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MIRA
INFORM REPORT
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Report Date : |
24.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
SUMITOMO CORPORATION (QINGDAO) LTD |
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Registered Office : |
Room B402, Fenghe Building No.12, Xianggang (M) Road, Qingdao,
Shandong Province-266 071, PR |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
November 26, 1996 |
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Com. Reg. No.: |
004809 |
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Legal Form : |
Wholly Foreign Owned Enterprise |
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Line of Business : |
Engaged in international trade. |
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 300,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
COMPANY NAME AND ADDRESS
Sumitomo
Corporation (Qingdao) Ltd.
room b402, fenghe building,
no.12 xianggang (m) road, qingdao,
shandong PROVINCE,
266071 PR CHINA, B402
TEL: 86 (0) 532-83883939 FAX:
86 (0)
532-83887772
EXECUTIVE
SUMMARY
INCORPORATION DATE :
november 26, 1996
REGISTRATION NO. :
004809
REGISTERED LEGAL FORM : Wholly foreign-owned enterprise
CHIEF EXECUTIVE :
MR. nakano shinji
(CHAIRMAN)
STAFF STRENGTH :
20
REGISTERED CAPITAL :
usd 1,000,000
BUSINESS LINE :
trading
TURNOVER :
CNY 265,070,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 22,330,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE :
UP TO 300,000
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
fairly STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 7.23 = US$1 AS OF 2008-1-23
HISTORY
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 November 26, 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 international trade, transit trade, export processing, commodity
exhibition, developing and selling high-tech products, and related business
consultation, storage service. SC is mainly engaged in international trade.
Mr. nakano shinji has been chairman of SC since 2007.
SC is known to have approx. 20 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 Qingdao. Our checks
reveal that SC rents the total premise about 200 square meters.
WEB SITE
SC is not known to host web site of its own at present.
KEY EVENTS/RECENT DEVELOPMENT
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
OWNERSHIP/MANAGEMENT
MAIN SHAREHOLDERS:
Name %
of Shareholding
Sumitomo Corporation (China) Limited 100
MANAGEMENT
Chairman:
Mr. nakano shinji , Japanese, about 45 years old with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2007 to present Working
in SC as chairman.
General Manager:
Mr. Yuan Chengli , about 45 years old with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
From 2007 to present Working in SC as general manager.
BUSINESS OPERATIONS
SC is mainly engaged in international trade.
SC’s products mainly include: agricultural products.
SC sources its materials 100% from domestic market, mainly Shandong and
Hebei. SC sells 10% of its products in domestic market, and 90% 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.
Major Customer:
Summit Fertilizer (Qingdao) Co., Ltd.
Major Supplier:
Baoding Great Wall Motorenine Co., Ltd.
RELATED COMPANIES
SC is not known to have any subsidiary at present.
PAYMENT
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.
BANKING
Bank of China Qingdao Branch
AC#：10022508091001
Relationship: Normal.
FINANCIAL HIGHLIGHTS
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
28,510 |
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Inventory |
0 |
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Accounts receivable |
21,810 |
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Other Accounts receivable |
470 |
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Advances to suppliers |
3,180 |
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To be apportioned expense |
0 |
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Other current assets |
660 |
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Current assets |
54,630 |
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Fixed assets net value |
1,830 |
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Projects under construction |
0 |
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Long term investment |
0 |
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Other assets |
420 |
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Total assets |
56,880 |
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Short loans |
0 |
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Accounts payable |
33,430 |
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Other Accounts payable |
680 |
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Advances from clients |
250 |
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Withdraw the expenses in advance |
0 |
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Other current liabilities |
180 |
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Current liabilities |
34,540 |
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Long term liabilities |
0 |
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Other liabilities |
10 |
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Total liabilities |
34,550 |
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Equities |
22,330 |
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Total liabilities & equities |
56,880 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
265,070 |
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Cost of goods sold |
260,070 |
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Sales expense |
5,090 |
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Management expense |
11,780 |
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Finance expense |
-290 |
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Profit before tax |
-410 |
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Less: profit tax |
0 |
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Profits |
-410 |
Important Ratios
(as of Dec. 31, 2006)
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*Current ratio 1.58
*Quick ratio 1.58
*Liabilities to assets 0.61
*Net profit margin (%) -0.15
*Return on total assets (%) -0.72
*Inventory /Turnover ×365 / days
*Accounts receivable/Turnover ×365 30 days
*Turnover/Total assets 4.66
* Cost of goods sold/Turnover 0.98
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
The turnover of SC appears fairly good in its line.
SC’s net profit margin is fair.
SC’s return on total assets is fair.
SC’s cost of goods sold is high, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a fairly good level.
SC has no inventory of SC in 2006.
The accounts receivable of SC is maintained in an average level.
SC has no short-term loan in 2006.
SC’s turnover is in a fairly good level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
REMARKS
Credit Opinion: USD 500,000.00
SC is considered small-sized in its line with fairly stable financial
conditions. A credit line at the above amount appears
beyond SC’s capacities, while a credit line up to USD 300,000 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/normal. |
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%)