MIRA
INFORM REPORT
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Report Date : |
10.10.2008 |
IDENTIFICATION
DETAILS
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Name : |
JINCHENG GROUP IMPORT & EXPORT CO., LTD. |
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Registered Office : |
No. 518, East Zhongshan Road, Nanjing, Jiangsu Province, 210002 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
12.10.1995 |
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Com. Reg. No.: |
320100000019403 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
International Trade |
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 200,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
JINCHENG GROUP IMPORT & EXPORT Co., Ltd.
NO. 518, EAST ZHONGSHAN ROAD, NANJING,
JIANGSU PROVINCE, 210002 PR CHINA
518
TEL: 86 (0) 25-84594165 FAX: 86 (0) 25-84480734
EXECUTIVE SUMMARY
INCORPORATION DATE : OCTOBER 12, 1995
REGISTRATION NO. : 320100000019403
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH :
100
REGISTERED CAPITAL : CNY 34,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 318,200,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 22,350,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 200,000
MARKET CONDITION : competitive
FINANCIAL CONDITION : FAIRLY stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
6.8141 = US$ 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 local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on October 12, 1995.
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 the items prohibited by the state).
SC is mainly
engaged in international trade, foreign investment; exporting motorcycles,
engines, hydraulic pressure engineering products, bicycles and related
technology of its group; importing machinery, instruments and meters, spare
parts, accessories and technology.
Mr. Wang Jian has
been legal representative and chairman of SC since October 1995.
SC is known to have approx. 100 employees at present.
SC is currently
operating at the above stated address, and this address houses its operating
office and head office in the commercial zone of Nanjing. Our checks reveal
that SC rents the total premise about 300 square meters.
http://www.jincheng.com/
It is the website of its parent company. The design is professional and the
content is well organized. At present it is in Chinese version.
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Date of change |
Item |
Before the change |
After the change |
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Unknown |
Registration No. |
3201001008903 |
320100000019403 |
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Jincheng Group
Corporation 50
Nanjing
Jincheng Machinery Co., Ltd. 50
*Jincheng Group
Corporation
=======================
Address: No. 218, Longpan Middle Road,
Baixia District, Nanjing
Tel: 025-84593388
l
Legal representative and chairman:
Mr. Wang Jian , born in 1961. He is currently responsible for the
overall management of SC.
Working Experience(s):
From 1995 to present Working
in SC as chairman and legal representative.
l
General manager:
Mr. Ai Dejie, born in 1965. 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 international trade, foreign investment; exporting motorcycles,
engines, hydraulic pressure engineering products, bicycles and related
technology of its group; importing machinery, instruments and meters, spare
parts, accessories and technology.
Main Products:
motorcycles, engines, hydraulic pressure engineering products, bicycles, etc.
SC sources its materials 70% from domestic
market, and 30% from overseas market. SC sells 50% of its products in domestic
market, and 50% to overseas market, mainly Africa.
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 known to invest in the following companies:
Nanjing Jinlongpan Real Estate Development Co., Ltd.
Nanjing Jincheng Precision Machinery Co., Ltd.
JINCHENG
DE COLOMBIA S.A
JINCHENG
INTERNATIONAL MOTORS UGANDA LTD
JINCHENG
CHILE S.A.
Etc.
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.
China CITIC Bank Nanjing Branch Ruijin Road Sub-branch
AC#：077070182200012096
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 |
66,040 |
12,070 |
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Notes receivable |
24,910 |
19,140 |
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Inventory |
15,510 |
25,260 |
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Accounts
receivable |
12,860 |
43,680 |
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Advances to
supplies |
10,220 |
14,990 |
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Other
receivables |
5,980 |
4,050 |
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Prepaid expenses |
50 |
110 |
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A receivable tax
rebate of export |
2,680 |
9,280 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
138,250 |
128,580 |
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Fixed assets net
value |
1,400 |
1,350 |
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Projects under
construction |
0 |
0 |
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Long-term
investments |
2,270 |
23,940 |
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Intangible and
other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
141,920 |
153,870 |
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============= |
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Short loans |
0 |
0 |
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Notes payable |
1,300 |
8,970 |
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Accounts payable |
15,580 |
14,960 |
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Advances from
customers |
99,800 |
101,110 |
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Accrued payroll |
0 |
0 |
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Welfares payable |
1,650 |
670 |
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Taxes payable |
-2,390 |
-6,650 |
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Other Accounts
payable |
3,950 |
12,450 |
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Other current
liabilities |
0 |
10 |
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----------------- |
----------------- |
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Current
liabilities |
119,900 |
131,520 |
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Long term
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
119,900 |
131,520 |
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Shareholders
equities |
22,020 |
22,350 |
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------------------ |
------------------ |
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Total
liabilities & equities |
141,920 |
153,870 |
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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 |
224,600 |
318,200 |
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Cost of goods sold |
210,210 |
303,540 |
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Income from
other operations |
0 |
20 |
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Sales expense |
15,520 |
19,950 |
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Management expense |
15,330 |
17,580 |
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Finance expense |
1,700 |
1,770 |
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Income from
purchase and sales commission |
18,240 |
17,330 |
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Investment
income |
0 |
7,790 |
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Subsidy income |
620 |
0 |
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Non-operating
income |
0 |
90 |
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Operation Profit |
700 |
600 |
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Less: profit tax |
140 |
270 |
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Net profit |
560 |
330 |
Important Ratios
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as of Dec. 31, 2006 |
as of Dec. 31, 2007 |
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*Current ratio |
1.15 |
0.98 |
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*Quick ratio |
1.02 |
0.79 |
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*Liabilities
to assets |
0.84 |
0.85 |
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*Net profit
margin (%) |
0.25 |
0.10 |
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*Return on
total assets (%) |
0.39 |
0.21 |
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*Inventory
/Turnover ×365 |
26 days |
29 days |
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*Accounts receivable/Turnover
×365 |
21 days |
51 days |
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*Turnover/Total
assets |
1.58 |
2.07 |
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* Cost of
goods sold/Turnover |
0.94 |
0.95 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good in its line, and it rising in
2007.
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SC’s net profit margin is average in both two years.
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SC’s return on total assets is average in both two years.
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SC’s cost of goods sold is fairly high, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal level in 2006 but fair
in 2007.
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SC’s quick ratio is maintained in a normal level in 2006 and 2007.
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The inventory of SC is maintained in an average level in both two years.
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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: FAIR
l
The debt ratio of SC is fairly high.
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
Credit Opinion: USD 500,000
SC is considered a medium-sized company in its line with favorable background and fairly stable financial conditions. The given credit amount would appear to be beyond of SC’s capacities, while a credit line up to USD 200,000 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.48.72 |
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UK Pound |
1 |
Rs.82.17 |
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Euro |
1 |
Rs.65.90 |
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%)