MIRA
INFORM REPORT
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Report Date : |
18.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
suzhou runbao chemical products co., ltd. |
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Registered Office : |
Room 207 of 2# Building, Jinyun Mansion, No.1299 Jinmen Road, Suzhou,
Jiangsu Province, 215004 |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
23.08.1996 |
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Com. Reg. No.: |
007189 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Selling Printing Paste |
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 50,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
suzhou runbao chemical products co., ltd.
room 207 of 2# building, jinyun mansion, no.1299 jinmen road,
suzhou,
jiangsu PROVINCE,
215004 PR CHINA
1299 2 207
TEL: 86 (0)
512-68630199 FAX: 86 (0)
512-68630091
EXECUTIVE SUMMARY
INCORPORATION DATE : august 23, 1996
REGISTRATION NO. : 007189
REGISTERED LEGAL FORM : Wholly foreign-owned
enterprise
STAFF STRENGTH :
37
REGISTERED CAPITAL : usd 210,000
BUSINESS LINE :
trading
TURNOVER :
CNY 8,284,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 3,752,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 50,000
MARKET CONDITION : average
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.16 = 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 wholly foreign-owned enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on August 23, 1996.
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 manufacturing and selling M series printing paste.
SC is mainly
engaged in selling printing paste.
Mr. Gu Qun has been chairman of SC since 1996.
SC is known to
have approx. 37 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 Suzhou. Our checks reveal that SC
rents the total premise about 300 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 the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
USA Jintanglang Co., Ltd. 100
l
Chairman and General Manager:
Mr. Gu Qun , American Chinese, about 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 general manager.
SC is mainly
engaged in selling printing paste.
SC’s products
mainly include: M series printing paste.
SC sources its materials 100% from domestic
market, mainly Jiangsu. SC sells 80% of its products in domestic market, and
20% to overseas market, mainly USA, Europe and Southeast Asian market.
The buying terms of SC include Check, T/T 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 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.
Construction Bank of China Suzhou Branch
AC#：50332201989037050839995
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2007)
Unit: CNY’000
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Cash & bank |
172 |
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Inventory |
1,205 |
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Accounts
receivable |
3,665 |
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Other Accounts
receivable |
1,003 |
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To be
apportioned expense |
0 |
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Other current
assets |
232 |
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Current assets |
6,277 |
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Fixed assets net
value |
526 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
-98 |
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Total assets |
6,705 |
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Short loans |
2,205 |
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Accounts payable |
660 |
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Other Accounts
payable |
61 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
-34 |
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Current
liabilities |
2,892 |
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Long term
liabilities |
0 |
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Other
liabilities |
61 |
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Total
liabilities |
2,953 |
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Equities |
3,752 |
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Total
liabilities & equities |
6,705 |
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Income Statement (as of Dec. 31, 2007)
Unit: CNY’000
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Turnover |
8,284 |
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Cost of goods
sold |
6,185 |
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Sales expense |
324 |
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Management expense |
774 |
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Finance expense |
10 |
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Profit before tax |
985 |
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Less: profit tax |
118 |
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Profits |
867 |
Important Ratios (as of Dec. 31, 2007)
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*Current ratio 2.17
*Quick ratio 1.75
*Liabilities to
assets 0.44
*Net profit
margin (%) 10.47
*Return on total
assets (%) 12.93
*Inventory
/Turnover ×365 53 days
*Accounts
receivable/Turnover ×365 161 days
*Turnover/Total
assets 1.24
* Cost of goods
sold/Turnover 0.75
PROFITABILITY:
FAIRLY GOOD
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The turnover of SC appears average in its line.
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SC’s net profit margin is fairly good.
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SC’s return on total assets is fairly good.
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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 fairly good 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 appears fairly large.
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SC’s short-term loan is in an average level.
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SC’s turnover is in an average 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 small-sized in its line with stable financial
conditions. A credit line up to USD 50,000
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%)