MIRA
INFORM REPORT
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Report Date : |
02.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
LINYI STANDARD TEXTILE CO LTD |
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Registered Office : |
Middle Section, Gongye North Road, Hign And New Zone, Luozhuang, Linyi City, Shandong Province 276014 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
01.03.2004 |
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Com. Reg. No.: |
101141 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Manufacturing
and selling various textiles. |
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 : |
USD 150,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
Name & address
linyi standard textile co., ltd.
middle section, gongye north road, hign and new
zone, luozhuang
linyi city, shandong province 276014 PR CHINA
TEL: 86 (0) 539-7101927
FAX: 86 (0) 539-7101920
EXECUTIVE SUMMARY
INCORPORATION DATE : mar. 1, 2004
REGISTRATION NO. : 101141
REGISTERED LEGAL FORM : wholly
foreign-owned enterprise
STAFF STRENGTH :
450
REGISTERED CAPITAL : USD 7,500,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 101,010,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 22,290,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 150,000
(periodical review)
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fair
OPERATIONAL TREND : FAIRLY 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 wholly foreign-owned enterprise at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on Mar. 1, 2004.
Company Status: Wholly foreign-owned enterprise. This form of business in PR
China is defined as a legal person. It is a limited co. established within
the territories of PR China with capital provided totally by the foreign
investors. More than one foreign investor may jointly invest in a wholly
foreign-owned enterprise. The investing party/parties solely exercise
management, reap profit and bear risks and liabilities by themselves. This
form of companies usually have a limited duration is extendible upon
approval of Examination and Approval Authorities.
SC’s
registered business scope includes manufacturing and selling medical textiles, garments
and cotton products.
SC is
mainly engaged in manufacturing and selling various textiles.
Mr. GARY HEIMAN has been chairman of SC since 2004.
SC is known to have approx. 450 employees at
present.
SC is currently operating at the above stated address, and this
address houses its operating office and factory in the high and new zone of
Linyi. Our checks reveal that SC owns the total premise about 27,000 square meters.
SC is not known to host web site of its own at present.
Until December 31, 2006, SC’s paid-up capital was CNY 38,210,000.
MAIN SHAREHOLDERS:
Name % of Shareholding
Standard Textile Inc. USA 100
l
Chairman:
Mr. GARY HEIMAN, American, in his 50’s with university education.
He is currently responsible for the overall management of SC.
Working Experience(s):
From 2004 to present Working in SC as chairman.
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General Manager:
Mr. Li Ping, in his 40’s with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
From 2004 to present Working in SC as general manager.
SC is
mainly engaged in manufacturing and selling various textiles.
SC’s products mainly include: fibers, greige cloth, etc.
SC sources its materials 30% from
domestic market, mainly Shandong province, and 70% from overseas market, mainly
European and American countries; SC sells its products 100% to overseas market,
mainly America.
The
buying terms of SC include T/T, L/C, Check and Credit of 30-60 days. The
payment terms of SC include T/T, L/C, Check and Credit of 30-60 days.
*Major Supplier:
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Standard Textile Inc. USA
*Major Customer:
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Standard Textile Inc. USA
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’s suppliers declined to make any
comments.
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.
Agricultural
Bank of China
AC#868101040017888
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
30,650 |
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Inventory |
13,240 |
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Accounts receivable |
2,890 |
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Other Accounts
receivable |
3,460 |
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Advances to
suppliers |
2,360 |
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To be
apportioned expense |
0 |
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Other current
assets |
110 |
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Current assets |
52,710 |
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Fixed assets net
value |
40,720 |
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Projects under
construction |
5,990 |
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Long term
investment |
0 |
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Other assets |
17,750 |
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Total assets |
117,170 |
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Short loans |
27,060 |
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Accounts payable |
13,750 |
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Advance from
clients |
18 |
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Other Accounts
payable |
570 |
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Withdraw the
expenses in advance |
0 |
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Long-term
liabilities due with in one year |
30,000 |
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Other current
liabilities |
9,802 |
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Current
liabilities |
81,200 |
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Long term
liabilities |
13,680 |
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Other
liabilities |
0 |
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Total
liabilities |
94,880 |
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Equities |
22,290 |
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Total
liabilities & equities |
117,170 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
101,010 |
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Cost of goods
sold |
97,100 |
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Sales expense |
1,600 |
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Management expense |
10,010 |
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Finance expense |
1,470 |
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Profit before
tax |
-8,000 |
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Less: profit tax |
0 |
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Profits |
-8,000 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 0.65
*Quick ratio 0.49
*Liabilities to
assets 0.81
*Net profit
margin (%) -7.92
*Return on total
assets (%) -6.83
*Inventory
/Turnover ×365 48days
*Accounts receivable/Turnover
×365 10days
*Turnover/Total
assets 0.86
* Cost of goods
sold/Turnover 0.96
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:
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 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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The short-term loan of SC appears 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 fairly high.
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The risk for SC to go bankrupt is average.
Overall
financial condition of the SC: Fair.
Opinion
amount: USD 500,000 against DA terms
SC is considered medium-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 at the above amount appears
beyond SC’s capacities, while a credit line up to USD 150,000 appears 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%)