MIRA
INFORM REPORT
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Report Date : |
13.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
HANGZHOU
RONGCHANG MAGNET CO., LTD. |
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Registered Office : |
2ND Bridge Village, Ningwei Town, Xiaoshan District, Hangzhou,
Zhejiang Province, 311200 Pr China |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
25.03.2003 |
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Com. Reg. No.: |
3301812410970 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Producing Cast Alnico Magnet and related Assemblies. |
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 30,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
HANGZHOU RONGCHANG
MAGNET CO., LTD.
2ND BRIDGE VILLAGE, NINGWEI TOWN,
XIAOSHAN DISTRICT, HANGZHOU, ZHEJIANG PROVINCE, 311200 PR CHINA
TEL: 0086-571-82870968 FAX:
0086-571-82865361
EXECUTIVE SUMMARY
INCORPORATION DATE :
MAR. 25, 2003
REGISTRATION NO. :
3301812410970
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MS. TU LIPING (CHAIRMAN)
STAFF STRENGTH :
90
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 24,626,000 (AS OF DEC. 31,
2007)
EQUITIES :
CNY 5,183,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO
USD 30,000 (PERIODICAL REVIEW)
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.90260 = 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. 25, 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 manufacturing and processing
magnetic materials and devices.
SC is mainly engaged
in producing casting alnico magnet and related assemblies.
Ms. Tu Liping has
been legal representative and chairman of SC since 2003.
SC is known to have approx. 90 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 Hangzhou. Our
checks reveal that SC rents the total premise, but SC’s accountant refused to
release the gross area of the premise.
http://www.rc-magnet.com The design is professional and the content
is well organized. At present it is both in Chinese and English versions.
E-Mail: sales@rc-magnet.com
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Date of change |
Item |
Before the change |
After the change |
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2006-03-10 |
Registered capital |
CNY 500,000 |
CNY 5,000,000 |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Ye Haiping ID#330725670915611 90
Tu Liping ID#330121196909203442 10
l
Legal representative, chairman and
general manager:
Ms. Tu Liping, born in 1969 with university education. She is currently
responsible for the overall management of SC.
Working Experience(s):
From 2003 to present Working
in SC as chairman and legal representative.
l
Sales Manager:
Mr. Ye Haiping
Tel: 0571-82870968
SC is mainly engaged
in producing cast alnico magnet and related assemblies.
SC’s products mainly include: cast alnico, magnetic toys, distributes
sintered alnico, sintered ndfeb, sintered smco and magnetic jewellery.
SC sources its materials 90% from domestic market and 10% from the
overseas market. SC sells 30% of its products to overseas market, mainly in Japan, Korea, Southeast
Asia, Europe and America and 70% in domestic market.
The buying terms of SC include Check, L/C, 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.
Zhejiang
Xiaoshan Rural Cooperative Bank Ningwei Sub-branch
AC#201000010146288
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 |
963 |
415 |
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Bills receivable |
0 |
0 |
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Accounts
receivable |
3,575 |
1,246 |
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Other
receivables |
14 |
14 |
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Advances to
suppliers |
11 |
543 |
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Inventory |
9,013 |
14,048 |
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Prepaid expenses |
0 |
0 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
13,576 |
16,266 |
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Fixed assets |
636 |
1,391 |
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Fixed assets net
value |
636 |
1,391 |
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Projects under
construction |
0 |
0 |
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Long term
investment |
0 |
0 |
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Other assets |
0 |
0 |
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Total assets |
14,212 |
17,657 |
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============= |
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Short loans |
3,500 |
3,500 |
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Bills payable |
0 |
0 |
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Accounts payable |
4,124 |
5,409 |
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Welfare payable |
262 |
234 |
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Advances from
clients |
0 |
0 |
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Accrued payroll |
0 |
0 |
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Tax payable |
91 |
115 |
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Other payable |
1,201 |
3,200 |
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Surcharge
payable |
6 |
7 |
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Other current
liabilities |
8 |
9 |
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------------------ |
------------------ |
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Current
liabilities |
9,192 |
12,474 |
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Long term
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
9,192 |
12,474 |
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Equities |
5,020 |
5,183 |
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Total
liabilities & equities |
14,212 |
17,657 |
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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 |
20,417 |
24,626 |
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Cost of goods
sold |
19,256 |
23,138 |
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Sales expense |
191 |
138 |
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Management expense |
761 |
911 |
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Finance expense |
262 |
311 |
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Profit before
tax |
147 |
276 |
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Less: profit tax |
/ |
/ |
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Profits |
/ |
/ |
Important Ratios
=============
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as
of Dec. 31, 2006 |
as
of Dec. 31, 2007 |
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*Current ratio |
1.48 |
1.30 |
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*Quick ratio |
0.50 |
0.18 |
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*Liabilities
to assets |
0.65 |
0.71 |
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*Net profit
margin (%) |
/ |
/ |
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*Return on
total assets (%) |
/ |
/ |
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*Inventory
/Turnover ×365 |
162 days |
209 days |
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*Accounts
receivable/Turnover ×365 |
64 days |
19 days |
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*Turnover/Total
assets |
1.44 |
1.39 |
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* Cost of
goods sold/Turnover |
0.94 |
0.94 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears average in its line.
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SC’s cost of goods sold is fairly 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 poor level.
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The inventory conversion period of SC appears long.
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The accounts receivable of SC appears average.
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SC’s short-term loan is in an average level.
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SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is fairly 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 line with fairly stable financial conditions.
The large amount of inventory could be a threat to SC’s financial condition. A
credit line up to USD 30,000 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%)