MIRA
INFORM REPORT
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Report Date : |
29.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
ningbo agro-star industrial co., ltd. |
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Registered Office : |
Room 412, No. 43, Liuzhuangxiang, Haishu
Distrcit, Ningbo, Zhejiang
Province 315000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
09.06. 2006 |
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Com. Reg. No.: |
3302002009495 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Selling Various Chemical Products. |
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 10,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
ningbo agro-star industrial co., ltd.
ROOM 412, NO. 43,
LIUZHUANGXIANG, HAISHU DISTRCIT, NINGBO,
ZHEJIANG province
315000 PR CHINA
43412
TEL: 86 (0)
574-87267538 FAX: 86 (0)
574-87267116
EXECUTIVE SUMMARY
INCORPORATION DATE : jun. 9, 2006
REGISTRATION NO. : 3302002009495
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
4
REGISTERED CAPITAL : CNY 1,500,000
BUSINESS LINE :
trading
TURNOVER :
CNY 25,458,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 1,540,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 10,000
MARKET CONDITION : average
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.99 = 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 Jun. 9, 2006.
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 selling chemical products.
SC is mainly
engaged in selling various chemical products.
Mr. Jiang Hua has been chairman of SC since 2006.
SC is known to
have approx. 4 employees at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Ningbo Our checks reveal that SC
rents the total premise about 100 square meters.
SC is not known to host web site of its own at present.
No significant events or changes were found during our checks with the
local AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Jiang Hua 80
Sun Yalun 10
Ningbo Free Trade Zone Agro-star Industrial
Co., Ltd. 10
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Ningbo Free Trade Zone Agro-star Industrial
Co., Ltd.
EXECUTIVE SUMMARY
REGISTRATION NO. : 3302062800788
REGISTERED LEGAL FORM : Limited liabilities
company
REGISTERED CAPITAL : CNY 500,000
l
Chairman and General Manager:
Mr. Jiang Hua , in his 40’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2006 to present Working
in SC as chairman and general manager.
SC is mainly
engaged in selling various chemical products.
SC’s products
mainly include: pesticide, and other chemical products.
SC sources its materials 100% from domestic
market, mainly Jiangsu and Zhejiang. SC sells 5% of its products in domestic
market, mainly Zhejiang, and 95% to overseas market, mainly Southeast Asia,
Europe and USA.
The buying terms of SC include Check, T/T, and Credit of 30-60 days. The
payment terms of SC include Check, L/C, T/T and Credit of 30-60 days.
*Major Customer:
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Ningbo Free Trade Zone Agro-star Industrial
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 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.
China Zheshang
Bank
AC#3320020010120100089967
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2007)
Unit: CNY’000
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Cash & bank |
5,980 |
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Inventory |
1,560 |
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Accounts receivable |
920 |
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Other Accounts
receivable |
18 |
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Advances to
suppliers |
16,950 |
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To be
apportioned expense |
0 |
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Other current
assets |
572 |
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Current assets |
26,000 |
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Fixed assets net
value |
44 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
196 |
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Total assets |
26,240 |
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Short loans |
5,000 |
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Bills payable |
10,630 |
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Accounts payable |
0 |
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Advances from
clients |
0 |
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Other Accounts
payable |
9,167 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
-97 |
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Current
liabilities |
24,700 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
24,700 |
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Equities |
1,540 |
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Total
liabilities & equities |
26,240 |
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Income Statement (as of Dec. 31, 2007)
Unit: CNY’000
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Turnover |
25,458 |
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Cost of goods
sold |
23,177 |
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Sales expense |
1,010 |
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Management expense |
599 |
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Finance expense |
555 |
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Profit before
tax |
90 |
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Less: profit tax |
30 |
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Profits |
60 |
Important Ratios (as of Dec. 31, 2007)
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*Current ratio 1.05
*Quick ratio 0.99
*Liabilities to
assets 0.94
*Net profit
margin (%) 0.24
*Return on total
assets (%) 0.23
*Inventory
/Turnover ×365 22days
*Accounts
receivable/Turnover ×365 13days
*Turnover/Total
assets 0.97
* Cost of goods
sold/Turnover 0.91
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 average, 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 a normal level.
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The inventory of SC is maintained in an average level.
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The accounts receivable of SC appears average.
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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 high.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered small-sized in its line with fairly stable financial
conditions. The large amount of short loans could be a threat to SC’s financial
condition.A credit line up to USD 10,000 appears 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%)