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MIRA
INFORM REPORT
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Report Date : |
04.12.2008 |
IDENTIFICATION
DETAILS
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Name : |
GOLDEN CARBIDE
(SHANGHAI) CO., LTD. |
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Registered Office : |
RM. 2101-2102 Block A, Gateway International
Plaza, No. 325 Tianyaoqiao Rd., Xuhui District, Shanghai, 200020 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
18.02. 2005 |
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Com. Reg. No.: |
319957 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Selling Hardware 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
GOLDEN CARBIDE
(SHANGHAI) CO., LTD.
RM. 2101-2102 BLOCK A, GATEWAY INTERNATIONAL
PLAZA,
NO. 325 TIANYAOQIAO RD., XUHUI DISTRICT,
SHANGHAI, 200020 PR CHINA
TEL: 86 (0) 21-33632088 FAX: 86 (0) 21-33633303
EXECUTIVE SUMMARY
INCORPORATION DATE : FEB. 18, 2005
REGISTRATION NO. : 319957
REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED
ENTERPRISE
STAFF STRENGTH :
40
REGISTERED CAPITAL : USD 100,000
BUSINESS LINE :
TRADING
TURNOVER :
cny 26,890,000 (AS OF DEC. 31, 2007)
EQUITIES :
cny 640,000 (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 6.88= 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 Ren Min Bi
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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 Feb. 18, 2005.
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 machinery,
hardware storing and distributing in free trade zone; goods and technology importing
and exporting, barter and transiting trade, trade as an agent in the free trade
zone; simple commercial processing; consulting service.
SC is
mainly engaged in selling hardware products.
Ms. Jian
Shufen has been chairman of SC since 2005.
SC is known
to have approx. 40 employees at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Shanghai. Our checks reveal that SC rents
the total premise about 100 square meters. SC is known to have a warehouse in
Shanghai Free Trade Zone with the premise about 200 square meters.
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http://www.goldencarbide.com
. It is under construction at present.
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No significant events or changes were found during our checks with local
AIC.
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MAIN SHAREHOLDERS:
Name %
of Shareholding
Golden Carbide Inc. (USA) 100
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l
Chairman and General Manager:
Ms. Jian Shufen, in her 40’s with university education. She 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
Vice General Manager:
Ms. Liu Yi, in her 30’s with university education. She is currently
responsible for the daily management of SC.
Working Experience(s):
From 2005 to present Working
in SC as vice general manager.
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SC is
mainly engaged in selling hardware products.
SC’s products
mainly include: cutlery.
SC sources its
materials 10% from domestic market and 90% from Europe, American and Taiwan,
etc. SC sells 100% of its products in domestic markets.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T and Credit of 30-60 days.
*Major Client:
==========
Chongqing Yaxing Mould Co., Ltd.
*Major Supplier
============
Dynamic Golden Co., Ltd. (Taiwan)
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SC is
known to have offices in Beijing, Qingdao, Chongqing and Chengdu.
Golden Carbide (Shanghai) Co., Ltd Chengdu Office
======================================
Add: B1-701 Fengde International Plaza, No. 6 Hangkong Road, Chengdu,
Sichuan
Tel: 86 (0) 28-85266681
Fax: 86 (0) 28-85266684
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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 refused to release any information of its
domestic suppliers and the trade reference was not available.
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.
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China Construction Bank Free Trade Zone Sub-branch
AC#31001613402050003053
Relationship:
Normal.
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Balance Sheet
Unit: CNY’000
|
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As
of Dec. 31, 2006 |
As
of Dec. 31, 2007 |
|
Cash & bank |
130 |
610 |
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Inventory |
1,540 |
1,220 |
|
Accounts
receivable |
3,550 |
5,240 |
|
Advances to
suppliers |
150 |
40 |
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Other
receivables |
1,800 |
2,800 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Current assets |
7,170 |
9,910 |
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Fixed assets net
value |
310 |
240 |
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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 |
7,480 |
10,150 |
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============== |
============= |
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Short loans |
0 |
0 |
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Accounts payable |
5,500 |
7,590 |
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Advances from
clients |
580 |
460 |
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Taxes payable |
220 |
550 |
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Salaries payable |
0 |
0 |
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Other payable |
1,380 |
890 |
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Other current
liabilities |
0 |
20 |
|
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-------------------- |
------------------ |
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Current
liabilities |
7,680 |
9,510 |
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Long term
liabilities |
0 |
0 |
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-------------------- |
------------------ |
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Total
liabilities |
7,680 |
9,510 |
|
Equities |
-200 |
640 |
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--------------------- |
------------------ |
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Total
liabilities & equities |
7,480 |
10,150 |
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|
============== |
============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31, 2006 |
As of Dec. 31, 2007 |
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Turnover |
17,130 |
26,890 |
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Cost of goods
sold |
11,380 |
18,850 |
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Sales expense |
3,750 |
5,060 |
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Management expense |
1,920 |
2,390 |
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Finance expense |
40 |
90 |
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Profit before
tax |
170 |
870 |
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Less: profit tax |
0 |
20 |
|
Profits |
170 |
850 |
Important Ratios
=============
|
|
2006 |
2007 |
|
*Current ratio |
0.93 |
1.04 |
|
*Quick ratio |
0.73 |
0.91 |
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*Liabilities
to assets |
1.03 |
0.94 |
|
*Net profit
margin (%) |
0.99 |
3.16 |
|
*Return on
total assets (%) |
2.27 |
8.37 |
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*Inventory
/Turnover ×365 |
33days |
16days |
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*Accounts
receivable/Turnover ×365 |
76days |
71days |
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*Turnover/Total
assets |
2.29 |
2.65 |
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* Cost of goods
sold/Turnover |
0.66 |
0.70 |
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PROFITABILITY:
AVERAGE
l
The turnover of SC appears average, and it increased in 2007.
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SC’s net profit margin is average, and it was rising in 2007.
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SC’s return on total assets is average in 2006 and fairly good in 2007.
l
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal level in 2007.
l
SC’s quick ratio is maintained in a normal level in 2007.
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The accounts receivable of SC appears fairly large.
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The inventory of SC is average.
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SC has no short loan in both 2 years.
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SC’s turnover is in a fairly good level, comparing with the size of its
total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
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SC is considered small-sized in its line with fairly stable financial conditions.
The large amount of accounts receivable & payable could be a threat to SC’s
financial condition. Credit dealings of the above amount appear to be beyond
SC’s capacity, while a credit line up to USD 10,000 is recommended.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.79 |
|
UK Pound |
1 |
Rs.73.37 |
|
Euro |
1 |
Rs.63.08 |
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
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%)