MIRA INFORM REPORT

 

 

Report Date :           

10.06.2011

 

IDENTIFICATION DETAILS

 

Name :

FOSHAN KINGFUWAY COMPANY LIMITED

 

 

Registered Office :

Shop No. 6, 6th Bldg., 1st Hongxiang North Street, Chancheng District, Foshan, Guangdong Province 528041 Pr

 

 

Country :

China

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

02.04.2007

 

 

Com. Reg. No.:

440602000078032

 

 

Legal Form :

Limited Liabilities Company

 

 

Line of Business :

domestic trade, importing and exporting goods and technology

 

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 :

USD 10,000

Status :

Small Company  

Payment Behaviour :

No Complaints

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 – March 31st, 2011

 

Country Name

Previous Rating

                   (31.12.2010)                  

Current Rating

(31.03.2011)

China q

a2

a2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

Company name & address 

 

foshan kingfuway company limited

SHOP NO. 6, 6TH BLDG., 1ST HONGXIANG NORTH STREET,

CHANCHENG DISTRICT, FOSHAN, GUANGDONG PROVINCE 528041 PR CHINA

TEL: 86 (0) 757-83212682/13702551401

FAX: 86 (0) 757-83212682

 

 

EXECUTIVE SUMMARY

 

Date of Registration          : april 2, 2007

REGISTRATION NO.                  : 440602000078032

LEGAL FORM                           : Limited liabilities company

CHIEF EXECUTIVE          : liao liuzhen (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL             : cny 1,000,000

staff                                      : 10

BUSINESS CATEGORY             : trading

Revenue                                : CNY 57,290,000 (AS OF DEC. 31, 2010)

EQUITIES                                 : CNY 1,240,000 (AS OF DEC. 31, 2010)

WEBSITE                                 : N/A

E-MAIL                                     : N/A

PAYMENT                                : AVERAGE

Recommended Credit

Limit                                        : UP TO USD 10,000

MARKET CONDITION                : average

FINANCIAL CONDITION             : FAIRly stable

OPERATIONAL TREND              : ORDINARY

GENERAL REPUTATION           : AVERAGE

EXCHANGE RATE                     : CNY 6.48 = USD 1

 

 

OPERATIONAL TREND & GENERAL REPUTATION

 

This section aims at indicating the relative positions of SC in respect of its operational trend & general reputation

 

Operational Trend:-                                             General Reputation:-

Upward                                                             Excellent

Steady                                                              Good

Fairly Steady                                                     Fairly Good

Ordinary                                                            Average

Fair                                                                   Fair

Stagnant                                                           Detrimental

Downward                                                         Not known

Not known                                                         Not yet be determined

Not yet be determined

 

 

LEGAL STATUS & HISTORY

 

SC was established as a limited liabilities company of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 440602000078032 on April 2, 2007.

 

SC’s Organization Code Certificate No.: 799363231

 

SC’s registered capital: cny 1,000,000

 

As of December 31, 2010, SC’s paid-in capital was cny 1,000,000.

 

No significant changes of SC have been noted in SAIC since its incorporation.

 

Current Co search indicates SC’s shareholders & chief executives are as follows:-

 

Name of Shareholder (s)

% of Shareholding

Liao Liuzhen

 

60

Other individuals

 

40

SC’s Chief Executives:-

 

Legal Representative, Chairman and General Manager: Liao Liuzhen

 

 

RECENT DEVELOPMENT

 

No recent development was found during our checks at present.

 

 

SHAREHOLDER CHART & BACKGROUND

 

Name                                                                                                  % of Shareholding

 

Liao Liuzhen                                                                                                      60

Other individuals                                                                                                40

MANAGEMENT

 

Liao Liuzhen, Legal Representative, Chairman and General Manager

-----------------------------------------------------------------------------------------------------

Ø         Gender: F

Ø         Qualification: University

Ø         Working experience (s):

At present, working in SC as legal representative, chairman and general manager.

 

 

Yang Wenhong, Salesman

----------------------------------------------

Mobile: 0086 13380242682

 

 

BUSINESS OPERATION

 

SC’s registered business scope includes domestic trade, importing and exporting goods and technology.

 

SC is mainly engaged in international trade.

 

SC’s products mainly include: vat machinery and accessories, high temperature chain oil, industrial belts, electronic products.

 

SC sources its materials 60% from domestic market, mainly Guangdong, and 40% from overseas market, mainly Germany. SC sells 40% of its products in domestic market, and 60% to overseas market, mainly USA, Europe and Southeast Asian market.

 

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 Supplier:

============

Foshan Nanhai Quanpoo Electrical Factory

 

Staff & Office:

--------------------------

SC is known to have approx. 10 staff at present.

 

SC rents an area as its operating office of approx. 100 sq. meters at the heading address.

 

 

RELATED COMPANY

 

SC is not known to have any subsidiary at present.

 

 

PAYMENT

 

Overall payment appraisal:

( ) Excellent      ( ) Good      (X) Average      ( ) Fair      ( ) Poor      ( ) Not yet be 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.

 

 

BANKING

 

The bank information of SC is not filed in SAIC.

 

 

FINANCIALS

 

Balance Sheet

Unit: CNY’000

As of Dec. 31, 2010

Cash

590

Accounts receivable

0

Advances to suppliers

16,470

Other receivable

380

Inventory

0

Non-current assets within one year

0

Other current assets

1,180

 

------------------

Current assets

18,620

Fixed assets

17

Construction in progress

0

Intangible assets

0

Long-term prepaid expenses

0

Deferred income tax assets

0

Other non-current assets

23

 

------------------

Total assets

18,660

 

=============

Short-term loans

0

Notes payable

0

Accounts payable

0

Wages payable

0

Advances from clients

16,810

Other payable

-30

Other current liabilities

640

 

------------------

Current liabilities

17,420

Non-current liabilities

0

 

------------------

Total liabilities

17,420

Equities

1,240

 

------------------

Total liabilities & equities

18,660

 

=============

 

Income Statement

Unit: CNY’000

As of Dec. 31, 2010

Revenue

57,290

Cost of sales

56,180

     Sales expense

460

     Management expense

360

     Finance expense

83

Profit before tax

170

Less: profit tax

40

Profits

130

 

Important Ratios

=============

 

As of Dec. 31, 2010

*Current ratio

1.07

*Quick ratio

1.07

*Liabilities to assets

0.93

*Net profit margin (%)

0.23

*Return on total assets (%)

0.70

*Inventory / Revenue ×365

--

*Accounts receivable/ Revenue ×365

--

* Revenue/Total assets

3.07

* Total business cost / Revenue

0.98

 

 

FINANCIAL COMMENTS

 

PROFITABILITY: AVERAGE

l         The revenue of SC appears average in its line.

l         SC’s net profit margin is average.

l         SC’s return on total assets is average.

l         SC’s cost of goods sold is high, comparing with its revenue.

 

LIQUIDITY: AVERAGE

l         The current ratio of SC is maintained in a normal level.

l         SC’s quick ratio is maintained in a fairly good level.

l         SC has no inventory in 2010.

l         SC has no accounts receivable in 2010.

l         SC has no short-term loan in 2010.

l         SC’s revenue is in a fairly good 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.

 

 

CONCLUSIONS

 

SC is considered small-sized in its line with fairly stable financial conditions. A credit line up to USD 10,000 would appear to be within SC’s capacities.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.72

UK Pound

1

Rs.73.47

Euro

1

Rs.65.38

 

 

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.