MIRA
INFORM REPORT
|
Report Date : |
04.06.2008 |
IDENTIFICATION
DETAILS
|
Name : |
WUXI HAOGUAN
IMPORT AND EXPORT TRADING CO., LTD. |
|
|
|
|
Registered Office : |
Room 1009, Oriental Ginzor, No.5-2, Changjiang
Road, Wuxi, Jiangsu Province, 214028 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2007 |
|
|
|
|
Date of Incorporation : |
10.03. 2003 |
|
|
|
|
Com. Reg. No.: |
320213000038709 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
Selling Building Decoration Materials and Furniture. |
RATING &
COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
Maximum Credit Limit : |
USD 3,000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
Litigation : |
Clear |
name & address
WUXI HAOGUAN
IMPORT AND EXPORT TRADING CO., LTD.
ROOM 1009, ORIENTAL GINZOR, NO.5-2,
CHANGJIANG ROAD, WUXI,
JIANGSU PROVINCE, 214028 PR CHINA
TEL: 0086-510-85223518 FAX:
0086-510-85213518
EXECUTIVE SUMMARY
INCORPORATION DATE :
MAR. 10, 2003
REGISTRATION NO. :
320213000038709
REGISTERED LEGAL FORM :
LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MR. ZHOU WEIFENG (CHAIRMAN)
STAFF STRENGTH :
6
REGISTERED CAPITAL : CNY
1,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 38,510,000 (AS OF DEC. 31,
2007)
EQUITIES :
CNY 570,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE :
UP TO USD 3,000 (PERIODICAL REVIEW)
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
POOR
OPERATIONAL TREND :
FAIR
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.92710 = 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 co. at local Administration for Industry
& Commerce (AIC - The official body of issuing and renewing business
license) on Mar. 10, 2003.
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 selling hardware
machinery, metal materials, timber and wood products, building materials, textiles,
garments and materials, mechanical &electrical products, general
merchandise, household appliances, plastic products, stationery, paper, paper
pulp, chemical materials (excluding dangerous articles), building decoration
materials, electronic products (excluding electropult); importing and exporting commodities and technology, excluding export commodities limited or prohibited by the state.
SC is
mainly engaged in selling building decoration materials and furniture.
Mr. Zhou
Weifeng has been legal representative and chairman of SC since 2003.
SC is known to have approx. 6 employees at
present.
SC is currently operating at the above stated address, and this
address houses its operating office in the commercial zone of Wuxi. Our checks
reveal that SC rents the total premise about 100 square meters.
SC is not known to host website of its own at present.
E-Mail: vickiesjj@hotmail.com
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhou Weifeng 95
Cheng Xiaofeng 5
l
Legal representative and
chairman:
Mr. Zhou Weifeng, born in 1973 with university education. He
is currently responsible for the overall management of SC.
Working Experience(s):
From 2003 to present Working in SC as chairman and legal representative.
SC is
mainly engaged in selling building decoration materials and furniture.
SC’s products mainly include: commercial plywood, fancy plywood,
film faced plywood, wooden floor, mdf laminated floor, wooden door, melamine,
formica.
SC sources its merchandises 100% from domestic market. SC
sells 10% of its merchandises in domestic market, and 90% to overseas market, mainly in Middle East and
Europe.
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.
*Major Suppliers*
=============
Linyi Chengyue Wood Industry Co., Ltd.
*Major Customers*
==============
Changzhou Binbin Building Decoration Material 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 Wuxi Development Zone Sub-branch
AC#28004918091001
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
as
of Dec. 31, 2006 |
as
of Dec. 31, 2007 |
|
Cash
& bank |
960 |
1,910 |
|
Bills
receivable |
0 |
0 |
|
Accounts
receivable |
50 |
50 |
|
Other
receivables |
-170 |
-1,030 |
|
Advances to
suppliers |
-1,130 |
-2,240 |
|
Inventory |
220 |
220 |
|
Prepaid expenses |
20 |
20 |
|
Other
current assets |
480 |
180 |
|
|
------------------ |
------------------ |
|
Current
assets |
430 |
-890 |
|
Fixed assets |
10 |
0 |
|
Fixed
assets net value |
10 |
0 |
|
Projects
under construction |
0 |
0 |
|
Long
term investment |
0 |
0 |
|
Other
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
assets |
440 |
-890 |
|
|
============= |
============= |
|
Short
loans |
0 |
0 |
|
Bills
payable |
0 |
0 |
|
Accounts
payable |
620 |
380 |
|
Welfare
payable |
30 |
20 |
|
Advances from
clients |
-1,030 |
-1,810 |
|
Accrued
payroll |
0 |
0 |
|
Tax
payable |
20 |
-50 |
|
Other
payable |
50 |
0 |
|
Surcharge
payable |
30 |
0 |
|
Other
current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
-280 |
-1,460 |
|
Long
term liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
-280 |
-1,460 |
|
Equities |
720 |
570 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
440 |
-890 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31, 2006 |
as of Dec. 31, 2007 |
|
Turnover |
38,220 |
38,510 |
|
Cost of goods
sold |
36,690 |
37,040 |
|
Sales expense |
1,030 |
1,210 |
|
Management expense |
610 |
490 |
|
Finance expense |
80 |
-40 |
|
Profit before
tax |
-190 |
-150 |
|
Less: profit tax |
0 |
0 |
|
Profits |
-190 |
-150 |
Important Ratios
=============
|
|
as
of Dec. 31, 2006 |
as
of Dec. 31, 2007 |
|
*Current ratio |
-1.54 |
0.61 |
|
*Quick ratio |
-0.75 |
0.76 |
|
*Liabilities
to assets |
-0.64 |
1.64 |
|
*Net profit
margin (%) |
-0.50 |
-0.39 |
|
*Return on
total assets (%) |
-43.18 |
16.85 |
|
*Inventory /Turnover
×365 |
3 days |
3 days |
|
*Accounts
receivable/Turnover ×365 |
1 day |
1 day |
|
*Turnover/Total
assets |
86.86 |
-43.27 |
|
* Cost of
goods sold/Turnover |
0.96 |
0.96 |
PROFITABILITY:
FAIR
l
The turnover of SC appears average in its line, and it
increased in 2007.
l
SC’s net profit margin is fair.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is fairly high, comparing with its
turnover.
LIQUIDITY:
FAIR
l
The current ratio of SC is maintained in a fair level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC and inventory conversion period appears
average.
l
The accounts receivable of SC appears average.
l
SC has no short-term loan in both 2 years.
l
SC’s turnover is in a fairly good level in 2006, comparing
with the size of its total assets.
LEVERAGE:
POOR
l
The debt ratio of SC is too high in 2007.
l
The risk for SC to go bankrupt is above average.
Overall
financial condition of the SC: Poor.
SC is considered small-sized in its line with poor financial
conditions. A credit line up to USD 3,000 would appear to be within SC’s
capacities upon a periodical review basis.
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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%)