MIRA
INFORM REPORT
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Report Date : |
19.08.2008 |
IDENTIFICATION
DETAILS
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Name : |
chaozhou chengxinda ceramics industry co., ltd. |
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Registered Office : |
Yixi Dongjiao, Chaozhou City Guangdong Province 521000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
13.09. 2004 |
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Com. Reg. No.: |
001512 |
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Legal Form : |
Chinese-Foreign Contractual Joint Venture Enterprise |
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Line of Business : |
Manufacturing and Selling Ceramic 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 25,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
chaozhou chengxinda ceramics industry co., ltd.
yixi dongjiao,
chaozhou city
guangdong province
521000 PR CHINA
TEL: 86 (0)
768-2323128 FAX: 86 (0) 768-2323238
EXECUTIVE SUMMARY
INCORPORATION DATE : sep.
13, 2004
REGISTRATION NO. : 001512
REGISTERED LEGAL FORM : CHINESE-FOREIGN CONTRACTUAL JOINT
VENTURE ENTERPRISE
STAFF STRENGTH :
100
REGISTERED CAPITAL : hkd 2,000,000
BUSINESS LINE : MANUFACTURING
TURNOVER :
CNY 16,240,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 2,290,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 25,000
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.90 = 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
Note: SC’s name should be the above stated one, instead of
the given one-Chaozhou Chengzinda Ceramics Industry Co., Ltd.
SC was registered as a Chinese-foreign contractual joint
venture enterprise at local Administration for Industry & Commerce (AIC -
The official body of issuing and renewing business license) on Sep. 13, 2004.
Company Status: Chinese-foreign contractual joint
venture enterprise This
form of business in PR China is defined as a legal person. It is a limited co.
jointly invested by one or more foreign companies and one or more PR China
controlled companies within the territories of PR China. The investing
parties are free to agree on the proportion of capital investment, method
of profit distribution and liabilities bearing according to the provisions
of the contract. The joint venture usually has a limited duration of 10 to
50 years.
SC’s registered
business scope includes designing, manufacturing, and selling various ceramic
products, sanitary ware, polyester products, ceramic paint, petuntse, rattan,
wood, garments, hardware, plastics, wax, packing cases, electrical appliances,
glass, and assorted products of ceramics.
SC is mainly
engaged in manufacturing and selling ceramic products.
Mr. Cai Shurong has been chairman of SC since 2004.
SC is known to
have approx. 100 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 Chaozhou. Our checks reveal that
SC rents the total premise about 2,000 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
Chaozhou Chengxin Ceramics Manufacturing
Co., Ltd. 60
Wu Zhijian (Hong Kong citizen) 40
Note: The above shareholding information was
disclosed by SC’s accountant.
l
Chairman and General Manager:
Mr. Cai Shurong, in his 40’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 and general manager.
Supervisor:
Wu Zhijian (Hong Kong citizen)
SC is mainly
engaged in manufacturing and selling ceramic products.
SC’s products
mainly include: various ceramic products.
SC sources its materials 100% from domestic
market, mainly Guangdong. SC sells 100% to overseas market, mainly Hong Kong.
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.
*Major Supplier:
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Chunyan Glass Factory
*Major Customer:
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Hong Kong Household Products Limited
SC is
known to have a subsidiary at present:
Chaozhou Chengxinda Ceramics Industry Co.,
Ltd. Lianyun Ceramic Paint Branch
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 records 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
AC#823150880208091001
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2006 |
As
of Dec. 31, 2007 |
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Cash & bank |
550 |
360 |
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Inventory |
1,260 |
1,950 |
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Accounts
receivable |
1,740 |
2,690 |
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Other Accounts
receivable |
590 |
0 |
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Advances to
suppliers |
0 |
0 |
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To be
apportioned expense |
0 |
0 |
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Other current
assets |
-20 |
70 |
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------------------ |
------------------ |
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Current assets |
4,120 |
5,070 |
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Fixed assets net
value |
2,390 |
1,940 |
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Projects under
construction |
0 |
0 |
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Long term
investment |
0 |
0 |
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Other assets |
110 |
0 |
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------------------ |
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Total assets |
6,620 |
7,010 |
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============= |
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Short loans |
0 |
0 |
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Accounts payable |
1,060 |
1,480 |
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Advance from
clients |
0 |
0 |
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Other Accounts payable |
2,300 |
1,970 |
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Withdraw the
expenses in advance |
0 |
0 |
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Other current
liabilities |
100 |
1,270 |
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Current
liabilities |
3,460 |
4,720 |
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Long term
liabilities |
0 |
0 |
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Other
liabilities |
0 |
0 |
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------------------ |
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Total
liabilities |
3,460 |
4,720 |
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Equities |
3,160 |
2,290 |
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Total
liabilities & equities |
6,620 |
7,010 |
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Income Statement
Unit: CNY’000
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As
of Dec. 31, 2007 |
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Turnover |
16,240 |
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Cost of goods
sold |
13,670 |
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Sales expense |
940 |
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Management expense |
540 |
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Finance expense |
550 |
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Profit before
tax |
580 |
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Less: profit tax |
70 |
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Profits |
510 |
Important Ratios
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As
of Dec. 31, 2006 |
As
of Dec. 31, 2007 |
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*Current ratio |
1.19 |
1.07 |
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*Quick ratio |
0.83 |
0.66 |
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*Liabilities
to assets |
0.52 |
0.67 |
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*Net profit margin
(%) |
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3.14 |
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*Return on
total assets (%) |
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7.28 |
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*Inventory
/Turnover ×365 |
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44days |
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*Accounts
receivable/Turnover ×365 |
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60days |
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*Turnover/Total
assets |
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2.32 |
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* Cost of
goods sold/Turnover |
/ |
0.84 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears average in its line in 2007.
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SC’s net profit margin is average 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: AVERAGE
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The current ratio of SC is maintained in a normal level in 2006 and
2007.
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SC’s quick ratio is maintained in a normal level in 2006 but fair in
2007.
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The inventory of SC is maintained in an average level.
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The accounts receivable of SC appears fairly large.
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SC has no short-term loan in 2006 and 2007.
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SC’s turnover is in a fairly good level in 2007, comparing with the size
of its total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is average in 2006 and 2007.
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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 accounts receivable could be a threat to SC’s financial
condition. A credit line up to USD 25,000 appears to be within SC’s capacities.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.43.72 |
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UK Pound |
1 |
Rs.81.45 |
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Euro |
1 |
Rs.64.47 |
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%)