MIRA
INFORM REPORT
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Report Date : |
30.05.2008 |
IDENTIFICATION
DETAILS
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Name : |
SICHUAN FLORISH SILK Co., Ltd. |
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Registered Office : |
No. 252, Yiduan, Wuyang Avenue, Wuhou
District, Chengdu, Sichuan Province, 610041 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
27.12. 2004 |
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Com. Reg. No.: |
510000000052323 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Importing and Exporting Different Sorts of Silks. |
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 100,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
SICHUAN FLORISH SILK Co., Ltd.
NO. 252, YIDUAN,
WUYANG AVENUE, WUHOU DISTRICT,
CHENGDU, SICHUAN
PROVINCE, 610041 PR CHINA.
TEL: 86 (0)
28-87440202 FAX: 86 (0) 28- 85559127
EXECUTIVE SUMMARY
INCORPORATION DATE : december 27, 2004
REGISTRATION NO. : 510000000052323
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
150
REGISTERED CAPITAL : CNY 20,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 332,496,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 21,567,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 100,000 (periodical review)
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.94 = 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 company at Sichuan Provincial Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Dec. 27, 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 domestic wholesaling and retailing; international
trade.
SC is mainly
engaged in importing and exporting different sorts of silks.
Mr. Wu
Jinliang has been legal representative and
chairman of SC since 2004.
SC is known
to have approx. 150 employees at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the industrial zone of Chengdu. Our checks reveal that SC
rents the total premise about 2,000 square meters.
SC is not known to host website of its own at present.
Changes of its registered information:
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Date of change |
Item |
Before the change |
After the change |
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2006-4-6 |
Registered capital |
CNY 10,000,000 |
CNY 20,000,000 |
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Shareholders |
Lei Yucheng 10%, Li Chenggang 15%, Zhou Jianming20%, Zhou Wenfeng20%, Wu
Jinliang吴金良35% |
Lei Yucheng 5%, Wu Kechang5%, Li Chenggang 7.5%, Wen Guoliang闻国良
10%, Wu Jinliang 17.5%, Zhou Jianming17.5%, Zhou Wenfeng17.5%, Tang Zhe20% |
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2006-12-19 |
Shareholders |
Lei Yucheng 5%, Wu Kechang5%, Li Chenggang
7.5%, Wen Guoliang 10%, Wu Jinliang 17.5%, Zhou Jianming17.5%, Zhou
Wenfeng17.5%, Tang Zhe20% |
Lei Yucheng 5%, Wu Kechan5%, Li Chenggang
7.5%, Wen Guoliang 10%, Wu Jinliang17.5%, Tang Zhe20%, Zhou Jianming 35% |
|
2008-4-22 |
Shareholders |
Lei Yucheng 5%, Wu Kechang 5%, Li
Chenggang 7.5%, Wen Guoliang10%, Wu Jinliang 17.5%, Tang Zhe20%, Zhou Jianming
35% |
The present ones |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Wu Jinliang
17.5
Zhou Jianming
35.0
Li Chenggang
7.5
Lei Yucheng
5.0
He Nianzhu
5.0
Wang Tao
10.0
Li Hao
10.0
Ou Wuyang
10.0
l
Legal representative and chairman:
Mr. Wu Jinliang, ID # 510103631123373, 45 years old with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2004 to present Working
in SC as chairman and legal representative.
SC is mainly
engaged in importing and exporting different sorts of silks.
SC also engaged in processing silk spinning and silk products.
SC’s products mainly include silks, cocoon fiber, and so on.
SC sources its materials 70% from domestic
market, and 30% from overseas market, mainly U.S.A. and Europe. SC sells 70% of
its products in domestic market, and 30% to overseas market, mainly Southeast
Asian market.
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.
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.
SC’s management
declined to release its bank details.
Balance Sheet
Unit: CNY’000
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as of Dec. 31, 2005 |
as of Dec. 31, 2006 |
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Cash & bank |
5,854 |
9,915 |
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Inventory |
17,517 |
60,611 |
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Accounts
receivable |
31,994 |
25,817 |
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Advances to
supplies |
26,064 |
30,288 |
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Other
receivables |
252 |
-15,354 |
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A receivable tax
rebate of export |
4,585 |
6,296 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
86,266 |
117,573 |
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Fixed assets |
5,176 |
5,805 |
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Fixed assets net
value |
4,904 |
5,184 |
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Projects under
construction |
0 |
0 |
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Long-term
investments |
40,410 |
49,126 |
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Intangible and
other assets |
494 |
0 |
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------------------ |
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Total assets |
132,074 |
171,883 |
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============= |
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Short loans |
0 |
28,000 |
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Accounts payable |
81,872 |
67,304 |
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Other Accounts
payable |
18,009 |
26,128 |
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Advances from
clients |
22,847 |
35,274 |
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Taxes unpaid |
-2,394 |
-8,948 |
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Welfares payable |
10 |
67 |
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Accrued expenses |
770 |
2,479 |
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Other current
liabilities |
39 |
12 |
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----------------- |
----------------- |
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Current
liabilities |
121,153 |
150,316 |
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Long term
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
121,153 |
150,316 |
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Shareholders
equities |
10,921 |
21,567 |
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Total
liabilities & equities |
132,074 |
171,883 |
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Income Statement
Unit: CNY’000
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as of Dec. 31, 2006 |
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Turnover |
332,496 |
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Cost of goods
sold |
320,097 |
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Taxes and
additional of main operation |
153 |
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Sales expense |
4,506 |
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Management expense |
3,104 |
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Finance expense |
3,671 |
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Operation Profit |
964 |
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Less: profit tax |
318 |
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Net profit |
646 |
Important Ratios
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as of Dec. 31, 2005 |
as of Dec. 31, 2006 |
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*Current ratio |
0.71 |
0.78 |
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*Quick ratio |
0.57 |
0.38 |
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*Liabilities
to assets |
0.92 |
0.87 |
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*Net profit
margin (%) |
/ |
0.19 |
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*Return on
total assets (%) |
/ |
0.38 |
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*Inventory
/Turnover ×365 |
/ |
67 days |
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*Accounts
receivable/Turnover ×365 |
/ |
28 days |
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*Turnover/Total
assets |
/ |
1.93 |
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* Cost of
goods sold/Turnover |
/ |
0.96 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of goods sold is fairly high, comparing with its turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in a fair level in both 2 years.
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SC’s quick ratio is maintained in a fair level in both 2 years.
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The inventory of SC appears large.
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The accounts receivable of SC appears average.
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SC’s short-term loan is in an average level in 2006.
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SC’s turnover is in an average level in 2006, comparing with the size of
its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is average.
Overall financial condition of the SC:
Fairly stable.
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of inventory could be a threat to SC’s financial
condition. A credit line up to USD 100,000 appears to be within SC’s capacities
upon a periodical review basis.
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%)