MIRA
INFORM REPORT
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Report Date : |
17.09.2008 |
IDENTIFICATION
DETAILS
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Name : |
DALIAN DONGLIN
FOOD CO., LTD. |
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Registered Office : |
23-H/I International Financial Building,
No. 15 Renmin Road, Dalian, Liaoning Province, 116001 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
26.06.2003 |
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Com. Reg. No.: |
010793 |
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Legal Form : |
Chinese Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Processing and Selling Seafood. |
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 300,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
DALIAN DONGLIN
FOOD CO., LTD.
23-H/I INTERNATIONAL FINANCIAL BUILDING, NO.
15 RENMIN ROAD,
DALIAN, LIAONING PROVINCE, 116001 PR CHINA.
TEL: 86 (0)
411-87164996 FAX: 86 (0) 411-87164997
EXECUTIVE SUMMARY
INCORPORATION DATE : JUN.
26, 2003
REGISTRATION NO. : 010793
REGISTERED LEGAL FORM : CHINESE FOREIGN EQUITY
JOINT VENTURE ENTERPRISE
STAFF STRENGTH :
600 (INCLUDING WORKERS)
REGISTERED CAPITAL : USD 6,000,000
BUSINESS LINE : PROCESSING
TURNOVER :
cny 123,890,000 (AS OF DEC. 31,
2007)
EQUITIES :
cny 44,630,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 300,000 (periodical review)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly
STABLE
OPERATIONAL TREND : 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
Note: SC was formerly named Dalian Donglin Seafoods Co., Ltd.
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 Jun. 26, 2003.
Company Status: Chinese-foreign equity 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 according to a certain proportion of
capital investment. The investing parties exercise business management,
share profits and bear all risks and liabilities of the co. together. The
equity joint venture law requires that foreign party contribute not less
than 25% of the registered capital, with no maximum. The investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has a
limited duration of 10 to 50 years. Enterprise with large investment, long
construction periods, low investment returns, introducing of advanced
technology & advanced technology products that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered business scope includes purchasing farm & sideline
products and seafood for processing; processing biology chemical
preparations.
SC is mainly
engaged in processing and selling seafood.
Ms. Shen Lin has
been chairman of SC since 2003.
SC is known
to have approx. 600 employees, including the workers in processing plant
at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Dalian. Our checks reveal that SC
rents the total premise about 200 square meters.
SC’s
factory is known to be in Shihe Town, Jinzhou District, Dalian.
http://www.donglin-seafoods.cn
. It can’t be landed for technical reasons.
SC’s former registered capital was USD 4,000,000; at the end of 2007, it
was added up to the present amount.
SC’s former shareholders:
U.S.A. Safi Fishery Co., Ltd. 61.75%
Dlian Lanbao Marine Products Co., Ltd.
38.25%
MAIN SHAREHOLDERS:
Name %
of Shareholding
USA Safi Fishery Co., Ltd. 75.50
Dlian Lanbao Marine Products Co., Ltd. 24.50
=============================
Add: H No. 23 Renmin Road, Zhongshan
District, Dalian.
Tel: 86 411-82507269
l
Chairman and General Manager:
Ms. Shen Lin, in her 60’s with university education. She is currently
responsible for the overall management of SC.
Working Experience(s):
From 2003 to present Working
in SC as chairman and general manager.
l
Vice General Manager:
Mr. Yuan Zhen, in his 40’s with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2008 to present
Working in SC as vice general
manager.
SC is mainly
engaged in processing and selling seafood.
SC’s products
mainly include: squid, salmon, pollock, red snow crab, clam, seafood mix,
yellow fin sole and red fish.
SC sources its
materials 100% from domestic market. SC sells 10% of its products in domestic
market and 90% to the overseas markets, mainly Japan, Europe and American.
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 Clients:
============
USA Safi Fishery Co., Ltd.
USA Meto Trading 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 refused to release any information of its
suppliers and the trade reference was not available.
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 Shihe Sub-Branch
AC#300401040004803
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 |
5,640 |
6,110 |
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Advances to suppliers |
0 |
30 |
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Accounts
receivable |
14,190 |
29,560 |
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Inventory |
28,840 |
62,860 |
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Other
receivables |
2,680 |
590 |
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Other current
assets |
30 |
0 |
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------------------ |
------------------ |
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Current assets |
51,380 |
99,150 |
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Fixed assets net
value |
16,360 |
15,540 |
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Projects under
construction |
0 |
0 |
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Long term
investment |
0 |
0 |
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Other assets |
2,810 |
2,770 |
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------------------ |
------------------ |
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Total assets |
70,550 |
117,460 |
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============= |
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Short loans |
19,730 |
19,040 |
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Accounts payable |
12,140 |
21,350 |
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Advances from
clients |
0 |
0 |
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Taxes payable |
-370 |
-600 |
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Salaries payable |
0 |
0 |
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Other payable |
8,700 |
32,040 |
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Other current
liabilities |
40 |
0 |
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------------------ |
------------------ |
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Current
liabilities |
40,240 |
71,830 |
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Long term
liabilities |
1,000 |
1,000 |
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------------------ |
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Total
liabilities |
41,240 |
72,830 |
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Equities |
29,310 |
44,630 |
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Total
liabilities & equities |
70,550 |
117,460 |
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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 |
74,090 |
123,890 |
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Cost of goods
sold |
67,790 |
110,540 |
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Sales expense |
5,060 |
5,350 |
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Management expense |
2,000 |
3,040 |
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Finance expense |
2,860 |
3,640 |
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Profit before
tax |
-2,550 |
1,320 |
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Less: profit tax |
0 |
0 |
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Profits |
-2,550 |
1,320 |
Important Ratios
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as
of Dec. 31, 2006 |
as
of Dec. 31, 2007 |
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*Current ratio |
1.28 |
1.39 |
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*Quick ratio |
0.56 |
0.52 |
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*Liabilities
to assets |
0.58 |
0.62 |
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*Net profit
margin (%) |
-3.44 |
1.07 |
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*Return on
total assets (%) |
-3.61 |
1.12 |
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*Inventory
/Turnover ×365 |
142days |
185days |
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*Accounts
receivable/Turnover ×365 |
70days |
87 days |
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*Turnover/Total
assets |
1.05 |
1.05 |
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*Cost of goods
sold/Turnover |
0.91 |
0.89 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears fairly good, and it was rising in 2007.
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SC’s net profit margin is fair in 2006 and average in 2007.
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SC’s return on total assets is fair in 2006 and average in 2007.
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SC’s cost of goods sold is average in 2006 and 2007, comparing with its
turnover.
LIQUIDITY: FAIR
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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 fair level.
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The accounts receivable of SC appears fairly large.
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The inventory of SC appears large.
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The short loans of SC are average.
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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 average.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
SC is considered medium-sized in its line with fairly stable financial
conditions. The large amount of inventory could be a threat to SC’s financial condition.
A credit line at the above amount appears to be beyond SC’s capacities, while a
credit line up to USD 300,000 is recommended 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.46.34 |
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UK Pound |
1 |
Rs.82.96 |
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Euro |
1 |
Rs.65.82 |
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%)