MIRA
INFORM REPORT
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Report Date : |
03.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
ZHEJIANG NEW BEST FOOTWEAR CO
LTD |
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Registered Office : |
New Best Industrial Zone, Qingtian Economic Development Zone, Zhejiang
Province, 323903 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
28.04.2002 |
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Com. Reg. No.: |
002236 |
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Legal Form : |
Wholly Foreign Owned Enterprise |
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Line of Business : |
Manufacturer and
selling shoes. |
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 500,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
Name
ZHEJIANG NEW BEST FOOTWEAR CO., LTD.
NEW BEST INDUSTRIAL ZONE, QINGTIAN ECONOMIC DEVELOPMENT ZONE,
ZHEJIANG PROVINCE, 323903 PR CHINA
TEL: 86
(0) 578-6857808
FAX: 86 (0) 578-6857809
EXECUTIVE SUMMARY
INCORPORATION DATE : APR. 28, 2002
REGISTRATION NO. : 002236
REGISTERED LEGAL FORM : WHOLLY FOREIGN OWNED
ENTERPRISE
STAFF STRENGTH :
1,300
REGISTERED CAPITAL : USD 7,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
cny 95,300,000 (AS OF DEC. 31, 2007)
EQUITIES :
cny 41,900,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 500,000
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly good
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 Apr. 28, 2002.
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 processing and selling shoes.
SC is mainly
engaged in manufacturing and selling shoes.
Mr. Tang Zhaotong
has been chairman of SC since 2002.
SC is known
to have approx. 1,300 employees at
present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Qingtian County. Our
checks reveal that SC owns the total premise about 32,000 square meters.
SC is not known to host website of its own at present.
No significant events or changes were found during our checks with local
AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Samoa New Best Footwear Co., Ltd. 100
l
Chairman:
Mr. Tang Zhaotong, Taiwanese, in his 60’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.
l
General Manager:
Mr. Jiang Xinhang, Taiwanese, in his 40’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 general
manager.
SC is mainly
engaged in manufacturing and selling shoes.
SC’s products
mainly include: shoes.
SC’s annual output
can reach 2,000,000 pairs.
SC sources its
materials 70% from domestic market, and 30% from the overseas market, mainly
European countries. SC sells 100% of its products to the overseas market,
mainly Japan, American and European countries.
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:
===========
Novi Footwear (Far East) Pte Ltd.
*Major Supplier:
============
Dongjing Holding Group 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’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.
Bank of China Qingtian Sub-branch
AC#：830021574908091001
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2007 |
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Cash & bank |
16,210 |
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Inventory |
21,750 |
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Accounts
receivable |
17,290 |
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Advances to
suppliers |
0 |
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Other
receivables |
1,510 |
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Other current
assets |
680 |
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------------------ |
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Current assets |
57,440 |
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Fixed assets net
value |
32,790 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
6,200 |
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------------------ |
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Total assets |
96,430 |
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============= |
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Short loans |
0 |
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Accounts payable |
15,430 |
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Advances from
clients |
0 |
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Taxes payable |
2,120 |
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Salaries payable |
90 |
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Other payable |
120 |
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Other current
liabilities |
250 |
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Current
liabilities |
18,010 |
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Long term
liabilities |
36,520 |
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Total
liabilities |
54,530 |
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Equities |
41,900 |
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Total
liabilities & equities |
96,430 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2007 |
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Turnover |
95,300 |
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Cost of goods
sold |
82,560 |
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Sales expense |
2,410 |
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Management expense |
11,210 |
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Finance expense |
-1,900 |
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Profit before tax |
3,720 |
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Less: profit tax |
0 |
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Profits |
3,720 |
Important Ratios
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2007 |
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*Current ratio |
3.19 |
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*Quick ratio |
1.98 |
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*Liabilities
to assets |
0.57 |
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*Net profit
margin (%) |
3.90 |
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*Return on
total assets (%) |
3.86 |
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*Inventory
/Turnover ×365 |
83days |
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*Accounts
receivable/Turnover ×365 |
66days |
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*Turnover/Total
assets |
0.99 |
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* Cost of
goods sold/Turnover |
0.87 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in 2007.
l
SC’s net profit margin is fairly good in 2007.
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SC’s return on total assets is fairly good in 2007.
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SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIRLY
GOOD
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The current ratio of SC is maintained in a fairly good level in 2007.
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SC’s quick ratio is maintained in a fairly good level in 2007.
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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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SC has no short loan in 2007.
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SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is average.
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The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly good.
Credit Opinion: USD 500,000
SC is considered large-sized in its line with favorable market
conditions. The given credit line 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%)