MIRA
INFORM REPORT
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Report Date : |
07.03.2008 |
IDENTIFICATION
DETAILS
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Name : |
GUANGZHOU PROSPER
CHANNEL TRADING Co., Ltd. |
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Registered Office : |
RM.H, 8/F, No.112, Hengfu Road, Yuexiu District, Guangzhou, Guangdong Province, 510095
Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
07.03.2003 |
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Com. Reg. No.: |
4401042009732 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Selling Different
Sorts of Medicine. |
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 10,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
clear |
name & address
GUANGZHOU PROSPER
CHANNEL TRADING Co., Ltd.
RM.H, 8/F, No.112, HENGFU ROAD, YUEXIU
DISTRICT,
GUANGZHOU, GUANGDONG PROVINCE, 510095 PR
CHINA.
1128F/H
TEL: 86 (0) 20-83505836 FAX: 86 (0) 20-83577206
EXECUTIVE SUMMARY
INCORPORATION
DATE : MARCH 7, 2003
REGISTRATION
NO. : 4401042009732
REGISTERED
LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF
STRENGTH : 20
REGISTERED
CAPITAL : CNY 1,000,000
BUSINESS
LINE : TRADING
TURNOVER : CNY 26,000,000 (AS OF DEC. 31, 2007)
EQUITIES : CNY 860,000
(AS OF DEC. 31, 2007)
PAYMENT
: AVERAGE
RECOMM.
CREDIT RANGE : UP TO USD 10,000
MARKET
CONDITION : AVERAGE
FINANCIAL
CONDITION : fairly STABLE
OPERATIONAL
TREND : FAIRLY STEADY
GENERAL
REPUTATION : AVERAGE
EXCHANGE
RATE : CNY 7.11 = 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
Note: SC’s correct address should be the above stated one, instead of the given address - Rm.H, 8/F, No.112, Hengfu Road, Tianhe District, Guangzhou.
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 March 7, 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
wholesaling and retailing trade; import and export of various goods and technologies,
excluding the goods prohibited or limited by the country.
SC is mainly engaged in selling different
sorts of medicine.
Ms. Zhang Yu (张羽) has been
legal representative and chairman of SC since 2003.
SC is known to have approx. 20
staff members at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Guangzhou. Our checks reveal that SC
rents the total premise about 200 square meters.
SC is not known to
host website of its own at present.
No significant
events or changes were found during our checks with the local Administration
for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhang Yu 90
Zhang Jude 10
l
Legal
representative and
chairman:
Ms. Zhang Yu , in
her 40’s 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.
SC is mainly engaged in selling different
sorts of medicine.
SC’s products mainly
include western medicine formulation, Chinese Traditional medicine formulation,
chemical synthesis materials, and so on.
SC sources its materials 98% from domestic market, and 2% from overseas
market, mainly Europe. SC sells 80% of its products in domestic market, and 20%
to overseas market, mainly India.
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:
=============
Qilu Antibiotics Pharmaceutical
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 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.
China Everbright
Bank Guangzhou Branch Hengfu Road Sub-branch.
AC#77880188000033066
Relationship: Normal.
Shenzhen Development Bank Guangzhou Branch.
AC#11004213713206
Relationship: Normal.
Balance Sheet (as
of Dec. 31, 2007)
Unit: CNY’000
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Cash & bank |
2,750 |
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Inventory |
1,720 |
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Accounts receivable |
5,850 |
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Subsidies receivable |
1,100 |
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Other receivables |
940 |
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Other current assets |
80 |
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Current assets |
12,440 |
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Fixed
assets |
100 |
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Fixed assets net value |
68 |
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Projects under construction |
0 |
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Long term investment |
0 |
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Other assets |
12 |
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Total assets |
12,520 |
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Short loans |
0 |
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Accounts payable |
120 |
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Other payable |
4,570 |
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Notes payable |
6,230 |
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Taxes unpaid |
580 |
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Other current liabilities |
160 |
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Current liabilities |
11,660 |
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Long term liabilities |
0 |
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Total liabilities |
11,660 |
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Equities |
860 |
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Total liabilities & equities |
12,520 |
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Income Statement (as
of Dec. 31, 2007)
Unit: CNY’000
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Turnover |
26,000 |
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Cost of goods sold |
23,500 |
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Sales expense |
2,290 |
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Management expense |
0 |
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Finance expense |
100 |
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Profit before tax |
130 |
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Less: profit tax |
80 |
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Profits |
50 |
Important Ratios
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as of Dec. 31, 2007 |
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*Current ratio |
1.07 |
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*Quick ratio |
0.92 |
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*Liabilities to assets |
0.93 |
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*Net profit margin (%) |
0.19 |
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*Return on total assets (%) |
0.40 |
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*Inventory /Turnover ×365 |
24 days |
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*Accounts receivable/Turnover ×365 |
82 days |
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*Turnover/Total assets |
2.08 |
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* Cost of goods sold/Turnover |
0.90 |
PROFITABILITY: AVERAGE
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The turnover of
SC appears average 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 average, comparing with its turnover.
LIQUIDITY: AVERAGE
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The current
ratio of SC is maintained in a normal level.
l
SC’s quick
ratio is maintained in a normal level.
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The inventory
of SC is maintained in a fairly good level.
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The accounts
receivable of SC appears fairly large.
l
SC has no
short-term loan in 2007.
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SC’s turnover
is in an average level, comparing with the size of its total assets.
LEVERAGE: FAIR
l
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.
Credit Opinion: USD
20,000,000.00
SC is considered
small-sized in its line with fairly stable financial conditions. A credit line
at the above amount appears beyond SC’s capacities, while a credit line up to
USD 10,000 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%)