MIRA INFORM REPORT
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Report Date : |
07.10.2008 |
IDENTIFICATION
DETAILS
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Name : |
LILING UNITED CERAMIC-WARE MANUFACTURING CO LTD |
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Registered Office : |
Sunjiawan Village, Liling, Hunan Province, 412212 PR |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
16.01.2003 |
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Com. Reg. No.: |
430200400000775 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Manufacturing and
Selling Ceramics. |
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 4,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
Name & address
LILING UNITED CERAMIC-WARE MANUFACTURING CO.,
LTD.
sunjiawan village, liling, hunan PROVINCE,
412212 PR CHINA
TEL: 86 (0) 733-3182222 FAX: 86 (0) 733-3181111
EXECUTIVE SUMMARY
INCORPORATION DATE :
january 16, 2003
REGISTRATION NO. : 430200400000775
REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED
enterprise
STAFF STRENGTH :
300
REGISTERED CAPITAL : CNY 2,905,000
BUSINESS LINE : MANUFACTURING
TURNOVER :
CNY 17,265,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 684,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 4,000 (periodical review)
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : FAIR
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.82 = 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 Chinese-foreign equity joint venture enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Jan. 16, 2003 and has been under present ownership since 2007.
Company Status: Wholly foreign-owned enterprise This form of business in PR
China is defined as a legal person. It is a limited co. established within
the territories of PR China with capital provided totally by the foreign
investors. More than one foreign investor may jointly invest in a wholly
foreign-owned enterprise. The investing party/parties solely exercise
management, reap profit and bear risks and liabilities by themselves. This
form of companies usually have a limited duration is extendible upon approval
of Examination and Approval Authorities.
SC’s registered
business scope includes manufacturing and selling ceramics.
SC is mainly
engaged in manufacturing and selling ceramics.
Mr. Li Wenping has
been legal representative and chairman of SC since 2003.
SC is known
to have approx. 300 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 Liling. Our checks reveal
that SC rents the total premise about 10,000 square meters.
http://www.llucm.com/ The design is professional and the content
is well organized. At present it is in both Chinese and English versions.
Email: ucm@china.com
Changes of its registered information:
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Date of change |
Item |
Before the change |
After the change |
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2007-6-22 |
Legal form |
Chinese-foreign equity joint venture enterprise |
Wholly foreign-owned enterprise |
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Shareholders |
Hunan United Ceramic-ware Manufacturing (Hong Kong) Co., Ltd. 40% 60% |
Hunan United Ceramic-ware Manufacturing (Hong Kong) Co., Ltd. |
SC’s quality system meets the international standards of ISO 9001.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Hunan United Ceramic-ware Manufacturing
(Hong Kong) Co., Ltd. 100
l
Legal representative and chairman:
Mr. Li Wenping, in his 40’s with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2003
to present Working in SC
as chairman and legal representative.
SC is mainly
engaged in manufacturing and selling ceramics.
SC’s products
mainly include porcelain and stoneware, it includes Chinese and western dinner
sets, tea sets, coffee sets, stationery and art porcelain, etc.
SC sources its materials 80% from domestic
market, and 20% 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.
Bank of China Liling Sub-branch
AC#
08235308091014 (USD)
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 |
2,366 |
726 |
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Inventory |
2,985 |
4,249 |
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Accounts
receivable |
2,124 |
245 |
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Prepaid expenses |
447 |
212 |
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Other
receivables |
571 |
293 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
8,493 |
5,725 |
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Fixed assets net
value |
6,453 |
7,321 |
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Projects under
construction |
62 |
66 |
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Long-term
investments |
501 |
500 |
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Intangible and
other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
15,509 |
13,612 |
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============= |
============= |
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Short loans |
2,500 |
1,250 |
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Accounts payable |
3,282 |
2,743 |
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Other Accounts
payable |
1,817 |
1,979 |
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Taxes payable |
-106 |
131 |
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Accrued payroll |
507 |
625 |
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Other current
liabilities |
0 |
0 |
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Current liabilities |
8,000 |
6,728 |
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Long term
liabilities |
6,000 |
6,200 |
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Total
liabilities |
14,000 |
12,928 |
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Shareholders
equities |
1,509 |
684 |
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Total liabilities
& equities |
15,509 |
13,612 |
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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 |
24,008 |
17,265 |
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Cost of goods
sold |
19,281 |
13,880 |
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Sales expense |
3,781 |
2,674 |
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Management expense |
1,084 |
986 |
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Finance expense |
660 |
770 |
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Subsidy income |
213 |
200 |
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Operation Profit |
-568 |
-825 |
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Less: profit tax |
0 |
0 |
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Net profit |
-568 |
-825 |
Important Ratios
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as of Dec. 31, 2006 |
as of Dec. 31, 2007 |
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*Current ratio |
1.06 |
0.85 |
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*Quick ratio |
0.69 |
0.22 |
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*Liabilities
to assets |
0.90 |
0.95 |
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*Net profit
margin (%) |
-2.37 |
-4.78 |
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*Return on
total assets (%) |
-3.66 |
-6.06 |
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*Inventory
/Turnover ×365 |
46 days |
90 days |
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*Accounts
receivable/Turnover ×365 |
33 days |
6 days |
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*Turnover/Total
assets |
1.55 |
1.27 |
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* Cost of
goods sold/Turnover |
0.80 |
0.80 |
PROFITABILITY: FAIR
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The turnover of SC appears average in its line, but it decreased in
2007.
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SC’s net profit margin was decreased; and it remains at a fair level in
2007.
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SC’s return on total assets was decreased; and it remains at a fair level
in 2007.
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SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in a fair level in 2007.
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SC’s quick ratio is maintained in a poor level in 2007.
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The inventory of SC appears LARGE in both 2 years.
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The accounts receivable of SC appears average.
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SC’s short-term loan appears fairly large.
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SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIR
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The debt ratio of SC is high.
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The risk for SC to go bankrupt is above average.
Overall financial condition of the SC: Fair.
SC is considered medium-sized in its line with fair financial
conditions. The large amount of inventory could be a threat to SC’s financial condition.
A credit line up to USD 4,000 appears to be within SC’s capacities upon a
periodical review basis.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.48.74 |
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UK Pound |
1 |
Rs.85.19 |
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Euro |
1 |
Rs.66.12 |
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%)