MIRA
INFORM REPORT
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Report Date : |
2nd November 2006 |
IDENTIFICATION
DETAILS
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Name : |
FOSHAN EFTEC
CHEMICAL PRODUCTS CO., LTD. |
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Registered Office : |
Shishan New City Development Zone, Xiaotang, Nanhai, Foshan, Guangdong Province, 528222 Pr China |
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Country : |
China |
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Financials (as on) : |
31/12/2004 |
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Date of Incorporation : |
May 28, 2004 |
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Com. Reg. No.: |
001678 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Engaged in manufacturing and selling PVC anti-stone-bumping
sealing paint. |
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 |
Unfavourable & favourable
factors carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
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Status : |
Fair |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
NAME & ADDRESS
FOSHAN EFTEC
CHEMICAL PRODUCTS CO., LTD.
SHISHAN NEW CITY DEVELOPMENT ZONE,
XIAOTANG, NANHAI,
FOSHAN, GUANGDONG PROVINCE, 528222 PR
CHINA
TEL: 86 (0) 757-86633828
FAX: 86 (0) 757-86633861
EXECUTIVE SUMMARY
INCORPORATION DATE : may 28, 2004
REGISTRATION NO. : 001678
REGISTERED LEGAL FORM : CHINESE-FOREIGN
EQUITY JOINT VENTURE ENTERPRISE
CHIEF EXECUTIVE : MR. XU QIAOHUA (CHAIRMAN)
STAFF STRENGTH : 77
REGISTERED CAPITAL : USD 1,000,000
BUSINESS LINE : manufacturing
TURNOVER :
CNY 93,189,000 (AS OF DEC. 31, 2004)
EQUITIES :
CNY 26,854,000 (AS OF DEC. 31, 2004)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 100,000 (PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 7.90 = US$1 AS OF 2006-10-31
SC was registered as a Chinese-foreign
equity joint venture enterprise at local Administration for Industry &
Commerce (AIC - The official body of issuing and renewing business license) on
May 28, 2004.
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 PVC anti-stone-bumping
sealing paint and adhesive.
SC is mainly engaged in manufacturing and selling PVC anti-stone-bumping
sealing paint.
Mr. Xu Qiaohua has been chairman of SC since 2004.
SC owns about 77 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 Foshan. Our
checks reveal that SC owns the total premise about 20,000 square meters.
SC is not known to host web site of its own at present.
SC was formerly known as NANHAI EFTEC CHEMICAL PRODUCTS CO., LTD.
which was established in 1999.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Foshan Nanhai Shilihe Automobile Industry Co., Ltd. 70
TGPM AUTOMOTIVE CO., LTD. (BVI) 30
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Foshan Nanhai Shilihe Automobile Industry Co., Ltd.
Address: SHISHAN NEW CITY
DEVELOPMENT ZONE, XIAOTANG, NANHAI,
FOSHAN, GUANGDONG PROVINCE.
Tel: 86 0757 86633862
Chairman:
Mr. Xu Qiaohua, in his 50’s with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 2004 to present Working in SC as chairman.
General Manager:
Mr. Li Yunguang, in his 40’s with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
From 2004 to present Working in SC as general manager.
SC is mainly engaged in manufacturing and selling PVC anti-stone-bumping
sealing paint.
SC’s products mainly include: automotive coating and automotive adhesive.
SC’s annual output can reach 6,000 tons.
SC sources its materials 80% from domestic market and 20% from the
overseas market, mainly from Singapore. SC sells 70% of its products in domestic
market, and 30% to the overseas market, mainly to Singapore.
The buying terms of SC include Check, L/C, T/T and Credit of 30-60
days. The payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Costumers:
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Guangzhou Honda Automotive Co., Ltd.
Hainan Mazda Automotive Co., Ltd.
SAIC-GM-Wuling Automobile Co., Ltd
Xiangfan Fengshen Automotive Co., Ltd.
Dongfeng Honda Automobile Company
Limited
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
refused to release any information of its suppliers and the trade reference was
not available.
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.
Industrial and Commercial Bank of China Nanhai Sub-Branch
AC#5300139300900437
Relationship: Normal.
Financial Summary
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Unit: CNY’000
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As of Dec. 31, 2004 |
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Accounts receivable |
13,248 |
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Current assets |
31,695 |
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Fixed assets |
26,357 |
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Total assets |
61,652 |
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Current liabilities |
34,798 |
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Total liabilities |
34,798 |
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Equities |
26,854 |
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Total liabilities & equities |
61,652 |
Income Statement
Unit: CNY’000
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As of Dec. 31, 2004 |
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Turnover |
93,189 |
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Cost of goods sold |
85,290 |
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Sales expense |
2,535 |
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Management expense |
2,103 |
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Finance expense |
1,158 |
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Profit before tax |
1,121 |
Important Ratios
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As of Dec. 31, 2004 |
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*Current ratio |
0.91 |
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*Liabilities to assets |
0.56 |
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*Net profit margin (%) |
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*Return on total assets (%) |
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*Fixed assets/Total assets |
0.43 |
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*Accounts receivable/Turnover ×365 |
52days |
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*Turnover/Total assets |
1.51 |
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* Cost of goods sold/Turnover |
0.92 |
PROFITABILITY: AVERAGE
The turnover of SC appears fairly good in its line.
SC’s profit before tax appears average.
SC’s cost of goods sold is fairly high, comparing with its
turnover.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level.
The accounts receivable of SC appears average.
SC’s turnover is in an average level, comparing with the size of
its total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fairly stable.
SC is considered small-sized in its line with fairly stable financial
conditions. A credit line up to USD 100,000 would appear to be within SC’s
capacities upon a periodical review basis.
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 |
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NR |
In view of the lack of
information, we have no basis upon which to recommend credit dealings |
No Rating |
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