MIRA INFORM REPORT
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Report Date : |
29.06.2011 |
IDENTIFICATION DETAILS
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Name : |
LINYI NANYANG TRADE CO., LTD. |
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Registered Office : |
No. 6 Kaiyang Road, Lanshan District, Linyi, Shandong
Province 276000 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
25.03.2004 |
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Com. Reg. No.: |
371300228042499 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
International Trade |
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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Status : |
Satisfactory |
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Payment
Behaviour : |
Usually Correct |
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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 – March 31st, 2011
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
|
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 & address
linyi nanyang trade co., Ltd.
NO. 6 KAIYANG ROAD, LANSHAN DISTRICT, LINYI
SHANDONG PROVINCE 276000 PR CHINA
TEL: 86 (0)
539-8318728
FAX: 86 (0)
539-8318687
EXECUTIVE SUMMARY
Date
of Registration : MARCH 25, 2004
REGISTRATION
NO. : 371300228042499
LEGAL
FORM : Limited liabilities company
REGISTERED
CAPITAL :
CNY 1,010,000
staff : 10
BUSINESS
CATEGORY :
TRADING
Revenue : CNY 14,260,000
(AS OF DEC. 31, 2010)
EQUITIES : CNY -180,000
(AS OF DEC. 31, 2010)
WEBSITE : N/A
E-MAIL : N/A
PAYMENT
: AVERAGE
Recommended
Credit Limit: C.O.D.
MARKET
CONDITION : FAIR
FINANCIAL
CONDITION : POOR
OPERATIONAL
TREND :
FAIR
GENERAL
REPUTATION : FAIR
EXCHANGE
RATE : CNY 6.48 = USD
1
Adopted abbreviations
(as follows)
SC - Subject Company (the company inquired by you)
N/A – Not available
CNY – China Yuan Ren Min Bi
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
Note: Mr. Richard (the given contact person)
is working in SC at present.
SC was established as a limited liabilities
company of PRC with State Administration of Industry & Commerce (SAIC)
under registration No.: 371300228042499 on March 25, 2004.
SC’s Organization Code Certificate No.: 760045703
SC’s registered capital: CNY 1,010,000
SC’s paid-in capital: CNY 1,010,000
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 |
|
Huang Xiaoyu |
50.50 |
|
Huang Xiaokui |
49.50 |
SC’s Chief
Executives:-
Legal Representative
and General Manager: Huang Xiaoyu
Supervisor: Huang Xiaokui
RECENT DEVELOPMENT
No recent
development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name % of Shareholding
Huang Xiaoyu 50.50
Huang Xiaokui 49.50
MANAGEMENT
Huang Xiaoyu,
Legal Representative and General Manager
----------------------------------------------------------------------------------------
Ø
Gender: F
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative and
general manager.
Huang Xiaokui ,
Supervisor
-----------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
BUSINESS OPERATION
SC’s registered business scope includes selling mechanical and electrical products, building materials,
hardware tools, chemical products, textiles, clothing, importing and exporting
goods and technology, excluding the goods forbidden by the government.
SC is mainly engaged in international trade.
SC’s products mainly include: commercial
plywood, hardboard, hdf door skin, film faced plywood, fancy plywood, MDF,
particle board, and woodworking machinery.
SC sources its materials 100% from domestic market. SC sells 55% of its
products in domestic market, and 45% to overseas market, mainly Europe,
America, South Korea, Singapore, Thailand, Canada, Australia, Estonia and
Malaysia.
The buying terms of SC include T/T and Credit
of 30-60 days. The payment terms of SC include T/T, L/C and Credit of 30-60
days.
Staff
& Office:
--------------------------
SC is known to have approx. 10 staff at present.
SC rents an area as its operating office, but
the detailed information is unknown.
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 did not provide any name of trade/service suppliers and we have no
other sources to conduct the enquiry at present.
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
Basic Bank:
Bank of China Linyi Branch
AC# 405300064558091001
FINANCIALS
Balance
Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2009 |
As of Dec. 31, 2010 |
|
940 |
710 |
|
|
Accounts receivable |
30 |
50 |
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Advances to suppliers |
0 |
510 |
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Other receivable |
0 |
920 |
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Inventory |
0 |
0 |
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Receivable tax rebate of export |
210 |
820 |
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Other current assets |
40 |
60 |
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------------------ |
------------------ |
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Current assets |
1,220 |
3,070 |
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Fixed assets |
20 |
20 |
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Construction in progress |
0 |
0 |
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Intangible assets |
0 |
0 |
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Long-term prepaid expenses |
0 |
0 |
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Deferred income tax assets |
0 |
0 |
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Other non-current assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
1,240 |
3,090 |
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============= |
============= |
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Short-term loans |
0 |
0 |
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Notes payable |
0 |
0 |
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Accounts payable |
280 |
1,870 |
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Wages payable |
0 |
0 |
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Advances from clients |
240 |
330 |
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Other payable |
160 |
70 |
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Other current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current liabilities |
680 |
2,270 |
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Non-current liabilities |
1,000 |
1,000 |
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------------------ |
------------------ |
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Total liabilities |
1,680 |
3,270 |
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Equities |
-440 |
-180 |
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------------------ |
------------------ |
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Total liabilities & equities |
1,240 |
3,090 |
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============= |
============= |
Income
Statement
|
Unit: CNY’000 |
As of Dec. 31, 2010 |
|
Revenue |
14,260 |
|
Cost of sales |
13,300 |
|
Sales expense |
480 |
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Management
expense |
70 |
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Finance expense |
50 |
|
Profit before tax |
360 |
|
Less: profit tax |
90 |
|
270 |
Important Ratios
=============
|
|
As of Dec. 31, 2009 |
As of Dec. 31, 2010 |
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*Current ratio |
1.79 |
1.35 |
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*Quick ratio |
1.79 |
1.35 |
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*Liabilities to assets |
1.35 |
1.06 |
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*Net profit margin (%) |
-- |
1.89 |
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*Return on total assets (%) |
-- |
8.74 |
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*Inventory / Revenue ×365 |
-- |
-- |
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*Accounts receivable/ Revenue ×365 |
-- |
2 days |
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* Revenue/Total assets |
-- |
4.61 |
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* Cost of sales / Revenue |
-- |
0.93 |
FINANCIAL COMMENTS
PROFITABILITY: AVERAGE
l
The
revenue of SC appears average in its line in 2010.
l
SC’s net
profit margin is average in 2010.
l
SC’s return
on total assets is fairly good in 2010.
l
SC’s
cost of goods sold is fairly high, comparing with its revenue.
LIQUIDITY: FAIR
l
The
current ratio of SC is maintained in a normal level in both years.
l
SC’s quick
ratio is maintained in a fairly good level in both years.
l
SC has
no inventory in both years.
l
The
accounts receivable of SC is maintained in an average level.
l
SC has
no short-term loan in both years.
l
The
non-current liabilities are from long-term loans, which appear VERY LARGE.
l
SC’s
revenue is in an average level, comparing with the size of its total assets.
LEVERAGE: POOR
l
The debt
ratio of SC is high in both years.
l
The risk
for SC to go bankrupt is high.
Overall financial condition of the SC: Poor.
CONCLUSIONS
SC is considered
small-sized in its line with poor financial conditions. Great caution is
required in providing credit to SC and C.O.D. is recommended.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.05 |
|
UK Pound |
1 |
Rs.71.92 |
|
Euro |
1 |
Rs.64.37 |
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.