MIRA
INFORM REPORT
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Report Date : |
25.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
QINGHAI MINGNUO CAPSULES Co., Ltd. |
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Registered Office : |
No. 12, Mingxing Road, Xining National Economic & Technological Development
Zone, Qinghai Province, 810007 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
14.04.2000 |
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Com. Reg. No.: |
0197 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Manufacturing and Selling Different Sorts of Medical Capsules |
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 100,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
QINGHAI MINGNUO CAPSULES Co., Ltd.
no. 12, mingxing
road, xining national economic & technological development zone, qinghai
PROVINCE, 810007 PR CHINA.
12
TEL: 86 (0)
971-8016677 FAX: 86 (0) 971-8016847
EXECUTIVE SUMMARY
INCORPORATION DATE : april 14, 2000
REGISTRATION NO. : 0197
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY
JOINT VENTURE ENTERPRISE
STAFF STRENGTH :
427
REGISTERED CAPITAL : USD 9,660,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 39,082,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 19,909,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 100,000 (periodical review)
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
7.14 = US1$
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 Chinese-foreign equity joint venture enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on April 14, 2000.
Company Status: Chinese-foreign equity joint venture
enterprise This
form of business in PR China is defined as a legal person. It is a limited
co. jointly invested by one or more foreign companies and one or more PR
China controlled companies within the territories of PR China according to
a certain proportion of capital investment. The investing parties exercise
business management, share profits and bear all risks and liabilities of
the co. together. The equity joint venture law requires that foreign party
contribute not less than 25% of the registered capital, with no maximum.
The investing parties are free to agree on method of profit distribution
and liabilities bearing according to the proportion of capital investment.
Each investing parties contributes funds, tangible assets, technology &
etc. The board of directors excises the high authority. The joint venture
usually has a limited duration of 10 to 50 years. Enterprise with large
investment, long construction periods, low investment returns, introducing
of advanced technology & advanced technology products that have good
competition position in international market may extend beyond the 50 years
limit.
SC’s registered
business scope includes manufacturing and selling capsules; providing
after-sales services, equipment maintenance and technology training.
SC is mainly
engaged in manufacturing and selling capsules.
Mr. Lu Yimin has
been legal representative and chairman of SC since 2000.
SC is known
to have approx. 427 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 Xining. Our checks
reveal that SC owns the total premise about 12,000 square meters.
http://qhmn.net.und.cn/ The design is professional and the content
is well organized. At present it is in Chinese version.
Email: mingnuo_xs@my0606.com.cn
SC’s former registered capital was USD 2,000,000; in June, 2007, it was
changed to USD 9,660,000.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Qinghai Geiatin Co., Ltd.
94.8
Canada Technophar Equipment & Services
Corporation.
5.2
l
Legal representative and chairman:
Mr. Lu Yimin , in his 50’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2000 to present Working
in SC as chairman and legal representative.
l
General manager:
Mr. Zhang Xiaobin, 42 years old 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 manufacturing and selling different sorts of medical capsules.
SC sources its materials 100% from domestic
market. SC sells 100% of its products in domestic market.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include Check, T/T 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.
China
Construction Bank Xining Chengdong Office.
AC#63001544337050001859
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
5,162 |
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Inventory |
6,315 |
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Accounts
receivable |
20,778 |
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Advances to
suppliers |
4,484 |
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Other
receivables |
1,187 |
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Notes
receivables |
996 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
38,922 |
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Fixed assets |
76,008 |
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Fixed assets net
value |
56,921 |
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Projects under
construction |
11,393 |
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Project
materials |
784 |
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Long term
investment |
0 |
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Other assets |
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Total assets |
108,020 |
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============= |
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Short loans |
0 |
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Accounts payable |
14,098 |
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Other payable |
35,971 |
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Taxes payable |
1,434 |
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Notes payable |
10,000 |
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Welfare expenses
payable |
127 |
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Advances from
clients |
481 |
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Long-term liabilities
due with in one year |
11,000 |
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Other current
liabilities |
0 |
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Current
liabilities |
73,111 |
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Long term
liabilities |
15,000 |
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Total
liabilities |
88,111 |
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Equities |
19,909 |
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Total
liabilities & equities |
108,020 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
39,082 |
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Cost of goods
sold |
27,348 |
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Sales expense |
5,230 |
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Management expense |
2,749 |
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Finance expense |
2,872 |
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Subsidy income |
1,524 |
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Profit before
tax |
2,545 |
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Less: profit tax |
0 |
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Profits |
2,545 |
Important Ratios
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as
of Dec. 31, 2006 |
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*Current ratio |
0.53 |
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*Quick ratio |
0.45 |
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*Liabilities
to assets |
0.82 |
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*Net profit
margin (%) |
6.51 |
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*Return on
total assets (%) |
2.36 |
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*Inventory
/Turnover ×365 |
59 days |
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*Accounts
receivable/Turnover ×365 |
194 days |
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*Turnover/Total
assets |
0.36 |
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* Cost of
goods sold/Turnover |
0.70 |
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 fairly good.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in a fair level.
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SC’s quick ratio is maintained in a fair level.
l
The inventory of SC is maintained in an average level.
l
The accounts receivable of SC appears fairly large.
l
SC has no short-term loan in 2006.
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SC’s turnover is in a fair level, comparing with the size of its total
assets.
LEVERAGE: FAIR
l
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: Fairly stable.
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of accounts receivable could be a threat to SC’s financial
condition. A credit line up to USD 100,000 would appear 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%)