MIRA INFORM REPORT

 

 

Report Date :           

03.03.2012

 

IDENTIFICATION DETAILS

 

Name :

SHANDONG PROVINCE BOXING COUNTY IMPORT & EXPORT CORPORATION

 

 

Registered Office :

No. 718 Shengli 2nd Road, Boxing County, Shandong Province 256500 Pr

 

 

Country :

China

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

13.03.1997

 

 

Com. Reg. No.:

371625018002933

 

 

Legal Form :

State-Owned Enterprise

 

 

Line of Business :

International Trade

 

 

No. of Employees :

35

 

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 80,000

 

 

Status :

Moderate

 

 

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 – September 30th, 2011

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

China

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 

 

shandong province boxing county import & export corporation

no. 718 shengli 2nd road, boxing county

shandong province 256500 PR CHINA

TEL: 86 (0) 543-2300031

FAX: 86 (0) 543-2300124

 

 

EXECUTIVE SUMMARY

 

Date of Registration          : march 13, 1997

REGISTRATION NO.                  : 371625018002933

LEGAL FORM                           : state-owned enterprise

CHIEF EXECUTIVE                       : yang xiaofeng (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL             : cny 5,880,000

staff                                      : 35

BUSINESS CATEGORY             : trading

Revenue                                : CNY 54,730,000 (AS OF DEC. 31, 2011)

EQUITIES                                 : CNY 7,340,000 (AS OF DEC. 31, 2011)

WEBSITE                                 : N/A

E-MAIL                                     : N/A

PAYMENT                                : AVERAGE

Recommended Credit Limit: up to usd 80,000

MARKET CONDITION                : average

FINANCIAL CONDITION            : stable

OPERATIONAL TREND              : steady

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 state-owned enterprise of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 371625018002933 on March 13, 1997.

 

SC’s registered capital: cny 5,880,000

 

SC’s paid-in capital: cny 5,880,000

 

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

Boxing County Foreign Economy and Trade Committee

 

100

 

SC’s Chief Executives:-

Position

Name

Legal Representative, Chairman, and General Manager

Yang Xiaofeng

 

 

RECENT DEVELOPMENT

 

No recent development was found during our checks at present.

 

 

SHAREHOLDER CHART & BACKGROUND

 

Name                                                                                                  % of Shareholding

 

Boxing County Foreign Economy and Trade Committee                                        100

 

 

 


MANAGEMENT

 

Yang Xiaofeng, Legal Representative, Chairman and General Manager

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

Ø         Gender: M

Ø         Qualification: University

Ø         Working experience (s):

 

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

 

 

BUSINESS OPERATION

 

SC’s registered business scope includes importing and exporting commodities and technology; processing with imported materials, processing with imported samples, assemblying with imported parts, and compensation trade in agreement; counter trade & transit trade.

 

SC is mainly engaged in international trade.

 

SC’s products mainly include: hardware, machinery, textiles, etc.

 

SC sources its materials 40% from domestic market, and 60% from overseas market. SC sells 70% of its products in domestic market, and 30% to overseas market, mainly Southeast Asia.

 

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.

 

Staff & Office:

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

SC is known to have approx. 35 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 records 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

 

The bank information of SC is not filed in local SAIC.

 

 

FINANCIALS

 

Balance Sheet

Unit: CNY’000

As of Dec. 31, 2011

Cash

4,710

Accounts receivable

1,360

Advances to suppliers

0

Other receivable

70

Inventory

10

Non-current assets within one year

0

Other current assets

1,250

 

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

Current assets

7,400

Fixed assets

180

Construction in progress

0

Long-term prepaid expenses

0

Deferred income tax assets

0

Other non-current assets

5,170

 

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

Total assets

12,750

 

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

Short-term loans

60

Notes payable

0

Accounts payable

4,530

Wages payable

0

Taxes payable

0

Advances from clients

0

Other payable

130

Other current liabilities

690

 

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

Current liabilities

5,410

Non-current liabilities

0

 

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

Total liabilities

5,410

Equities

7,340

 

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

Total liabilities & equities

12,750

 

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

 

Income Statement

Unit: CNY’000

As of Dec. 31, 2011

Revenue

54,730

Cost of sales

51,700

    Sales expense

3,070

    Management expense

160

    Finance expense

0

Profit before tax

230

Less: profit tax

60

Profits

170

 

Important Ratios

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

 

                         As of Dec. 31, 2011

*Current ratio

1.37

*Quick ratio

1.37

*Liabilities to assets

0.74

*Net profit margin (%)

0.31

*Return on total assets (%)

1.33

*Inventory / Revenue ×365

1 day

*Accounts receivable/ Revenue ×365

10 days

* Revenue/Total assets

4.29

* Cost of sales / Revenue

0.94

 

 

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 sales 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 normal level.

l         The inventory of SC appears average.

l         The accounts receivable of SC appears average.

l         The short-term loans of SC appear average.

l         SC’s revenue is in an average level, comparing with the size of its total assets.

 

LEVERAGE: AVERAGE

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: Stable.

CONCLUSIONS

 

SC is considered small-sized in its line with stable financial conditions. A credit line up to USD 80,000 would appear to be within SC’s capacities.


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.49.35

UK Pound

1

Rs.78.68

Euro

1

Rs.65.63

 

 

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.