MIRA
INFORM REPORT
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Report Date : |
7th
November, 2006 |
IDENTIFICATION
DETAILS
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Name : |
JIANGSU
SANHUAN INDUSTRY & COMMERCE COMPANY LIMITED |
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Registered Office : |
No.11 Liangxi Road, Wuxi, Jiangsu Province,
214062 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 : |
07.02.1994 |
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Com. Reg. No.: |
3200001104116 |
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Legal Form : |
Shares Limited
Company |
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Line of Business : |
The
company is engaged in manufacturing and selling textile machinery, equipment
and parts. |
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 : |
Satisfactory
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Payment Behaviour : |
Usually
Correct |
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Litigation : |
Clear |
Company name & Address
jiangsu hongyuan
textile machinery co., ltd.
no.11 liangxi road,
wuxi,
jiangsu province, 214062
PR CHINA.
TEL : 86 (0) 510-85804827
FAX : 86 (0)
510-85804923
EXECUTIVE SUMMARY
INCORPORATION DATE : february 7, 1994
REGISTRATION NO. : 3200001104116
REGISTERED LEGAL
FORM : Shares limited company
STAFF STRENGTH : 1,230
REGISTERED CAPITAL : CNY 140,810,000
BUSINESS LINE : manufacturing
TURNOVER : CNY 446,240,000 (AS OF DEC. 31, 2005)
EQUITIES : CNY 140,810,000
(AS OF DEC. 31, 2005)
PAYMENT : AVERAGE
RECOMM. CREDIT
RANGE : UP TO usd 800,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION
: STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY7.88 = US$1 AS OF
2006-11-2
SC was registered as a shares limited company at Jiangsu
provincial Administration for Industry & Commerce (AIC - The official body
of issuing and renewing business license) on February 7, 1994.
Company Status: Shares limited co. This form of
business in PR China is defined as a legal person. Its registered capital
is divided into shares of equal par value and the co. raises capital by
issuing share certificates by promotion or by public offer. Shareholders
bear limited liability to the extent of shareholding, and the co. is liable
for its debts only to the extent of its total assets. The characteristics
of the shares limited co. are as follows: The establishment of
the co. requires at least five promoters and at least three of them must be
PR- China controlled legal persons. Natural person can not be allowed to
serve as promoters. The minimum
registered capital of a co. is CNY 10M. while that of the co. with foreign
investment is CNY 30M. The total capital of a co. which propose to apply
for publicly listed must not less than CNY 50M. The board of
directors must consist of an odd number of five to nineteen directors. If the co. raises
capital by public offer, the promoters must not subscribe less than 35% of
the total shares. the promoters’ shares are restricted to transfer- within
three years of the offer. Directors can not transfer the shares they hold
in the co. during their terms of office. A state-owned
enterprise that is restructured into a shares limited co. must comply with
the conditions & requirements specified under the law &
administrative rule.
SC’s registered business scope includes manufacturing and processing
textile machinery, equipment and fittings, industry special equipment and
general equipment, electrical machinery, automobile parts, needle textiles,
chemical fiber; installment and maintenance of mechanical equipment; spinning
and weaving technical service; selling mechanical and electrical products,
needle textiles, plastic products, metal material, chemical raw materials and
products and lumber; exporting its products and technology; importing
materials, instrument, machinery and equipment, parts and technology needed for
its production.
SC
is mainly engaged in manufacturing and selling textile machinery, equipment and
fittings.
Mr. Wen
Yuanqi (温元圻) has been chairman of SC since 1994.
SC
owns about 1,230 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 Wuxi. Our checks reveal that SC owns the total
premise about 100,000 square meters.
http://www.wxhy.com
The design is professional and the content is well organized. At present the
web site is both in Chinese and English versions.
E-mail: hy@wxhy.com
SC has got the certificate of ISO9001.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Jiangsu Textile (Group) Corporation 0.71
Jiangsu Zhengyuan Group
Corporation 0.71
Shareholder’s Union of Staff 5.90
Wuxi Textile Machinery Special
Parts Factory 0.71
Wuxi Textile Industry Bureau 1.55
Wuxi State Assets Management
Bureau 90.42
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Chairman:
Mr. Wen Yuanqi , 49 years old with
university education. He is currently responsible for the overall management of
SC.
Working Experience(s):
From 1994 to present Working in SC as chairman.
l
General Manager:
Mr. Zhou Zhiqiang, 43 years old with
university education. He is currently responsible for the daily management of
SC.
Working Experience(s):
From 1994 to present
Working in SC as general
manager.
SC
is mainly engaged in manufacturing and selling textile machinery, equipment and
parts.
Brand:
Hongyuan.
SC’s
products mainly include:
High
Speed Draw - texturizing Machinery
Cotton
Spinning Machinery
Roving
Frame
Comber
Lap
Winder
Ring
Spinning Frame
Staple
Fiber Two-for-One Twister
Drawing
Frame
Fancy
Yarn Machinery
Fancy
Yarn Machine
Crochet
Machine
Computerized
Flat Knitting Machine
Chenille
Machine
Functional
Draw-texturizing Machine
Finishing
and Dyeing Machinery
Chainless
Mercerizing Range
Stenter
Dye
Jigger
Loop
Steamer
Singe-cum-Alkalize
Machine
Steaming
And Washing Machine
Ironing
and Drying Range
Deweighting
and Washing Range
Spare
parts
For
Finishing and Dyeing Machinery
SC sources its materials 100%
from domestic market, mainly Jiangsu. SC sells 80% of its products in domestic
market, and 20% to overseas market, mainly Southeast Asian market.
The buying terms of SC include Check, T/T
and Credit of 30-90 days. The payment terms of SC include T/T, L/C and Credit
of 30-90 days.
*Major Customer:
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Jiangsu Textile (Group) Corporation
*Major Supplier:
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Wuxi Textile Machinery Special
Parts Factory
SC is known to have 2 subsidiaries
as following:
Jiangsu Hongyuan Textile Machinery
Co., Ltd. 3TH Textile Machinery Factory
Jiangsu Hongyuan Textile Machinery
Co., Ltd. 5TH Textile Machinery Factory
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.
Industrial and Commercial Bank of China Wuxi
Branch
AC#：1103020209000021192
Relationship: Normal.
Balance Sheet (as of Dec. 31, 2005)
Unit:
CNY’000
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Cash
& bank |
172,580 |
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Inventory |
54,670 |
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Accounts
receivable |
52,110 |
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Other
Accounts receivable |
69,800 |
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To
be apportioned expense |
0 |
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Other
current assets |
65,160 |
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Current
assets |
414,320 |
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Fixed
assets |
130,660 |
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Fixed
assets net value |
73,930 |
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Projects
under construction |
0 |
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Long
term investment |
9,350 |
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Other
assets |
70 |
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Total
assets |
497,670 |
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Short
loans |
30,510 |
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Accounts
payable |
73,470 |
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Other
Accounts payable |
40,750 |
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Notes
payable |
67,300 |
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Advances
from customers |
77,650 |
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Withdraw
the expenses in advance |
0 |
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Other
current liabilities |
7,470 |
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Current
liabilities |
297,150 |
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Long
term liabilities |
0 |
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Other
liabilities |
59,710 |
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Total
liabilities |
356,860 |
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Equities |
140,810 |
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Total
liabilities & equities |
497,670 |
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Income Statement (as
of Dec. 31, 2005)
Unit:
CNY’000
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Turnover |
446,240 |
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Cost
of goods sold |
355,850 |
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Sales
expense |
10,230 |
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Management
expense |
50,630 |
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Finance
expense |
2,020 |
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Profit
before tax |
23,290 |
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Less:
profit tax |
9,490 |
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Profits |
13,800 |
Important Ratios (as of Dec. 31, 2005)
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*Current ratio 1.39
*Quick ratio 1.21
*Liabilities to assets 0.72
*Net profit margin (%) 3.11
*Return on total assets (%) 2.77
*Inventory /Turnover ×365 45 days
*Accounts receivable/Turnover ×365 43 days
*Turnover/Total assets 0.89
* Cost of goods sold/Turnover 0.80
PROFITABILITY: AVERAGE
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The
turnover of SC appears average in its line.
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SC’s
net profit margin is average.
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SC’s
return on total assets is average.
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SC’s
cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAILRY
GOOD
l
The
current ratio of SC is maintained in a fairly good level.
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SC’s
quick ratio is maintained in a fairly good level.
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The
inventory of SC is maintained in an average level.
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The
accounts receivable of SC is maintained in an acceptable level.
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SC’s
short-term loan is in an average level.
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SC’s
turnover is in an average level, comparing with the size of its total assets.
LEVERAGE: AVERAGE
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The
debt ratio of SC is average.
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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 800,000 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 |
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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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