MIRA
INFORM REPORT
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Report Date : |
26.11.2008 |
IDENTIFICATION
DETAILS
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Name : |
china meheco herbs
import and export corporation |
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Registered Office : |
Meheco Building, No.18 Guangming (M) Street, Chongwen District, Beijing,
100061 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
08.02.1993 |
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Com. Reg. No.: |
110000005009961 |
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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 : |
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 30,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
china meheco herbs import and export
corporation
meheco building, no.18 guangming (m) street,
chongwen district,
beijing, 100061 PR CHINA
TEL: 86 (0) 10-67116688 FAX: 86 (0) 10-67121579
EXECUTIVE SUMMARY
INCORPORATION DATE : february 8, 1993
REGISTRATION NO. : 110000005009961
REGISTERED LEGAL FORM : State-owned enterprise
STAFF STRENGTH :
22
REGISTERED CAPITAL : CNY 2,000,000
BUSINESS LINE :
trading
TURNOVER :
CNY 59,560,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 2,270,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 30,000
MARKET CONDITION : average
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 Renminbi
Note: SC’s correct name should be the above
stated one, instead of the given name – China Memeco Herbs Import and Export
Corporation.
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 February 8, 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 importing and exporting Chinese herbs, undertaking Chinese foreign equity joint venture enterprise and Chinese
foreign contractual joint venture enterprise, processing with imported materials,
processing with imported samples, assemblying with imported parts, and
compensation trade in agreement, counter trade &
transit trade, importing and exporting commodities and technologies, excluding
the 16 goods controlled to export by the government and the 14 goods controlled
to import by the companies with authorization from the government, purchasing
native products and animal by-products.
SC is mainly
engaged in international trade.
Mr. Xu Xiuhai has
been general manager of SC since 1993.
SC is known to
have approx. 22 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
rents the total premise about 250 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.
SUPERIOR DEPARTMENTS:
Name %
of Shareholding
China Meheco Corporation 100
China Meheco Corporation:
====================
China Meheco Corporation (original name:
China National Medicines & Health Products Imp. & Exp. Corp.) is one of
the leading foreign trade enterprises in medicines and health products in
China. It is the key branch company of China General Technology (Group) Holding
Co. Ltd in the latter's expansion into the medical industry.
Address: No.18 Guangming Zhongjie,Chongwen District,Beijing
100061,China
Tel: 0086-10-67122035
Fax: 0086-10-67121579
Website: www.meheco.cn
E-mail: meheco@meheco.com.cn
l
Legal Representative and General Manager:
Mr. Xu Xiuhai, 38 years old with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1993 to present Working
in SC as legal representative and general manager.
SC is mainly
engaged in international trade.
SC’s products
mainly include: Chinese herbs.
SC sources its materials 100% from domestic
market, mainly Beijing and Tianjin. SC sells 40% of its products in domestic
market, and 60% to overseas market, mainly Southeast Asian market.
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 Customer:
==============
Jiangsu Ruikang Organic Food Co., Ltd.
*Major Supplier:
==============
Tianjin Hengyuantong Trade 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’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
AC#00131808091001
Relationship:
Normal.
Balance Sheet
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Unit: CNY’000 |
as
of Dec. 31, 2006 |
as
of Dec. 31, 2007 |
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Cash & bank |
8,660 |
11,280 |
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Inventory |
39,940 |
7,850 |
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Accounts
receivable |
10,250 |
1,120 |
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Other Accounts
receivable |
7,800 |
10,010 |
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To be apportioned
expense |
0 |
0 |
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Other current
assets |
14,650 |
2,760 |
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------------------ |
------------------ |
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Current assets |
81,300 |
33,020 |
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Fixed assets net
value |
680 |
540 |
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Projects under
construction |
0 |
0 |
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Long term
investment |
0 |
0 |
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Other assets |
150 |
20 |
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------------------ |
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Total assets |
82,130 |
33,580 |
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============= |
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Short loans |
0 |
0 |
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Accounts payable |
12,180 |
8,000 |
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Other Accounts
payable |
6,030 |
1,750 |
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Advances from
clients |
48,530 |
13,320 |
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Withdraw the
expenses in advance |
0 |
0 |
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Other current
liabilities |
13,120 |
8,240 |
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------------------ |
------------------ |
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Current
liabilities |
79,860 |
31,310 |
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Long term
liabilities |
0 |
0 |
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Other
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
79,860 |
31,310 |
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Equities |
2,270 |
2,270 |
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------------------ |
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Total
liabilities & equities |
82,130 |
33,580 |
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Income Statement
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Unit: CNY’000 |
as of Dec. 31, 2007 |
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Turnover |
59,560 |
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Cost of goods
sold |
47,000 |
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Sales expense |
1,050 |
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Management expense |
150 |
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Finance expense |
400 |
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Profit before
tax |
11,420 |
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Less: profit tax |
3,770 |
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Profits |
7,650 |
Important
Ratios
=============
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As
of Dec. 31, 2006 |
As
of Dec. 31, 2007 |
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*Current ratio |
1.02 |
1.05 |
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*Quick ratio |
0.52 |
0.80 |
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*Liabilities
to assets |
0.97 |
0.93 |
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*Net profit
margin (%) |
/ |
12.84 |
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*Return on
total assets (%) |
/ |
22.78 |
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*Inventory
/Turnover ×365 |
/ |
48 days |
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*Accounts
receivable/Turnover ×365 |
/ |
7 days |
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*Turnover/Total
assets |
/ |
1.77 |
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* Cost of goods
sold/Turnover |
/ |
0.79 |
PROFITABILITY:
FAIRLY GOOD
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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 good.
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SC’s cost of goods sold is average, 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 normal level.
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The inventory of SC is maintained in an average level.
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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 both two years.
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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 high.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Stable.
Over the past 15 years, SC has made a stable growth with stable
financial conditions. A credit line at the above amount appears to be beyond SC’s
capacities, while a credit line up to USD 30,000
is recommended.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.85 |
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UK Pound |
1 |
Rs.76.60 |
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Euro |
1 |
Rs.64.68 |
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%)