MIRA
INFORM REPORT
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Report Date : |
06.09.2007 |
IDENTIFICATION DETAILS
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Name : |
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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 : |
April 29, 2004 |
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Com. Reg. No.: |
3101072013699 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in manufacturing
and selling electrical equipment. |
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 150,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
no.36
TEL :
86 (0) 21-62607593
FAX :
86 (0) 21-62608783
EXECUTIVE SUMMARY
INCORPORATION DATE : april 29, 2004
REGISTRATION NO. : 3101072013699
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
300
REGISTERED CAPITAL : CNY 15,000,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 79,540,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 19,940,000 (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 April 29, 2004.
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 starter and controlling equipment of electromotor,
thermotechnical automatic control system and electric equipment, power quality
products, electrician & electrical materials, low voltage apparatus,
electrical wire and cable, building materials, hardware, instruments, machinery
equipment and parts, importing and exporting various kinds of commodities and
technology, in accordance with the license.
SC is mainly
engaged in manufacturing and selling electrical equipment.
Mr. Chen Jianguo
has been chairman of SC since 2004.
SC is known to have
approx. 300 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 Shanghai. Our checks
reveal that SC rents the total premise about 10,000 square meters.
http://www.ssechina.com The
design is professional and the content is well organized. At present the web
site is both in Chinese and English versions.
E-mail: sale@ssechina.com
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Qiu Xiaomin 13.33
Liu Dong 20.00
Li Ruxin 13.33
Xue Jianke 13.34
Chen Jianguo 40.00
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Chairman and
General Manager:
Mr. Chen Jianguo, about 45 years old with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 2004 to present Working
in SC as chairman and general manager.
SC is mainly
engaged in manufacturing and selling electrical equipment.
SC’s products
mainly include: Soft Starters, Power Quality Products, and Switchgears.
SC sources its materials 100% from domestic
market, mainly
The buying terms of SC include Check, T/T and Credit of 30-45 days. The
payment terms of SC include T/T, L/C and Credit of 30-45 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.
Bank of
AC#：316586-00003098227
Relationship:
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
6,630 |
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Inventory |
870 |
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Accounts
receivable |
5,630 |
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Other Accounts
receivable |
1,000 |
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To be
apportioned expense |
0 |
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Other current
assets |
13,170 |
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Current assets |
27,300 |
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Fixed assets net
value |
1,780 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
0 |
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Total assets |
29,080 |
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Short loans |
4,500 |
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Accounts payable |
1,990 |
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Other Accounts payable |
0 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
2,650 |
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Current
liabilities |
9,140 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
9,140 |
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Equities |
19,940 |
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Total
liabilities & equities |
29,080 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
79,540 |
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Cost of goods
sold |
59,670 |
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Sales expense |
10,650 |
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Management expense |
6,660 |
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Finance expense |
1,350 |
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Profit before
tax |
2,870 |
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Less: profit tax |
430 |
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Profits |
2,440 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 2.99
*Quick ratio 2.89
*Liabilities to
assets 0.31
*Net profit
margin (%) 3.07
*Return on total
assets (%) 8.39
*Inventory
/Turnover ×365 4 days
*Accounts
receivable/Turnover ×365 26 days
*Turnover/Total
assets 2.74
* Cost of goods
sold/Turnover 0.75
PROFITABILITY:
AVERAGE
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The turnover of SC appears fairly good in its line.
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SC’s net profit margin is average.
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SC’s return on total assets is average.
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SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: FAIRLY
GOOD
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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 is maintained in an
acceptable level.
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The short-term loan of SC appears acceptable.
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SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: FAIRLY
GOOD
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The debt ratio of SC is low.
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The risk for SC to go bankrupt is fairly low.
Overall financial
condition of the SC: Stable.
SC is considered medium-sized in its line with stable financial
conditions. A credit line up to USD150,000
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%)