MIRA
INFORM REPORT
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Report Date : |
27.08.2008 |
IDENTIFICATION
DETAILS
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Name : |
BROS EASTERN
CO., LTD. |
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Registered Office : |
No.1 Naner East Road, Luotuo Town, Zhenhai
District, Ningbo, Zhejiang Province,
315206 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
29.04.2004 |
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Com. Reg. No.: |
330200400002485 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Producing and Selling Textiles. |
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 3,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
BROS EASTERN CO.,
LTD.
NO.1 NANER EAST ROAD, LUOTUO TOWN, ZHENHAI
DISTRICT, NINGBO,
ZHEJIANG PROVINCE, 315206 PR CHINA
TEL: 0086-574-86264108 FAX:
0086-574-86379902
EXECUTIVE SUMMARY
INCORPORATION DATE : APR. 29, 2004
REGISTRATION NO. :
330200400002485
REGISTERED LEGAL FORM : WHOLLY
FOREIGN-OWNED ENTERPRISE
CHIEF EXECUTIVE :
MR. YANG WEIXIN (CHAIRMAN)
STAFF STRENGTH :
2,000
REGISTERED CAPITAL : US$ 59,980,000
BUSINESS LINE : MANUFACTURING
TURNOVER :
CNY 517,340,000 (AS OF DEC. 31,
2007)
EQUITIES :
CNY 468,710,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO
USD 3,000,000 (PERIODICAL REVIEW)
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.83921 = 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 wholly
foreign-owned enterprise at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Apr. 29, 2004.
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 producing special engineered textiles,
textiles, textile garments, crafts and toys, sporting goods; planting cotton
and linen; developing and building ordinary residence houses.
SC is mainly
engaged in producing and selling textiles.
Mr. Yang Weixin
has been legal representative and chairman of SC since 2004.
SC is known to have approx. 2,000 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 Ningbo. Our checks
reveal that SC rents the premise, but SC’s accountant refused to release the
gross area of the premise.
SC is not known to host website of its own at present.
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
(Hong Kong)Xinguo Investment Development
Ltd. (in Chinese pinyin) 50
Yang Weixin (Hong Kong citizen) 30
Yang Weiguo (Hong Kong citizen) 20
l
Legal representative and chairman:
Mr. Yang Weixin, HK citizen, 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 legal representative, in Ningbo Zhonghui Textile Co., Ltd. and
Ningbo Bros Textile Co., Ltd. as legal representative.
l
General manager:
Mr. Cao Yanchun, in his 40’s with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
At present Working
in SC as general manager.
SC is mainly
engaged in producing and selling textiles.
SC’s products mainly include: cashmere, angora yarn, long stapled
cotton, Model, Bamboo textiles.
SC sources its materials 80% from domestic market and 20% from the
overseas market. SC sells 50% of its products to overseas market, mainly in Europe and America, and 50% in domestic market.
The buying terms of SC include Check, L/C, 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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Ningbo Bros Textile Co., Ltd.
*Major Customer*
==============
Ningbo Bros Textile Co., Ltd.
SC is known to invest in the following companies:
Ningbo Bros Textile Co., Ltd.
Ningbo Zhonghui Textile 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’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.
Industrial &
Commercial Bank of China Ningbo Sub-branch
AC#3901110009200040523
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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as
of Dec. 31, 2007 |
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Cash & bank |
467,410 |
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Bills receivable |
9,300 |
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Accounts
receivable |
108,380 |
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Other
receivables |
157,940 |
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Advances to
suppliers |
18,040 |
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Inventory |
563,500 |
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Prepaid expenses |
0 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
1,324,570 |
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Fixed assets |
245,810 |
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Fixed assets net
value |
178,200 |
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Projects under
construction |
67,610 |
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Long term
investment |
167,800 |
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Other assets |
92,530 |
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------------------ |
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Total assets |
1,830,710 |
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============= |
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Short loans |
404,500 |
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Bills payable |
0 |
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Accounts payable |
922,420 |
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Welfare payable |
0 |
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Advances from
clients |
0 |
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Accrued payroll |
0 |
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Tax payable |
-3,830 |
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Other payable |
38,760 |
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Surcharge
payable |
150 |
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Other current
liabilities |
0 |
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------------------ |
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Current
liabilities |
1,362,000 |
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Long term
liabilities |
0 |
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------------------ |
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Total
liabilities |
1,362,000 |
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Equities |
468,710 |
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------------------ |
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Total
liabilities & equities |
1,830,710 |
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============= |
Income Statement
Unit: CNY’000
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as of Dec. 31, 2007 |
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Turnover |
517,340 |
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Cost of goods
sold |
385,910 |
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Sales expense |
6,410 |
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Management expense |
16,110 |
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Finance expense |
3,030 |
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Investment
income |
90 |
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Profit before
tax |
115,710 |
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Less: profit tax |
0 |
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Profits |
115,710 |
Important Ratios
=============
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as
of Dec. 31, 2007 |
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*Current ratio |
0.97 |
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*Quick ratio |
0.56 |
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*Liabilities
to assets |
0.74 |
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*Net profit
margin (%) |
22.37 |
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*Return on
total assets (%) |
6.32 |
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*Inventory
/Turnover ×365 |
398 days |
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*Accounts
receivable/Turnover ×365 |
77 days |
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*Turnover/Total
assets |
0.28 |
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* Cost of
goods sold/Turnover |
0.75 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is fairly good.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair level.
l
SC’s quick ratio is maintained in a fair level.
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The inventory of SC appears large.
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The accounts payable of SC appears large.
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SC’s short-term loan appears fairly large.
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SC’s turnover is in a fair level, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
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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.
SC is considered large-sized in its line with fairly stable financial
conditions. The large amount of inventory and accounts payable could be a threat
to SC’s financial condition. A credit line up to USD 3,000,000 would appear to
be within SC’s capacities upon a periodical review basis.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.43.73 |
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UK Pound |
1 |
Rs.80.31 |
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Euro |
1 |
Rs.64.61 |
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%)