MIRA INFORM REPORT
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Report Date : |
29.08.2008 |
IDENTIFICATION
DETAILS
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Name : |
NINGBO JINLUN IMPORT & EXPORT CO., LTD. |
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Registered Office : |
Jinlun Building,
Zonghan Avenue, Cixi, Ningbo, Zhejiang Province, 315301 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
01.03.2001 |
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Com. Reg. No.: |
3302821002527 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject is engaged
in selling different sorts of industrial fabrics |
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 350,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
Name & address
Ningbo Jinlun Import & Export Co., Ltd.
jinlun
building, zonghan avenue, cixi,
ningbo,
zhejiang PROVINCE, 315301 PR CHINA.
TEL:
86 (0) 574-63218966 FAX: 86 (0)
574-63201558
EXECUTIVE SUMMARY
INCORPORATION
DATE : march 1, 2001
REGISTRATION
NO. : 3302821002527
REGISTERED
LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF
STRENGTH : 20
REGISTERED
CAPITAL :
CNY 30,000,000
BUSINESS
LINE : TRADING
TURNOVER : CNY 881,278,000 (AS OF DEC. 31,
2007)
EQUITIES : CNY 33,888,000
(AS OF DEC. 31, 2007)
PAYMENT
: AVERAGE
RECOMM.
CREDIT RANGE : UP TO USD 350,000
MARKET
CONDITION : AVERAGE
FINANCIAL
CONDITION : FAIRLY 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
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 March 1, 2001.
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
import and export of various goods and technologies (excluding the goods prohibited
or limited by the country); processing with imported materials, processing with
imported samples, assembling with imported parts, and compensation trade in
agreement; barter and transit trade.
SC is mainly engaged in selling different
sorts of industrial fabrics.
Mr. Lu Hanzhen has been legal representative
and chairman of SC since 2001.
SC is known to have approx. 20
employees at present.
SC is currently operating at the above stated address, and this address houses its operating office in the commercial zone of Ningbo. Our checks reveal that SC rents the total premise about 500 square meters.
http://www.kingring.com/
It is the website of its parent. The design is professional and the content is
well organized. At present it is in both Chinese and English versions.
E-mail: sales@kingring.com
Changes of its
registered information:
|
Date of change |
Item |
Before the
change |
After the
change |
|
2006-1-20 |
Shareholders |
Ningbo Xingxing Industrial Co., Ltd. 10%, Jinlun Group Corp.
90% |
The present ones |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Jinlun Group Corp. 90
Cixi Xinghuo Chemical Fiber Co., Ltd. 10
====================
Jinlun Group Corp, former Cixi Nylon Co., Ltd. set up in 1987, is a
credible manufacturer of Nylon 6 Tyre Cord Fabric. Jinlun has been developing
very rapidly from a small factory to large-scale enterprise with the
combination of Chemical Fire, thermal power, real estate, international trade
and machinery and services, etc.
l
Legal
representative and
chairman:
Mr. Lu Hanzhen, ID #
330222550412111, 53 years old with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
1984-1986
Worked
in Cixi Plastic Modification Factory as factory director;
1986-1992
Worked
in Cixi Nylon Factory as factory director;
From 1992 to present Working
in Jinlun Group Corp. as chairman;
From 2001 to present Working
in SC as chairman and legal representative.
Also
working in Ningbo Xingxing Industrial Co., Ltd. as legal representative
·
Vice General
manager:
Mr. Wang Jiansheng,
in his 40’s with university education. He is currently responsible for the
daily management of SC.
Working Experience(s):
From 2001 to present Working in SC as vice general manager.
SC is mainly engaged in selling different
sorts of industrial fabrics.
SC’s products mainly include tyre fabrics.
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 known to
invest in:
Ningbo Jinlun Sunshine Real Estate Co., Ltd.
License number: 3302821004142
% of Shareholding: 10%
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.
Agriculture Bank of
China
AC# 502001040002355
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 |
58,711 |
70,429 |
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Inventory |
82,000 |
96,348 |
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Accounts receivable |
98,676 |
75,610 |
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Notes receivable |
0 |
420 |
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Other receivables |
76,198 |
214,947 |
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Other current assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
315,585 |
457,754 |
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Fixed assets net value |
334 |
233 |
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Projects under construction |
0 |
0 |
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Long-term investments |
11,800 |
11,800 |
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Intangible and other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
327,719 |
469,787 |
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============= |
============= |
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Short loans |
105,459 |
129,804 |
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Accounts payable |
103,938 |
195,829 |
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Other Accounts payable |
89 |
73 |
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Notes payable |
74,650 |
112,650 |
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Taxes unpaid |
4,429 |
-2,647 |
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Accrued payroll |
34 |
54 |
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Other current liabilities |
226 |
136 |
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----------------- |
----------------- |
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Current liabilities |
288,825 |
435,899 |
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Long term liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total liabilities |
288,825 |
435,899 |
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Shareholders equities |
38,894 |
33,888 |
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------------------ |
------------------ |
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Total liabilities & equities |
327,719 |
469,787 |
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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 |
818,792 |
881,278 |
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Cost of goods sold |
781,372 |
830,083 |
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Taxes and additional of main operation |
1,637 |
2,252 |
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Sales expense |
26,380 |
24,688 |
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Management expense |
2,868 |
1,844 |
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Finance expense |
5,647 |
21,434 |
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Non-operating expense |
847 |
892 |
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Operation Profit |
69 |
85 |
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Less: profit tax |
0 |
0 |
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Net profit |
69 |
85 |
Important Ratios
=============
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as
of Dec. 31, 2006 |
as
of Dec. 31, 2007 |
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*Current ratio |
1.09 |
1.05 |
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*Quick ratio |
0.81 |
0.83 |
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*Liabilities to assets |
0.88 |
0.93 |
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*Net profit margin (%) |
0.01 |
0.01 |
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*Return on total assets (%) |
0.02 |
0.02 |
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*Inventory /Turnover ×365 |
37 days |
40 days |
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*Accounts receivable/Turnover ×365 |
44 days |
32 days |
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*Turnover/Total assets |
2.50 |
1.88 |
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* Cost of goods sold/Turnover |
0.95 |
0.94 |
PROFITABILITY: AVERAGE
l
The turnover of
SC appears fairly good in its line.
l
SC’s net profit
margin of SC is maintained in an average level in both 2 years.
l
SC’s return on
total assets of SC is maintained in an average level in both 2 years.
l
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 both 2 years.
l
SC’s quick
ratio is maintained in a normal level in both 2 years.
l
The inventory
of SC appears average in both 2 years.
l
The accounts
payable of SC appears large in both 2 years.
l
SC’s short-term
loan of SC appears fairly large in both 2 years.
l
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 high.
l
The risk for SC
to go bankrupt is average.
Overall financial condition of the SC: Fairly stable.
SC is considered
small-sized in its line with fairly stable financial conditions. The large
amount of accounts payable & short loan could be a threat to SC’s financial
condition. A credit line up to USD 350,000 appears to be within SC’s
capacities.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.43.79 |
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UK Pound |
1 |
Rs.80.05 |
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Euro |
1 |
Rs.64.56 |
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%)