MIRA
INFORM REPORT
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Report Date : |
21.09.2007 |
IDENTIFICATION DETAILS
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Name : |
HIKING GROUP
SHANDONG JINTEL Co., Ltd. |
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Registered Office : |
No. 9, Wendeng
Road, Shinan District, Qingdao, Shandong Province, 266071 Pr |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
June 19, 2000 |
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Com. Reg. No.: |
3702001806262 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Importing and exporting
different sorts of textiles and textile machinery. |
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 100,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
HIKING GROUP
SHANDONG JINTEL Co., Ltd.
NO. 9,
TEL :
86 (0) 532-82899796
FAX :
86 (0) 532-82899861
EXECUTIVE SUMMARY
INCORPORATION DATE : JUNE 19, 2000
REGISTRATION NO. : 3702001806262
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 35
REGISTERED CAPITAL : CNY 10,000,000
BUSINESS LINE : TRADING
TURNOVER : CNY 177,420,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 13,390,000 (AS OF DEC. 31, 2006)
PAYMENT : AVERAGE
RECOMM.
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
7.51 = 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 company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on June 19, 2000.
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 developing technological
products, technology consultation; importing and exporting various goods and
technologies; processing with imported materials, processing with imported
samples, assembling with imported parts, and compensation trade in agreement;
counter trade & transit trade; selling textiles, textile raw materials,
electro-mechanical equipment, general merchandise, hardware, building
materials, chemicals (excluding the hazard products), crafts & articles,
livestock products, coke; foreign economic cooperation; selling vehicles &
components (excluding cars).
SC is mainly
engaged in importing and exporting textiles and textile machinery.
Mr. Zhang Jian has been legal representative and chairman of SC since
2006.
SC is
known to have approx. 35 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 Qingdao. Our
checks reveal that SC rents the total premise about 200 square meters.
SC is not known to host website of its own at present.
E-mail: sxy@intel.com
SC’s former chairman was Mr. Zhang Jianhua. In April, 2006,
he was taken place by Mr. Zhang Jian.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Shandong Hiking International
Co., Ltd. 51
Hiking Group
Song Xianyan 11.9
Zhang Wenxuan 8.34
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Hiking Group
l
Legal representative and chairman:
Mr. Zhang Jian, in his
Working Experience(s):
From 2006 to present Working in SC as chairman and legal representative.
SC is mainly
engaged in importing and exporting different sorts of textiles and textile
machinery.
SC’s products
mainly include cotton, woolen products, garment machines, knitted shirts, and
so on.
SC sources its materials 50%
from domestic market, and 50% from overseas market, mainly
The buying terms of SC include Check, T/T, L/C and Credit of
30-60 days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60
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#：56440808091001
Relationship:
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
5,340 |
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Inventory |
14,410 |
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Accounts
receivable |
23,450 |
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Subsidies
receivable |
4,780 |
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Other
receivables |
21,930 |
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Other current
assets |
0 |
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Current assets |
69,910 |
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Fixed assets |
1,900 |
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Fixed assets net
value |
1,090 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
6,740 |
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Total assets |
77,740 |
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Short loans |
18,930 |
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Accounts payable |
28,650 |
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Other payable |
4,120 |
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Notes payable |
5,000 |
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Taxes payable |
-740 |
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Advances from
clients |
8,390 |
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Other current
liabilities |
0 |
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Current
liabilities |
64,350 |
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Long term liabilities |
0 |
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Total
liabilities |
64,350 |
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Equities |
13,390 |
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Total
liabilities & equities |
77,740 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
177,420 |
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Cost of goods
sold |
163,130 |
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Sales expense |
14,710 |
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Management expense |
810 |
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Finance expense |
-130 |
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Investment
income |
-1,200 |
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Profit before
tax |
-2,310 |
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Less: profit tax |
0 |
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Profits |
-2,310 |
Important Ratios
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as
of Dec. 31, 2006 |
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*Current ratio |
1.09 |
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*Quick ratio |
0.86 |
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*Liabilities
to assets |
0.83 |
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*Net profit
margin (%) |
-1.30 |
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*Return on
total assets (%) |
-2.97 |
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*Fixed assets/Total
assets |
0.01 |
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*Inventory
/Turnover ×365 |
30days |
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*Accounts
receivable/Turnover ×365 |
48days |
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*Turnover/Total
assets |
2.28 |
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*Cost of goods
sold/Turnover |
0.92 |
PROFITABILITY:
FAIR
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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 fair.
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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 an average
level.
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SC’s quick ratio is maintained in an average 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
average level.
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SC’s short-term loan is large.
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SC’s turnover is in an acceptable 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: Fair.
SC is considered small-sized in its line with fair financial conditions.
The large amount of short loans could be a threat to SC’s financial condition.
A credit line up to USD100,000 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%)