MIRA
INFORM REPORT
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Report Date : |
12.09.2007 |
IDENTIFICATION DETAILS
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Name : |
qingdao yotchoi
hair products co., ltd. |
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Registered Office : |
No. 91, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Mar. 3, 2004 |
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Com. Reg. No.: |
3702812804429 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in processing
and selling hair products. |
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 USD20,000 |
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Status : |
Small Company |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
NAME & ADDRESS
qingdao yotchoi hair
products co., ltd.
no. 91,
TEL :
86 (0) 532-88299588/88299829
FAX :
86 (0) 532-88299826
EXECUTIVE SUMMARY
INCORPORATION DATE : mar. 3, 2004
REGISTRATION NO. :
3702812804429
REGISTERED LEGAL FORM : LIMITED
LIABILITIES CO.
STAFF STRENGTH :
80
REGISTERED CAPITAL : CNY2,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY22,170,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 2,150,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
7.52 =US1$ AS OF
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 co. at local Administration
for Industry & Commerce (AIC - The official body of issuing and renewing
business license) on Mar. 3, 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 manufacturing and processing
hair products, plastic and canvas model head hair; exporting its products and
technology; and importing machinery, components, raw materials, accessories,
and technology.
SC is mainly engaged
in processing and selling hair products.
Mr. Yuan
Zhucheng has been chairman of SC since 2004.
SC is
known to have approx. 80 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 Qingdao. Our checks
reveal that SC rents the total premise about 1,000
square meters.
SC is not known to host website of its own at present.
No significant events or changes were found during our checks with the
local AIC.
MAIN SHAREHOLDERS:
Name % of
Shareholding
Yuan Zhucheng 60
Yuan Zhuyong 30
Yuan Zuojiu 10
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Chairman and General
Manager:
Mr. Yuan Zhucheng, about 36 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.
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Assistant Manager:
Mr. Yuan Zhuyong, in his
Working Experience(s):
From 2004 to present Working in SC as vice general
manager.
SC is mainly
engaged in processing and selling hair products.
SC’s products mainly include: various of hair products, etc.
SC sources its
materials 60% from domestic market, mainly
The buying terms of SC include Check, T/T, L/C, Check and Credit of 30-60 days. The payment terms of SC
include T/T, L/C, Check and Credit of 30-60 days.
*Major Supplier:
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Heze Baijili Handicrafts Co., Ltd.
*Major Customer:
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EVE INC.
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.
Agricultural
Bank of
AC#：140801040004204
Relationship:
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
4,070 |
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Inventory |
410 |
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Accounts
receivable |
4,950 |
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Other Accounts
receivable |
27 |
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Advances to
suppliers |
0 |
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To be
apportioned expense |
0 |
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Other current
assets |
63 |
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Current assets |
9,520 |
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Fixed assets |
108 |
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Fixed assets net
value |
93 |
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Projects under
construction |
15 |
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Long term
investment |
0 |
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Other assets |
2 |
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Total assets |
9,630 |
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Short loans |
0 |
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Accounts payable |
7,550 |
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Advances from
clients |
-70 |
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Salaries payable |
250 |
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Welfares payable |
130 |
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Taxes payable |
-870 |
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Other Accounts
payable |
500 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
-10 |
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Current liabilities |
7,480 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
7,480 |
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Equities |
2,150 |
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Total
liabilities & equities |
9,630 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
22,170 |
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Cost of goods
sold |
21,170 |
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Sales expense |
290 |
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Management expense |
410 |
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Finance expense |
117 |
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Profit before
tax |
132 |
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Less: profit tax |
36 |
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Profits |
96 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 1.27
*Quick ratio 1.22
*Liabilities to
assets 0.78
*Net profit
margin (%) 0.43
*Return on total
assets (%) 1.00
*Inventory /Turnover
×365 7 days
*Accounts
receivable/Turnover ×365 81 days
*Turnover/Total
assets 2.30
* Cost of goods
sold/Turnover 0.95
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 acceptable.
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SC’s return on total assets is
acceptable.
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SC’s cost of goods sold is fairly high, 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 fairly good
level.
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The inventory of SC is maintained in a fairly good
level.
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The accounts receivable of SC is fairly large.
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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: FAIR
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The debt ratio of SC is fairly high.
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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 USD20,000 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%)