MIRA
INFORM REPORT
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Report Date : |
15.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
jiangsu pritty pearlescent pigments co., ltd. |
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Registered Office : |
No. 128, Chenfeng Road, Economic Development
Zone, Suqian City Jiangsu Province 223800 |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
26.07.2002 |
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Com. Reg. No.: |
3213002100625 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and Selling Pearlescent Pigments |
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 25,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name and address of the company
jiangsu pritty pearlescent pigments co., ltd.
NO. 128, CHENFENG ROAD, ECONOMIC DEVELOPMENT
ZONE, SUQIAN CITY
JIANGSU PROVINCE
223800 PR CHINA
128
TEL: 86 (0)
527-88205633 FAX: 86 (0) 527-88205669
EXECUTIVE SUMMARY
INCORPORATION DATE : jul. 26, 2002
REGISTRATION NO. : 3213002100625
REGISTERED LEGAL FORM : limited liabilities
company
STAFF STRENGTH :
120
REGISTERED CAPITAL : cny 4,000,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 8,943,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 3,803,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 25,000
MARKET CONDITION : fair
FINANCIAL CONDITION : fair
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.24 =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 Renminbin
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 Jul. 26, 2002.
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 manufacturing and
processing pearlescent pigments, pearlescent powder, mica powder, metal
pigments, pearlescent ink, pearlescent coating, PU resin, surface finishing
agent, accessory ingredient, paint, and chemical products for daily use;
importing and exporting commodities & technologies.
SC is mainly engaged
in manufacturing and selling pearlescent pigments.
Ms. Zheng Fengyan
has been chairman of SC since 2002.
SC is known
to have approx. 120 staff members at present.
SC is
currently operating at the above stated address, and this address houses its
operating office and factory in the development zone of Suqian. Our checks
reveal that SC owns the total premise about 5,000 square meters.
http://www.pritty.com.cn
The design is professional and the content is well organized. At present it is
both in Chinese and English versions.
E-mail: jyr@pritty.com.cn
No significant events or changes were found during our checks with the
local AIC.
MAIN SHAREHOLDERS:
Name Investment (CNY’000) % of Shareholding
Lu Yupan 2,180 54.5
Zheng Fengyan 800 20.0
Zhang Guizhen 720 18.0
Lu Yi 300 7.50
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Chairman and General Manager:
Ms. Zheng Fengyan, 30 years old with university education. She is
currently responsible for the overall management of SC.
Working Experience(s):
From 2002 to present
Working in SC as chairman and general
manager.
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Assistant Manager:
Mr. Lu Yi (陆毅), 36 years old with university education. He
is currently responsible for the daily management of SC.
Working Experience(s):
From 2002 to present
Working in SC as assistant manager.
SC is mainly
engaged in manufacturing and selling pearlescent pigments.
SC’s products
mainly include: pearlescent powder, mica powder, metal pigments, pearlescent
ink, etc.
SC sources its
materials 95% from domestic market, mainly Jiangsu and Tianjin, and 5% from
overseas market, mainly India. SC sells its products 5% to overseas market, and
95% in domestic market, mainly Jiangsu and Guangdong.
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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Tianjin Botian Chemical Co., Ltd.
*Major customer:
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Shantou siloran Co., Ltd.
SC is
not known to have a 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’s suppliers declined to make any
comments.
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 and
Commercial Bank of China
AC#：1116020009000115906
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
112 |
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Inventory |
2,609 |
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Accounts
receivable |
1,493 |
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Other Accounts
receivable |
90 |
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Advances to
suppliers |
289 |
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To be
apportioned expense |
0 |
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Other current
assets |
2,894 |
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Current assets |
7,487 |
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Fixed assets |
6,320 |
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Fixed assets net
value |
6,126 |
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Projects under
construction |
194 |
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Long term
investment |
0 |
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Other assets |
183 |
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Total assets |
13,990 |
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Short loans |
1,745 |
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Accounts payable |
2,722 |
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Advance from
clients |
474 |
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Other Accounts
payable |
6,044 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
-940 |
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Current
liabilities |
10,045 |
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Long term
liabilities |
142 |
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Other
liabilities |
0 |
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Total
liabilities |
10,187 |
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Equities |
3,803 |
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Total
liabilities & equities |
13,990 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
8,943 |
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Cost of goods
sold |
5,892 |
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Sales expense |
2,276 |
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Management expense |
1,467 |
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Finance expense |
77 |
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Profit before
tax |
-817 |
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Less: profit tax |
0 |
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Profits |
-817 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 0.75
*Quick ratio 0.49
*Liabilities to
assets 0.73
*Net profit
margin (%) -9.14
*Return on total
assets (%) -5.84
*Inventory /Turnover
×365 106days
*Accounts
receivable/Turnover ×365 61days
*Turnover/Total
assets 0.64
* Cost of goods
sold/Turnover 0.66
PROFITABILITY:
FAIR
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The turnover of SC appears fair in its line.
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SC’s net profit margin is fair.
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SC’s return on total assets is fair.
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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.
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The inventory of SC is maintained in a large level.
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The accounts receivable of SC is maintained in a normal level.
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The short-term loan of SC is maintained in a normal level.
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SC’s turnover is in a fair 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 low.
Overall financial
condition of the SC: Fair.
Opinion amount: USD 500,000
SC is considered medium-sized in its line with fair financial conditions.
A credit line at the above amount appears beyond SC’s capacities, while a
credit line up to USD 25, 000 is recommended.
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%)