MIRA
INFORM REPORT
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Report Date : |
05.09.2008 |
IDENTIFICATION
DETAILS
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Name : |
GUANGDONG
TRUECOLOR STATIONERY CO., LTD. |
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Registered Office : |
Anfeng Industrial Zone, High-Tech Development
District, Qingyuan, Guangdong Province, 511517 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
26.01.2005 |
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Com. Reg. No.: |
441800400002346 |
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Legal Form : |
Chinese-Foreign Contractual Joint Venture
Enterprise |
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Line of Business : |
Manufacturing and Selling Stationery. |
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 100,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
GUANGDONG
TRUECOLOR STATIONERY CO., LTD.
ANFENG INDUSTRIAL ZONE, HIGH-TECH
DEVELOPMENT DISTRICT,
QINGYUAN, GUANGDONG PROVINCE, 511517 PR CHINA
TEL: 86 (0) 763-3485692 FAX: 86 (0) 763-3485394
EXECUTIVE SUMMARY
INCORPORATION DATE : JAN.
26, 2005
REGISTRATION NO. : 441800400002346
REGISTERED LEGAL FORM : cHINESE-FOREIGN
CONTRACTUAL JOINT VENTURE ENTERPRISE
STAFF STRENGTH :
70
REGISTERED CAPITAL : USD 4,020,000
BUSINESS LINE : MANUFACTURING
TURNOVER :
cny 32,690,000 (AS OF DEC. 31, 2007)
EQUITIES :
cny 30,640,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 100,000 (periodical review)
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly
STABLE
OPERATIONAL TREND : fairly steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.87= 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
SC was registered as a Chinese-foreign contractual joint
venture enterprise at local Administration for Industry & Commerce (AIC -
The official body of issuing and renewing business license) on Jan. 26, 2005.
Company Status: Chinese-foreign contractual joint
venture enterprise This form of business in PR
China is defined as a legal person. It is a limited co. jointly invested by
one or more foreign companies and one or more PR China controlled companies
within the territories of PR China. The investing parties are free to agree
on the proportion of profit and product distribution and liabilities
bearing according to the provisions of the contract. If the ownership of all fixed
assets is to be given to the Chinese party upon expiration of the term of
cooperation as agreed upon by the Chinese and foreign parties in the
contract, the foreign party may recover its investment during the term of
cooperation according to the provisions of the contract. The foreign party
may recover its investment before the venture has paid its income tax upon
examination and approval of the finance and tax authorities according to
State taxation regulations. In case the foreign party recovers its
investment within the term of cooperation according to the above
paragraphs, the foreign and Chinese parties shall be liable to the debts of
the venture in accordance with laws and the contract. The joint venture usually has a limited duration of 10
to 50 years.
SC’s registered business scope includes manufacturing and selling
writing tools, office supplies, student products, arts products, plastic
products and metal products.
SC is mainly
engaged in manufacturing and selling stationery.
Mr. Zhang Zhihui has
been chairman of SC since 2005.
SC is known
to have approx. 70 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 Qingyuan. Our checks
reveal that SC owns the total premise about 60,000 square meters.
SC is not known to host website of its own at present.
No significant events or changes were found during our checks with local
AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Lotus Group Holdings Limited Hong Kong Capital
Guangdong Lotus Stationery Co., Ltd. Premise
Lotus Group Holdings Limited
======================
Registered number: 0881041
Incorporated date: Jan. 28, 2004
Legal form: private Co.
Guangdong Lotus Stationery Co., Ltd.
===========================
Tel: 86 020-37597288
Fax: 86 020-37597255
22/F South Xinda City Square, no. 193 North
Guangzhou Street, Guangzhou
l
Chairman and General Manager:
Mr. Zhang Zhihui, Hong Kong resident, in his 50’s with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2005 to present Working
in SC as chairman and general manager.
l
Vice General Manager:
Mr. Huang Zhifen, in his 40’s with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2005 to present
Working in SC as vice general
manager.
SC is mainly
engaged in manufacturing and selling stationery.
SC’s products
mainly include:
Writing
Instruments
---Permanent
marker
---Gel ink pen
---Mechanical
pencil and leads
---Whiteboard
marker
---Highlighting
marker
---Roller pen
---Ball point pen
School and Office
Products
---Correction
series
---Eraser
---Adhesive tape
---Solid glue
---Pencil cases
---Ruler set
Art Painting
Material
---Wax crayon
---Color pencil
---Painting brush
---Pigment
---Color molding
dough
---Water color
marker
---Oil pastel
SC sources its
materials 100% from domestic market. SC sells 70% of its products in domestic
market, and 30% to the overseas market, mainly India, Pakistan and European
countries.
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 Client:
==========
Shanghai Truecolor Stationery Co., Ltd.
*Major Supplier:
=============
Kunshan Lotus Stationery 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 Qingyuan Branch
AC#801052434408091001
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 |
1,030 |
3,070 |
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Inventory |
510 |
1,310 |
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Accounts
receivable |
0 |
19,210 |
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Advances to
suppliers |
0 |
20 |
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Other
receivables |
8,730 |
23,430 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
10,270 |
47,040 |
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Fixed assets net
value |
1,120 |
1,210 |
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Projects under
construction |
0 |
0 |
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Long term
investment |
0 |
0 |
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Other assets |
50 |
680 |
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------------------- |
------------------ |
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Total assets |
11,440 |
48,930 |
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============ |
============= |
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Short loans |
0 |
0 |
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Accounts payable |
60 |
19,320 |
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Advances from
clients |
0 |
340 |
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Taxes payable |
0 |
-1,370 |
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Salaries payable |
0 |
0 |
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Other payable |
1,030 |
0 |
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Other current
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current
liabilities |
1,090 |
18,290 |
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Long term
liabilities |
0 |
0 |
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------------------ |
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Total
liabilities |
1,090 |
18,290 |
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Equities |
10,350 |
30,640 |
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-------------------- |
------------------ |
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Total
liabilities & equities |
11,440 |
48,930 |
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============= |
============= |
Income Statement
Unit: CNY’000
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As of Dec. 31, 2007 |
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Turnover |
32,690 |
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Cost of goods
sold |
32,200 |
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Sales expense |
350 |
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Management expense |
320 |
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Finance expense |
0 |
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Profit before
tax |
-140 |
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Less: profit tax |
0 |
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Profits |
-140 |
Important Ratios
=============
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|
2006 |
2007 |
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*Current ratio |
9.42 |
2.57 |
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*Quick ratio |
8.95 |
2.50 |
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*Liabilities
to assets |
0.10 |
0.37 |
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*Net profit
margin (%) |
/ |
-0.43 |
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*Return on
total assets (%) |
/ |
-0.29 |
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*Inventory
/Turnover ×365 |
/ |
15days |
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*Accounts receivable/Turnover
×365 |
/ |
214days |
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*Turnover/Total
assets |
/ |
0.67 |
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* Cost of
goods sold/Turnover |
/ |
0.99 |
PROFITABILITY:
FAIR
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The turnover of SC appears average.
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SC’s net profit margin is fair.
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SC’s return on total assets is fair.
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SC’s cost of goods sold is high, 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 accounts receivable of SC is fairly large in 2007.
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The inventory of SC is average.
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SC has no short loans in both 2 years.
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SC’s turnover is in a fair level, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is low.
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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. Credit dealing of the above stated amount appears to be within SC’s
capacity.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.44.37 |
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UK Pound |
1 |
Rs.78.09 |
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Euro |
1 |
Rs.63.41 |
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%)