MIRA
INFORM REPORT
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Report Date : |
19.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
Qingdao Lasheng Corporation ltd |
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Registered Office : |
Room 18E and 19B, Huapu Building A, No. 68 Xianggang Middle Road,
Qingdao, Shandong Province, 266071 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
06.12.2004 |
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Com. Reg. No.: |
3702022813963 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Importing and Exporting Chemical Products, Metal, etc. |
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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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
Qingdao Lasheng Corporation ltd
Room 18E AND 19B,
Huapu Building A, NO. 68 Xianggang Middle Road,
Qingdao, Shandong
PROVINCE, 266071 PR CHINA.
TEL: 86 (0) 532- 85708108 FAX:
86 (0) 532-85708018
EXECUTIVE SUMMARY
INCORPORATION DATE : DECEMBER 6, 2004
REGISTRATION NO. : 3702022813963
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
12
REGISTERED CAPITAL : CNY 500,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 4,652,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY -740,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : COD
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : fair
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.8831 = US$ 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 December 6, 2004.
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 importing and
exporting commodities and technology (not engage in any items prohibited
by laws and administrative regulation; able to engage in items that need permit
according to the regulation of laws and administrative regulation, after
obtaining the permit from relative authorities and the registration in the AIC); wholesaling and retailing garments, hats
and shoes, leather ware, chemical products (excluding hazardous chemicals),
communication equipment (excluding wireless broadcast and TV transmitters),
electronic products, hardware, office supplies, building and decorative
materials, textiles, arts and crafts (with permit if needed).
SC is mainly
engaged in importing and exporting chemical products, metal, etc.
Mr. Xu Zhonglie has been legal representative and chairman
of SC since December 2004.
SC is known to have approx. 12 employees at present.
SC is
currently operating at the above stated address, and this address houses its
operating office and head office in the commercial zone of Qingdao. Our checks
reveal that SC rents the total premise about 80 square meters.
http://www.lasheng.com/ The design
is professional and the content is well organized. At present it is in English
version.
E-MAIL: info@lasheng.com
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Xu Zhonglie 80
Zhang Xiuqin 20
l
Legal representative, chairman and general
manager:
Mr. Xu Zhonglie, born in 1971, with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 2004
to present Working in SC as
chairman, legal representative and general manager.
l
Foreign trade manager:
Ms. Wang Fei
SC is mainly
engaged in importing and exporting chemical products, metal, etc.
Main Products: chemical
solvent, rubber and plastic assistant, food addictive, dyes, pharmaceutical
intermediate, etc.
SC sources its materials 90% from domestic
market, and 10% from overseas market, mainly Korea. SC sells 40% of its
products in domestic market, and 60% to overseas market, mainly Indian market.
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.
*Major Suppliers:
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Tianjin Jiashun Chemical Co., Ltd
*Major Customers:
==============
Qingdao Penghui
Chemical 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.
Qingdao City Commercial Bank
AC#802010200229588
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 |
210 |
20 |
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Inventory |
340 |
100 |
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Accounts
receivable |
3,720 |
3,800 |
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Advances to
supplies |
0 |
0 |
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Other
receivables |
170 |
10 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
4,440 |
3,930 |
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Fixed assets |
320 |
350 |
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Fixed assets net
value |
270 |
230 |
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Projects under
construction |
0 |
0 |
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Long-term
investments |
0 |
0 |
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Intangible and
other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
4,710 |
4,160 |
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============= |
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Short loans |
0 |
0 |
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Accounts payable |
4,510 |
3,700 |
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Advances from
customers |
0 |
0 |
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Accrued payroll |
0 |
0 |
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Welfares payable |
0 |
0 |
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Taxes payable |
-40 |
-10 |
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Accrued expenses |
0 |
0 |
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Other Accounts
payable |
0 |
1,210 |
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Other current
liabilities |
0 |
0 |
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----------------- |
----------------- |
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Current
liabilities |
4,470 |
4,900 |
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Long term
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
4,470 |
4,900 |
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Shareholders
equities |
240 |
-740 |
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------------------ |
------------------ |
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Total
liabilities & equities |
4,710 |
4,160 |
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Income Statement (as of Dec. 31, 2007)
Unit: CNY’000
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Turnover |
4,652 |
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Cost of goods sold |
4,531 |
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Taxes and additional of main operation |
1 |
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Management expense |
1,086 |
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Finance expense |
12 |
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Profit before
tax |
-978 |
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Less: profit tax |
2 |
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Profits |
-980 |
Important Ratios
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as of Dec. 31, 2006 |
as of Dec. 31, 2007 |
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*Current ratio |
0.99 |
0.80 |
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*Quick ratio |
0.92 |
0.78 |
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*Liabilities
to assets |
0.95 |
1.18 |
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*Net profit margin
(%) |
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-21.07 |
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*Return on
total assets (%) |
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-23.56 |
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*Inventory
/Turnover ×365 |
days |
8 days |
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*Accounts
receivable/Turnover ×365 |
days |
299 days |
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*Turnover/Total
assets |
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1.12 |
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* Cost of
goods sold/Turnover |
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0.97 |
PROFITABILITY:
POOR
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The turnover of SC appears average in its line.
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SC’s net profit margin is poor.
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SC’s return on total assets is poor.
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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 fair level.
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SC’s quick ratio is maintained in a fair 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 large.
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SC has no short-term loan in both 2006 and 2007.
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SC’s turnover is in an average level in 2007, comparing with the size of
its total assets.
LEVERAGE: POOR
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The debt ratio of SC is too high.
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The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Fair.
SC is considered small-sized in its line with fair financial conditions.
Great caution is required in providing credit to SC and COD is recommended.
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%)