MIRA
INFORM REPORT
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Report Date : |
26.05.2008 |
IDENTIFICATION
DETAILS
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Name : |
JIANGSU SOHO
SILK AND TEXTILE CO., LTD. |
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Registered Office : |
No.48 Ningnan Avenue, Nanjing, Jiangsu Province, Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
24.11. 2005 |
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Com. Reg. No.: |
3200001106123 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Selling Light Textile Products. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 150,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
JIANGSU SOHO SILK
AND TEXTILE CO., LTD.
NO.48 NINGNAN AVENUE, NANJING, JIANGSU
PROVINCE, PR CHINA
48
TEL: 0086-25-84785410 FAX:
0086-25-84785426
EXECUTIVE SUMMARY
INCORPORATION DATE :
NOV. 24, 2005
REGISTRATION NO. :
3200001106123
REGISTERED LEGAL FORM : LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MR. YU YIMIN (CHAIRMAN)
STAFF STRENGTH :
32
REGISTERED CAPITAL : CNY 6,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 47,900,000 (AS OF DEC. 31,
2007)
EQUITIES :
CNY 13,120,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO
USD 150,000
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 6.9448. = 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
SC was registered as a limited liabilities co. at local Administration for Industry
& Commerce (AIC - The official body of issuing and renewing business
license) on Nov. 24, 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 commodities and technologies, excluding export commodities limited or prohibited by the state, domestic trade (not engage in any items
prohibited by laws and administrative regulation; able to engage in items that
need permit according to laws and administrative regulation, after obtaining
the permit from relative authorities), foreign trade intermediate agent and
consulting services, industry investment.
SC is mainly
engaged in selling light textile products.
Mr. Yu Yimin has
been legal representative and chairman of SC since 2005.
SC is known to have approx. 32 employees at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Nanjing. Our checks reveal that SC
rents the total premise about 750 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
Jiangsu Soho International Group Corporation 51
Shanghai Tongyi Investment Management Co.,
Ltd. 9
Zhang Chaowu 6.67
Ma Hongwei 5
Other 14 individuals 28.33
==========================
Jiangsu SOHO International
Group Corporation (formerly Jiangsu Silk Import And Export Group) was
established in 1979. Now SOHO is promoting the prosperity of silk industry to a
new height. As one of the largest silk multi-product and foreign trade
corporations in China, its import and export gross of USD 490 million, the
export gross of USD 408 million in 2002 made corporation list among the top 10
foreign trade group corporations in Jiangsu province. The corporation consists
of 27 manufactories and trade companies all over the world. By June 30, 2003,
its total asset is RMB 975 million and the net asset is about 324 million. Now,
the corporation has passed quality tests such as the “ISO9001:2000
Quality System Certification”, and “Oeko-tex Standard 100”, and is preparing
for the pass of “ISO14000” and “OHSAS18000” for its further elevation of its
trading and manufacturing level to international standard.
(http://www.meetsoho.com/Corporateintr.asp
)
l
Legal representative and chairman:
Mr. Yu Yimin, born in 1968 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 legal representative.
l
General manager:
Mr. Zhang Chaowu , born in 1970 with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
At present Working
in SC as general manager.
SC is mainly
engaged in selling light textile products.
SC’s products mainly include: Men's casual & fashion jackets,
Women's shirts, Men's casual shirts,
Crepe Satin Brocade, Crepe Satin Plain, Heavy Crepe and Knitted Scarf.
SC sources its merchandises 20% from the overseas market and 80% from
domestic market. SC sells 20% of its merchandises in domestic market, and 80%
to overseas market.
The buying terms of SC include Check, L/C, 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 Suppliers*
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JIANGSU SI-JUAN GROUP CO., LTD.
*Major Customers*
==============
Songcun Co., Ltd. (Japan) (in Chinese pinyin)
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
Jiangsu Province Sub-branch
AC#044133813780809101
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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as
of Dec. 31, 2007 |
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Cash & bank |
410 |
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Bills receivable |
0 |
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Accounts
receivable |
1,260 |
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Other
receivables |
100 |
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Advances to
suppliers |
160 |
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Inventory |
12,550 |
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A receivable tax
rebate of export |
5,180 |
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Prepaid expenses |
0 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
19,660 |
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Fixed assets |
650 |
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Fixed assets net
value |
650 |
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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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------------------ |
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Total assets |
20,310 |
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============= |
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Short loans |
0 |
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Bills payable |
0 |
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Accounts payable |
300 |
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Welfare payable |
0 |
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Advances from
clients |
8,110 |
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Accrued payroll |
0 |
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Tax payable |
-1,230 |
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Other payable |
0 |
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Accrued expenses |
10 |
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Other current
liabilities |
0 |
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------------------ |
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Current
liabilities |
7,190 |
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Long term
liabilities |
0 |
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------------------ |
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Total
liabilities |
7,190 |
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Equities |
13,120 |
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------------------ |
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Total
liabilities & equities |
20,310 |
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============= |
Income Statement
Unit: CNY’000
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as of Dec. 31, 2007 |
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Turnover |
47,900 |
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Cost of goods
sold |
45,370 |
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Sales expense |
220 |
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Management expense |
170 |
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Finance expense |
140 |
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Add: Income from other operations |
4,380 |
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Profit before
tax |
6,380 |
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Less: profit tax |
250 |
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Profits |
6,630 |
Important Ratios
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as
of Dec. 31, 2007 |
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*Current ratio |
2.73 |
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*Quick ratio |
0.99 |
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*Liabilities
to assets |
0.35 |
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*Net profit
margin (%) |
13.84 |
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*Return on
total assets (%) |
32.64 |
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*Inventory
/Turnover ×365 |
96 days |
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*Accounts receivable/Turnover
×365 |
10 days |
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*Turnover/Total
assets |
2.36 |
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* Cost of
goods sold/Turnover |
0.95 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears average in its line.
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SC’s net profit margin is fairly good.
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SC’s return on total assets is fairly good.
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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 fairly good level.
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SC’s quick ratio is maintained in a normal level.
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The inventory of SC appears fairly large.
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The accounts receivable of SC appears average.
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There’s no short-term loan is of SC in 2007.
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SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
SC is considered medium-sized in its line with stable financial
conditions. The large amount of inventory could be a threat to SC’s financial
condition. A credit line up to USD 150,000 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%)