MIRA
INFORM REPORT
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Report Date : |
14.05.2008 |
IDENTIFICATION
DETAILS
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Name : |
SHANGHAI MENGHENG TEXTILE CO., LTD. |
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Registered Office : |
Room 202, No.13 Lane 2001 Zhoujiazui Road, Shanghai, 201801 Pr |
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Country : |
China |
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Financials (as on) : |
31.01.2008 |
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Date of Incorporation : |
29.03. 2005 |
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Com. Reg. No.: |
3101142101621 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
International Trader |
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 5,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
SHANGHAI MENGHENG TEXTILE CO., LTD.
room 202, no.13
lane 2001 zhoujiazui road,
shanghai, 201801 PR
CHINA
200113202
TEL: 86 (0)
21-65013583 FAX: 86 (0)
21-65013583
EXECUTIVE SUMMARY
INCORPORATION DATE : march 29, 2005
REGISTRATION NO. : 3101142101621
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
5
REGISTERED CAPITAL : CNY 500,000
BUSINESS LINE :
trading
TURNOVER :
CNY 920,000 (AS OF jan. 31, 2008)
EQUITIES :
CNY 350,000 (AS OF jan. 31, 2008)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 5,000
MARKET CONDITION : average
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.00= 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 – Chagyang road 1624 shanghai china.
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 29, 2005.
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 textiles, textile raw
materials, chemicals, and chemical raw materials.
SC is mainly
engaged in international trade.
Mr. Hu
Hongsheng has been chairman of SC since
2005.
SC is known to
have approx. 5 employees at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Shanghai. Our checks reveal that SC
rents the total premise about 50 square meters.
SC is not known to host web site of its own at present.
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Hu Hongsheng 51
Tang Xiuzhen 49
l
Chairman and General Manager:
Mr. Hu Hongsheng, 43 years old with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2005 to present Working
in SC as chairman and general manager.
l
Director:
Tang Xiuzhen
SC is mainly engaged
in international trade.
SC’s products
mainly include: textiles and textile raw materials.
SC sources its materials 100% from domestic
market, mainly Shanghai and Jiangsu. SC sells 100% of its products to overseas
market, mainly USA, Europe and Southeast Asian market.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include 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.
China Minsheng Bank Shanghai Branch
AC#04210004809
Relationship:
Normal.
Balance Sheet (as of Jan. 31, 2008)
Unit: CNY’000
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Cash & bank |
780 |
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Inventory |
0 |
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Accounts
receivable |
170 |
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Other Accounts
receivable |
0 |
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To be
apportioned expense |
0 |
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Other current
assets |
170 |
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------------------ |
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Current assets |
1,120 |
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Fixed assets net
value |
0 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
0 |
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Total assets |
1,120 |
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============= |
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Short loans |
0 |
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Accounts payable |
-270 |
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Other Accounts
payable |
1,000 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
40 |
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Current
liabilities |
770 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
770 |
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Equities |
350 |
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Total
liabilities & equities |
1,120 |
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Income Statement (as of Jan. 31, 2008)
Unit: CNY’000
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Turnover |
920 |
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Cost of goods
sold |
890 |
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Sales expense |
10 |
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Management expense |
20 |
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Finance expense |
0 |
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Profit before
tax |
4 |
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Less: profit tax |
0 |
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Profits |
4 |
Important Ratios (as of Jan. 31, 2008)
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*Current ratio 1.45
*Quick ratio 1.45
*Liabilities to
assets 0.69
*Net profit
margin (%) 0.43
*Return on total
assets (%) 0.36
*Inventory
/Turnover ×365 / days
*Accounts
receivable/Turnover ×365 67 days
*Turnover/Total
assets 0.82
* Cost of goods
sold/Turnover 0.97
PROFITABILITY:
AVERAGE
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The turnover of SC appears average in the first month of 2008.
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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 fairly high, comparing with its turnover.
LIQUIDITY: AVERAGE
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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 fairly good level.
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SC has no inventory in the first month of 2008.
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The accounts receivable of SC is maintained in an average level.
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SC has no short-term loan in the first month of 2008.
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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: Stable.
Over the past 3 years, SC has made a stable growth with stable financial
conditions. A credit line up to USD 5,000
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%)