MIRA
INFORM REPORT
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Report Date : |
14.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
SHANGHAI DESANO
INTERNATIONAL TRADING Co., Ltd. |
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Registered Office : |
No. 1479,
Zhangheng Road, Zhangjiang High-Tech Park, Shanghai, 201203 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
March 27, 1996 |
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Com. Reg. No.: |
310725 |
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Legal Form : |
Chinese-Foreign Equity Joint
Venture Enterprise |
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Line of Business : |
Engaged in
exporting medical intermediates and related medical products. |
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 : |
Up To USD 3,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
SHANGHAI DESANO
INTERNATIONAL TRADING Co., Ltd.
No. 1479, Zhangheng Road, Zhangjiang High-tech
Park,
SHANGHAI, 201203 PR CHINA.
TEL :
86 (0) 21-51323300
FAX : 86 (0) 21-51323311
EXECUTIVE SUMMARY
INCORPORATION DATE : MARCH 27, 1996
REGISTRATION NO. : 310725
REGISTERED LEGAL FORM :
CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
STAFF STRENGTH : 5
REGISTERED CAPITAL : USD 200,000
BUSINESS LINE : TRADING
TURNOVER : CNY 74,330,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 390,000 (AS OF DEC. 31, 2006)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 3,000
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : FAIR
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
7.26 = 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 March 27, 1996.
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 international trade, trade and
trade agency in the Free Trade Zone, storage, simple commercial processing;
trade consultation.
SC is mainly
engaged in exporting medical intermediates.
Ms. Xu Xuee has been legal representative and chairman of SC since
1996.
SC is
known to have approx. 5 staff members at present
SC is
currently operating at the above stated address, and this address houses its
operating office in the industrial zone of Shanghai.
Our checks reveal that SC rents the total premise about 30 square meters.
http://www.desano.com/ The design is professional and the content
is well organized. At present it is in both Chinese and English versions.
Email: info@desano.com
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Hong Kong Kaiwei Trading Co.,
Ltd. 85
Zhejiang Xianju Huakang
Pharmaceutical & Chemical Co., Ltd. 15
===========================
Zhejiang Xianju Huakang
Pharmaceutical & Chemical Co., Ltd. mainly conducts the production and
processing of the raw materials of pharmaceuticals and health food and other
refined chemical products.
l
Legal representative and chairman:
Ms. Xu Xuee, in his 50’s with university
education. She 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 exporting medical intermediates and related medical products.
SC’s products
mainly include Acyclovir, Amodiaquine, Betamethasone, Budesonide and
Triamcinolone, etc.
SC sources its materials 100%
from domestic market. SC sells 95% of its products in domestic market, and 5%
to overseas market, mainly Southeast Asian 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, 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.
Bank of China Shanghai Branch Waigaoqiao Sub-branch
AC#：044256-8080-05525908091001
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
68 |
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Inventory |
6,000 |
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Accounts receivable |
10,780 |
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Advances to
suppliers |
1,150 |
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Other
receivables |
26,900 |
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Other current
assets |
22 |
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------------------ |
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Current assets |
44,920 |
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Fixed assets |
500 |
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Fixed assets net
value |
70 |
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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 |
44,990 |
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============= |
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Short loans |
0 |
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Accounts payable |
8,980 |
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Other payable |
26,760 |
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Advances from
clients |
8,860 |
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Other current
liabilities |
0 |
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Current
liabilities |
44,600 |
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Long term
liabilities |
0 |
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Total
liabilities |
44,600 |
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Equities |
390 |
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Total
liabilities & equities |
44,990 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
74,330 |
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Cost of goods
sold |
72,940 |
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Sales expense |
910 |
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Management expense |
480 |
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Finance expense |
40 |
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Profit before
tax |
30 |
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Less: profit tax |
0 |
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Profits |
30 |
Important Ratios
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as
of Dec. 31, 2006 |
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*Current ratio |
1.01 |
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*Quick ratio |
0.87 |
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*Liabilities
to assets |
0.99 |
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*Net profit
margin (%) |
0.04 |
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*Return on
total assets (%) |
0.07 |
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*Inventory
/Turnover ×365 |
29 days |
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*Accounts
receivable/Turnover ×365 |
53 days |
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*Turnover/Total
assets |
1.65 |
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* Cost of
goods sold/Turnover |
0.98 |
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 high, 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 normal 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 has no short-term loan in 2006.
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SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIR
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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: Fairly stable.
SC is considered small-sized in its line with fairly stable financial
conditions. A credit line up to USD 3,000 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%)