MIRA
INFORM REPORT
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Report Date : |
20.10.2007 |
IDENTIFICATION DETAILS
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Name : |
shandong santai rubber co., ltd. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
09.06.1999 |
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Com. Reg. No.: |
3705232800092 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in Manufacturing Rubber Products |
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 100,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
NAME & ADDRESS
shandong santai rubber co., ltd.
TEL: 86 (0) 546-6877002
FAX: 86 (0) 546-6877055
EXECUTIVE SUMMARY
INCORPORATION DATE : jun. 9, 1999
REGISTRATION NO. : 3705232800092
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
CHIEF EXECUTIVE : MR. LIU ZIJUN (CHAIRMAN)
STAFF STRENGTH : 1,100
REGISTERED CAPITAL : CNY 23,000,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 75,810,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 164,090,000 (AS OF DEC. 31, 2006)
PAYMENT : AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fair
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 7.50 =US1$
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
Note: SC’s name should be the above stated one, instead of the
given one Shandong Santi Rubber Co., Ltd.
SC was registered as a limited liabilities co. at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Jun. 9, 1999.
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 manufacturing and selling rubber products.
SC is mainly engaged in manufacturing rubber products.
Mr. Liu Zijun
has been chairman of SC since 2006.
SC is known to have approx. 1,100 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 Dongying. Our checks reveal that SC owns the total premise about 180,000 square meters.
SC is not known to host website of its own at present.
In 2006, SC’s former legal representative Mr. Liu Zhanyi (刘占一) was replaced by the present one.
MAIN SHAREHOLDERS:
Name Investment (’000) % of Shareholding
Liu Zhanyi 12,000 52.17
Liu Zijun 6,880 29.91
Liu Zijiang 3,120 13.57
Qian Jiating 1,000 4.35
Chairman and General Manager:
Mr. Liu Zijun in his
Working Experience(s):
From 2006 to present Working in SC as chairman and general manager.
Assistant Manager:
Mr. Liu Zijiang ,
in his
Working Experience(s):
From 2006 to present Working in SC as assistant manager.
SC is mainly engaged in manufacturing rubber products.
SC’s products mainly include: agricultural tires, automobile tires, and engineering machine tires, etc.
SC sources its materials 80% from overseas market, mainly
The buying terms of SC include Check, T/T, L/C, Check and Credit of 30-60 days. The payment terms of SC include T/T, L/C, Check and Credit of 30-60 days.
*Major Customer:
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Shandong Yongsheng Rubber Group 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 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.
Agricultural Bank of
AC#：15332701040005367
Relationship:
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
3,390 |
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Inventory |
63,380 |
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Accounts receivable |
1,990 |
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Other Accounts receivable |
860 |
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Advances to suppliers |
-22,110 |
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To be apportioned expense |
0 |
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Other current assets |
1,030 |
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Current assets |
48,540 |
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Fixed assets |
228,510 |
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Fixed assets net value |
226,700 |
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Projects under construction |
1,810 |
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Long term investment |
0 |
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Other assets |
6,650 |
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Total assets |
283,700 |
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Short loans |
6,630 |
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Accounts payable |
59,170 |
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Advances from clients |
28,640 |
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Taxes payable |
0 |
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Other Accounts payable |
18,690 |
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Withdraw the expenses in advance |
0 |
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Other current liabilities |
6,480 |
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Current liabilities |
119,610 |
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Long term liabilities |
0 |
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Other liabilities |
0 |
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Total liabilities |
119,610 |
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Equities |
164,090 |
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Total liabilities & equities |
283,700 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
75,810 |
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Cost of goods sold |
74,410 |
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Sales expense |
110 |
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Management expense |
-100 |
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Finance expense |
10 |
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Profit before tax |
860 |
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Less: profit tax |
0 |
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Profits |
860 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 0.41
*Quick ratio -0.12
*Liabilities to assets 0.42
*Net profit margin (%) 1.13
*Return on total assets (%) 0.30
*Inventory /Turnover ×365 305 days
*Accounts receivable/Turnover ×365 10 days
*Turnover/Total assets 0.27
* Cost of goods sold/Turnover 0.98
PROFITABILITY: AVERAGE
The turnover of SC appears fair in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of goods sold is high, comparing with its turnover.
LIQUIDITY: POOR
The current ratio of SC is maintained in a fairly poor level.
SC’s quick ratio is maintained in a POOR level.
The inventory of SC appears TOO LARGE.
The accounts receivable of SC is maintained in an average level.
The short-term loan of SC is maintained in an average level.
SC’s turnover is in a fair level, comparing with the size of its total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is low.
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fair.
SC is considered medium-sized in its line with fair financial conditions. The large amount of inventory could be a threat to SC’s financial condition. A credit line up to USD 100,000 appears to be within SC’s capacities upon a periodical review.
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%)