MIRA INFORM REPORT

 

 

Report Date :

07.04.2011

 

IDENTIFICATION DETAILS

 

Name :

RIDER GLASS CO.,LTD

 

 

Registered Office :

22F, YINGDELONG TOWER, No.15 West Donghai Road, Qingdao City, Shandong Province 266071

 

 

Country :

China

 

 

Financials (as on) :

31.12.2009

 

 

Date of Incorporation :

05.07.2001

 

 

Com. Reg. No.:

370200400083567

 

 

Legal Form :

Wholly Foreign-Owned Enterprise

 

 

Line of Business :

Trade and Trading Agent of Glass and Glass Products.

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

550,000 Chinese Yuan

Status :

Moderate

Payment Behaviour :

Regular

Litigation :

Clear

NOTES :

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – December 31, 2010

 

Country Name

Previous Rating

(30.09.2010)

Current Rating

(31.12.2010)

China

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

Company name and address

   

RIDER GLASS CO.,LTD

22F, YINGDELONG TOWER, No.15 West Donghai Road, Qingdao City, Shandong Province 266071

Tel :                        86 532 83873000

Fax                        86 532 83881333

Website

            --

Currency in this report is Chinese Yuan unless otherwise stated.

Exchange Rate: 1 USD=6.55 Chinese Yuan

"--"in this report indicates "unavailable" due to insufficient information or "no comments"

 

 

EXECUTIVE SUMMARY

 

Date Of Establishment               : Jun.5th, 2001

Aic Registration No.                   : 370200400083567

Registered Legal Form               : Wholly Foreign-Owned Enterprise

Registered Capital                      : Usd 1,000,000.00

Main Business                             : Trade Of Glass And Glass Products

Turnover                                    : 193,922,000.00 (As Of 2009)

Net Profit                                   : 790,000.00 (As Of Dec.31th, 2009)

Total Assets                              : 81,818,000.00 (As Of Dec.31th, 2009)

Net Worth                                    : 12,566,000.00 (As Of Dec.31th, 2009)

Employees                                : 10

Chief Executive                          : G.M.Wathaifi

Import And Export Permits          : Yes

Base Credit Limit                       : 550,000 Chinese Yuan

Exchange Rate                          : 1 Usd=6.55 Cny (Apr.6th, 2011)

       

Registered Address                    : Room 502 Meijing Building, Free Trade Zone, Qingdao, Shandong Province

Zip Code                                   : 266555

Business Address                      : 22F, YINGDELONG TOWER, No.15 West Donghai Road, Qingdao City, Shandong Province

Zip Code                                   : 266071

Telephone                                 : 86 532 83873000

Fax                                           : 86 532 83881333

SIC Code (China)                       : 6365 wholesale of building material                                                                                                                                                                                         

           

           

REGISTRATION

 

Date of Establishment

Jun.5th, 2001

Registry

Administration Bureau of Industry and Commerce - Qingdao

Legal Representative

G.M.WATHAIFI

AIC Registration Number

370200400083567

Registered Legal Form

Wholly foreign-owned enterprise

Registered Capital

USD 1,000,000.00

Operating Period

From Jun.5th, 2001 to Jun.5th, 2021

Business Scope

Trade and trading agent of glass and glass products;

Agent and consulting service, storage of related business

Changes in Registration

1. Jan.15th, 2003

Subject’s registered capital was increased from USD 200,000 to USD 1,000,000.

 

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.

 

REGISTRATION INFO: AVAILABLE

FINANCIAL REPORTS: AVAILABLE

 

           

FIELD INVESTIGATION

 

1. Subject’s income comes mainly from glass export (80%) and domestic trade (20%). Its sales are developed directly to the end users. The industry of glass product is an industry with fierce competition. With a long history, subject has developed into a certain scale and accumulated certain customers, enjoying certain popularity in the local place. Generally speaking, subject’s competitiveness is above average in the local place.

2. Qingdao, subject’s location is developed coastal city and one of the economic centers of China. High economic development level provides enterprises here with great opportunities as well as big challenges.  As a foreign-funded enterprise selling glass and glass products, subject enjoys certain favorable policies provided by the local government.

           

           

SHAREHOLDERS AND SHARES

 

As indicated in the following table:

     

Shareholder

Capital Subscribed

Percentage

G.M.WATHAIFI

USD 1,000,000

100%

Total

USD 1,000,000

100%

     

Shareholder

Way of investment

Paid-up Percentage

G.M.WATHAIFI

Capital

100%

           

  Background of major shareholder

  

Name

G.M.WATHAIFI

Nationality

Jordan

        

        

AFFILIATE(S)

 

Name

RIDER GLASS CO.,LTD – SHINAN BRANCH

Address

22F, YINGDELONG TOWER, No.15 West Donghai Road, Qingdao City, Shandong Province

           

 

MANAGEMENT

 

Name

G.M.WATHAIFI

Title

Executive director

Nationality

Jordan

                       

           

NUMBER OF EMPLOYEES

           

Employees: 10

Recent Recruitment：Yes

International trade assistant

Shipping assistant

Purchasing staff

           

 

 

 

           

  BANKERS INFORMATION

 

Bank Name

Bank of China – Qingdao Economic Development Zone Sub-branch

Account No. for USD

80936154008097014

Title of the person investigated

Reception staff

Telephone

0086 532 86897623

Comment

The investigated person refused to check the above account in the reason of keeping secret for the clients.

        

        

OFFICE FACILITIES

 

Geographic Location:                     SC is located in 22F, YINGDELONG TOWER, No.15 West Donghai Road, Qingdao City. The traffic condition around the premise is good.

Property Ownership:                          rented

           

 

TRADEMARKS

 

Registration No.

6193322

File date

Jul.30th, 2007

Image

 

 

Registration No.

6193318

File date

Jul.30th, 2007

Image

 

 

Registration No.

1492856

File date

Aug.23rd, 1999

Image

    

        

PATENTS

 

After checking with the National Patent Information Center, no patent record of subject was found.

 

 

MAIN PRODUCTS & SERVICES

 

Main business

Trade of glass and glass products

Products and services

Subject’s products include transparent float glass, colorful float glass and coating film, sheet glass, figure glass, art glass, aluminum mirror and glasses etc. subject holds warehouses in Qingdao, Tianjin and Dalian in order to ensure the goods are shipped in time according to the clients’ requirements. 

           

           

SALES INFORMATION

                                      

Percentage of domestic sales

20%

Regions

Qingdao, Weihai, Guangzhou etc.

Major domestic client

XUANRONG (QINGDAO) TRADING CO., LTD

Sales Terms:

Prompt payment; on credit

 

 

Percentage of overseas sales

80%

Regions

Europe, America, Mid-east, Africa, Australia etc

Sales Terms:

L/C, T/T

Subject’s products are mostly exported. Its clients cover all over the world. Subject holds different types of sales channels.

The above information was confirmed by SC’s employee

 

  

PURCHASE INFORMATION

 

Main Commodities Purchased

Transparent float glass, colorful float glass and coating film, art glass, aluminum mirror and glasses etc.

Number of Major Suppliers

More than 10

Major Suppliers

ZHONGBO TECHNOLOGY COMPANY LTD; WEI HAI BLUE STAR GLASS HOLDING CO.,LTD; QINGDAO JINJING CO.,LTD.; etc

Main Terms of Payment

Prompt payment; on credit

Subject company’s suppliers are main domestic suppliers. With long history, subject has developed sufficient suppliers and has stable cooperation with them.

The above information was confirmed by SC’s employee

  

           

CREDIT

 

Name

QIGNDAO LIANCAI COMMERCIAL TRADING CO., LTD

Item supplied

Aluminum mirror

Title of interviewee

Sales staff

Tel

86 13792902855

Comment

The interviewee confirmed subject is a client of the above said company and subject’s credit record is good.

 

                       

LITIGATION RECORDS

           

Person subject to enforcement

RIDER GLASS CO., LTD

Court

People’s Court of Shinan District – Qingdao

File date

May 14th, 2007

File No.

(2007) Nan Fa Zhi Zi 01290

Amount

28,628.21

Status

Closed 

                       

                       

FINANCE

           

Balance Sheet (Unit: 1,000 Chinese Yuan):

           

                              

Dec. 31st, 2007

Dec. 31st, 2008

  Dec. 31st, 2009

Current assets

 

 

 

Money capital

     7,594

       2,828

        8,673

Notes receivable

 

 

 

Net ball of account receivable

    27,262

      62,691

       36,745

Payment in advance

    10,805

       8,790

       16,819

Account receivable

 

 

 

Other account receivable

     8,622

       4,302

        4,965

Inventory

       159

         159

　

Expenses to be deferred

 

 

 

Other current assets

       413

         591

          528

Total current Assets

   56,299

    79,361

     67,730

Long term investment

 

 

 

Long term investment

     2,000

       2,000

        2,000

Fix assets

 

 

 

Original value of fixed assets

    14,419

      15,672

       15,725

Accumulated depreciation

     1,765

       2,792

        3,937

Net value of Fixed Assets

12,654

12,880

11788

Project being constructed

 

 

 

Total fixed assets

12,792

13,018

11,926

Intangible assets

 

 

 

Intangible assets

        65

         103

          162

Deferred assets

 

 

 

Total intangible assets and deferred assets

        65

         103

          162

Total assets

   71,397

    94,482

     81,818

Current liabilities

 

 

 

Short term loans

 

 

 

Notes payable

　

　

6,431

Account payable

45,873

72,833

59,201

Deposit received

 

 

 

Other account payable

15,096

8,116

3,331

Wages payable

122

176

171

Welfare payable

 

 

 

Tax unpaid

409

811

118

Accrued expenses

 

 

 

Other current liabilities

 

770

 

Total current liabilities

61,500

82,706

69,252

L/T liabilities

 

 

 

L/T loan

 

 

 

L/T account payable

 

 

 

Total L/T liabilities

0

0

0

Total liabilities

61,500

82,706

69,252

Owner’s interest

 

 

 

Paid-up capital

8,278

8,278

8,278

Contributed surplus

 

 

 

Surplus reserves

 

 

 

Undistributed profits

1,619

3,498

4,288

Total owner’s interest

9,897

11,776

12,566

Liabilities and owner’s interest

71,397

94,482

81,818

                    

Income Statement (Unit: 1,000):

                                     

Dec. 31st, 2007

Dec. 31st, 2008

Dec. 31st, 2009

Main business income

415,220

387,293

193,922

Main business cost

296,668

286,180

143,236

Tax and associate charge

 

 

 

Main business profit

118,552

101,113

50,686

Other business profit

 

 

 

Asset depreciation

 

 

 

Operation expenses

106,199

91,219

40,420

- management expenses

5,863

6,882

7,097

Financial expenses

5,241

48

2,100

Operation profit

1,249

2,964

1,069

Investment profit

 

 

 

Non business income

3

 

 

-Non business expenses

 

172

 

Total profit

1,252

2,792

1,069

-Income tax

413

913

279

Net profit

839

1,879

790

      

Important Ratios:                                  

 

2007

2008

2009

Return on net assets (%)   

8.48

15.96

6.29

Return on total assets (%)   

1.18

1.99

0.97

Net profit margin (%)

0.20

0.49

0.41

Turnover of total assets

5.82

4.10

2.37

Turnover of current assets  

7.38

4.88

2.86

Turnover of account receivable

15.23

6.18

5.28

Inventory turnover

1865.84

1799.87

--

Asset liability ratio (%)

86.14

87.54

84.64

Current ratio

0.92

0.96

0.98

Quick ratio

0.91

0.96

0.98

Major Financial Information

 

2007

2008

2009

Main business income

415,220

387,293

193,922

Total profit

1,252

2,792

1,069

Net profit

839

1,879

790

Total assets

71,397

94,482

81,818

Total liabilities

61,500

82,706

69,252

Total owner’s interest

9,897

11,776

12,566

Source from

government

government

government

Whether audited or not

Yes

Yes

Yes

                    

 

ANALYSIS

 

Subject’s profitability indices of 2009 indicate its profitability is poor. The turnover of asset and current asset shows its capital operation capacity is average. Subject's turnover of A/R indicates its debt recovery speed is average. With high asset liability ratio, subject's long-term solvency is weak. In addition, subject's short-term solvency is average judging from the current and quick ratio.

           

           

INDUSTRY PROFILE

           

Industry

SIC Code (China): 6365 wholesale of building material

Description: wholesale, import and export of construction material and home decoration material.

Status Quo & Trend

In 2009, under the supporting policy of expanding domestic demand and optimizing industrial structure, building material industry in China maintained fast growth although affected by the crisis. The sales growth of major building material recovered with the price being stabilized. In Q1 2010, the output of building material achieved fast growth. Output of concrete increased by 20.7% y/y and glass increased 14% y/y. In China, the industry of building material would enter into a new era that is decided by self-renovation and good management. Advanced technologies, high-level products and regulated competition may be the major feature of the industry in the future.

 

           

GENERAL COMMENTS

 

Subject was registered in 2001 with the registration capital of USD 1,000,000. Its main business is sales of glass and glass products. With a long history and large scale, subject enjoys high popularity in the local industry.

Subject's main business income in 2009 decreased from 2008 because it business is not well development and the profitability needs to be improved. High A/R shows subject’s capital is partially occupied by its clients. This is good for its marketing, but also increases bad debt risk. High advance payment to suppliers in 2009 indicates subject’s suppliers require strict payment terms in transactions with it. This is not good for subject’s capital turnover. High account payable shows subject uses long term credit in transactions with its suppliers, which means subject maintains good relationship with its suppliers.

In addition, subject’s long-term solvency is weak, short-term solvency is average.

       

        


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.20

UK Pound

1

Rs.72.24

Euro

1

Rs.63.09

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

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

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

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

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

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.