MIRA
INFORM REPORT
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Report Date : |
28.09.2007 |
IDENTIFICATION DETAILS
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Name : |
JINCHENG GROUP
IMPORT & EXPORT Co., Ltd. |
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Registered Office : |
No. 518, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
October 12, 1995 |
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Com. Reg. No.: |
3201001008903 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in international trade,
foreign investment; exporting motorcycles, engines, hydraulic pressure
engineering products, bicycles and related technology of its group; importing
machinery, instruments and
meters, spare parts, accessories and technology. |
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
JINCHENG GROUP
IMPORT & EXPORT Co., Ltd.
NO. 518,
TEL :
86 (0) 25-84593388
FAX :
86 (0) 25-84480734
EXECUTIVE SUMMARY
INCORPORATION
DATE : OCTOBER 12, 1995
REGISTRATION
NO. : 3201001008903
REGISTERED LEGAL FORM : LIMITED
LIABILITIES COMPANY
STAFF STRENGTH :
80
REGISTERED CAPITAL :
CNY 34,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 224,600,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 22,020,000 (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 7.514 = 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 limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on October 12, 1995.
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 importing
and exporting commodities and technologies, (excluding the items prohibited by the state).
SC is mainly engaged in
international trade, foreign investment; exporting motorcycles, engines,
hydraulic pressure engineering products, bicycles and related technology of its
group; importing machinery, instruments
and meters, spare parts, accessories and technology.
Mr. Wang Jian has been legal
representative and chairman of SC since October 1995.
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 head office in the commercial zone of Nanjing. Our checks reveal that SC rents the total premise about 300 square meters.
http://www.jincheng.com/ It is the website
of its parent company. The design is professional and the content is well
organized. At present it is in both Chinese and English versions.
No
significant events or changes were found during our checks with the local
Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Jincheng Group Corporation 50
Nanjing Jincheng Machinery Co.,
Ltd. 50
l
Legal representative and
chairman:
Mr. Wang
Jian, born in 1961. He is currently responsible for the overall management of
SC.
Working Experience(s):
From 1995 to present Working in SC as chairman and legal representative.
l
General manager:
Mr. Ai Dejie, born in 1965. He is currently responsible for the daily management of SC.
Working Experience(s):
From 1995 to present Working in SC as general manager.
SC is mainly engaged in
international trade, foreign investment; exporting motorcycles, engines,
hydraulic pressure engineering products, bicycles and related technology of its
group; importing machinery, instruments
and meters, spare parts, accessories and technology.
SC sources its materials 70% from domestic market, and 30%
from overseas market. SC sells 50% of its products in domestic market, and 50%
to overseas market.
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 invests in the following companies:
Nanjing Jinlongpan
Real Estate Development Co., Ltd.
Nanjing Jincheng
Precision Machinery Co., Ltd.
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.
AC#：077070182200012096
Relationship:
Balance Sheet (as
of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
66,040 |
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Notes receivable |
24,910 |
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Inventory |
15,510 |
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Accounts receivable |
12,860 |
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Advances to suppliers |
10,220 |
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Other receivables |
5,980 |
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Prepaid expenses |
50 |
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A receivable tax rebate of export |
2,680 |
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Other current assets |
0 |
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------------------ |
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Current assets |
138,250 |
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Fixed assets |
3,120 |
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Fixed assets net value |
1,400 |
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Projects under construction |
0 |
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Long term investment |
2,270 |
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Other assets |
0 |
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Total assets |
141,920 |
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============= |
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Short loans |
0 |
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Accounts payable |
15,580 |
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Other payable |
3,950 |
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Notes payable |
1,300 |
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Taxes payable |
-2,390 |
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Welfare expenses payable |
1,650 |
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Advances from clients |
99,800 |
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Other current liabilities |
0 |
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Current liabilities |
119,900 |
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Long term liabilities |
0 |
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Total liabilities |
119,900 |
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Equities |
22,020 |
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Total liabilities & equities |
141,920 |
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Income Statement (as of
Dec. 31, 2006)
Unit: CNY’000
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Turnover |
224,600 |
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Cost of goods sold |
210,210 |
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Sales expense |
15,520 |
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Management expense |
15,330 |
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Finance expense |
1,700 |
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Selling and buying goods
commission income |
18,240 |
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Subsidy income |
620 |
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Profit before tax |
700 |
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Less: profit tax |
140 |
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Profits |
560 |
Important Ratios
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as of Dec. 31, 2006 |
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*Current ratio |
1.15 |
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*Quick ratio |
1.02 |
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*Liabilities to assets |
0.84 |
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*Net profit margin (%) |
0.25 |
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*Return on total assets (%) |
0.39 |
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*Inventory /Turnover ×365 |
26 days |
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*Accounts receivable/Turnover ×365 |
21 days |
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*Turnover/Total assets |
1.58 |
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*Cost of goods sold/Turnover |
0.94 |
PROFITABILITY: AVERAGE
l
The
turnover of SC appears fairly good in its line.
l
SC’s net
profit margin is normal.
l
SC’s
return on total assets is average.
l
SC’s
cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The
current ratio of SC is maintained in a normal level.
l
SC’s
quick ratio is maintained in a normal level.
l
The
inventory of SC is maintained in an average level.
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The
accounts receivable of SC is maintained in an acceptable level.
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SC’s turnover
is in an average level, comparing with the size of its total assets.
LEVERAGE: FAIR
l
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 a
medium-sized company in its line with fairly good background. A credit line up
to USD 100,000 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%)