MIRA
INFORM REPORT
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Report Date : |
13.09.2007 |
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 : |
May 21, 2001 |
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Com. Reg. No.: |
3300001007836 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Engaged
in manufacturing and selling industrial polyester fiber. |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Up To USD 1,500,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
TEL :
86 (0) 573-87989969/87989100
FAX :
86 (0) 573-87989880
EXECUTIVE SUMMARY
INCORPORATION DATE : may 21, 2001
REGISTRATION NO. : 3300001007836
REGISTERED LEGAL FORM : shares limited co.
STAFF STRENGTH :
970
REGISTERED CAPITAL : cny 93,000,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 716,890,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 268,650,000 (AS OF DEC. 31, 2006)
PAYMENT :
average
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly Stable
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.52= 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 shares limited co. at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on May 21, 2001.
Company Status: Shares limited co. This form of business in PR China
is defined as a legal person. Its registered capital is divided into shares
of equal par value and the co. raises capital by issuing share certificates
by promotion or by public offer. Shareholders bear limited liability to the
extent of shareholding, and the co. is liable for its debts only to the
extent of its total assets. The characteristics of the shares limited co.
are as follows: The establishment of the co.
requires at least five promoters and at least three of them must be PR-
China controlled legal persons. Natural person can not be allowed to serve
as promoters. The minimum registered capital
of a co. is CNY The board of directors must
consist of an odd number of five to nineteen directors. If the co. raises capital by
public offer, the promoters must not subscribe less than 35% of the total
shares. the promoters’ shares are restricted to transfer- within three
years of the offer. Directors can not transfer the shares they hold in the
co. during their terms of office. A state-owned enterprise that
is restructured into a shares limited co. must comply with the conditions
& requirements specified under the law & administrative rule.
SC’s registered
business scope includes research, development, manufacture, and sales of computer drawing film
cloth, grille cloth used in highways, PVC coating materials, industrial polyester
fiber, polymer materials and other products; and import & export business.
SC is mainly
engaged in manufacturing and selling industrial
polyester fiber.
Mr. Gao Limin has
been chairman of SC since 2001.
SC is known to have approx. 970 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 Haining. Our checks
reveal that SC owns the total premise about 133,016
square meters.
http://www.hailide.com.cn The design is
professional and the content is well organized. At present the web is both in
Chinese and English versions.
E-mail: hld@hailide.cn
Founded in 2001, SC has developed into Zhejiang Green Enterprise, Model
Creditable Enterprise and National Keystone Hi-tech Enterprise integrating
manufacture, scientific research and sale.
In 2007, SC’s registered capital was increased from
CNY80,000,000 to the present amount.
MAIN SHAREHOLDERS:
Name Investment (’000) % of Shareholding
Gao Limin 39,200 42.15
Tonglian Venture Capital
Sino-Belgium Fund 8,000 8.600
Other shareholders 18,600 20.00
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Tonglian Venture Capital Co.,
Ltd. was established in 2001 with registered capital of CNY 300,000,000. Its
former name was Wanxiang VC Co., Ltd.
Address: 210,
Tel: 0571-85777805
Fax: 0571-85777656
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Chairman and
General manager:
Mr. Gao Limin, in his
Working Experience(s):
From 2001 to present Working in SC as chairman and general manager.
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Sales Manager:
Mr. Jiang Zhijie
Tel: 0573-7760488
Fax: 0573-7760978
Mobile Tel: 13857352662
SC is mainly
engaged in manufacturing and selling industrial polyester fiber.
SC’s products mainly include: industrial polyester fiber, solvent
print media, roofing materials, and geographic materials, etc.
SC sources its materials 100% from domestic market, mainly
The buying terms of SC include T/T and Credit of 30-60 days.
The payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Supplier:
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SINOPEC Shanghai Petrochemical Co., Ltd.
*Major Customer:
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Shanghai Helon Bolaite Chemical Fiber 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 : SC declined to
release any information of its suppliers and the trade reference is not
available.
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#：860014935108091001
Relationship:
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
90,500 |
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Inventory |
66,540 |
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Accounts
receivable |
64,970 |
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Other Accounts
receivable |
840 |
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Advances to
suppliers |
15,340 |
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To be
apportioned expense |
0 |
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Other current
assets |
11,610 |
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Current assets |
249,800 |
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Fixed assets |
379,750 |
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Fixed assets net
value |
349,930 |
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Project
materials |
11,560 |
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Projects under
construction |
18,260 |
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Long term
investment |
0 |
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Other assets |
-130 |
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Total assets |
629,420 |
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Short loans |
176,910 |
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Bills payable |
53,600 |
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Accounts payable |
10,540 |
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Advances from
clients |
5,490 |
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Salaries payable |
6,710 |
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Welfares payable |
2,180 |
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Taxes payable |
16,290 |
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Other Accounts
payable |
6,760 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
49,490 |
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Current
liabilities |
327,970 |
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Long term
liabilities |
32,800 |
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Other
liabilities |
0 |
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Total
liabilities |
360,770 |
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Equities |
268,650 |
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Total
liabilities & equities |
629,420 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
716,890 |
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Cost of goods
sold |
568,960 |
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Sales expense |
10,410 |
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Management expense |
37,620 |
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Finance expense |
16,360 |
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Profit before
tax |
91,190 |
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Less: profit tax |
17,500 |
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Profits |
73,690 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 0.76
*Quick ratio 0.56
*Liabilities to
assets 0.57
*Net profit
margin (%) 10.28
*Return on total
assets (%) 11.71
*Inventory
/Turnover ×365 34 days
*Accounts receivable/Turnover
×365 33 days
*Turnover/Total
assets 1.14
*Cost of goods
sold/Turnover 0.79
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: FAIR
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The current ratio of SC is maintained in a fair
level.
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SC’s quick ratio is maintained in a fair level.
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The inventory of SC is maintained in a normal
level.
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The accounts receivable of SC is maintained in a
normal level.
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The short-term loan of SC appears fairly large.
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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 low.
Overall financial
condition of the SC: Fairly stable.
SC is considered medium-sized in its line with stable financial conditions.
A credit line up to USD1,500,000 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%)