MIRA
INFORM REPORT
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Report Date : |
28.01.2008 |
IDENTIFICATION
DETAILS
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Name : |
WENZHOU NGAN TONG COMPANY |
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Registered Office : |
Unit B, 29/F, Bank Of Communications Square, Chezhan
Avenue, Wenzhou, Zhejiang Province, 325000 |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
30.06.1994 |
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Com. Reg. No.: |
3303001002934 |
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Legal Form : |
State-Owned Enterprise |
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Line of Business : |
Selling Various Kinds of Light Industrial Products |
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 100,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
COMPANY NAME & ADDRESS
WENZHOU NGAN TONG COMPANY
UNIT B, 29/F, BANK OF COMMUNICATIONS SQUARE, CHEZHAN AVENUE, WENZHOU,
ZHEJIANG PROVINCE, 325000 PR CHINA.
TEL: 86 (0) 577-88982289
FAX: 86 (0) 577-88982296
EXECUTIVE SUMMARY
INCORPORATION DATE : JUNE 30, 1994
REGISTRATION NO. : 3303001002934
REGISTERED LEGAL FORM : STATE-OWNED ENTERPRISE
CHIEF EXECUTIVE :
MR. XU YONGGUANG (CHAIRMAN)
STAFF STRENGTH :
26
REGISTERED CAPITAL : CNY 2,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 197,440,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 7,060,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 100,000
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
7.21 = 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 State-owned enterprise at local Administration for
Industry & Commerce (AIC - The official body of issuing and renewing
business license) on June 30, 1994.
Company Status: State-owned enterprise This form of business in PR China is defined as a commodity
production or operational units of a socialist character which in
accordance with the law, has autonomy in management, takes full
responsibility for its profits and losses and practices independent
business accounting. It is a legal person established directly by central /
local government or enterprise owned by central or local government. In
theory, the liabilities of this form of enterprise are ultimately borne by
the government, since the adoption of company law in mid-1994, the Chinese
government has planned to separate the ownership from management and
liabilities bearing.
SC’s registered business scope includes importing and exporting goods
and technologies.
SC is mainly engaged in selling light industrial products.
Mr. Xu Yongguang has been legal representative and chairman of SC since
1994.
SC is known to have approx. 26 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 Wenzhou. Our checks
reveal that SC owns the total premise about 217 square meters.
SC is not known to host website of its own at present.
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name
%
of Shareholding
State-owned Assets Supervision and
Administration Commission of People’s
Government of Wenzhou Municipality. 100
Legal representative and chairman:
Mr. Xu Yongguang, in his 50’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1994 to present Working
in SC as chairman and legal representative.
SC is mainly engaged in selling various kinds of light industrial
products.
SC sources its materials 100% from domestic market. SC sells 100% of its
products in domestic 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 and Credit of 30-60 days.
*Major Supplier:
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Shanghai Zhenbo Electric Co., Ltd.
*Major Customer:
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Wenzhu Guangfa Economic & Trading Co., Ltd.
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 Wenzhou Branch.
AC#：820010302208091001
Relationship: Normal.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
10,730 |
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Inventory |
70 |
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Accounts receivable |
1,300 |
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Advances to suppliers |
63,570 |
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Other receivables |
1,800 |
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A receivable tax rebate of export |
1,150 |
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Other current assets |
40 |
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Current assets |
78,660 |
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Fixed assets |
2,730 |
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Fixed assets net value |
2,000 |
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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 |
80,660 |
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Short loans |
5,120 |
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Accounts payable |
150 |
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Other payable |
1,670 |
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Notes payable |
5,020 |
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Advances from clients |
61,120 |
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Other current liabilities |
520 |
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Current liabilities |
73,600 |
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Long term liabilities |
0 |
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Total liabilities |
73,600 |
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Equities |
7,060 |
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Total liabilities & equities |
80,660 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
197,440 |
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Cost of goods sold |
192,570 |
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Add: Income from other operations |
910 |
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Sales expense |
4,250 |
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Management expense |
550 |
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Finance expense |
320 |
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Profit before tax |
590 |
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Less: profit tax |
200 |
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Profits |
390 |
Important Ratios
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as
of Dec. 31, 2006 |
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*Current ratio |
1.07 |
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*Quick ratio |
1.07 |
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*Liabilities to assets |
0.91 |
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*Net profit margin (%) |
0.20 |
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*Return on total assets (%) |
0.48 |
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*Inventory /Turnover ×365 |
1 day |
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*Accounts receivable/Turnover ×365 |
2 days |
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*Turnover/Total assets |
2.45 |
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* Cost of goods sold/Turnover |
0.98 |
PROFITABILITY: AVERAGE
The turnover of SC appears fairly good in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
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 normal level.
The inventory of SC is maintained in a fairly good level.
The accounts receivable of SC is maintained in a fairly good level.
SC’s short-term loan appears fairly large.
SC’s turnover is in an average 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 average.
Overall financial condition of the SC:
Fairly stable.
SC is considered a small-sized company in its line with fairly good
background. A credit line up to USD 100,000 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%)