MIRA INFORM REPORT
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Report Date : |
06.08.2008 |
IDENTIFICATION
DETAILS
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Name : |
SHENZHEN LATON TRADE DEVELOPMENT CO LTD |
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Registered Office : |
South-West 10/F, Building C Of Baoan Square, Sungang East Road, Shenzhen,
Guangdong Province, 518000 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
06.07.2005 |
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Com. Reg. No.: |
440301103023352 |
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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 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
shenzhen laton trade development co., ltd.
south-west 10/f, building c of baoan square,
sungang east road,
shenzhen, guangdong PROVINCE, 518000 PR CHINA
C 10
TEL: 86 (0) 755-25161615 FAX: 86 (0) 755-25170446
EXECUTIVE SUMMARY
INCORPORATION DATE : july
6, 2005
REGISTRATION NO. : 440301103023352
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
16
REGISTERED CAPITAL : CNY 1,000,000
BUSINESS LINE : trading
TURNOVER :
CNY 7,390,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 1,005,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 10,000
MARKET CONDITION : average
FINANCIAL CONDITION : fairly
STABLE
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.85= 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 July 6, 2005.
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 domestic commerce; supplying and selling of commodities
(excluding the products privileged, prohibited or franchised), importing and
exporting goods and technology.
SC is mainly
engaged in international trade.
Mr. Li Min has been
chairman of SC since 2005.
SC is known to
have approx. 16 employees at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Shenzhen. Our checks reveal that SC
rents the total premise about 200 square meters.
http://laton-group.com
The design is professional and the content is well organized. At present the
web is both in Chinese and English versions.
E-mail: shenzhen@latongroup.com
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Li Min 55
Zhu Kaicheng 45
l
Chairman and General Manager:
Mr. Li Min, about 40 years old with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2005 to present Working
in SC as chairman and general manager.
l
Director:
Zhu Kaicheng
SC is mainly
engaged in international trade.
SC’s products
mainly include:
ü
coconut fiber
ü
earphone
ü
cotton yarn
ü
wine
SC sources its materials 100% from domestic
market, mainly Zhejiang. 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 T/T, L/C and Credit of 30-60 days.
*Major Customer:
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Shenzhen Hengweixin Making-Clothes Co., Ltd.
*Major Supplier:
==============
Wenzhou Aoteman Industry 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.
China Minsheng Bank Shenzhen Branch
AC#
1814014170007655
Relationship:
Normal.
Balance Sheet
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Unit: CNY’000 |
as
of Dec. 31, 2006 |
as
of Dec. 31, 2007 |
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Cash & bank |
298 |
598 |
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Inventory |
1,081 |
656 |
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Accounts
receivable |
1,640 |
726 |
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Other Accounts
receivable |
2,430 |
807 |
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Advances to
suppliers |
0 |
2,856 |
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To be apportioned
expense |
0 |
0 |
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Other current
assets |
123 |
4 |
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------------------ |
------------------ |
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Current assets |
5,572 |
5,647 |
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Fixed assets net
value |
4 |
9 |
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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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------------------ |
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Total assets |
5,576 |
5,656 |
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============= |
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Short loans |
0 |
0 |
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Accounts payable |
4,370 |
3,714 |
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Other Accounts
payable |
91 |
142 |
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Withdraw the expenses
in advance |
0 |
0 |
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Other current
liabilities |
293 |
795 |
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Current
liabilities |
4,754 |
4,651 |
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Long term
liabilities |
0 |
0 |
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Other
liabilities |
1 |
0 |
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------------------ |
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Total
liabilities |
4,755 |
4,651 |
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Equities |
821 |
1,005 |
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Total
liabilities & equities |
5,576 |
5,656 |
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Income Statement
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Unit: CNY’000 |
as of Dec. 31, 2006 |
as of Dec. 31, 2007 |
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Turnover |
5,645 |
7,390 |
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Cost of goods
sold |
5,055 |
6,792 |
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Sales expense |
614 |
409 |
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Management expense |
67 |
0 |
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Finance expense |
1 |
2 |
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Profit before
tax |
-83 |
186 |
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Less: profit tax |
0 |
3 |
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Profits |
-83 |
183 |
Important
Ratios
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As
of Dec. 31, 2006 |
As
of Dec. 31, 2007 |
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*Current ratio |
1.17 |
1.21 |
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*Quick ratio |
0.94 |
1.07 |
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*Liabilities
to assets |
0.85 |
0.82 |
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*Net profit
margin (%) |
-1.47 |
2.48 |
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*Return on
total assets (%) |
-1.49 |
3.24 |
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*Inventory
/Turnover ×365 |
70 days |
32 days |
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*Accounts
receivable/Turnover ×365 |
106 days |
36 days |
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*Turnover/Total
assets |
1.01 |
1.31 |
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* Cost of
goods sold/Turnover |
0.90 |
0.92 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears average, and it was rising in 2007.
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SC’s net profit margin is fair in 2006 and average in 2007.
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SC’s return on total assets is fair in 2006 and average in 2007.
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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 is maintained in an average level.
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SC has no short-term loan in both 2 years.
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SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIR
l
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: Fairly Stable.
Opinion amount: USD 500,000
SC is considered small-sized in its line with fairly stable financial
conditions. A credit line at the above amount appears to be beyond SC’s
capacities, while a credit line up to USD 10,000
is recommended.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs. 42.00 |
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UK Pound |
1 |
Rs. 82.14 |
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Euro |
1 |
Rs. 65.09 |
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%)