MIRA
INFORM REPORT
|
Report Date : |
18.01.2008 |
IDENTIFICATION
DETAILS
|
Name : |
TIANJIN COTTON EXCHANGE MARKET CO LTD |
|
|
|
|
Registered Office : |
F1 Management Committee Office Building, Tianjin Free Trade Zone,
300461 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2006 |
|
|
|
|
Date of Incorporation : |
Jun. 30, 1999 |
|
|
|
|
Com. Reg. No.: |
120000400026802 |
|
|
|
|
Legal Form : |
Chinese Foreign Equity Joint Venture
Enterprise |
|
|
|
|
Line of Business : |
Trader of
cotton. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 500,000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
Litigation : |
Clear |
NAME & ADDRESS
TIANJIN COTTON
EXCHANGE MARKET CO., LTD.
F1 MANAGEMENT COMMITTEE OFFICE BUILDING,
TIANJIN FREE TRADE ZONE, 300461 PR CHINA
TEL: 86 (0) 22-25764631
FAX: 86 (0) 22-25764633
EXECUTIVE SUMMARY
INCORPORATION DATE : JUN. 30, 1999
REGISTRATION NO. : 120000400026802
REGISTERED LEGAL FORM : CHINESE
FOREIGN EQUITY JOINT VENTURE ENTERPRISE
STAFF STRENGTH :
60
REGISTERED CAPITAL : CNY 10,000,000
BUSINESS LINE :
TRADING
TURNOVER :
cny 209,660,000 (AS OF DEC. 31, 2006)
EQUITIES :
cny 12,460,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 150,000
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : WELL KNOWN
EXCHANGE RATE :
CNY 7.25= 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 Ren Min Bi
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 Jun. 30, 1999.
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 and
processing cotton, textile materials, textiles machinery and parts; commodity
exhibition; duty-free storage; and related consulting services.
SC is mainly
engaged in selling cotton.
Mr. Li Yueming has
been chairman of SC since 1999.
SC is known
to have approx. 60 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 Tianjin. Our checks reveal that SC
rents the total premise about 800 square meters.
http://www.joyfair.com.
It is the website of Joyfair Group Co., Ltd. The design is professional and the
content is well organized. At present it is in English and Chinese versions.
SC’s former shareholders are Joyfair Holding Corp. (55% shares), Tianjin
Investment Group (35% shares) and Tianjin Tianbao Holding Corp. (10% shares),
and at the end of 2006, they changed to the present ones.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Joyfair Holding Corp. BVI 55
China National Silk Importing and Exporting
Co., Ltd. 10
Tianjin Jizhou Joyfair Textile Co., Ltd. 35
Joyfair Holding Corp. BVI
Joyfair Holding Corp is one subsidiary of
Joyfair Group.
Joyfair Group is registered in Hong Kong
with the main investment in Tianjin port free trade zone. It has realized the
integration of the resources of Joyfair Group (Hong Kong) Co., Ltd., Joyfair
Holding Corp., Tianjin Joyfair Garment Co., Ltd., Tianjin Joyfair International
Trade Co., Ltd., Tianjin Joyfair Textile Industrial Co., Ltd., Tianjin Joyfair
Logistics Co., Ltd. Tianjin Jizhou Joyfair Textile Co., Ltd., And Tianjin
Cotton Exchange Market and established a multi-industry corporation group with
the textile industry as the core.
China National Silk Importing and Exporting
Co., Ltd.
Add: No. 105 Beiheyan Street, Dongcheng
District, Beijing
105
Tel: 86-010-65125123
Fax: 86-010-65136840
l
Chairman:
Mr. Li Yueming, in his 50’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1999 to present Working
in SC as chairman.
l
General Manager:
Ms. Bi Yujuan, in her 40’s with university education. She is currently
responsible for the daily management of SC.
Working Experience(s):
From 2005 to present
Working in SC as general
manager.
SC is mainly
engaged in selling cotton.
SC’s products
mainly include: cotton.
SC sources its
materials 100% from the overseas market, mainly Southeast Asia and European
countries. SC sells 100% of its products in domestic market.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include T/T and Credit of 30-60 days.
*Major Client:
===========
Nanpi Huayu Cotton Industry Co., Ltd.
*Major Supplier:
============
Ecom Singapore
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 refused to release any information of its
domestic suppliers and the trade reference was not available.
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 Tianjin Branch
AC#0302092109300358083
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2006 |
|
Cash & bank |
2,440 |
|
Inventory |
5,670 |
|
Accounts
receivable |
0 |
|
Advances to
suppliers |
19,760 |
|
Other
receivables |
38,590 |
|
Other current
assets |
0 |
|
|
------------------ |
|
Current assets |
66,460 |
|
Fixed assets net
value |
1,160 |
|
Projects under
construction |
0 |
|
Long term
investment |
0 |
|
Other assets |
0 |
|
|
------------------ |
|
Total assets |
67,620 |
|
|
============= |
|
Short loans |
0 |
|
Accounts payable |
23,340 |
|
Advances from
clients |
15,410 |
|
Taxes payable |
50 |
|
Salaries payable |
0 |
|
Other payable |
16,360 |
|
Other current
liabilities |
0 |
|
|
------------------ |
|
Current
liabilities |
55,160 |
|
Long term
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
55,160 |
|
Equities |
12,460 |
|
|
------------------ |
|
Total
liabilities & equities |
67,620 |
|
|
============= |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31, 2006 |
|
Turnover |
209,660 |
|
Cost of goods
sold |
194,980 |
|
Sales expense |
4,560 |
|
Management expense |
4,460 |
|
Finance expense |
1,120 |
|
Profit before
tax |
6,590 |
|
Less: profit tax |
780 |
|
Profits |
5,810 |
Important Ratios
=============
|
|
2006 |
|
*Current ratio |
1.20 |
|
*Quick ratio |
1.11 |
|
*Liabilities to
assets |
0.82 |
|
*Net profit
margin (%) |
2.77 |
|
*Return on
total assets (%) |
8.59 |
|
*Inventory
/Turnover ×365 |
10days |
|
*Accounts
receivable/Turnover ×365 |
0 |
|
*Turnover/Total
assets |
3.12 |
|
* Cost of
goods sold/Turnover |
0.93 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in 2006.
l
SC’s net profit margin is average in 2006.
l
SC’s return on total assets is fairly good in 2006.
l
SC’s cost of goods sold is fairly high, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal level in 2006.
l
SC’s quick ratio is maintained in a normal level in 2006.
l
The inventory of SC is average.
l
There is no accounts receivable in 2006.
l
There is no short loan in 2006.
l
SC’s turnover is in a fairly good level, comparing with the size of its
total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
Credit Opinion: USD 500,000
SC is well-known in its industry with fairly stable financial
conditions. A credit line at the above amount appears beyond SC’s capacities,
while a credit line up to USD 150,000 is recommended.
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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%)