MIRA
INFORM REPORT
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Report Date : |
18.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
JIANGSU
PROVINCIAL FOREIGN TRADE CORPORATION |
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Registered Office : |
24-26/F Xinhua Mansion, No. 55 Zhongshan
Road, Nanjing, Jiangsu Province, 210005 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
17.07.1992 |
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Com. Reg. No.: |
320000000006044 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
International Trader |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 800,000 |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
JIANGSU PROVINCIAL
FOREIGN TRADE CORPORATION
24-26/F XINHUA MANSION, NO. 55 ZHONGSHAN
ROAD, NANJING,
JIANGSU PROVINCE, 210005 PR CHINA
TEL: 86 (0)
25-84795777 FAX: 86 (0) 25-84795644
EXECUTIVE SUMMARY
INCORPORATION DATE : JUL. 17, 1992
REGISTRATION NO. : 320000000006044
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
STAFF STRENGTH :
110
REGISTERED CAPITAL : CNY 36,700,000
BUSINESS LINE :
INTERNATIONAL TRADE
TURNOVER :
cny 2,633,590,000 (AS OF DEC. 31, 2007)
EQUITIES :
cny 115,630,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to USD 800,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : steady
GENERAL REPUTATION : WELL KNOWN
EXCHANGE RATE :
CNY 6.86 = 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 Ren Min Bi
SC was registered as a shares limited company at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Jul. 17, 1992.
Company Status: Shares limited co. This form of business in PR
China is defined as a legal person. Its registered capital is divided into
shares of equal par value and the co. raises capital by issuing share
certificates by promotion or by public offer. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to the extent of its total assets. The co has independent
property of legal person and enjoys property rights of legal person. The characteristics of the shares limited co. are as
follows: The establishment of the co.
requires at least two promoters and no more than 200, half of whom shall be domiciled
in China.. Natural person are allowed to
serve as promoters. The minimum registered capital
of a co. is CNY 5M. while that of the co. with foreign investment is CNY
5M. The total capital of a co. which propose to apply for publicly listed
must be no less than CNY 30M. The board of directors must
consist of five to nineteen directors. If the co. raises capital by public offer, the promoters
must not subscribe less than 35% of the total shares. the promoters’ shares
are restricted to transfer- within one year of the offer. A state-owned enterprise that
is restructured into a shares limited co. must comply with the conditions
& requirements specified under the law & administrative rule.
SC’s registered business scope includes importing and exporting various
goods and technology; selling automobiles (including cars) and other domestic trade,
technology services, consulting services and leasing commodities; processing with imported materials, processing
with imported samples, assembling with imported parts, and compensation trade
in agreement; barter trade & transit
trade.
SC is mainly
engaged in international trade.
Mr. Xia Qiang has
been chairman of SC since 2001.
SC is known
to have approx. 110 employees at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Nanjing. Our checks reveal that SC
owns the total premise about 8,000 square meters.
http://www.jsft.com
The design is professional and the content is well organized. At present it is in
both Chinese and English versions.
E-Mail: office@jsft.com
SC’s former shareholders were as below,
Jiangsu Overseas Group Co., Ltd. 40%
Individuals 55%
Labor Union Committee 5%
MAIN SHAREHOLDERS:
Name %
of Shareholding
Jiangsu Overseas Group Co., Ltd. (JOC) 80
Staff Individual Shares 20
Jiangsu Overseas Group Co., Ltd.
========================
JOC is one of the leading state-owned
enterprises with registered capital of CNY 88 Million, which is subordinated to
Jiangsu Province government. JOC was established in the end of April 1995 and
was listed on “Top Provincial Groups” in 1996. It has been authorized to handle
investment and management of state-owned assets.
At present, JOC is in possession of about 10
major member companies at home and abroad with the wide scopes of import &
export, investment, financing, foreign economy & technology cooperation,
bidding, tourism, real estates and so on.
In 2006, JOC accomplished a total import and
export turnover of USD1.04 billion, in which USD520million for export and
USD484 million for import.
Address: #55 Zhongshan Road Xinhua mansion Nanjing
Jiangsu
TEL: +86-25-84795805
FAX: +86-25-84795800
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Chairman and General Manager:
Mr. Xia Qiang, ID: 320106571005041, in his 50’s with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2001 to present Working
in SC as chairman and general manager.
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Vice General Manager:
Mr. Zhu Darong, ID: 320107531112183, in his 50’s with university
education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 2001 to present
Working in SC as vice general
manager.
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Directors:
Yang Zhong ID: 320102197101032015
Chen Qinan ID: 320106711013241
Bi Wu ID: 320103630120185
Yuan Ming ID: 320103541105004
SC is mainly
engaged in international trade.
SC’s products
mainly include: Metal Minerals, Timbers, Energy, Paper Pulps, Chemicals,
Textile Materials, Mechanical Equipments and Machineries.
SC sources its
materials 40% from domestic market, and 60% from the overseas market, mainly
Southeast Asia, European countries. SC sells 60% of its products in domestic
market, and 40% to the overseas market, mainly American and European countries.
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, L/C and Credit of 30-60 days.
*Major Client:
============
Jiangsu Shagang Group Co., Ltd.
*Major Supplier:
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Shanghai Shunye Steel Group 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’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.
Bank of China Jiangsu Branch
AC#044138090010000213
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2006 |
As
of Dec. 31, 2007 |
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Cash & bank |
252,370 |
156,920 |
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Accounts paid in
advance |
0 |
5,980 |
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Accounts
receivable |
130,080 |
165,920 |
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Inventory |
410,460 |
432,680 |
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Other
receivables |
15,610 |
23,900 |
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Other current
assets |
314,950 |
367,660 |
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------------------ |
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Current assets |
1,123,470 |
1,153,060 |
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Fixed assets net
value |
79,020 |
78,560 |
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Projects under
construction |
0 |
0 |
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Long term
investment |
0 |
0 |
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Other assets |
49,280 |
33,410 |
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Total assets |
1,251,770 |
1,265,030 |
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============= |
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Short loans |
462,310 |
395,680 |
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Accounts payable |
314,230 |
325,560 |
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Accounts
received in advance |
227,480 |
235,690 |
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Taxes payable |
0 |
-1,210 |
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Salaries payable |
0 |
0 |
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Other payable |
39,170 |
40,560 |
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Other current
liabilities |
97,560 |
149,170 |
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------------------ |
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Current
liabilities |
1,140,750 |
1,145,450 |
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Long term
liabilities |
3,950 |
3,950 |
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------------------ |
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Total
liabilities |
1,144,700 |
1,149,400 |
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Equities |
107,070 |
115,630 |
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Total
liabilities & equities |
1,251,770 |
1,265,030 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2006 |
As of Dec. 31, 2007 |
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Turnover |
2,710,160 |
2,633,590 |
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Cost of goods
sold |
2,601,880 |
2,543,420 |
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Sales expense |
60,470 |
55,990 |
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Management expense |
5,450 |
6,010 |
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Finance expense |
14,150 |
13,590 |
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Profit before
tax |
29,480 |
10,210 |
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Less: profit tax |
0 |
0 |
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Profits |
29,480 |
10,210 |
Important Ratios
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2006 |
2007 |
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*Current ratio |
0.99 |
1.01 |
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*Quick ratio |
0.63 |
0.63 |
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*Liabilities
to assets |
0.91 |
0.91 |
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*Net profit
margin (%) |
1.07 |
0.39 |
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*Return on
total assets (%) |
2.32 |
0.81 |
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*Inventory
/Turnover ×365 |
55days |
60days |
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*Accounts
receivable/Turnover ×365 |
18days |
23days |
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*Turnover/Total
assets |
2.17 |
2.08 |
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* Cost of
goods sold/Turnover |
0.96 |
0.97 |
PROFITABILITY:
FAIRLY GOOD
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The turnover of SC appears 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: FAIR
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The current ratio of SC is maintained in a normal level.
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SC’s quick ratio is maintained in a fair level.
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The accounts receivable of SC is average.
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The inventory of SC appears fairly large.
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The short loans appear LARGE.
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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 medium-sized in its industry with fairly stable
financial conditions. The large amount of short loan and inventory could be a
threat to SC’s financial condition. A credit line at the above amount 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%)