MIRA
INFORM REPORT
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Report Date : |
06.05.2008 |
IDENTIFICATION
DETAILS
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Name : |
Zhanjiang qinji trade co., ltd. |
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Registered Office : |
No. B72-73 Haixin Steel Market, Xiashan District, Zhanjiang, Guangdong
Province, 524000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
16.08. 2004 |
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Com. Reg. No.: |
440800000011897 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Trading Steel and other Metal Materials. |
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
Zhanjiang qinji trade co., ltd.
NO. B72-73 HAIXIN
STEEL MARKET, XIASHAN DISTRICT,
ZHANJIANG,
GUANGDONG PROVINCE, 524000 PR CHINA.
B72-73
TEL: 86 (0)
759-2310183 FAX: 86 (0) 759-2683102
EXECUTIVE SUMMARY
INCORPORATION DATE : AUGUST 16, 2004
REGISTRATION NO. : 440800000011897
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
12
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 153,080,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 930,000 (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
6.98544 = 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 Aug. 16, 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 selling metal materials, building materials, chemical
raw materials (excluding hazardous
chemicals), auto parts, and mineral products; importing and exporting (not
engage in any items prohibited by law and administrative regulations; able to
engage in items that need permit according to the regulation of law and
administrative regulations, after obtaining the permit from relative
authorities).
SC is mainly
engaged in trading steel and other metal materials.
Ms. Zhu Xiuyi has been legal representative and chairman
of SC since Aug. 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 Zhanjiang. Our
checks reveal that SC rents the premise, but SC’s accountant refused to release
the gross area.
http://www.qinji.net/
It belongs to both SC and Foshan Shunde Huikun Steel Structure Industry Co.,
Ltd. The design is professional and the content is well organized. At present
it is in both Chinese and English versions.
Changes of its registered information:
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Date of change |
Item |
Before the change |
After the change |
|
2008 |
Registered capital |
CNY 1,000,000 |
CNY 5,000,000 |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhu Xiuyi 60
Liu Guangcheng 40
l
Legal representative, chairman and general
manager:
Ms. Zhu Xiuyi , born in 1970. She 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.
SC is mainly
engaged in trading steel and other metal materials.
Main Products:
Steel Tube, Steel Wire, Steel Sheet and Plate, etc.
SC sources its materials 100% from domestic market.
SC sells 50% of its products in domestic market, and 50% to overseas market,
mainly Indonesia and Singapore.
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 Supplier:
=============
Henan Renhe Wire Co., Ltd
*Major Customer:
==============
Guangzhou Yuancai
Materials Trade 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
AC#500008808502015
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2007)
Unit: CNY’000
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Cash & bank |
60 |
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Inventory |
5,270 |
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Accounts
receivable |
2,560 |
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Advances to
suppliers |
14,810 |
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Subsidies
receivable |
2,630 |
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Other
receivables |
0 |
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Other current
assets |
10 |
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------------------ |
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Current assets |
25,340 |
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Fixed assets |
990 |
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Fixed assets net
value |
780 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
10 |
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------------------ |
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Total assets |
26,130 |
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============= |
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Short loans |
890 |
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Accounts payable |
0 |
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Advances from
customers |
0 |
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Accrued payroll |
0 |
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Welfare expenses
payable |
60 |
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Taxes payable |
-740 |
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Other payable |
24,990 |
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Other current
liabilities |
0 |
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Current
liabilities |
25,200 |
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Long term
liabilities |
0 |
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Total
liabilities |
25,200 |
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Equities |
930 |
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Total
liabilities & equities |
26,130 |
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Income Statement (as of Dec. 31, 2007)
Unit: CNY’000
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Turnover |
153,080 |
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Cost of goods
sold |
138,550 |
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Sales expense |
11,570 |
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Management expense |
2,400 |
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Finance expense |
250 |
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Profit before
tax |
270 |
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Less: profit tax |
0 |
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Profits |
270 |
Important Ratios
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as
of Dec. 31, 2007 |
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*Current ratio |
1.01 |
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*Quick ratio |
0.80 |
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*Liabilities
to assets |
0.96 |
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*Net profit
margin (%) |
0.18 |
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*Return on
total assets (%) |
1.03 |
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*Inventory
/Turnover ×365 |
13 days |
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*Accounts
receivable/Turnover ×365 |
7 days |
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*Turnover/Total
assets |
5.86 |
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* Cost of
goods sold/Turnover |
0.91 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is average.
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SC’s return on total assets is average.
l
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC is maintained in an average level.
l
The accounts receivable of SC is maintained in an average level.
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SC’s short-term loan is in an average level.
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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 small-sized in its line with fairly stable financial
conditions. A credit line up to USD 10,000 would appear to be within SC’s
capacities.
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%)