MIRA
INFORM REPORT
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Report Date : |
28.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
NINGBO JINGHONG COSTUME CO., LTD. |
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Registered Office : |
No. 123, Xingyong Road, Ningbo, Zhejiang Province, 315020 |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
04.02.2002 |
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Com. Reg. No.: |
3302002005538 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and Selling Various Kinds of Crewel Silk |
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 10,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
COMPANY NAME & ADDRESS
NINGBO JINGHONG COSTUME CO., LTD.
NO. 123, XINGYONG ROAD, NINGBO, ZHEJIANG PROVINCE, 315020 PR CHINA.
TEL: 86 (0) 574-26267556
FAX: 86 (0) 574-26267555
EXECUTIVE SUMMARY
INCORPORATION DATE : february 4, 2002
REGISTRATION NO. : 3302002005538
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE :
Ms. SHAO XIAFEI (CHAIRMAN)
STAFF STRENGTH :
350
REGISTERED CAPITAL : CNY 3,080,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 18,100,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 2,470,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 10,000 (periodical review)
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
7.22 = 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 limited liabilities company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on February 4, 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
garments, textiles, chemical fiber products, shoes and hats, arts & crafts;
import and export of various goods and technologies, excluding the items
prohibited or limited by the country.
SC is mainly engaged in manufacturing and selling various kinds of
crewel silk.
Ms. Shao Xiafei has been legal representative and chairman of SC since
2002.
SC is known to have approx. 350 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 Ningbo. Our
checks reveal that SC owns the total premise about 20,000 square meters.
SC is not known to host website of its own at present.
Email: jeejay529@163.com
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Shao Xiafei 90
Shao Zibin 10
Legal representative and chairman:
Ms. Shao Xiafei , in her 40’s 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 legal representative.
Vice-general manager:
Mr. Yang Yanfeng , 37 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 vice-general manager.
SC is mainly engaged in manufacturing and selling various kinds of
crewel silk.
SC’s products mainly include computer crewel silk and knitted garments.
SC sources its materials 100% from domestic market. SC sells 30% of its
products in domestic market, and 70% to overseas market, mainly India,
Thailand, Australia and Denmark.
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.
Ningbo Bank Zhongxin Sub-branch.
AC#：33020122000011879
Relationship: Normal.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
5,660 |
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Inventory |
5,080 |
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Accounts receivable |
8,760 |
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Advances to suppliers |
720 |
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Other receivables |
240 |
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Other current assets |
720 |
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Current assets |
21,180 |
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Fixed assets |
22,050 |
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Fixed assets net value |
20,790 |
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Projects under construction |
1,900 |
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Long term investment |
0 |
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Other assets |
4,670 |
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Total assets |
48,540 |
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Short loans |
13,500 |
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Accounts payable |
6,750 |
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Other payable |
11,880 |
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Welfare expenses payable |
160 |
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Notes payable |
13,860 |
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Taxes payable |
-80 |
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Other current liabilities |
0 |
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Current liabilities |
46,070 |
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Long term liabilities |
0 |
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Total liabilities |
46,070 |
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Equities |
2,470 |
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Total liabilities & equities |
48,540 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
18,100 |
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Cost of goods sold |
15,610 |
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Sales expense |
170 |
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Management expense |
1,850 |
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Finance expense |
640 |
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Profit before tax |
-370 |
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Less: profit tax |
0 |
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Profits |
-370 |
Important Ratios
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as
of Dec. 31, 2006 |
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*Current ratio |
0.46 |
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*Quick ratio |
0.35 |
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*Liabilities to assets |
0.95 |
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*Net profit margin (%) |
-2.04 |
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*Return on total assets (%) |
-0.76 |
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*Inventory /Turnover ×365 |
102 days |
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*Accounts receivable/Turnover ×365 |
176 days |
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*Turnover/Total assets |
0.37 |
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* Cost of goods sold/Turnover |
0.86 |
PROFITABILITY: FAIR
The turnover of SC appears average 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 average, comparing with its turnover.
LIQUIDITY: POOR
The current ratio of SC is maintained in a poor level.
SC’s quick ratio is maintained in a poor level.
The inventory conversion period of SC appears long.
The accounts receivable of SC appears fairly large.
SC’s short-term loan appears large.
SC’s turnover is in a fair level, comparing with the size of its total
assets.
LEVERAGE: FAIR
The debt ratio of SC is high.
The risk for SC to go bankrupt is above average.
Overall financial condition of the SC: Fair.
SC is considered medium-sized in its line with fair financial
conditions. A credit line up to USD 10,000 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%)