MIRA
INFORM REPORT
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Report Date : |
19.09.2007 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
No. 10, Western Changbao Road, Rongli, Ronggui Street,
Shunde District, Foshan, Guangdong Province, 528305 |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
20.08.2002 |
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Com. Reg. No.: |
4406812010468 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Company is engaged in Selling Coating Additives |
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 : |
USD30,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
COMPANY NAME & ADDRESS
No. 10, Western Changbao Road, Rongli, Ronggui Street, Shunde District, Foshan,
Guangdong Province, 528305 Pr China.
TEL: 86 (0) 757-28811283
FAX: 86 (0) 757-28811293
EXECUTIVE SUMMARY
INCORPORATION DATE : AUGUST 20, 2002
REGISTRATION NO. : 4406812010468
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE :
MR. YAO ZETONG (CHAIRMAN)
STAFF STRENGTH :
8
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 260,400,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 5,850,000 (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 company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Aug. 20, 2002.
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 import and export of various goods
and technologies (excluding the items prohibited or limited by the country);
domestic commerce; supplying and selling of commodities.
SC is mainly engaged in selling coating additives.
Mr. Yao Zetong has been legal representative and chairman of SC since
2002.
SC is known to have approx. 8 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 Foshan. Our checks reveal
that SC rents the total premise about 100 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 Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Zheng Shufen 40
Legal representative and General manager:
Mr. Yao Zetong , in his
Working Experience(s):
From 2002 to present Working
in SC as chairman and general manager.
SC is mainly engaged in selling coating additives.
SC’s products mainly include textile fire retardant, synthetic materials
fire retardant, antiseptic and mildew inhibitor, etc.
SC sources its materials 100% from domestic market. SC sells 20% of its
products in domestic market, and 80% to overseas market, mainly Europe and
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
*Major Customer:
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Guangzhou Chem Technology 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 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.
The Rural Credit Cooperative Union of
AC#: 20618000030725 (foreign
currency-As given)
AC#: 16578000014123 (CNY)
Relationship:
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
3,560 |
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Inventory |
840 |
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Accounts receivable |
19,280 |
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Advances to suppliers |
600 |
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Prepaid expenses |
400 |
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A receivable tax rebate of export |
7,450 |
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Other current assets |
20 |
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Current assets |
32,150 |
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Fixed assets |
7,330 |
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Fixed assets net value |
6,440 |
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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 |
38,590 |
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Short loans |
0 |
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Accounts payable |
25,680 |
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Other payable |
6,920 |
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Welfare expenses payable |
30 |
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Other current liabilities |
110 |
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Current liabilities |
32,740 |
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Long term liabilities |
0 |
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Total liabilities |
32,740 |
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Equities |
5,850 |
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Total liabilities & equities |
38,590 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
260,400 |
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Cost of goods sold |
254,550 |
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Add: Income from other operations |
1,330 |
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Sales expense |
4,680 |
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Management expense |
1,750 |
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Finance expense |
290 |
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Profit before tax |
550 |
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Less: profit tax |
180 |
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Profits |
370 |
Important Ratios
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as
of Dec. 31, 2006 |
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*Current ratio |
0.98 |
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*Quick ratio |
0.96 |
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*Liabilities to assets |
0.85 |
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*Net profit margin (%) |
0.14 |
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*Return on total assets (%) |
0.96 |
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*Fixed assets/Total assets |
0.17 |
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*Inventory /Turnover ×365 |
1days |
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*Accounts receivable/Turnover ×365 |
27days |
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*Turnover/Total assets |
6.75 |
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* Cost of goods sold/Turnover |
0.98 |
PROFITABILITY: AVERAGE
The turnover of SC appears fairly good in its line.
SC’s net profit margin is acceptable.
SC’s return on total assets is average.
SC’s cost of goods sold is high, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a normal level.
The inventory of SC is maintained in an average level.
The accounts receivable of SC is maintained in an average level.
SC’s turnover is in a fairly good level, comparing with the size of its
total assets.
LEVERAGE: FAIR
The debt ratio of SC is fairly high.
The risk for SC to go bankrupt is above 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 USD30,000 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%)