MIRA
INFORM REPORT
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Report Date : |
29.10.2007 |
IDENTIFICATION DETAILS
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Name : |
sichuan jiuxin
trade co., ltd. |
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Registered Office : |
Unit J, 28/F City
Tower, No.86, Sec 1 Renmin South Road, Chengdu, Sichuan Province, 610016 Pr |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
July 28, 2003 |
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Com. Reg. No.: |
5101052018012 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in international trade. |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Up To usd 40,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
sichuan jiuxin trade
co., ltd.
unit j,
TEL :
86 (0) 28-86202181
FAX :
86 (0) 28-86202182
EXECUTIVE SUMMARY
INCORPORATION DATE : july 28, 2003
REGISTRATION NO. : 5101052018012
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
11
REGISTERED CAPITAL : CNY 6,000,000
BUSINESS LINE :
trading
TURNOVER :
CNY 17,265,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 6,041,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : average
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY7.49 = 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 July 28, 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 wholesaling and retailing chemical products, medical
raw materials, agricultural and sideline products, decoration materials, steel
materials, hardware, general merchandise, electronic products, computers,
developing and selling multimedia high-tech products, importing and exporting
various kinds of commodities and technology, excluding the goods limited or
forbidden by the government
SC is mainly
engaged in international trade.
Mr. Dai Xiaobo has
been chairman of SC since 2007.
SC is known to
have approx. 11 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 Chengdu. Our checks reveal that SC
rents the total premise about 150 square meters.
SC is not known to host web site of its own at present.
Changes of its registered information are as follows:
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Date of change |
Item |
Before the
change |
After the change |
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Chairman |
Dai Xiaoyong |
Dai Xiaobo |
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Shareholders |
Guo Suhua 10% Dai Xiaoyong 90% |
Guo Suhua 10% Dai Xiaobo 90% |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Guo Suhua 10
Dai Xiaobo 90
l
Chairman and
General Manager:
Mr. Dai Xiaobo, 20 years old with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2007 to present Working
in SC as chairman and general manager.
SC is mainly
engaged in international trade.
SC’s products
mainly include: phosphate rock, pyrite, cassava stem, thiocyanate erythromycin,
erythromycin, citric acid.
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 L/C and Credit of 30 days.
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.
SC declined to
release its bank details.
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 |
3,949 |
3,936 |
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Inventory |
18 |
5 |
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Accounts
receivable |
3,135 |
586 |
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Other Accounts
receivable |
4 |
33 |
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Advances to
suppliers |
2,449 |
5,040 |
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To be
apportioned expense |
0 |
0 |
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Other current
assets |
700 |
441 |
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------------------ |
------------------ |
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Current assets |
10,255 |
10,041 |
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Fixed assets net
value |
4 |
42 |
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Projects under
construction |
0 |
0 |
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Long term
investment |
0 |
0 |
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Other assets |
0 |
0 |
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Total assets |
10,259 |
10,083 |
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============= |
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Short loans |
0 |
0 |
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Accounts payable |
0 |
0 |
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Other Accounts
payable |
173 |
-39 |
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Notes payable |
4,000 |
4,000 |
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Withdraw the expenses
in advance |
0 |
50 |
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Other current
liabilities |
40 |
31 |
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Current
liabilities |
4,213 |
4,042 |
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Long term
liabilities |
0 |
0 |
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Other
liabilities |
0 |
0 |
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------------------ |
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Total
liabilities |
4,213 |
4,042 |
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Equities |
6,046 |
6,041 |
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Total
liabilities & equities |
10,259 |
10,083 |
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Income Statement
Unit: CNY’000
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2005 |
2006 |
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Turnover |
24,362 |
17,265 |
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Cost of goods
sold |
23,358 |
16,346 |
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Sales expense |
401 |
560 |
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Management expense |
343 |
433 |
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Finance expense |
220 |
42 |
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Profit before
tax |
14 |
-5 |
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Less: profit tax |
2 |
0 |
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Profits |
12 |
-5 |
Important
Ratios
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As
of Dec. 31, 2005 |
As
of Dec. 31, 2006 |
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*Current ratio |
2.43 |
2.48 |
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*Quick ratio |
2.43 |
2.48 |
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*Liabilities
to assets |
0.41 |
0.40 |
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*Net profit
margin (%) |
0.05 |
-0.03 |
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*Return on
total assets (%) |
0.12 |
-0.05 |
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*Inventory
/Turnover ×365 |
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/ |
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*Accounts
receivable/Turnover ×365 |
47 days |
12 days |
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*Turnover/Total
assets |
2.37 |
1.71 |
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* Cost of
goods sold/Turnover |
0.96 |
0.95 |
PROFITABILITY:
FAIR
l
The turnover of SC appears average in its line, and
it decreased in 2006.
l
SC’s net profit margin is fair in 2006.
l
SC’s return on total assets is fair in 2006.
l
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 conversion period of SC is short.
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The accounts receivable of SC is maintained in an
average level.
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SC has no short-term loan 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 low.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered small-sized in its line with fairly stable financial
conditions. A credit line up to USD 40,000
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%)