MIRA INFORM REPORT
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Report Date : |
29.10.2011 |
IDENTIFICATION DETAILS
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Name : |
JINCHANG ARTIFICIAL LEATHER CO., LTD. |
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Registered Office : |
The Section Of Liaoxia, Guantai Road, Houjie Town, Dongguan, Guangdong
Province, 523960 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
29.09.1999 |
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Com. Reg. No.: |
441900000099820 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Selling Leather
& its products |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
usd 6,000 |
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Status : |
Small Company |
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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 – September 30th, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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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 & address
jinchang artificial
leather CO., LTD.
THE SECTION OF LIAOXIA,
GUANTAI ROAD, HOUJIE TOWN, DONGGUAN, GUANGDONG province, 523960 PR CHINA
TEL: 86 (0)
769-85058087/85813275 FAX: 86 (0)
769-85585291
EXECUTIVE SUMMARY
INCORPORATION DATE : SEP. 29, 1999
REGISTRATION NO. : 441900000099820
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
37
REGISTERED CAPITAL : CNY 500,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 49,750,000 (AS OF DEC. 31, 2010)
EQUITIES :
CNY 1,010,000 (AS OF DEC. 31, 2010)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 6,000
MARKET CONDITION : average
FINANCIAL CONDITION : Fairly stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 6.3492 = 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 Renminbi
SC was registered as a limited liabilities co. at local Administration
for Industry & Commerce (AIC - The official body of issuing and renewing
business license) on Sep. 29, 1999.
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 selling leather & its products, hardware and
textiles.
SC is mainly engaged
in selling leather & its products.
Mr. Guo Yanfa is
legal representative and chairman of SC at present.
SC is known to
have approx. 37 employees at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in Dongguan. Our checks reveal that SC rents the total premise
about 600 square meters.
http://www.jcleather.com.cn The design is professional and the content is
well organized. At present it is in both Chinese and English versions.
Email: vivi@jcleather.com.cn
No significant events or changes were found during our checks with local
AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Guo Yanfa 35
Li Qiuchu 15
Foshan Jinshuanglong Chemical Materials Co.,
Ltd. (in Chinese pinyin) 50
Foshan Jinshuanglong Chemical Materials Co.,
Ltd. (in Chinese pinyin)
-----------------------------------------------------
Registration no.: 440602000023591
Incorporation date:
Legal representative: Liang Zhongding
Tel: 0757-82816880
l
Legal representative and chairman:
Mr. Guo Yanfa is currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal representative and chairman.
SC is mainly engaged
in selling leather & its products.
SC’s products mainly include: synthetic lining leather, synthetic upper
leather, synthetic bag and case leather, etc.
SC sources its materials 100% from domestic market.
SC sells 100% of its products in domestic market.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include Check, T/T and Credit of 30-60 days.
Note:
SC refused to release its major clients and suppliers.
Qingyuan
Jinchang Artificial Leather Co., Ltd.
Legal representative: Li Qiuchu
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 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.
Industrial and
Commercial Bank of China Houjie Sub-branch
AC#2010026709024548811
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As of Dec. 31, 2010 |
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Cash & bank |
1,420 |
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Inventory |
1,940 |
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Bills receivable |
0 |
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Accounts
receivable |
6,360 |
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Other Accounts
receivable |
150 |
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Advances to
suppliers |
600 |
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To be apportioned
expense |
20 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
10,490 |
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Fixed assets net
value |
610 |
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Long-term
investment |
0 |
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Intangible and
other assets |
0 |
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------------------ |
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Total assets |
11,100 |
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============= |
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Short loans |
0 |
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Accounts payable |
8,200 |
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Advance from
customers |
0 |
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Other Accounts
payable |
1,010 |
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Notes payable |
0 |
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Taxes payable |
120 |
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Dividend payable |
740 |
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Other current
liabilities |
20 |
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------------------ |
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10,090 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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------------------ |
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Total
liabilities |
10,090 |
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Equities |
1,010 |
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------------------ |
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11,100 |
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============= |
Income Statement
Unit: CNY’000
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As of Dec. 31, 2010 |
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Turnover |
49,750 |
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Cost of goods sold |
47,000 |
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Taxes and additional of main operation |
50 |
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Sales expense |
1,560 |
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Management expense |
580 |
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Finance expense |
10 |
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Non-operating
income |
30 |
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Non-operating expense |
0 |
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Profit before
tax |
580 |
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Less: profit tax |
150 |
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Profits |
430 |
Important Ratios
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As
of Dec. 31, 2010 |
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*Current ratio |
1.04 |
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*Quick ratio |
0.85 |
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*Liabilities
to assets |
0.91 |
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*Net profit
margin (%) |
0.86 |
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*Return on
total assets (%) |
3.87 |
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*Inventory
/Turnover ×365 |
14 days |
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*Accounts
receivable/Turnover ×365 |
47 days |
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*Turnover/Total
assets |
4.48 |
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* Cost of
goods sold/Turnover |
0.94 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in its line.
l
SC’s net profit margin is average.
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SC’s return on total assets is average.
l
SC’s cost of goods sold is fairly high, comparing
with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable
of SC appears fairly large.
l
SC has no short-term loan in 2010.
l
SC’s turnover 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.
SC is considered small-sized in its line with fairly stable financial conditions.
A credit line up to USD 6,000 would appear to be within SC’s capacities.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.48.82 |
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UK Pound |
1 |
Rs.78.57 |
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Euro |
1 |
Rs.69.29 |
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.