Owens OnLine®

International Business Credit Report  

China Sample 

Please note length and content of each report may vary.

Report Type:

Business Credit Report

Date Prepared: January 1, 20xx
Reference Number: 1204-A-5678
Client Reference Number: 10892AB12
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SUBJECT'S NAME

Registered Name: ABC ELECTRONICS CO., LTD (Fictitious Sample)
Requested Name: ABC Electronics Co.
Other Names: ABC Electronics Company 
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ADDRESS AND TELECOMMUNICATION

Address: 15 Lin Industrial Zone

City:

Dongguan

State/Province: Guangdong Province
Country: China
 
Phone: +86 - 123 - 4567589
Fax: +86 - 456 - 7890123
Email: sampleemail@abcelectronicsco.com
Website: www.abcelectronicsco.com
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CREDIT OPINION

Our in-country agent's credit scoring system indicates the following credit scores.

Credit Rating:

4

 

Rating Key

Credit Risk Assessment

Proposed Credit Limit (In Concerned Business Field)

1

Minimal

Credit can proceed with favorable terms

Large amount

2

Low

Credit can proceed promptly

Fairly large amount

3

Average

Credit can proceed normally

Moderate amount

4

Above average

Credit should proceed with monitor

Small amount – periodical review

5

Fairly High

Credit should be extended under guarantee

C.O.D. to small amount

6

High

Credit is not recommended

C.O.D.

NR

Assessment not conducted

Insufficient data available

No recommendation

This rating serves as a reference to assess the subject’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 %) in our credit analysis are as follows:  

 

Financial condition (40%) Ownership background (20%) Payment record (10%)
Credit history (10%)   Market trend (10%) Operational size (10%)

 

In case of unlimited companies, newly established companies, or lack of financial data, more weight is given to ‘Ownership background’ and ‘Payment record’ in our analysis.
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LEGAL

Legal Form: Wholly foreign-owned enterprise*
Date Incorporated: January 1, 20xx
Registered Number: 012345
Registered Capital: USD 1,250,000
Major Shareholder: Hong Kong ABC Industry Co., Ltd. 100%

 

*Wholly foreign-owned enterprise

  

This form of business in PR China is defined as a legal person. It is a limited company established within the territories of PR China with capital provided totally by the foreign investors. More than one foreign investor may jointly invest in a wholly foreign-owned enterprise. The investing party/parties solely exercise management, reap profit and bear risks and liabilities by themselves. This form of companies usually have a limited duration is extendible upon approval of Examination and Approval Authorities.
_______________________________________________________________________

MANAGEMENT

Chief Executive:

Yang Qiang (Chairman) since 2002.

Working Experience: 2002 to present working in company as chairman.
Comments: Yang Qiang is 52 years old and has a university education. He is 
currently responsible for the overall management of subject.
 
General Manager: Lin Chen 

Working Experience:

2003 to present working in subject as general manager.

Comments: Lin Chen is 40 years old and has a university education. He is 
currently responsible for the daily management of subject.
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RELATED COMPANIES

Parent Company: Hong Kong ABC Industry Co., Ltd.
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OPERATIONS

Activity:

Subject is mainly engaged in manufacturing and selling electronic parts and

electric components.

 

The subject sources its materials 25% from domestic market, 75% from
international market, mainly from European Countries. It sells 100% of its 
products to Japan and European countries.

 

Client Include:

ABC Japan Electronics 

 

Employees:

530

 

Premises:

Subject is currently operating at the above stated address. This address

houses its operating office and factory in the industrial zone of Dongguan.
The subject owns the total premise about 15,000 square meters.
_______________________________________________________________________

AUDITORS AND INSURANCE

Auditors: Not Available 

Insurance Brokers:

Not Available 

_______________________________________________________________________

FINANCE

Currency Reported: Chinese Yuan Renminbi (CNY)
Approx. Ex. Rate: 1 US Dollar = 8.28650 Chinese Yuan Renminbi
1 Chinese Yuan Renminbi (CNY) = 0.12068 US Dollar (USD)

As of:

January 1, 20xx

Fiscal Year End:

Dec. 31

Consolidated Balance Sheet (as of Dec. 31, 20xx)

Unit: RMB thousand yuan

Cash & bank

20

Inventory

8,330

Accounts receivable

35,140

Account payable advance

15

Other Accounts receivable

75

Other current assets

150

 

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

Current assets

43,730

Fixed assets

10,360

Fixed assets net value

9,340

Projects under construction

0

Long term investment

0

Other assets

2,710

 

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Total assets

55,780

 

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

Short loans

0

Accounts payable

45,920

Account receivable advance

0

Other Accounts payable

3,370

Other current liabilities

860

 

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Current liabilities

51,150

Long term liabilities

0

Other liabilities

0

 

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

Total liabilities

51,150

Equities

4,630

 

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

Total liabilities & equities

55,780

 

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

Consolidated Income Statement (as of Dec. 31, 20xx)

Unit: RMB thousand yuan

Turnover

49,590

Cost of goods sold

50,820

Sales expense

550

Management expense

3,000

Finance expense

10

Profit before tax

-4,790

Less: profit tax

0

Profits

-4,790

Important Ratios (as of Dec. 31, 20xx)

*Current ratio

0.87

*Quick ratio

0.69

*Liabilities to assets

0.90

*Net profit margin (%)

9.66

F*Return on total assets (%)

8.59

*Total liabilities / Net assets

8.91

*Fixed assets/Total assets

0.19

*Inventory /Turnover ×365

69 days

*Accounts receivable/Turnover ×365

251 days

*Turnover/Total assets

0.89

* Cost of goods sold/Turnover

1.02

 

Financial Comments

 

Profitability: The turnover of subject appears acceptable but the profit margin of 
company appears fairly poor in its line.

 

Working Capital Control: The current ratio of subject appears fairly low.
 
Liquidity: Subject’s quick ratio is maintained in a fairly low level.

 

Solvency: The general financial condition of company is fair. A periodical review of 
subject’s finance is recommended.

 

Overall financial condition: Fair
 

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BANK

Bank Name: Agriculture Bank of China Dongguan Branch.
Account Number: 299001040004523
Relationship: Normal 
Comments: Banks in this country do not normally offer information on their depositors.
_______________________________________________________________________

TRADE REFERENCES

Company Name:  DC Electronics
Address:  Jiangsu Province, China
Contact:  Xing Chen
Customer Since:  20xx
Credit Limit:  Open
Terms:  30 days
Comments:  No payment delays noted.

 

Company Name: 

BA Wires

Address:  Shanghi, China
Contact:  Customer Service
Customer Since:  20xx
Credit Limit: Open
Terms:  90 days
Comments:  No payment delays noted.
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 PAYMENT HISTORY

Overall payment appraisal:

( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet determined

The appraisal serves as a reference to reveal subject's payments habits and ability to pay. It is based on the 3 weighed factors: Trade payment experience (through current inquiry with subject's suppliers), delinquent payment records and debt collection records concerning subject.

Delinquent Payment Record: None in our agent’s database.

Debt Collections: None in our agent’s database.

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PUBLIC RECORDS

Public litigation records not available in this country for this product.
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COMMENTS / ADDITIONAL INFORMATION

Subject is considered medium-sized in its line with fair financial conditions. Credit dealings with company should be limited to small amount at present.
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END OF REPORT           

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