MIRA
INFORM REPORT
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Report Date : |
27.09.2007 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
No. 92,
Aidengqiao, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
March 7, 1982 |
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Com. Reg. No.: |
3303001009552 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in selling
vehicle parts and other commodities. |
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 : |
Up To USD30,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
NO. 92, AIDENGQIAO,
TEL :
86 (0) 577-88993120
FAX :
86 (0) 577-88842287
EXECUTIVE SUMMARY
INCORPORATION DATE : MARCH 7, 1982
REGISTRATION NO. : 3303001009552
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 12
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE : TRADING
TURNOVER :
CNY 6,590,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 4,560,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : STABLE
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 March 7, 1982.
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; processing with imported materials, processing with
imported samples, assembling with imported parts, and compensation trade
in agreement, barter trade & transit trade; selling building materials, metal materials, arts
& crafts, textiles, chemical raw materials, home appliances, garments,
eyeglasses, hardware products, fiberglass products, shoes, mechanical equipment
and lighting electrical appliances.
SC is mainly
engaged in selling vehicle parts.
Mr. Zheng Nianhong
has been legal representative and chairman of SC
since 2000.
SC is
known to have approx. 12 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 Wenzhou. Our
checks reveal that SC rents the total premise about 200 square meters.
http://www.dongri.com It is the website of its parent. 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
Zhejiang Orient Group
Corporation. 40
Zhejiang Dongri Co., Ltd. 60
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Zhejiang Dongri Co., Ltd., is the subsidiary
controlled by Wenzhou Dongri Group Co., Ltd. It is one of the leading
enterprises in
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Legal representative and General manager:
Mr. Zheng Nianhong, in his
Working Experience(s):
From 2000 to present Working in SC as chairman and general manager.
SC is mainly engaged
in selling vehicle parts and other commodities.
SC’s products
mainly include building machinery, lamps, decorative lighting equipment,
garments, shoes, and so on.
SC sources its
materials 100% from domestic market. SC sells 100% of its products to overseas
market, mainly
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.
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#：21781008091001
Relationship:
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
1,250 |
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Inventory |
410 |
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Accounts
receivable |
50 |
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Advances to
suppliers |
2,210 |
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Other
receivables |
1,980 |
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Other current
assets |
230 |
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Current assets |
6,130 |
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Fixed assets |
280 |
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Fixed assets net
value |
100 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
560 |
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Total assets |
6,790 |
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Short loans |
0 |
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Accounts payable |
280 |
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Other payable |
190 |
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Advances from
clients |
1,760 |
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Other current
liabilities |
0 |
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Current
liabilities |
2,230 |
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Long term
liabilities |
0 |
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Total
liabilities |
2,230 |
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Equities |
4,560 |
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Total
liabilities & equities |
6,790 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
6,590 |
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Cost of goods
sold |
6,430 |
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Add:
Income from other operations |
340 |
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Sales expense |
260 |
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Management expense |
80 |
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Finance expense |
-10 |
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Profit before
tax |
150 |
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Less: profit tax |
0 |
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Profits |
150 |
Important Ratios
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as
of Dec. 31, 2006 |
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*Current ratio |
2.75 |
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*Quick ratio |
2.57 |
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*Liabilities
to assets |
0.33 |
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*Net profit
margin (%) |
2.28 |
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*Return on
total assets (%) |
2.21 |
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*Fixed
assets/Total assets |
0.01 |
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*Inventory
/Turnover ×365 |
23days |
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*Accounts
receivable/Turnover ×365 |
3days |
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*Turnover/Total
assets |
0.97 |
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*Cost of goods
sold/Turnover |
0.98 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears average in its line.
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SC’s net profit margin is average.
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SC’s return on total assets is average.
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SC’s cost of goods sold is high, comparing with its
turnover.
LIQUIDITY: AVERAGE
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The current ratio of SC is maintained in a normal
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 turnover is in an acceptable level, comparing
with the size of its total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is low.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
SC is considered small-sized in its line with 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%)