MIRA
INFORM REPORT
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Report Date : |
14.04.2012 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
28.08.2003 |
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Com. Reg. No.: |
320200400016856 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Manufacturing and processing ball, footwear, sports apparel, sports equipment. |
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No. of Employees : |
30 |
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 20,000 |
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Status : |
Moderate |
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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 – March 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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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
WUXI OLIPA SPORTING GOODS CO., LTD.
NO. 10 HUAYUAN ROAD
BINHU ECONOMIC & TECHNOLOGICAL DEVELOPMENT ZONE
WUXI, JIANGSU PROVINCE 214121 PR CHINA
TEL: 86 (0) 510-85625163
FAX: 86 (0) 510-85625160
EXECUTIVE SUMMARY
Date of Registration : AUGUST 28, 2003
REGISTRATION NO. : 320200400016856
LEGAL FORM : Wholly foreign-owned enterprise
REGISTERED CAPITAL : USD 2,100,000
staff :
30
BUSINESS CATEGORY : manufacturing
Revenue :
CNY 17,870,000 (AS OF DEC. 31, 2010)
EQUITIES :
CNY
6,300,000 (AS OF DEC. 31, 2010)
WEBSITE : www.olipa.com
E-MAIL : sales@olipa.com
PAYMENT :
AVERAGE
Recommended Credit Limit: UP TO USD 20,000
(PERIODICAL REVIEW)
MARKET CONDITION : FAIR
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : FAIR
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.30 = 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
SC was established
as a wholly foreign-owned enterprise of PRC with State Administration of
Industry & Commerce (SAIC) under registration No.: 320200400016856 on
August 28, 2003.
SC’s Organization Code Certificate No.:
75202397-7
SC’s registered capital: USD 2,100,000
SC’s paid-in capital: USD 2,100,000
Registration Change Record:
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 |
|
Hong Kong New Honglong Industrial
Development Co., Ltd. |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and
General Manager |
Chen Jinzhu |
|
Director |
Xiang
Zhaoquan |
RECENT DEVELOPMENT
SC has passed ITF Certificate.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Hong Kong New Honglong Industrial
Development Co., Ltd. 100
---------------------------------------
Registration No.: 0848115
Date of Registration: May 28, 2003
Legal Form: Private
Status: Live
MANAGEMENT
Chen Jinzhu ,
Legal Representative, Chairman, and General Manager
-----------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Passport
No.: G03059915
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative, chairman,
and general manager
Xiang Zhaoquan ,
Director
----------------------------------------------
Ø
Gender: M
Ø
Passport
No.: G07351602
Ø
Qualification:
University
BUSINESS OPERATION
SC’s registered
business scope includes manufacturing and processing ball, footwear, sports apparel, sports equipment.
SC is mainly engaged in manufacturing and selling sporting goods.
Brand: OLIPA
SC’s products
mainly include: basketball, football, tennis ball, footwear, etc.
SC sources its materials 50% from domestic
market, and 50% from overseas market. SC sells 75% of its products in domestic
market, and 25% to overseas market, mainly USA.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
*Major Customers:
=============
Jiangsu Kaiyuan International Group Zehua Trade Co., Ltd.
Little Feet Inc. (USA)
Idec Corporation (USA)
*Major Supplier:
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Shanghai Dingji Ball Industry Co., Ltd.
Staff & Office:
--------------------------
SC is known
to have approx. 30 staff at
present.
SC owns an area as
its operating office and factory, 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 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: Rubber
ball
Date account opened: Since 2010 to present
Line of credit: N/A
Terms: 30-60
days
Average monthly sales: N/A
Current balance: N/A
Rating Key : 3
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.
BANKING
Basic Bank:
Bank of Jiangsu
Wuxi New District Sub-branch
AC#:
807010188800067792
FINANCIALS
Balance Sheet
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Unit: CNY’000 |
As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
|
930 |
2,000 |
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Accounts receivable |
1,260 |
820 |
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Other receivable |
5,320 |
7,340 |
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Inventory |
2,530 |
3,930 |
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Non-current
assets within one year |
0 |
0 |
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Other current
assets |
620 |
3,070 |
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------------------ |
------------------ |
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Current assets |
10,660 |
17,160 |
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Fixed assets |
10,730 |
10,100 |
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Construction in
progress |
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 |
980 |
1,970 |
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------------------ |
------------------ |
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Total assets |
22,370 |
29,230 |
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============= |
============= |
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Short-term loans |
14,000 |
20,000 |
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Notes payable |
0 |
0 |
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Accounts payable |
490 |
1,560 |
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Wages payable |
0 |
0 |
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Taxes payable |
0 |
0 |
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Advances from
clients |
0 |
0 |
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Other payable |
1,290 |
1,460 |
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Other current
liabilities |
0 |
-90 |
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------------------ |
------------------ |
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Current
liabilities |
15,780 |
22,930 |
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Non-current
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
15,780 |
22,930 |
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Equities |
6,590 |
6,300 |
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------------------ |
------------------ |
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Total
liabilities & equities |
22,370 |
29,230 |
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============= |
============= |
Income Statement
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Unit: CNY’000 |
As of Dec. 31,
2010 |
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Revenue |
17,870 |
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Cost of sales |
15,150 |
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Sales expense |
650 |
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Management expense |
1,220 |
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Finance expense |
1,130 |
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Profit before
tax |
-290 |
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Less: profit tax |
0 |
|
-290 |
Important Ratios
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As
of Dec. 31, 2009 |
As
of Dec. 31, 2010 |
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*Current ratio |
0.68 |
0.75 |
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*Quick ratio |
0.52 |
0.58 |
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*Liabilities
to assets |
0.71 |
0.78 |
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*Net profit
margin (%) |
-- |
-1.62 |
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*Return on
total assets (%) |
-- |
-0.99 |
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*Inventory /
Revenue ×365 |
-- |
81 days |
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*Accounts
receivable/ Revenue ×365 |
-- |
17 days |
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*
Revenue/Total assets |
-- |
0.61 |
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* Cost of
sales / Revenue |
-- |
0.85 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIR
l
The revenue of SC appears average in its line in
2010.
l
SC’s net profit margin is fair in 2010.
l
SC’s return on total assets is fair in 2010.
l
SC’s cost of sales is average, comparing with its
revenue.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair
level in both years.
l
SC’s quick ratio is maintained in a fair level in
both years.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC appears average.
l
SC’s short-term loans appear large.
l
SC’s revenue is in a fair level, comparing with the
size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Fair.
CONCLUSIONS
SC is considered small-sized in its line with fair financial conditions.
The large amount of short-term loans could be a threat to SC’s financial
condition. A credit line up to USD 20,000 is recommended upon a periodical
review basis.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.51.42 |
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|
1 |
Rs.81.93 |
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Euro |
1 |
Rs.67.67 |
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 |
-- |
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.