MIRA
INFORM REPORT
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Report Date : |
05.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
SHANDONG HAIYU SHOES PRODUCTS Co., Ltd. |
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Registered Office : |
Gaomi Economic Development Zone,Weifang,
Shandong Province, 261500 |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
02.08.1996 |
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Com. Reg. No.: |
3707852800175 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Making and Selling Leather Shoes and related products. |
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 60,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
name & address of the company
SHANDONG HAIYU SHOES PRODUCTS Co., Ltd.
gaomi economic
development zone,
weifang, shandong
PROVINCE, 261500 PR CHINA.
TEL: 86 (0)
536-2913833 FAX: 86 (0) 536-2913733
EXECUTIVE SUMMARY
INCORPORATION DATE : february 8, 1996
REGISTRATION NO. : 3707852800175
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
260
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 43,280,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 4,790,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 60,000
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
7.18 = US1$
Adopted abbreviations:
ANS - amount not stated
NS - not stated
C - 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 February 8, 1996.
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 making leather shoes, soles, boottree and cartons; selling shoe
accessories, rubber & plastic products, leather, bedding, garments, shoes
& caps, arts & crafts, weaving cloth; exporting its products and
technologies; importing materials, instruments, machinery and parts.
SC is mainly
engaged in making and selling leather shoes and related products.
Mr. Huang Zuping
has been legal representative and chairman of SC since 1996.
SC is known
to have approx. 260 staff members 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 Gaomi. Our checks reveal
that SC owns the total premise about 3,000 square meters.
http://www.haiyuxieye.com/
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
Email: hyjs@haiyuxieye.com
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Huang Zuping 60
Geng Xiangfen 40
l
Legal representative and chairman:
Mr. Huang Zuping , ID # 370727630302003, 45 years old with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 1996 to present Working
in SC as chairman and legal representative.
SC is mainly engaged in making and selling leather shoes and related
products.
SC’s products
mainly include working shoes, female cotton shoes, leisure shoes and children
shoes, and so on.
SC sources its materials 90% from domestic
market, and 10% from overseas market, mainly Europe. SC sells 80% of its
products in domestic market, and 20% to overseas market, mainly Britain, USA,
Japan and Iraq.
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:
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Dalian Fuxing Leather Producing Co., Ltd.
*Major Customer:
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Qingdao Huaqing
Imp. & Exp. Co., Ltd.
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 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.
Industrial & Commercial Bank of China Gaomi Sub-branch.
AC#：1607007109024804459
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
2,620 |
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Inventory |
2,210 |
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Accounts
receivable |
2,780 |
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Advances to
suppliers |
930 |
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Other
receivables |
0 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
8,540 |
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Fixed assets |
1,470 |
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Fixed assets net
value |
680 |
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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 |
9,220 |
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Short loans |
1,400 |
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Accounts payable |
760 |
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Other payable |
-10 |
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Welfare expenses
payable |
1,310 |
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Accrued payroll |
590 |
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Advances from
clients |
220 |
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Other current
liabilities |
160 |
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Current
liabilities |
4,430 |
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Long term
liabilities |
0 |
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Total
liabilities |
4,430 |
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Equities |
4,790 |
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Total
liabilities & equities |
9,220 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
43,280 |
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Cost of goods
sold |
38,750 |
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Taxes and
additional of main operation |
150 |
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Sales expense |
2,180 |
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Management expense |
1,680 |
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Finance expense |
480 |
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Profit before
tax |
7 |
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Less: profit tax |
0 |
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Profits |
7 |
Important Ratios
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as
of Dec. 31, 2006 |
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*Current ratio |
1.93 |
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*Quick ratio |
1.43 |
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*Liabilities to
assets |
0.48 |
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*Net profit
margin (%) |
0.02 |
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*Return on
total assets (%) |
0.08 |
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*Inventory
/Turnover ×365 |
19 days |
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*Accounts
receivable/Turnover ×365 |
23 days |
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*Turnover/Total
assets |
4.69 |
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*Cost of goods
sold/Turnover |
0.90 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears average in its line.
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SC’s net profit margin is average.
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SC’s return on total assets is average.
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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.
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SC’s quick ratio is maintained in a fairly good level.
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The inventory of SC is maintained in an average level.
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The accounts receivable of SC is maintained in an average level.
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SC’s short-term loan is in an average level.
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SC’s turnover is in a fairly good level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is average.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
SC is considered medium-sized in its line with stable financial
conditions. A credit line up to USD 60,000 would appear to be within SC’s
capacities.
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%)