MIRA
INFORM REPORT
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Report Date : |
29.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
red sun group Corporation |
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Registered Office : |
No. 269, Baota Road, Gaochun County, Nanjing, Jiangsu Province, 210000
Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
08.03. 1996 |
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Com. Reg. No.: |
3201001009391 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Investment and
Management of its Subsidiaries, Also Engaged in Importing and Exporting
Pesticide. |
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 200,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
red sun group Corporation
no. 269, baota
road, gaochun county,
nanjing, jiangsu
PROVINCE, 210000 PR CHINA.
269
TEL: 86 (0)
25-57886021 FAX: 86 (0) 25-57886900
EXECUTIVE SUMMARY
INCORPORATION DATE : march 8, 1996
REGISTRATION NO. : 3201001009391
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 100
REGISTERED CAPITAL : CNY 200,000,000
BUSINESS LINE :
investment & management
TURNOVER :
CNY 369,960,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 240,720,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 200,000 (periodical review)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY
7.00 = 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 Renminbi
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 8, 1996.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. 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 listed as follows: -manufacturing co. : CNY 500,000.00 -trading &wholesaling
co. : CNY 500,000.00 -retailing co. : CNY 300,000.00 -consultancy & service
co. : CNY 100,000.00 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 50% of the registered capital while
contribution by intangible assets must not exceed 20% 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 initial investment, assets management, and management
consulting services, import and export of various
goods and technologies (excluding the good prohibited or limited by the
country).
SC is mainly
engaged in investment and management of its subsidiaries.
Mr. Yang
Shouhai has been legal representative
and chairman of SC since 1996.
SC owns
approximately 100 staff at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the industrial zone of Nanjing. Our checks reveal that SC
owns the total premise about 800 square meters.
http://www.china-redsun.com SC’s website is unable to be landed at
present for the technical reason.
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
State-owned Assets Supervision
and Administration Commission of Jiangsu Provincial Government.
51
Nanjing No.1 Pesticide Group
Co., Ltd.
49
l
Legal representative and General manager:
Mr. Yang Shouhai , ID # 320125570423001, 50 years old with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 1996 to present Working
in SC as legal representative and general manager.
l
Vice-president:
Mr. Tang Jianhua , ID # 320125571001361, 50
years old with university education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 1996 to present Working
in SC as vice-president.
*Officials:
=======
Name Title
Rui Zhongnan Director
Liu Xuetang Director
Yang Shunlin Supervisor
Tao Jun Supervisor
Xue Yi Supervisor
Zhang Weizhong Supervisor
SC is mainly
engaged in investment and management of its subsidiaries, while SC also engaged
in importing and exporting pesticide.
SC sources its materials 100% from domestic
market. SC sells 70% of its products in domestic market, and 30% to overseas
market, mainly Southeast Asian market.
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 known to have the following subsidiaries:
Nanjing
Red Sun Co., Ltd.
Nanjing
Red Sun Seeds Co., Ltd.
Nanjing
Red Sun Agricultural Materials Chain Group Co., Ltd.
Nanjing
Red Sun International Trade 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.
SC’s management
declined to release its bank details.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
22,540 |
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Inventory |
11,080 |
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Accounts
receivable |
62,910 |
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Advances to
suppliers |
49,700 |
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Notes receivable |
3,130 |
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Subsidies
receivable |
15,000 |
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Other
receivables |
104,510 |
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Other current
assets |
500 |
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------------------ |
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Current assets |
269,370 |
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Fixed assets |
11,350 |
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Fixed assets net
value |
8,860 |
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Projects under
construction |
2,460 |
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Long term
investment |
706,990 |
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Other assets |
1,200 |
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------------------ |
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Total assets |
988,880 |
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============= |
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Short loans |
135,000 |
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Accounts payable |
105,390 |
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Other payable |
111,020 |
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Notes payable |
23,000 |
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Welfare expenses
payable |
1,360 |
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Advances from
customers |
191,470 |
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Taxes payable |
-3,430 |
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Other current
liabilities |
0 |
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------------------ |
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Current
liabilities |
563,810 |
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Long term
liabilities |
184,350 |
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Total
liabilities |
748,160 |
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Equities |
240,720 |
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------------------ |
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Total
liabilities & equities |
988,880 |
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============= |
Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
369,960 |
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Cost of goods
sold |
343,470 |
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Sales expense |
4,800 |
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Management expense |
17,710 |
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Finance expense |
7,980 |
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Profit before
tax |
-4,830 |
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Less: profit tax |
0 |
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Profits |
-4,830 |
Important Ratios
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as
of Dec. 31, 2006 |
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*Current ratio |
0.48 |
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*Quick ratio |
0.46 |
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*Liabilities
to assets |
0.76 |
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*Net profit
margin (%) |
-1.31 |
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*Return on
total assets (%) |
-1.78 |
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*Fixed
assets/Total assets |
0.01 |
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*Inventory
/Turnover ×365 |
11days |
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*Accounts
receivable/Turnover ×365 |
62days |
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*Turnover/Total
assets |
0.37 |
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* Cost of
goods sold/Turnover |
0.93 |
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 fairly poor level.
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SC’s quick ratio is maintained in a fairly poor 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 acceptable level.
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SC’s short-term loan appears TOO LARGE.
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SC’s turnover is in an acceptable level, comparing with the size of its
total assets.
LEVERAGE: Fair
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The debt ratio of SC is average.
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The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Fair.
SC is considered a medium-sized company in its line with fair financial
conditions, and the large amount of short term loan could be a threat of SC’s
financial condition. A credit line up to USD 200,000 would appear 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%)