MIRA
INFORM REPORT
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Report Date : |
19.09.2007 |
IDENTIFICATION DETAILS
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Name : |
JIANGYIN CHANGLONG CHEMICAL FIBER CO., LTD. |
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Registered Office : |
Houxiang Industrial Zone, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Jun. 14, 1999 |
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Com. Reg. No.: |
3202812106017 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged
in developing and producing all kinds of chemical fiber. |
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 50,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
JIANGYIN CHANGLONG CHEMICAL FIBER CO., LTD.
HOUXIANG INDUSTRIAL ZONE,
TEL : 0086-510-86301082
FAX :
0086-510-86308084
EXECUTIVE SUMMARY
INCORPORATION DATE :
JUN. 14, 1999
REGISTRATION NO. :
3202812106017
REGISTERED LEGAL FORM :
LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MR.WU DINGFA (CHAIRMAN)
STAFF STRENGTH :
300
REGISTERED CAPITAL :
CNY 10,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 235,820,000 (AS OF DEC. 31,
2006)
EQUITIES :
CNY 6,920,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 7.52=US1$
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 Jun.14, 1999.
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
producing terylene fiber, dacron muslin, cloth, chemical fiber machines; importing and exporting commodities and technologies, excluding items limited or prohibited by the state.
SC is
mainly engaged in developing and producing all kinds of chemical fiber.
Mr. Wu
Dingfa has been legal representative and chairman of SC since 1999.
SC
owns approximately 300 staff members at present.
SC is currently operating at the above stated address, and this
address houses its operating office in the industrial zone of Jiangyin. Our
checks reveal that SC owns the total premise about 15,000 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 Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Mr. Wu Dingfa
45
Ms. Xu Yuxiang
50
Mr. Zhao Zhenzhou
5
l
Legal representative
and chairman:
Mr. Wu Dingfa, in his
Working Experience(s):
From 1999 to present Working in SC as chairman and legal representative.
SC is
mainly engaged in developing and producing all kinds of chemical fiber.
SC’s products mainly include: polyester fiber, fire
resistant fiber, soybean fiber,
SC sources its materials 50% from domestic market and 50%
from overseas market. SC sells 60% of its products to overseas market, mainly in
The buying terms of SC include Check, L/C, T/T and Credit of
30-60 days. The payment terms of SC include Check, T/T, and Credit of 30-60
days.
*Major Supplier:
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Nanhai Jiabo Plastics Co., Ltd
*Major Customer:
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Suzhou Kedebao 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.
Jiangyin Rural Commercial Bank
AC#：10110026195
Relationship:
Balance Sheet
Unit: CNY’000
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as
of Dec. 31, 2006 |
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Cash
& bank |
23,650 |
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Bills
receivable |
350 |
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Accounts
receivable |
21,040 |
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Subsidies
receivable |
0 |
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Other
receivables |
-6,000 |
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Advances to
suppliers |
550 |
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Inventory |
30,980 |
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Prepaid expenses |
0 |
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Current
assets |
70,570 |
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Fixed assets |
20,650 |
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Fixed
assets net value |
20,650 |
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Projects
under construction |
0 |
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Long
term investment |
3,100 |
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Long-term
deferred expenses |
6,290 |
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Other
assets |
110 |
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Total
assets |
100,720 |
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Short
loans |
28,000 |
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Bills
payable |
19,480 |
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Accounts
payable |
23,830 |
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Welfare
payable |
0 |
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Advances
from customers |
4,240 |
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Accrued
payroll |
-800 |
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Tax
payable |
-720 |
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Other
payable |
19,770 |
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Surcharge
payable |
0 |
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Other
current liabilities |
0 |
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Current
liabilities |
93,800 |
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Long
term liabilities |
0 |
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Total
liabilities |
93,800 |
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Equities |
6,920 |
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Total
liabilities & equities |
100,720 |
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Income Statement
Unit: CNY’000
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as of Dec. 31,
2006 |
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Turnover |
235,820 |
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Cost of goods
sold |
221,320 |
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Sales expense |
2,750 |
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Management expense |
7,920 |
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Finance expense |
3,750 |
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Profit before
tax |
320 |
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Less: profit tax |
0 |
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Profits |
320 |
Important Ratios
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as of Dec. 31, 2006 |
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*Current ratio |
0.75 |
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*Quick ratio |
0.42 |
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*Liabilities
to assets |
0.93 |
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*Net profit
margin (%) |
0.14 |
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*Return on
total assets (%) |
0.32 |
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*Fixed
assets/Total assets |
0.21 |
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*Inventory
/Turnover ×365 |
48 days |
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*Accounts
receivable/Turnover ×365 |
33 days |
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*Turnover/Total
assets |
2.34 |
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*Cost of goods
sold/Turnover |
0.94 |
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 fair.
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SC’s return on total assets is average.
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SC’s cost of goods sold is fairly high,
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 and inventory conversion period appears slightly large.
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The accounts conversion
period appears acceptable.
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The short loans are TOO LARGE.
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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 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 medium-sized in its line with fairly stable financial
conditions. The large amount of short loans could be a threat to SC’s financial
condition. A credit line up to USD 50,000 would appear to be within SC’s
capacities upon a periodical review basis.
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%)