MIRA
INFORM REPORT
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Report Date : |
01.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
HISENSE IMPORT
& EXPORT CO., LTD. |
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Registered Office : |
No.17, Donghai West Road, Qingdao City Shandong Province 266071 |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
September 16, 1998 |
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Com. Reg. No.: |
3702001803371 |
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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 100,000 |
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Status : |
Moderate |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
name & address of the company
HISENSE IMPORT
& EXPORT CO., LTD.
NO.17, DONGHAI WEST ROAD, QINGDAO CITY
SHANDONG PROVINCE 266071 PR CHINA
17
TEL: 86 (0)532-83878888 FAX: 86 (0) 532-83866700
EXECUTIVE SUMMARY
INCORPORATION DATE :
SEP. 16, 1998
REGISTRATION NO. :
3702001803371
REGISTERED LEGAL FORM : LIMITED
LIABILITIES COMPANY
STAFF STRENGTH : 146
REGISTERED CAPITAL : CNY 10,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 4,330,340,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY –65,520,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 100,000 (periodical review)
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fair
OPERATIONAL TREND : fair
GENERAL REPUTATION : AVERAGE
exchange rate :
CNY 7.19= us$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 Sep. 16, 1998.
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 importing and exporting commodities
& technologies; undertaking Chinese foreign
equity joint venture enterprise and Chinese foreign contractual joint venture
enterprise; processing with imported materials, processing with imported samples,
assemblying with imported parts and compensation trade in agreement; counter trade & transit trade.
SC is
mainly engaged in international trade.
Ms. Yu
Shumin has been chairman of SC since 1998.
SC is known to
have approx. 146 staff members at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Qingdao. Our checks reveal that SC
rents the total premise about 1,200 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 local
AIC.
MAIN SHAREHOLDERS:
Name % of shareholding
Qingdao Hisense Electronics Industry Holding
Co., Ltd. 95
Qingdao Hisense Air-condition Co., Ltd. 5
l
Chairman:
Ms. Yu Shumin, in her 50’s with university
education. She is currently responsible for the overall management of SC.
Working Experience(s):
From 1998 to present Working in SC as chairman.
l
General Manager:
Mr. Liu Qinghua, in his 40’s with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2000 to present Working in SC as general manager.
SC is
mainly engaged in international trade.
SC’s products
mainly include: HDTV, mobile phone, air-condition, etc.
SC sources its products and materials 95% from domestic market, mianly
Shandong, and 5% from overseas markets. SC sells 95% of its products in
domestic market, and 5% to oversea market.
The buying terms of SC include Check, T/T, L/C, 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:
==============
Qingdao Hisense Air-condition Co., Ltd.
SC is not known to have 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.
CITIC Bank Shinan Branch
AC#8182100001554
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As of Dec. 31, 2005 |
As of Dec. 31, 2006 |
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Cash & bank |
90,190 |
1,804,490 |
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Advances to
suppliers |
0 |
680 |
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Accounts
receivable |
1,013,970 |
1,017,050 |
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Inventory |
66,660 |
114,330 |
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Other accounts
receivable |
1,550 |
2,050 |
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Expenses to be
apportioned |
0 |
0 |
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Other current
assets |
74,260 |
66,000 |
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------------------ |
------------------ |
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Current assets |
1,246,630 |
3,004,600 |
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Fixed assets |
1,060 |
840 |
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Long term
investment |
0 |
0 |
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Other assets |
5,180 |
26,790 |
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Total assets |
1,252,870 |
3,032,230 |
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============= |
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Short loans |
661,960 |
2,153,640 |
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Accounts payable |
12,510 |
103,990 |
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Other accounts
payable |
11,080 |
183,480 |
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Drawing-expense
in advance |
0 |
0 |
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Other current
liabilities |
631,470 |
656,640 |
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------------------ |
------------------ |
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Current
liabilities |
1,317,020 |
3,097,750 |
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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 |
1,317,020 |
3,097,750 |
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Equities |
-64,150 |
-65,520 |
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------------------ |
------------------ |
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Total
liabilities & equities |
1,252,870 |
3,032,230 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2005 |
As of Dec. 31, 2006 |
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Turnover |
1,959,470 |
4,330,340 |
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Cost of goods
sold |
1,917,530 |
4,185,850 |
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Sales expense |
44,820 |
96,360 |
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Management expense |
11,440 |
93,390 |
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Finance expense |
39,910 |
17,810 |
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Profit before
tax |
-43,110 |
-1,980 |
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Less profit tax |
0 |
0 |
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Net profits |
-43,110 |
-1,980 |
Important Ratios
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As
of Dec. 31, 2005 |
As
of Dec. 31, 2006 |
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*Current ratio |
0.95 |
0.97 |
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*Quick ratio |
0.90 |
0.93 |
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*Liabilities
to assets |
1.05 |
1.02 |
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*Net profit
margin (%) |
-2.20 |
-0.05 |
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*Return on
total assets (%) |
-3.44 |
-0.07 |
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*Inventory
/Turnover ×365 |
12days |
10days |
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*Accounts
receivable/Turnover ×365 |
189days |
86days |
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*Turnover/Total
assets |
1.56 |
1.43 |
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*Cost of goods
sold/Turnover |
0.98 |
0.97 |
PROFITABILITY:
FAIR
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The turnover of SC appears fairly good, and it was rising in 2006.
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SC’s net profit margin is fair.
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SC’s return on total assets is fair.
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SC’s cost of goods sold is fairly high, comparing with its turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in a fair level in both years.
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SC’s quick ratio is maintained in a normal level in both years.
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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’s short-term loan appears LARGE.
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SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: POOR
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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: Fair.
SC is considered medium-sized in its line with fair financial
conditions. The large amount of short-term loan could be a threat to SC’s financial
condition. In view of its favorable background, a credit line up to USD 100,000
appears to be within SC’s capacities upon a periodical review basis.
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%)