MIRA
INFORM REPORT
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Report Date : |
02.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
ANHUI SINORESOURCE CO LTD |
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Registered Office : |
7/F Haiguan, Qinghe Road, Fuyang, Anhui Province, 236000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
15.03.2002 |
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Com. Reg. No.: |
341200000020317 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
International Trade. |
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 : |
usd 50,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
Name & address
ANHUI SINORESOURCE CO., LTD.
7/F HAIGUAN, QINGHE ROAD, FUYANG,
ANHUI PROVINCE, 236000 PR CHINA
TEL: 86
(0) 558-2238166
FAX: 86 (0) 558-2297366
EXECUTIVE SUMMARY
INCORPORATION DATE : MAR. 15, 2002
REGISTRATION NO. : 341200000020317
REGISTERED LEGAL FORM : LIMITED
LIABILITIES COMPANY
STAFF STRENGTH :
21
REGISTERED CAPITAL : CNY 3,000,000
BUSINESS LINE :
INTERNATIONAL TRADE
TURNOVER :
cny 47,850,000 (AS OF DEC. 31, 2006)
EQUITIES :
cny 3,290,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 50,000
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.02= USD 1
Adopted abbreviations
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Ren Min Bi
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 Mar. 15, 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 importing and exporting various
goods and technology.
SC is mainly
engaged in international trade.
Mr. Xia Guangsheng
has been chairman of SC since 2002.
SC is known to
have approx. 21 employees at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Fuyang. Our checks reveal that SC
rents the total premise about 200 square meters.
http://www.sinoresource.com.cn
. The design is professional and the content is well organized. At present it
is in English version.
E-Mail: Factory@sinoresource.com.cn
SC’s former shareholders were as below:
Pan Xingshun 30%, Xia Guangsheng 30%, Han
Yushen 40%
MAIN SHAREHOLDERS:
Name %
of Shareholding
Pan Xingshun 33.33
Xia Guangsheng 33.33
Han Yushen
33.34
l
Chairman and General Manager:
Mr. Xia Guangsheng, in his 30’s with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 2002 to present Working
in SC as chairman and general manager.
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Vice General Manager:
Mr. Pan Xingshun, in his 30’s with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2002 to present
Working in SC as vice general
manager.
SC is mainly engaged in international trade.
SC’s products
mainly include: Sesame, hulled sesame, sesame oil, Coarse cereals, Dehydrated
vegetable.
Trademark :
SINORESOURCE
SC sources its
materials 90% from domestic market and 10% from the overseas market, mainly
Ethiopia, Sudan, India, Canada, Brazil, Venezuela, and Bolivia. SC sells 10% of
its products in domestic market and 90% to the overseas market, mainly Japan,
Korea, Turkey, Yemen, Egypt, Chile, Germany, Middle East, Australia, Europe,
America, and South East Asia.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Client:
==========
Anhui Fullrich Food Perfume 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 refused to release any information of its
domestic suppliers and the trade reference was not available.
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.
Agriculture Bank of China Fuyang Sub-branch
AC#N/A
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2005 |
As
of Dec. 31, 2006 |
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Cash & bank |
3,780 |
5,680 |
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Inventory |
8,670 |
880 |
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Accounts
receivable |
2,690 |
1,460 |
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Advances to
suppliers |
30 |
80 |
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Other
receivables |
0 |
0 |
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Other current
assets |
840 |
520 |
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----------------- |
------------------ |
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Current assets |
16,010 |
8,620 |
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Fixed assets net
value |
420 |
380 |
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Projects under
construction |
0 |
0 |
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Long term
investment |
0 |
0 |
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Other assets |
0 |
0 |
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Total assets |
16,430 |
9,000 |
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============= |
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Short loans |
7,150 |
0 |
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Accounts payable |
4,760 |
60 |
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Advances from
clients |
1,730 |
560 |
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Taxes payable |
-700 |
40 |
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Salaries payable |
0 |
0 |
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Other payable |
180 |
5,000 |
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Other current
liabilities |
200 |
50 |
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------------------ |
------------------ |
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Current liabilities |
13,320 |
5,710 |
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Long term
liabilities |
0 |
0 |
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Total
liabilities |
13,320 |
5,710 |
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Equities |
3,110 |
3,290 |
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Total
liabilities & equities |
16,430 |
9,000 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2005 |
As of Dec. 31, 2006 |
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Turnover |
56,150 |
47,850 |
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Cost of goods
sold |
53,570 |
46,370 |
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Sales expense |
1,890 |
850 |
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Management expense |
420 |
620 |
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Finance expense |
280 |
30 |
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Profit before
tax |
110 |
190 |
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Less: profit tax |
20 |
20 |
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Profits |
90 |
170 |
Important Ratios
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2005 |
2006 |
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*Current ratio |
1.20 |
1.51 |
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*Quick ratio |
0.55 |
1.36 |
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*Liabilities
to assets |
0.81 |
0.63 |
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*Net profit
margin (%) |
0.16 |
0.36 |
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*Return on
total assets (%) |
0.55 |
1.89 |
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*Inventory
/Turnover ×365 |
56days |
7days |
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*Accounts receivable/Turnover
×365 |
17days |
11days |
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*Turnover/Total
assets |
3.42 |
5.32 |
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* Cost of
goods sold/Turnover |
0.95 |
0.97 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears average, but it was declining in 2006.
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SC’s net profit margin is average in 2005 and 2006.
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SC’s return on total assets is average, and it was rising in 2006.
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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 a normal level in 2005 and
2006.
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SC’s quick ratio is maintained in a fair level in 2005 and in a normal
level in 2006.
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The accounts receivable of SC is average.
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The inventory of SC is average.
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The short loan of SC appears large in 2005.
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SC’s turnover is in a fairly good level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is fairly high in 2005 and average in 2006.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
Credit Opinion: USD 500,000
SC is considered small-sized in its line with stable financial
conditions. A credit line at the above amount appears
beyond SC’s capacities, while a credit line up to USD 50,000 is recommended.
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%)