MIRA
INFORM REPORT
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Report Date : |
17.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
YANCHENG HENGSHENG INTERNATIONAL TRADE CO LTD |
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Registered Office : |
No. 12, East, Yanhe Road, Yancheng, Jiangsu Province, 224000 |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
10.12.1983 |
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Com. Reg. No.: |
320900000021709 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Selling
Agricultural 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 40,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
Name & address
YANCHENG HENGSHENG INTERNATIONAL TRADE CO.,
LTD.
NO. 12, EAST, YANHE ROAD, YANCHENG, JIANGSU PROVINCE,
224000 PR CHINA.
12
TEL: 86 (0) 515-88366890 FAX: 86 (0) 515-88362239
EXECUTIVE SUMMARY
INCORPORATION DATE : DECEMBER 10, 1983
REGISTRATION NO. : 320900000021709
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
22
REGISTERED CAPITAL : CNY 2,560,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 139,700,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 2,940,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 40,000
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.81 = USD 1
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 Dec. 10, 1983.
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 import and export of various goods and technologies
(excluding the goods prohibited or limited by the country); wholesaling and
retailing agricultural products, textiles, garments, shoes and caps, hardware,
chemical raw materials, metal materials, wood, and paper products; storage.
SC is mainly
engaged in selling agricultural products.
Mr. Xu Chengzhong
has been legal representative and chairman of SC since 1995.
SC is known
to have approx. 22 employees 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 Yancheng. Our checks reveal that
SC owns the total premise about 4,500 square meters.
http://www.ychsit.com/ The design is professional and the content
is well organized. At present it is in both Chinese and English versions.
Email: yclmc@pub.yc.jsinfo.net
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Bian Youquan 1.56
Chen Kailing 15.63
Chen Kedong 15.63
Guan Liping 1.56
Heng Yishuang 1.56
Ji Hongyu
1.56
Ji Fukang
0.78
Li Changming 1.56
Li Wenzhong
3.91
Liu Kexiang
9.38
Ma Yuehu
7.81
Xu Chengzhong 39.06
l
Legal representative and chairman:
Mr. Xu Chengzhong, ID # 320902195802071011, 50 years old with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 1995 to present Working
in SC as chairman and legal representative.
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Vice General Manager:
Mr. Chen Kailing, ID # 320902640823001, 44 years old with university
education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 2000 to present Working in SC as vice general
manager.
SC is mainly
engaged in selling agricultural products.
SC’s products
mainly include foodstuff cereals and oil native and animal-by such as salted hog/goat/sheep/casings,
dry vegetable, soybean, soybean protein, honey etc.
SC sources its materials 98% from domestic
market, and 2% from overseas market, mainly Europe. SC sells 30% of its
products in domestic market, and 70% to overseas market, mainly U.S.A., Japan
and Middle East.
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.
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 Yancheng Sub-branch.
AC#
08231708091001
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2007)
Unit: CNY’000
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Cash & bank |
1,370 |
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Inventory |
1,330 |
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Accounts
receivable |
9,390 |
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Other
receivables |
30 |
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A receivable tax
rebate of export |
2,300 |
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Other current
assets |
30 |
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Current assets |
14,450 |
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Fixed assets |
3,070 |
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Fixed assets net
value |
1,350 |
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Projects under
construction |
0 |
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Long term
investment |
10 |
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Other assets |
3,600 |
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Total assets |
19,410 |
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Short loans |
1,000 |
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Accounts payable |
15,060 |
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Other payable |
380 |
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Taxes unpaid |
-270 |
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Other current
liabilities |
0 |
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Current
liabilities |
16,170 |
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Long term
liabilities |
300 |
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Total
liabilities |
16,470 |
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Equities |
2,940 |
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Total
liabilities & equities |
19,410 |
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Income Statement (as of Dec. 31, 2007)
Unit: CNY’000
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Turnover |
139,700 |
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Cost of goods
sold |
138,420 |
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Add: Income from
other operations |
410 |
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Sales expense |
420 |
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Management expense |
780 |
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Finance expense |
300 |
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Profit before
tax |
190 |
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Less: profit tax |
50 |
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Profits |
140 |
Important Ratios
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as
of Dec. 31, 2007 |
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*Current ratio |
0.89 |
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*Quick ratio |
0.81 |
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*Liabilities
to assets |
0.85 |
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*Net profit
margin (%) |
0.10 |
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*Return on
total assets (%) |
0.72 |
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*Inventory
/Turnover ×365 |
4 days |
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*Accounts
receivable/Turnover ×365 |
25 days |
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*Turnover/Total
assets |
7.20 |
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*Cost of goods
sold/Turnover |
0.99 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears fairly good in its line.
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SC’s net profit margin is average.
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SC’s return on total assets is average.
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SC’s cost of goods sold is high, comparing with its turnover.
LIQUIDITY: AVERAGE
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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 normal level.
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The inventory of SC is maintained in an average level.
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The accounts receivable of SC appears fairly large.
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SC’s short-term loan is in an average level.
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SC’s turnover is in a fairly good level, comparing with the size of its
total assets.
LEVERAGE: FAIR
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The debt ratio of SC is high.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
SC is considered an old-established business in small size. A credit line
up to USD 40,000 appears to be within SC’s capacities.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.42.78 |
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UK Pound |
1 |
Rs.85.51 |
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Euro |
1 |
Rs.67.90 |
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%)