MIRA
INFORM REPORT
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Report Date : |
16th
June, 2006. |
IDENTIFICATION
DETAILS
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Name : |
CHANGCHUN
HENKEL SURFACE TECHNOLOGIES COMPANY LIMITED |
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Registered Office : |
No. 6077
Chaoda Road, High-Tech Industries Development Area, Changchun, Jilin Province,
130062 Pr China |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
17.02.2000 |
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Com. Reg. No.: |
001273 |
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Legal Form : |
Chinese-Foreign
Equity Joint Venture Enterprise |
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Line of Business : |
Manufacturing and Selling Automobile-Using Polyvinyl Chloride,
Bond, Coating, and Surface Chemical Products. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 400,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually
Correct |
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Litigation : |
Clear |
Company Name & Address
changchun henkel surface technologies co.,
ltd.
no. 6077 chaoda road, high-tech industries
development area, changchun, jilin province, 130062 PR CHINA
TEL: 86 (0) 431-7973727 FAX:
86 (0) 431-7973458
EXECUTIVE SUMMARY
INCORPORATION
DATE : february 17, 2000
REGISTRATION
NO. : 001273
REGISTERED
LEGAL FORM : Chinese-foreign equity joint venture enterprise
STAFF
STRENGTH : 106
REGISTERED
CAPITAL : DM 4,000,000
BUSINESS
LINE :
manufacturing
TURNOVER : RMB 117,800,000 (AS OF DEC. 31, 2005)
EQUITIES : RMB 60,000,000 (AS OF DEC. 31, 2005)
PAYMENT : AVERAGE
RECOMM.
CREDIT RANGE : UP TO USD 400,000
MARKET
CONDITION : COMPETITIVE
FINANCIAL
CONDITION : STABLE
OPERATIONAL
TREND : STEADY
GENERAL
REPUTATION : AVERAGE
EXCHANGE
RATE : RMB8.00 = US$1
AS OF 2006-06-15
SC was registered as a Chinese-foreign equity joint
venture enterprise at local Administration for Industry & Commerce (The
official body of issuing and renewing business license) on February 17, 2000.
Company Status: Chinese-foreign equity joint
venture enterprise This form of
business in PR China is defined as a legal person. It is a limited co.
jointly invested by one or more foreign companies and one or more PR China
controlled companies within the territories of PR China according to a
certain proportion of capital investment. The investing parties exercise
business management, share profits and bear all risks and liabilities of
the co. together. The equity joint venture law requires that foreign party
contribute not less than 25% of the registered capital, with no maximum.
The joint venture usually have a limited duration of 10 to 50 years.
Enterprise with large investment, long construction periods, low investment
returns, introducing of advanced technology & advanced technology
products which have good competition position in international market may
extend beyond the 50 years limit.
SC’s registered business scope includes manufacturing and selling automobile-using polyvinyl chloride, bond, coating, and surface chemical products.
SC is mainly engaged in manufacturing
and selling automobile-using polyvinyl chloride, bond, coating, and surface
chemical products.
Mr. Yu Zhanfei (于占飞) has been chairman of SC since 2000.
SC owns about 106 staff at present.
SC is
currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Changchun. Our checks
reveal that SC owns the total premise about 22,000 square meters.
SC is not known to host web site of its own
at present.
SC has got the certificate of ISO9001.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Jilin Grain Group Industry Co., Ltd. 40
Henkel KgaA 60
l
Chairman:
Mr. Yu Zhanfei (于占飞),
43 years old with university education. He is currently responsible for the
overall management of SC.
Working Experience(s):
From 2000 to present Working in SC as chairman.
Also working in Jilin Grain Group
Industry Co., Ltd. as chairman.
l
General
Manager:
Mr. Zhou Jifeng (周纪风),
51 years old with university education. He is currently responsible for the
daily management of SC.
Working Experience(s):
From 2000 to present
Working in SC as general
manager.
SC is mainly engaged in manufacturing and selling automobile-using polyvinyl chloride, bond, coating, and surface chemical products.
SC’s products mainly include: PVC coating.
SC sources its materials 35% from domestic market, and 65% from international market, mainly from Germany. SC sells 100% of its products in domestic market, mainly in Changchun.
The buying terms of SC include T/T, L/C and Credit of 30-60 days. The payment terms of SC include T/T and Credit of 30-60 days.
SC’s suppliers include:
Henkel KgaA
SC’s clients include:
Faw Volkswagen
SC is not
known to have any subsidiary at present.
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.
Constructions Bank of China Changchun Branch
AC#：22001460300050058752
Relationship: Normal.
Balance Sheet (as of Dec. 31, 2005)
Unit: RMB
thousand yuan
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Cash & bank |
14,530 |
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Inventory |
20,050 |
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Notes receivable |
11,760 |
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Accounts receivable |
22,550 |
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Other Accounts receivable |
1,630 |
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To be apportioned expense |
300 |
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Other current assets |
0 |
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Current assets |
70,820 |
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Fixed assets |
46,990 |
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Fixed assets net value |
40,290 |
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Projects under construction |
2,000 |
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Long term investment |
0 |
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Other assets |
7,010 |
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Total assets |
120,120 |
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Short loans |
40,000 |
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Accounts payable |
17,610 |
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Other Accounts payable |
1,860 |
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Withdraw the expenses in
advance |
780 |
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Other current liabilities |
-130 |
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Current liabilities |
60,120 |
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Long term liabilities |
0 |
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Other liabilities |
0 |
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Total liabilities |
60,120 |
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Equities |
60,000 |
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Total liabilities &
equities |
120,120 |
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Income Statement (as of Dec. 31, 2005)
Unit: RMB thousand yuan
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Turnover |
117,800 |
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Cost of goods sold |
92,600 |
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Sales expense |
11,630 |
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Management expense |
7,010 |
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Finance expense |
-880 |
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Profit before tax |
8,270 |
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Less: profit tax |
1,240 |
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Profits |
7,030 |
Important Ratios (as of Dec. 31, 2005)
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*Current ratio 1.18
*Quick ratio 0.84
*Liabilities to assets 0.50
*Net profit margin (%) 5.97
*Return on total assets (%) 5.85
*Inventory /Turnover ×365 62 days
*Accounts receivable/Turnover ×365 70 days
*Turnover/Total assets 0.98
* Cost of goods sold/Turnover 0.79
PROFITABILITY:
FAIRLY GOOD
l The turnover of SC appears average in its line.
l SC’s net profit margin is average.
l SC’s return on total assets is fairly good.
l SC’s cost of goods sold is average, 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 fair level.
l The inventory of SC is maintained in an acceptable level.
l The accounts receivable of SC appears fairly large.
l SC’s short-term loan appears LARGE.
l SC’s turnover is in an acceptable 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 average.
Overall financial condition of the SC: Stable.
SC is considered medium-sized in its line with stable financial conditions. A credit line up to USD 400,000 would appear to be within SC’s capacities.
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 |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
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 |