MIRA
INFORM REPORT
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Report Date : |
04.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
SHANGHAI HARPOON
TRADE AND DEVELOPMENT CO., LTD. |
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Registered Office : |
Room 301 No. 1 Lane 260 Zhidan Road, Shanghai, 200065 |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
05.04.1997 |
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Com. Reg. No.: |
3102272017566 |
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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 : |
Usually Correct |
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Litigation : |
Clear |
name & address of the company
SHANGHAI HARPOON TRADE
AND DEVELOPMENT CO., LTD.
ROOM 301 NO. 1 LANE 260 ZHIDAN ROAD,
SHANGHAI, 200065 PR CHINA
2601301
TEL: 86 (0) 21-56615163 FAX: 86 (0) 21-66110015
EXECUTIVE SUMMARY
INCORPORATION DATE : APR. 5, 1997
REGISTRATION NO. : 3102272017566
REGISTERED LEGAL FORM : LIMITED LIABILITIES
COMPANY
STAFF STRENGTH :
10
REGISTERED CAPITAL : CNY 1,000,000
BUSINESS LINE :
INTERNATIONAL TRADE
TURNOVER :
cny 3,380,000 (AS OF SEP. 30, 2007)
EQUITIES :
cny 1,000,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 10,000
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : fairly steady
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 Ren Min Bi
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 Apr. 5, 1997.
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 wholesaling and retailing textiles and materials
(excluding cotton), hardware, chemical products, communication equipment,
computers and parts, building decoration materials, garments, culture products,
metal materials, electrics wire and cable, machinery parts, lighting equipment;
divided packaging of textile sizing agent; importing and exporting various
goods and technology.
SC is mainly
engaged in international trade.
Mr. Chen Qingh has
been chairman of SC since 1997.
SC is known
to have approx. 10 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 Shanghai. Our checks reveal that SC
rents the total premise about 100 square meters.
SC is not known to host website of its own at present.
No significant events or changes were found during our checks with local
AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Chen Qinghe 50
Zhang Jian 50
l
Chairman and General Manager:
Mr. Chen Qinghe, in his 40’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1997 to present Working
in SC as chairman and general manager.
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Sales Manager:
Mr. Zhang Jian (张剑), in his 40’s with university
education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 1997 to present
Working in SC as sales manager.
SC is mainly
engaged in international trade.
SC’s products
mainly include: printing gum.
SC sources its
materials 30% from domestic market, and 70% from the overseas market, mainly
India. SC sells 80% of its products in domestic market, and 20% to the overseas
market, mainly American and European countries.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include T/T, L/C and Credit of 30-60 days.
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 records and our debt collection record concerning SC.
Trade payment experience : SC did not
provide any name of trade/service suppliers and we have no other sources to
conduct the enquiry at present.
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 Merchant Bank Pudong Sub-branch
AC#N/A
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2006 |
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Cash & bank |
360 |
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Inventory |
700 |
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Accounts
receivable |
910 |
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Advances to
suppliers |
0 |
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Other
receivables |
180 |
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Other current
assets |
290 |
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Current assets |
2,440 |
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Fixed assets net
value |
930 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
0 |
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Total assets |
3,370 |
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============= |
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Short loans |
0 |
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Accounts payable |
1,200 |
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Advances from
clients |
600 |
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Taxes payable |
30 |
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Salaries payable |
0 |
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Other payable |
0 |
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Other current
liabilities |
250 |
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Current
liabilities |
2,080 |
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Long term
liabilities |
290 |
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Total
liabilities |
2,370 |
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Equities |
1,000 |
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Total
liabilities & equities |
3,370 |
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Income Statement
Unit: CNY’000
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As of Sep. 30,
2007 |
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Turnover |
3,380 |
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Cost of goods
sold |
2,730 |
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Sales expense |
320 |
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Management expense |
120 |
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Finance expense |
60 |
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Profit before
tax |
150 |
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Less: profit tax |
0 |
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Profits |
150 |
Important Ratios
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2006/Sep.
30, 2007 |
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*Current ratio |
1.17 |
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*Quick ratio |
0.84 |
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*Liabilities
to assets |
0.70 |
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*Net profit
margin (%) |
4.44 |
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*Return on
total assets (%) |
/ |
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*Inventory
/Turnover ×365 |
/ |
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*Accounts
receivable/Turnover ×365 |
/ |
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*Turnover/Total
assets |
/ |
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* Cost of
goods sold/Turnover |
0.81 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears average in the first 3 quarters of 2007.
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SC’s net profit margin is fairly good in the first 3 quarters of 2007.
l
SC’s cost of goods sold is average in the first 3 quarters of 2007,
comparing with its turnover.
LIQUIDITY: AVERAGE
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The current ratio of SC is maintained in a normal level in 2006.
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SC’s quick ratio is maintained in a normal level in 2006.
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The inventory of SC appears average.
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The accounts receivable of SC appears average.
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There is no short loan in 2006.
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SC’s turnover is in an average level in the first 3 quarters of 2007,
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 low.
Overall financial
condition of the SC: Stable.
SC is considered small-sized in its line with stable financial conditions.
Credit dealings of small amount can be considered for it at present.
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%)