MIRA
INFORM REPORT
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Report Date : |
16.05.2008 |
IDENTIFICATION
DETAILS
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Name : |
PUYANG TIANLI
NUTS CO., LTD. |
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Registered Office : |
Jinger Road, Development Zone, Puyang, Henan Province, 457000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
18.01. 2000 |
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Com. Reg. No.: |
410900400000014 |
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Legal Form : |
Chinese Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Processing and Selling Peanut Products. |
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
PUYANG TIANLI NUTS
CO., LTD.
JINGER ROAD, DEVELOPMENT ZONE, PUYANG,
HENAN PROVINCE, 457000 PR CHINA
TEL: 86 (0) 393-4418145 FAX: 86 (0) 393-4418154
EXECUTIVE SUMMARY
INCORPORATION DATE : JAN. 18, 2000
REGISTRATION NO. : 410900400000014
REGISTERED LEGAL FORM : CHINESE FOREIGN EQUITY
JOINT VENTURE ENTERPRISE
STAFF STRENGTH :
20
REGISTERED CAPITAL : CNY 1,650,000
BUSINESS LINE :
processing
TURNOVER :
cny 5,480,000 (AS OF DEC. 31, 2007)
EQUITIES :
cny 70,000 (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 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 Ren Min Bi
SC was registered as a Chinese foreign equity joint venture enterprise
at local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on Jan. 18, 2000.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered business scope includes processing peanuts, garlic and
agriculture products; selling its products.
SC is mainly
engaged in processing and selling peanut products.
Mr. Wang Guangbao has been chairman of SC since 2000.
SC is known
to have approx. 20 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 Puyang. Our checks
reveal that SC owns the total premise about 8,739 square meters.
http://www.tianli-peanut.com
. The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
E-Mail: tpplc@371.net
No significant events or changes were found during our checks with local
AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Puyang Tianli Trading Co., Ltd. 70.91
Ma Xun (Hong Kong resident) 29.09
l
Chairman and General Manager:
Mr. Wang Guangbao , in his 40’s with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 2000 to present Working
in SC as chairman and general manager.
l
Vice
General Manager:
Ms. Yang Yuhong , in her 30’s with university education. She is currently
responsible for the overall management of SC.
Working Experience(s):
From 2006 to present Working
in SC as vice general manager.
SC is mainly
engaged in processing and selling peanut products.
SC’s products
mainly include:
Groundnut in shell
Groundnut kernels
Peanut products
Garlic
Chilli pepper
Broad beans
SC sources its
materials 100% from domestic market. SC sells 10% of its products in domestic market,
and 90% to the overseas market, mainly India, American and European countries.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Client:
==========
Puyang Tianli Trading 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 refused to release any information of its
domestic suppliers and the trade reference was not available.
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.
Agricultural
Development Bank of China Puyang Branch
AC#203410999001000000103051
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 |
1,790 |
480 |
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Inventory |
3,040 |
1,220 |
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Accounts
receivable |
2,500 |
0 |
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Advances to
suppliers |
2,110 |
2,110 |
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Other
receivables |
2,780 |
4,380 |
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Other current
assets |
0 |
40 |
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------------------ |
------------------ |
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Current assets |
12,220 |
8,230 |
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Fixed assets net
value |
950 |
880 |
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Projects under
construction |
0 |
0 |
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Long term
investment |
0 |
0 |
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Other assets |
40 |
40 |
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------------------ |
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Total assets |
13,210 |
9,150 |
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============= |
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Short loans |
7,840 |
5,980 |
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Accounts payable |
3,610 |
2,010 |
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Advances from
clients |
0 |
290 |
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Taxes payable |
-320 |
-10 |
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Salaries payable |
30 |
30 |
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Other payable |
1,470 |
780 |
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Other current
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current
liabilities |
12,630 |
9,080 |
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Long term
liabilities |
0 |
0 |
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------------------ |
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Total
liabilities |
12,630 |
9,080 |
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Equities |
580 |
70 |
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-------------------- |
------------------ |
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Total
liabilities & equities |
13,210 |
9,150 |
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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 |
9,670 |
5,480 |
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Cost of goods
sold |
8,390 |
5,060 |
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Sales expense |
900 |
490 |
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Management expense |
420 |
440 |
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Finance expense |
410 |
380 |
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Profit before
tax |
-490 |
-890 |
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Less: profit tax |
0 |
0 |
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Profits |
-490 |
-890 |
Important Ratios
=============
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2006 |
2007 |
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*Current ratio |
0.97 |
0.91 |
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*Quick ratio |
0.73 |
0.77 |
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*Liabilities
to assets |
0.96 |
0.99 |
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*Net profit
margin (%) |
-5.07 |
-16.24 |
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*Return on
total assets (%) |
-3.71 |
-9.73 |
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*Inventory
/Turnover ×365 |
115days |
81days |
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*Accounts
receivable/Turnover ×365 |
94days |
0 |
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*Turnover/Total
assets |
0.73 |
0.60 |
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* Cost of goods
sold/Turnover |
0.87 |
0.92 |
PROFITABILITY:
FAIR
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The turnover of SC appears average, and it was declining in 2007.
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SC’s net profit margin is fair in 2006 and poor 2007.
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SC’s return on total assets is fair, and it was declining in 2007.
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SC’s cost of goods sold is fairly high in 2006 and 2007, comparing with
its turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in a fair level in 2006 and 2007.
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SC’s quick ratio is maintained in a fair level in 2006 and 2007.
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The accounts receivable of SC is average in 2006.
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The inventory of SC is fairly large in 2006 and 2007.
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The short loans of SC are large in 2006 and 2007.
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SC’s turnover is in a fair level in 2006 and 2007, comparing with the
size of its total assets.
LEVERAGE: POOR
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The debt ratio of SC is high in 2006 and 2007.
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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.
A credit line at the above amount appears beyond SC’s capacities. Credit should
be extended under guarantee, 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%)