MIRA
INFORM REPORT
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Report Date : |
25.02.2011 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
3/F, Southern Star Building, 204th Donghuan
Road, Shiqiao Town, Panyu Area, Guangzhou City, Guangdong Province 511458 Pr |
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Country : |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
18.01.1996 |
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Com. Reg. No.: |
440126000098142 |
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Legal Form : |
Limited Liabilities Co. |
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Line of Business : |
Trading of Petrochemical Products |
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 500,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 – June 30, 2010
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Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
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China |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name and address
3/F, SOUTHERN STAR BUILDING, 204TH DONGHUAN ROAD,
SHIQIAO TOWN, PANYU AREA, GUANGZHOU CITY, GUANGDONG PROVINCE 511458 PR CHINA
TEL: 86 (0) 20-34811178
FAX: 86 (0) 20-34811199
EXECUTIVE SUMMARY
INCORPORATION DATE : JAN. 18, 1996
REGISTRATION NO. : 440126000098142
REGISTERED LEGAL FORM :
Limited liabilities co.
CHIEF EXECUTIVE :
MR. CHEN WEIQIANG (CHAIRMAN)
STAFF STRENGTH : 60
REGISTERED CAPITAL :
CNY 50,000,000
BUSINESS LINE : TRADING
TURNOVER : cny 8,796,170,000 (UNaudited, AS OF DEC. 31, 2010)
EQUITIES : CNY 85,220,000 (UNaudited, AS OF DEC. 31, 2010)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : up to usd 500,000 (PERIODICAL
REVIEW)
MARKET CONDITION : competitive
FINANCIAL CONDITION : Fairly STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.58 =
USD1
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: the given tel. no. belongs to SC’s sales branch.
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 Jan. 18, 1996.
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 wholesale & retail
business; domestic trade; selling heavy oil; importing and exporting various
goods and technology (excluding items controlled and prohibited by state law);
and processing with imported materials, processing with imported samples,
assembling with imported parts, and compensation trade in agreement; counter
trade & transit trade.
SC is mainly engaged in trading of petrochemical products
Mr. Chen Weiqiang is chairman and general manager of SC at
present.
SC is known to have approx. 60 employees at present.
SC is currently operating at the above stated address, and
this address houses its operating office in the commercial zone of Panyu,
Guangzhou. Our checks reveal that SC rents the total premise about 500 square
meters.
http://www.pysouthernstar.com/
The design is professional and the content is well organized. At present it is
both in Chinese and English versions.
E-mail: pub@ pysouthernstar.com
Changes of its registered information:
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Date
of change |
Item |
Before
the change |
After
the change |
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2002-9 |
Registered capital |
CNY 5,400,000 |
CNY 10,000,000 |
|
2004-6 |
Registered capital |
CNY 10,000,000 |
CNY 50,000,000 |
|
Unknown |
Registration no. |
4401262003638 |
The present one |
MAIN
SHAREHOLDERS:
Name
Investment (’000)
% of Shareholding
Huang Yiyan 240 0.48
Feng Jiejing 240 0.48
Liu Yaodong 200 0.40
Cai Minhua 200 0.40
Tan Jinxia 9,200 18.4
Chen Weiqiang 38,880 77.76
Chen Shichang 200 0.40
Liu Yizhen 200 0.40
He Weigen 200 0.40
He Yuchan 200 0.40
Zhou Li 240 0.48
Chairman and General Manager:
Mr. Chen Weiqiang, ID#: 440126630124005, born in 1963 with
junior school education. He is currently responsible for the overall management
of SC.
Working Experience(s):
At present Working
in SC as chairman and general manager
Also working in Guangzhou Youjie Fengge Jewellery Co., Ltd.
as legal representative
SC is mainly engaged in trading of petrochemical products.
SC’s products mainly include: fuel oil, diesel, petrol and
lubricating oil, etc.
SC sources its materials 30% from domestic market, and 70%
from overseas market. SC sells 80% of its products in domestic market, and 20%
to overseas market, mainly Hong Kong, Singapore, Korea and Russia.
The buying terms of SC include T/T, L/C and Credit of 30-60
days. The payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major
Suppliers:
Hainan Zhongtong Chemicals Imp. & Exp. Co., Ltd.
Sinochem International Petroleum (Bahamas) Co., Ltd.
*Major
Customers:
China Shipbuilding Industry Equipment & Materials Group
Guangzhou Co., Ltd.
Sales
Branch:
Add: Rm. 1501, Herun Plaza, No. 2, Da’nan Road, Yuexiu
District, Guangzhou
Tel: 020-81297296/ 81297386
Fax: 020-81297271
Subsidiaries (according to SC’s website)
Guangzhou Youjie Fengge Jewellery Co., Ltd.
Guangzhou Panyu Petrochemical Public Bonded Warehouse Co.,
Ltd.
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 : A trade enquiry currently
conducted with SC's supplier(s) reveal the following:
Supplier A
Products sold: N/A
Date account opened: Since
2006 to present
Line of credit: N/A
Terms: 30-60
days
Average monthly sales: N/A
Current balance: N/A
Rating Key : 3
Any Special Comments:
_______________________________________
Payment record keys :
1 = Prompt : Payment made before the credit period expires
2 = As agreed terms : Payment made upon due date
3 = Slightly slow but acceptable : Payment made 5 to 20 days
beyond agreed terms
4 = Slow : Payment made 16 to 45 days beyond agreed terms
5 = Poor : Payment made over 45 days beyond agreed terms
6 = No comment : Account is newly opened & record is not
yet established
Note :
In some instances, payment beyond terms can be the result of
disputes over merchandise, lost invoices, disputed accounts & etc.
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.
Industrial and Commercial Bank of China Panyu Sub-branch
AC#：3602024309005242764
Relationship: Normal.
Balance
Sheet (as of Dec. 31, 2010)
Unit:
CNY’000
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Cash & bank |
7,691,850 |
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Inventory |
536,340 |
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Accounts receivable |
50,910 |
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Advances to suppliers |
159,120 |
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Other receivables |
97,640 |
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Other current assets |
60,800 |
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------------------ |
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Current assets |
8,596,660 |
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Fixed assets net value |
1,380 |
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Projects under construction |
0 |
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Long term investment |
78,740 |
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Other assets |
16,090 |
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Total assets |
8,692,870 |
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============= |
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Short loans |
7,373,430 |
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Accounts payable |
817,830 |
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Notes payable |
97,140 |
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Other payable |
31,400 |
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Dividends payable |
9,000 |
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Advances from clients |
273,100 |
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Other current liabilities |
5,750 |
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Current liabilities |
8,607,650 |
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Long term liabilities |
0 |
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Total liabilities |
8,607,650 |
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Equities |
85,220 |
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Total liabilities & equities |
8,692,870 |
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Income
Statement (as of Dec. 31, 2010)
Unit:
CNY’000
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Turnover |
8,796,170 |
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Cost of goods sold |
8,712,630 |
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Sales expense |
13,810 |
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Management
expense |
11,490 |
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Finance expense |
32,100 |
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Profit before tax |
25,270 |
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Less: profit tax |
6,320 |
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Profits |
18,950 |
Note: The above financial records have not been audited.
Important
Ratios
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as of Dec. 31, 2010 |
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*Current ratio |
1.00 |
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*Quick ratio |
0.94 |
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*Liabilities to assets |
0.99 |
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*Net profit margin (%) |
0.22 |
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*Return on total assets (%) |
0.22 |
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*Inventory /Turnover ×365 |
23
days |
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*Accounts receivable/Turnover ×365 |
3
days |
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*Turnover/Total assets |
1.01 |
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* Cost of goods sold/Turnover |
0.99 |
PROFITABILITY:
AVERAGE
The turnover of SC appears good in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of goods sold is HIGH, comparing with its
turnover.
LIQUIDITY:
FAIR
The current ratio of SC is maintained in a fair level.
SC’s quick ratio is maintained in a normal level.
The inventory of SC appears fairly large in 2010.
The accounts receivable of SC is maintained in an average
level.
SC’s short-term loan appears too large in 2010.
SC’s turnover is in an average level, comparing with the
size of its total assets.
LEVERAGE:
FAIR
The debt ratio of SC is high.
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 short loans and inventory could be a
threat to SC’s financial condition. A credit line up to USD 500,000 appears to
be within SC’s capacities upon a periodical review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.37 |
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|
1 |
Rs.73.54 |
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Euro |
1 |
Rs.62.39 |
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 |
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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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.