MIRA
INFORM REPORT
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Report Date : |
23.10.2007 |
IDENTIFICATION DETAILS
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Name : |
hongrun (guanxian)
priting & dyeing co., ltd. |
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Registered Office : |
No. 339, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Dec. 30, 2004 |
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Com. Reg. No.: |
000250 |
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Legal Form : |
Wholly Foreign-Owned |
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Line of Business : |
Manufacturing batik fabric. |
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 : |
No Complaints |
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Litigation : |
Clear |
name & address
hongrun (guanxian)
priting & dyeing co., ltd.
no. 339,
TEL :
86 (0) 635-8259568/5289739
FAX :
86 (0) 635-5289568
EXECUTIVE SUMMARY
INCORPORATION DATE : dec. 30, 2004
REGISTRATION NO. : 000250
REGISTERED LEGAL FORM : wholly foreign-owned
STAFF STRENGTH :
1,100
REGISTERED CAPITAL : USD 2,380,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 28,670,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 18,910,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : average
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : steady
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 7.50 = US$1
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
Note: SC’s concrete name should be the above stated one,
instead of the given one - Hongrun (Guanxian) Printing.
SC was registered as a wholly foreign-owned enterprise at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on Dec. 30, 2004.
Company Status: Wholly foreign-owned enterprise. This form of business in PR
China is defined as a legal person. It is a limited co. established within
the territories of PR China with capital provided totally by the foreign
investors. More than one foreign investor may jointly invest in a wholly
foreign-owned enterprise. The investing party/parties solely exercise
management, reap profit and bear risks and liabilities by themselves. This
form of companies usually have a limited duration is extendible upon
approval of Examination and Approval Authorities.
SC’s registered
business scope includes designing, manufacturing, and selling batik fabric,
bleached cloth, dyeing cloth, series of dye printing products, batik &
dyeing garments, textiles, and tourism series products; pigment printing,
post-processing, and selling high quality textiles; manufacturing, processing,
and selling dyes and chemical ingredients.
SC is
mainly engaged in manufacturing batik fabric.
Mr. Wang Gangsheng has been chairman of SC since 2004.
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
Guanxian. Our checks reveal that SC rents the total premise about 49,100 square
meters.
SC is not known to host website of its own at present.
E-mail: auden@163169.net
Until December 31, 2006, SC’s paid-up capital was CNY 19,350,000.
MAIN SHAREHOLDERS:
Name
% of Shareholding
Hong Kong Jianbang Co., Ltd. 100
l
Chairman:
Mr. Wang Gangsheng,
Working Experience(s):
From 2004 to present Working in SC as chairman;
At present Working in Liaocheng Aodeng Agricultural Development Co., Ltd. and
Hongrun (Liaocheng) Printing & Dyeing Co., Ltd. as chairman.
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General Manager:
Mr. Li Dongmin, in his
Working Experience(s):
From 2004 to present Working in SC as general manager.
SC is mainly
engaged in manufacturing batik fabric.
SC’s products mainly include: batik fabric, garments,
textiles, etc.
SC sources its materials 95%
from domestic market, mainly
The
buying terms of SC include T/T, L/C and Credit of 30-60 days. The payment terms
of SC include T/T, L/C, and Credit of 15-30 days.
*Major Supplier:
==============
Guanxian Top Star Textile 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: A trade enquiry currently
conducted with SC's supplier(s) reveal the following:
Supplier
A
Products sold: cotton yarn
Date account opened: 2006
Line of credit: No comment
Terms: T/T, Credit
of 30 days
Average monthly sales: No comment
Current balance: zero
Rating Key: 3
Any Special Comments:
______________________________________
Payment record keys :
1 = Prompt : Payment made before the credit
period expires
2 = As agreed terms : Payment made upon due
date
3 = Slightly slow but acceptable : Payment
made 5 to 20 days beyond agreed terms
4 = Slow : Payment made 16 to 45 days beyond
agreed terms
5 = Poor : Payment made over 45 days beyond
agreed terms
6
= No comment : Account is newly opened & record is not yet established
Note : In
some instances, payment beyond terms can be the result of disputes over
merchandise, lost invoices, disputed accounts & etc.
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.
Bank of
AC#：414800688028091001
Relationship:
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2005 |
As
of Dec. 31, 2006 |
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Cash & bank |
820 |
1,990 |
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Inventory |
2,490 |
5,830 |
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Accounts
receivable |
7,870 |
5,040 |
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Other Accounts
receivable |
560 |
1,740 |
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Advances to
suppliers |
2,340 |
6,570 |
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To be
apportioned expense |
0 |
0 |
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Other current
assets |
0 |
500 |
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Current assets |
14,080 |
21,670 |
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Fixed assets |
1,550 |
12,830 |
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Fixed assets net
value |
1,080 |
1,970 |
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Projects under
construction |
470 |
10,860 |
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Long term
investment |
0 |
0 |
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Other assets |
650 |
760 |
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Total assets |
16,280 |
35,260 |
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Short loans |
0 |
1,500 |
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Accounts payable |
2,980 |
12,110 |
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Advance from
clients |
0 |
50 |
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Taxes payable |
-850 |
-600 |
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Other Accounts
payable |
1,560 |
3,280 |
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Withdraw the
expenses in advance |
480 |
0 |
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Other current
liabilities |
0 |
10 |
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Current
liabilities |
4,170 |
16,350 |
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Long term
liabilities |
0 |
0 |
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Other liabilities |
0 |
0 |
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Total
liabilities |
4,170 |
16,350 |
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Equities |
12,110 |
18,910 |
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Total
liabilities & equities |
16,280 |
35,260 |
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Income Statement
Unit: CNY’000
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As of Dec. 31,
2005 |
As of Dec. 31,
2006 |
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Turnover |
17,040 |
28,670 |
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Cost of goods
sold |
13,740 |
22,870 |
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Sales expense |
1,260 |
1,710 |
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Management expense |
2,530 |
4,340 |
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Finance expense |
10 |
410 |
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Profit before
tax |
-290 |
-150 |
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Less: profit tax |
0 |
0 |
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Profits |
-290 |
-150 |
Important Ratios
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As
of Dec. 31, 2005 |
As
of Dec. 31, 2006 |
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*Current ratio |
3.38 |
1.33 |
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*Quick ratio |
2.78 |
0.97 |
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*Liabilities
to assets |
0.26 |
0.46 |
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*Net profit
margin (%) |
-1.70 |
-0.52 |
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*Return on
total assets (%) |
-1.78 |
-0.43 |
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*Inventory
/Turnover ×365 |
53 days |
74 days |
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*Accounts receivable/Turnover
×365 |
169 days |
64 days |
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*Turnover/Total
assets |
1.05 |
0.81 |
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* Cost of
goods sold/Turnover |
0.81 |
0.80 |
PROFITABILITY: FAIR
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The turnover of SC appears average in its
line, and it increased in 2006.
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SC’s net profit margin is fair in 2005
and 2006.
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SC’s return on total assets is fair in
2005 and 2006.
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SC’s cost of goods sold is average,
comparing with its turnover.
LIQUIDITY: AVERAGE
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The current ratio of SC is maintained
in a fairly good level in 2005, and normal in 2006.
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SC’s quick ratio is maintained in a
fairly good level in 2005, and normal in 2006.
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The inventory of SC is maintained in an average level in both years.
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The accounts payable of SC appears fairly large in
2006.
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The short-term loan of SC is maintained in an
average level in 2006.
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SC’s turnover is in an average 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:
Fairly stable.
SC is considered
medium-sized in its line with fairly stable financial conditions. A credit line
up to USD 100,000 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. |
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%)