MIRA
INFORM REPORT
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Report Date : |
9th
November, 2006 |
IDENTIFICATION
DETAILS
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Name : |
WUXI
KYOSEI CONTROL CABLE CO. LTD. |
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Registered Office : |
No. 17, Gongqing Road, Changjing Town,
Jiangyin City, Wuxi Jiangsu Province, 214411 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 : |
08.10.1996 |
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Com. Reg. No.: |
000569 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
The
company is mainly engaged in manufacturing control cable. |
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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Status : |
Satisfactory
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
Company Name & Address
wuxi kyosei control
cable co., ltd.
no. 17, gongqing road, changjing town,
jiangyin city, wuxi
jiangsu province,
214411 PR CHINA
TEL : 86 (0) 510-86301325
FAX : 86 (0)
510-86304048
EXECUTIVE SUMMARY
INCORPORATION DATE :
oct. 8, 1996
REGISTRATION NO. :
000569
REGISTERED LEGAL FORM : Chinese-foreign equity
joint venture enterprise
STAFF STRENGTH :
120
REGISTERED CAPITAL :
usd 220,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 39,070,000 (AS OF DEC. 31,
2005)
EQUITIES :
CNY 20,110,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE :
UP TO USD 200,000
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY7.88 = US$1 AS OF 2006-11-09
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 Oct. 8, 1996.
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 control cable and
relative components used for vehicles and agricultural machinery.
SC is mainly engaged in
manufacturing control cable.
Mr. Li Wenyi has been chairman of SC since 1996.
SC owns about 120 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 Jiangyin. Our checks
reveal that SC rents the total premise about 5,000 square meters.
http://www.wks-cn.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: wys@wks-cn.com
Until
December 31, 2005, SC’s paid-up capital was CNY 1,820,000, and SC’s registered
total investment was USD 250,000.
MAIN SHAREHOLDERS:
Name Investment
(’000) % of Shareholding
Jiangyin Changjing Flexible
Shaft & Hose Plant 70 31.82
Japan KYOSEI Corp. 120 54.55
Japan Sen Bicycle Corp. (In Chinese
Pinyin) 10 4.55
Japan Arinobu Corp. 20 9.08
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Chairman
Mr. Li
Wenyi, ID#320219570702451, 49 years old with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 1996 to present Working in SC as chairman.
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General Manager
Mr. Li
Fuyu, in his 40’s with university education. He is currently responsible for
the daily management of SC.
Working Experience(s):
From 2005 to present
Working in SC as general manager.
SC is mainly engaged in
manufacturing control cable.
SC’s products mainly include: control cable and relative components, etc.
SC produces about 10,000,000
sets of control cables per year.
SC sources its materials 100%
from domestic market, mainly Jiangsu province; SC sells 10% of its products in domestic
market, mainly Shanghai, and 90% to overseas market, mainly Italy and Japan.
The
buying terms of SC include 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
Supplier:
==============
Haicheng Greatx Ind. Co., Ltd.
Add: No.
8, Zhengchang Road, Haicheng City, Liaoning Province
Tel : 0412-3133001
Fax : 0412-3133006
*Major Customer:
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Shanghai Guangye Metal Co., Ltd.
Address: 1/F, No. 61, Meisheng Road, Waigaoqiao
Free Trade Zone, Pudong New Zone, Shanghai
Tel: 021-58660888
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.
Agricultural
Bank Changjing Branch
AC#：642001040000954
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2005)
Unit: CNY’000
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Cash & bank |
8,790 |
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Inventory |
650 |
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Accounts receivable |
17,170 |
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Other Accounts receivable |
3 |
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Accounts payable in advance |
0 |
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To be apportioned expense |
0 |
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Other current assets |
107 |
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Current assets |
26,720 |
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Fixed assets |
5,850 |
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Long term investment |
0 |
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Other assets |
10 |
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Total assets |
32,580 |
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Short loans |
0 |
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Accounts payable |
11,440 |
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Salaries payable |
920 |
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Welfares payable |
0 |
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Taxes payable |
100 |
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Other Accounts payable |
0 |
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Withdraw the expenses in
advance |
0 |
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Other current liabilities |
10 |
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Current liabilities |
12,470 |
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Long term liabilities |
0 |
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Other liabilities |
0 |
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Total liabilities |
12,470 |
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Equities |
20,110 |
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Total liabilities &
equities |
32,580 |
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Income Statement (as of Dec. 31, 2005)
Unit: CNY’000
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Turnover |
39,070 |
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Cost of goods sold |
29,660 |
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Sales expense |
2,110 |
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Management expense |
2,570 |
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Finance expense |
620 |
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Non-operating expense |
280 |
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Profit before tax |
3,830 |
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Less: profit tax |
980 |
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Profits |
2,850 |
Important Ratios (as of Dec. 31, 2005)
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*Current ratio 2.14
*Quick ratio 2.09
*Liabilities to
assets 0.38
*Net profit
margin (%) 7.29
*Return on total
assets (%) 8.75
*Inventory
/Turnover ×365 6 days
*Accounts receivable/Turnover
×365 160
days
*Turnover/Total
assets 1.20
* Cost of goods
sold/Turnover 0.76
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 fairly good.
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SC’s
return on total assets is fairly good.
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SC’s
cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
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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 acceptable level.
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The
accounts receivable of SC appears TOO LARGE.
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SC has
no short-term loan in 2005.
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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 fairly low.
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The
risk for SC to go bankrupt is average.
Overall financial condition of the SC:
Stable.
SC is
considered small-sized in its line with stable financial conditions. A credit
line up to USD 200,000 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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