MIRA
INFORM REPORT
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Report Date : |
29.10.2007 |
IDENTIFICATION DETAILS
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Name : |
shanghai grace
trading co., ltd. |
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Registered Office : |
D Room 15/F, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
January 20, 2003 |
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Com. Reg. No.: |
3101152010534 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in selling metal materials. |
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 60,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
shanghai grace
trading co., ltd.
D ROOM 15/F,
TEL :
86 (0) 21-68537850
FAX :
86 (0) 21-58600053
EXECUTIVE SUMMARY
INCORPORATION DATE : JANUARY 20, 2003
REGISTRATION NO. : 3101152010534
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
10
REGISTERED CAPITAL : CNY 1,000,000
BUSINESS LINE :
trading
TURNOVER :
CNY 28,790,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 4,720,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : average
FINANCIAL CONDITION : stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY7.48 = 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 limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on January 20, 2003.
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 selling metal materials, chemical raw materials and
products, automotive parts, general merchandise, textiles, stationery, garments,
furniture and handicrafts, importing and exporting various kinds of commodities
and technology, excluding the goods limited or forbidden by the government.
SC is mainly
engaged in selling metal materials.
Mr. Duan Xiaozhi
has been chairman of SC since 2003.
SC is known to
have approx. 10 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 Shanghai. Our checks reveal that SC
rents the total premise about 130 square meters.
SC is not known to host web site of its own at present.
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Duan Xiaozhi 40
Duan Zhendong 60
l
Chairman and
General Manager:
Mr. Duan Xiaozhi, 35 years old with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2003 to present Working
in SC as chairman and general manager.
SC is mainly
engaged in selling metal materials.
SC’s products mainly
include: aluminum foil.
SC sources its materials 100% from domestic
market, mainly
The buying terms of SC include Check, T/T and Credit of 30 days. The
payment terms of SC include T/T, L/C and Credit of 30 days.
*Major Customers:
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Shanghai Morimatsu Pressure Vessel Co., Ltd.
*Major Suppliers:
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Southwest Aluminum (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 : A trade enquiry currently
conducted with SC's supplier(s) reveal the following:
Supplier
A
Products sold: Aluminum
foil
Date account opened: 2006
Line of credit: No comment
Terms: T/T,
Credit of 30 days
Average monthly sales: No comment
Current balance: N/A
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.
Construction Bank of
AC#：05584714020002721
Relationship:
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
160 |
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Inventory |
2,510 |
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Accounts
receivable |
3,400 |
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Other Accounts
receivable |
2,500 |
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To be
apportioned expense |
0 |
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Other current
assets |
760 |
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Current assets |
9,330 |
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Fixed assets net
value |
240 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
20 |
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Total assets |
9,590 |
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Short loans |
0 |
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Accounts payable |
1,530 |
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Other Accounts
payable |
480 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
2,860 |
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Current
liabilities |
4,870 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total liabilities |
4,870 |
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Equities |
4,720 |
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Total
liabilities & equities |
9,590 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
28,790 |
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Cost of goods
sold |
24,630 |
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Sales expense |
1,030 |
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Management expense |
530 |
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Finance expense |
30 |
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Profit before
tax |
2,500 |
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Less: profit tax |
410 |
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Profits |
2,090 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 1.92
*Quick ratio 1.40
*Liabilities to
assets 0.51
*Net profit
margin (%) 7.26
*Return on total
assets (%) 21.79
*Inventory
/Turnover ×365 32 days
*Accounts
receivable/Turnover ×365 43 days
*Turnover/Total
assets 3.00
* Cost of goods
sold/Turnover 0.86
PROFITABILITY:
FAIRLY GOOD
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The turnover of SC appears fairly good in its line.
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SC’s net profit margin is fairly good.
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SC’s return on total assets is fairly good.
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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 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 an average
level.
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The accounts receivable of SC is maintained in a
fairly large level.
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SC has no short-term loan in 2006.
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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 average.
Overall financial
condition of the SC: Stable.
SC is considered small-sized in its line with stable financial
conditions. Over the past 4 years, SC has made a stable growth with fairly good
profit. A credit line up to USD 60,000
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%)