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Credibility Investigation and Financial Report

Note: In this sample we omit some details including the real name of the manufacturer.


I. General company background:

    Address: 235, xxx road, Hangzhou, Zhejiang, PRC

    Post code: 310014

    Telephone number: +86-571-xxxxxxx, xxxxxxx

    Fax No.: +86-571-xxxxxxx

    Ownership: Joint venture company

    Year of incorporation: 1995

    Business registration No.: xxxxxx (registered with Hangzhou Municipal for Industry and Commerce.

    Business nature: Manufacturing and sales of xxxxx

    Registered capital: US$ 400,000

    Import & Export License: xxxxxxxxxx

    No. of employees: 150

    Principal banker: Zhongshanzhong office of ICBC Hangzhou Branch.

    Account No: xxxxxxxxxxx

    II. Shareholders and Chief Executives

    Shareholders:

    50%-Home-side: Hanghzhou XXXX

    50%-Foreign-side: American xxxxx Co.,Ltd

    Chief executives:

    xxxx-Male, 40 years old, married, local

    Mr. Xxxx is the chairman and general manager of the company. He is the representative of the home side. He is in charge of the whole business particularly in production.

    Xxxxxxx- Male, 50 years old, married

    Mr. Xxxxxxx is the chairman of American xxxxx Co.,Ltd. He acts as the deputy chairman and deputy general manager of the JV company. He is the representative of the foreign-side and is in charge of the sales of the company.

    III. Finance

    A: Balance Sheet as at December 31, 1998

    Unit: RMB

    Current asset
    Cash in hand                                 
    3,974
    Cash in bank                        
    12,035,906
    Inventory                               
    4,503,096
    Other current assets               
    +1,959,980
                                
    18,502,956
    Other assets
    +941,937
    Total assets                         
    19,444,893
    Current liabilities
    Accounts payable                 
    3,000,382
    Other current liabilities          
    +5,656,783
    8,657,165
    Equities (net assets)
               +10,787,728
    Total liabilities and equities
    19,444,893

    B: Income Statement for the year ended December 31, 1998

    Unit: RMB

    Turnover 67,682,618

    Profit before tax 6,947,272

    Profit after tax 6,008,175

    C: Major Finance indicators as at December 31, 1998

Profit margin 10%

Return on total assets 36%

Turnover/current assets ratio 3.66

Turnover/total asset ratio 3.48

Current ratio (current assets/current liabilities) 2.14

Quick ratio (quick assets/current liabilities) 1.62

Liabilities/asset ratio 0.45

Liabilities/equities ratio 6.80

The use of capital is reasonable and it has strong comprehensive solvency.

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(N.B.: If you want us to make financial report of a specific manufacture, it is better to provide us the following basic info: full name of the manufacturer, address, telephone number, contact people.)