MIRA
INFORM REPORT
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Report Date : |
10.11.2008 |
IDENTIFICATION
DETAILS
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Name : |
CNSC FORTUNE WAY COMPANY |
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Registered Office : |
No.4, Huixin Dongjie, Chaoyang District
Beijing 100029 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
16.08.1993 |
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Com. Reg. No.: |
1101051501712 |
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Legal Form : |
State-Owned Enterprise |
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Line of Business : |
International Trader |
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 300,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
CNSC FORTUNE WAY COMPANY
NO.4, HUIXIN DONGJIE, CHAOYANG DISTRICT
BEIJING 100029 PR CHINA
TEL: 86 (0) 10-
84663108/84663822 FAX:
86 (0) 10- 84663106/84639160
EXECUTIVE SUMMARY
INCORPORATION DATE :
AUG. 16, 1993
REGISTRATION NO. :
1101051501712
REGISTERED LEGAL FORM : STATE-OWNED ENTERPRISE
STAFF STRENGTH :
35
REGISTERED CAPITAL : CNY 20,000,000
BUSINESS LINE :
INTERNATIONAL TRADE
TURNOVER :
CNY 376,463,000 (AS OF DEC. 31,
2007)
EQUITIES :
CNY 24,494,000 (AS OF DEC. 31, 2007)
RECOMM. CREDIT RANGE : UP TO
USD 300,000
MARKET CONDITION : competitive
FINANCIAL CONDITION : stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.83 = 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
Note: SC’s concrete name should be the above stated one,
instead of the given one-CNSC Way Company
SC was registered as a state-owned enterprise at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Aug. 16, 1993.
Company Status:
State-owned enterprise This form of business in PR
China is defined as a commodity production or operational units of a
socialist character which in accordance with the law, has autonomy in
management, takes full responsibility for its profits and losses and
practices independent business accounting. It is a legal person established
directly by central / local government or enterprise owned by central or
local government. In theory, the liabilities of this form of enterprise are
ultimately borne by the government, since the adoption of company law in
mid-1994, the Chinese government has planned to separate the ownership from
management and liabilities bearing.
SC’s registered
business scope includes supplying various goods to China oversea institutions;
purchasing and selling tax-free goods; purchasing and selling general
merchandise, foodstuff, native goods, chemically products, furniture, arts and
crafts, textiles, machinery & equipment, hardware, building materials,
decoration materials, spare parts of cars, groceries, and labor protection
products; photo services; retailing tobaccos; import and export of goods and
technology, excluding the products prohibited by the country; processing with
supplied samples, imported materials, and imported parts, compensation trades;
transit trade and counter trade; economic information consulting (excluding
agency services and specially regulated items).
SC is mainly
engaged in international trade.
Mr. Li Can has been general manager of SC since 2001.
SC is known
to have approx. 35 employees at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Beijing. Our checks reveal that SC
owns the total premise about 300 square meters.
http://www.fortune-way.com
The design is professional and the content is well organized. At present the
web is in English and Chinese versions.
E-mail: Medicine department: pharma@fortune-way.com
Textile department: tex@fortune-way.com
SC’s registered capital was increased from CNY 3,000,000 to CNY
7,000,000 on November 9, 2000, and then it was changed to the present amount on
Mar. 14, 2001.
SC’s former legal representative Mr. Gao Xianmin was taken place by Mr.
Li Can on Mar. 14, 2001.
MAIN SHAREHOLDERS:
Name
% of Shareholding
China National Service Corporation
for Chinese Personnel Working AbroadCNSC
100
CNSC was established in 1983 with the
approval of the State Council, once subordinate to the Ministry of Foreign Trade
and Economic Cooperation (re-named as the Ministry of Commerce), CNSC is now
under the direct leadership of the State-Owned Assets Supervision and
Administration Commission of the State Council of China.
Address: 4, Huixindongjie, Chaoyang
District, Beijing 100029, PR China
Tel: 86-10-84618811
Fax: 86-10-84648245
E-mail: bgs@cnsc.com.cn
l
Legal Representative and General Manager:
Mr. Li Can, ID# 370923721121061, born in 1972 with university education.
He is currently responsible for the overall management of SC.
Working Experience(s):
From 2001 to present Working in SC as legal
representative and general manager.
SC is mainly
engaged in international trade.
SC’s textile
products include: chemical fiber cloth material & inner cloth material,
blend cloth material & crossing textile cloth material, medical, medical
medium agent.
Chemical products:
PTA, QTA, PET lumps, PP powder, SAN, 1,5-Pentanediol , Bisphenol-A,MEA, Ethyl
Acetate.
Stone Products:
Galala Beige, Aman Beige, Marron Emperador, Wooden Travertine , Rosso Lavento,
Sahara Beige, India Green, MocaCream, Bianco Perlino, Ariston White.
From Oct. 2004 SC
began to supply Pakistan heckling yarn and regular yarn, mainly including 16S,
20S, and 26S. At present, it sets warehouses in Guangzhou, Beijing and Tianjin.
Its annual importing can reach 15,000 tons.
SC imports marble
and its board materials from Turkey and Egypt; PET and its materials, PTA from
Europe; chromium ore and stone materials from Turkey and Pakistan.
SC sources its
materials 40% from domestic market, and 60% from international market mainly
Korea, Southeast Asia and Europe. SC sells 60% of its products in domestic
market, and 40% to international market, mainly Asian countries, Middle East
and Europe.
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.
Major Suppliers
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Korea Samnam Petrochem Co., Ltd.
Korea Polymirae Co., Ltd.
Korea LG Chemical Co., Ltd.
SC is known to have one subsidiary as
following:
Fortune Magnesium Industrial Co., Ltd.
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 Communications Huixin Branch
AC#664012015014063
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 |
25,580 |
12,564 |
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Inventory |
36,990 |
43,314 |
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Accounts
receivable |
24,350 |
65,449 |
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Advances to
suppliers |
16,740 |
31,517 |
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Other
receivables |
460 |
1,471 |
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Other current
assets |
2,700 |
6 |
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Current assets |
106,820 |
154,321 |
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Fixed assets net
value |
140 |
228 |
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Long term
investment |
3,900 |
1,374 |
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Other assets |
0 |
0 |
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Total assets |
110,860 |
155,923 |
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============= |
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Short loans |
0 |
0 |
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Bills payable |
22,340 |
11,483 |
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Accounts payable |
32,380 |
93,706 |
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Advances from
clients |
28,600 |
15,134 |
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Taxes payable |
-5,010 |
-11,300 |
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Other payable |
3,080 |
17,909 |
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Other current
liabilities |
6,100 |
4,497 |
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Current
liabilities |
87,490 |
131,429 |
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Long term
liabilities |
0 |
0 |
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Total
liabilities |
87,490 |
131,429 |
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Equities |
23,370 |
24,494 |
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Total
liabilities & equities |
110,860 |
155,923 |
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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 |
275,140 |
376,463 |
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Cost of goods
sold |
250,470 |
349,986 |
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Sales expense |
9,930 |
14,647 |
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Management expense |
430 |
2,903 |
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Finance expense |
1,710 |
-1,671 |
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Profit before
tax |
12,560 |
8,901 |
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Less: profit tax |
4,090 |
3,279 |
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Profits |
8,470 |
5,622 |
Important Ratios
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2006 |
2007 |
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*Current ratio |
1.22 |
1.17 |
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*Quick ratio |
0.80 |
0.84 |
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*Liabilities
to assets |
0.79 |
0.84 |
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*Net profit
margin (%) |
3.08 |
1.49 |
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*Return on total
assets (%) |
7.64 |
3.61 |
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*Inventory
/Turnover ×365 |
48days |
42days |
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*Accounts
receivable/Turnover ×365 |
32days |
63days |
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*Turnover/Total
assets |
2.50 |
2.41 |
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* Cost of
goods sold/Turnover |
0.91 |
0.93 |
PROFITABILITY:
FAIRLY GOOD
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The turnover of SC appears fairly good, and it increased in 2007.
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SC’s net profit margin is average in 2006 and 2007.
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SC’s return on total assets is fairly good in 2006 and 2007.
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SC’s cost of goods sold is fairly high in 2007, comparing with its
turnover.
LIQUIDITY: AVERAGE
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The current ratio of SC is maintained in a normal level in 2006 and
2007.
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SC’s quick ratio is maintained in a normal level in 2006 and 2007.
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The accounts receivable of SC appears fairly large in 2007.
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The inventory of SC is average in both 2 years.
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SC has no short loan in both 2 years.
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SC’s turnover is in a fairly good level in both 2 years, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is fairly high in both 2 years.
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The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Stable.
SC is considered medium-sized in its line with favorable background and stable
financial conditions. A credit line at the above amount appears to be beyond
SC’s capacities, while a credit line up to USD 300,000 is recommended.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.47.32 |
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UK Pound |
1 |
Rs.74.20 |
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Euro |
1 |
Rs.60.73 |
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%)