MIRA
INFORM REPORT
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Report Date : |
06.09.2007 |
IDENTIFICATION DETAILS
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Name : |
east grace
corporation |
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Registered Office : |
No.395 |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
November 30, 1998 |
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Com. Reg. No.: |
3202002112302 |
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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 : |
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 500,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
east grace
corporation
no.395
TEL: 86 (0) 510-82708858
FAX: 86 (0) 510-82701279
EXECUTIVE SUMMARY
INCORPORATION DATE : november 30, 1998
REGISTRATION NO. : 3202002112302
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
41
REGISTERED CAPITAL : CNY 131,080,000
BUSINESS LINE :
trading
TURNOVER :
CNY 63,080,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 99,650,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : average
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY7.55 = 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 November 30, 1998.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. At least two shareholders and no more
than fifty 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 listed as follows: -manufacturing co. :
CNY 500,000.00 -trading &wholesaling
co. : CNY 500,000.00 -retailing co. : CNY 300,000.00 -consultancy & service
co. : CNY 100,000.00 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 operating and acting as an agent of importing and
exporting various kinds of commodities and technology, excluding the goods
forbidden by the government, processing with imported materials, processing
with imported samples, assemblying with imported parts, and compensation trade
in agreement; counter trade
& transit trade, domestic trade, economic information consultation,
intermediary services, storage service.
SC is mainly
engaged in international trade.
Mr. Li Ding has
been chairman of SC since 1998.
SC owns about 41
staff at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Wuxi. Our checks reveal that SC owns
the total premise about 1,000 square meters.
http://www.eastgrace.com.cn
The design is professional and the content is well organized. At present the
web site is both in Chinese and English versions.
E-mail: wxegco@eastgrace.com
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Cai Jianxin 2.47
Cao Xing 4.50
Fu Dongming 4.00
Huang Jiexun 3.68
Jiang Yafeng 2.00
Jiang Xiongbing 3.30
Li Ding 10.00
Su Jian 4.20
Wang Yao 5.00
Wen Hanliang 5.00
East Grace Corporation Shareholder’s Union
of Staff 47.35
Xue Hua 2.00
Yuan Xueping 3.00
Zhu Yijun 3.50
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Chairman and
General Manager:
Mr. Li Ding, 48 years old with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1998 to present Working
in SC as chairman and general manager
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Vice General
Manager:
Mr. Wen Hanliang, 47 years old with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 1998 to present Working in SC as vice general
manager.
SC is mainly
engaged in international trade.
SC’s products
mainly include: textile goods, chemical & medical products, knitwear and
hair knitwear, cereals & oils, garments, hardware mineral, machinery &
electrical products, craft/ the light work products.
SC sources its materials 80% from domestic
market, and 20% from overseas market, mainly
The buying terms of SC include T/T, L/C and Credit of 30-45 days. The
payment terms of SC include T/T, L/C and Credit of 30-45 days.
*Major Customer:
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Wuxi South Forwarding Garments Co., Ltd.
*Major Supplier:
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Changzhou Chengye Fashion Co., Ltd.
SC is known
to have 4 subsidiaries at present:
East Grace Corporation Dayou Economic & Trade
Co., Ltd.
East Grace Corporation Zhongrun Co., Ltd.
Wujiang
East Grace Textiles & Garments Co., Ltd.
Zhangjiagang
East Grace Knitting Co., Ltd.
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.
Bank of
AC#：02663908096001
Relationship:
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
13,700 |
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Inventory |
2,550 |
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Accounts
receivable |
59,190 |
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Other Accounts
receivable |
14,450 |
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To be
apportioned expense |
0 |
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Other current
assets |
3,700 |
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Current assets |
93,590 |
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Fixed assets net
value |
53,800 |
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Projects under
construction |
0 |
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Long term
investment |
53,980 |
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Other assets |
14,040 |
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Total assets |
215,410 |
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Short loans |
10,000 |
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Accounts payable |
42,170 |
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Other Accounts
payable |
5,930 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
1,840 |
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Current
liabilities |
59,940 |
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Long term
liabilities |
50,000 |
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Other
liabilities |
5,820 |
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Total
liabilities |
115,760 |
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Equities |
99,650 |
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Total
liabilities & equities |
215,410 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
63,080 |
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Cost of goods
sold |
58,190 |
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Sales expense |
3,330 |
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Management expense |
9,310 |
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Finance expense |
2,970 |
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Income from
investments |
13,850 |
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Profit before
tax |
11,910 |
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Less: profit tax |
0 |
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Profits |
11,910 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 1.56
*Quick ratio 1.52
*Liabilities to
assets 0.54
*Net profit
margin (%) 18.88
*Return on total
assets (%) 5.53
*Inventory
/Turnover ×365 15 days
*Accounts
receivable/Turnover ×365 342 days
*Turnover/Total
assets 0.29
*Cost of goods
sold/Turnover 0.92
PROFITABILITY:
FAIRLY GOOD
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The turnover of SC appears average 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 fairly
good level.
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SC’s quick ratio is maintained in a fairly good
level.
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The inventory of SC is maintained in an average
level.
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The accounts receivable of SC appears fairly large.
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SC’s short-term loan is in an average level.
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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 average.
Overall financial
condition of the SC: Stable.
Over the past 9 years, SC has made a stable growth with satisfactory
profit. A credit line up to USD 500,000
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%)