory of SC is maintained in a
normal level.
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The accounts receivable of SC is maintained in an
acceptable level.
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The short-term loan of SC is maintained in an
acceptable level.
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SC’s turnover is in a fairly good
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 low.
Overall
financial condition of the SC: Stable.
SC is considered large-sized in its industry with stable financial
conditions. A credit line up to USD 2,000,000 would appear to be within SC’s
capacities.
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/normal. |
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%)