MIRA
INFORM REPORT
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Report Date : |
14th
November, 2006 |
IDENTIFICATION
DETAILS
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Name : |
XIAMEN
ZHENGLIMING METALLURGICAL MACHINERY CO., LTD. |
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Registered Office : |
No. 187 Xingqian Road, Jimei District, Xiamen, Fujian Province, 361022 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 : |
21.11.2000 |
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Com. Reg. No.: |
3502112002239 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged
in Manufacturing and Selling metallurgical machinery. |
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
100,000 |
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Status : |
Satisfactory
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
Company name & address
XIAMEN ZHENGLIMING METALLURGICAL MACHINERY CO., LTD.
NO. 187 XINGQIAN ROAD,
JIMEI DISTRICT, XIAMEN,
FUJIAN PROVINCE, 361022 PR CHINA
TEL : 86
(0) 592-6385802
FAX : 86
(0) 592-3152255
EXECUTIVE SUMMARY
INCORPORATION DATE :
NOV. 21, 2000
REGISTRATION NO. :
3502112002239
REGISTERED LEGAL FORM : LIMITED LIABILITIES
COMPANY
STAFF STRENGTH :
180
REGISTERED CAPITAL :
CNY 6,000,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 68,890,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 15,520,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE :
UP TO usd 100,000
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
stable
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 7.90 = US$1 AS OF 2006-11-14
Adopted abbreviations:
ANS - amount not stated
NS - not stated SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Ren Min Bi
SC was registered as a limited
liabilities company at local Administration for Industry & Commerce (AIC -
The official body of issuing and renewing business license) on Nov. 21, 2000.
Company Status: Limited liabilities co. This form of
business in PR China is defined as a legal person. Shareholders bear
limited liability to the extent of shareholding, and the co. is liable for
its debts only to extent of its total assets. The characteristics of this
form of co. are as follows: Upon the
establishment of the co., an investment certificate is issued to the each
of shareholders. The board of
directors is comprised of three to thirteen members. The minimum
registered capital for a co. is listed as follows: -manufacturing
co. : CNY 500,000.00 -trading
&wholesaling co. : CNY 500,000.00 -retailing co. : CNY 300,000.00 -consultancy &
service co. : CNY 100,000.00 Shareholders may
take their capital contributions in cash or by means of tangible assets or
intangible assets such as industrial property and non-patented technology. Cash contributed by
all shareholders must account for at least 50% of the registered capital
while contribution by intangible assets must not exceed 20% of the
registered capital. Existing
shareholders have pre-exemption right to purchase shares of the co. offered
for sale by the other shareholders and to subscribe for the newly increased
registered capital of the co.
SC’s registered business scope
includes exporting its self-made products; importing the machinery, parts,
materials and technology needed for its production.
SC is mainly engaged in
manufacturing and selling metallurgical machinery.
Mr. Huang Yizhong has been chairman of SC since 2000.
SC owns 180 staff.
SC is
currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Xiamen. Our checks
reveal that SC owns the total premise about 40,000 square meters.
http://www.xmliming.com The design is
professional and the content is well organized. At present it is in both
Chinese and English versions.
No
significant events or changes were found during our checks with local AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Huang Yizhong 70
Huang Yixun 30
l
Chairman
and General Manager:
Mr.
Huang Yizhong, in his 40’s 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 and
general manager.
l
Vice General
Manager:
Mr. Lin Baidong,
in his 50’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 vice general
manager.
SC is mainly engaged in
manufacturing and selling metallurgical machinery.
SC’s products mainly include:
Ø 600mmx5TON HYDRAULIC UN-COILER
WITH TOP HOLDER
Ø
600mmx5TON HYDRAULIC
UN-COILER WITH TOP HOLDER & DOWN-ENDER
Ø 1250mmx5TON HYDRAULIC RE-COILER MANUAL PRE-SHEARING
Ø 1000/1250MMx8TON HYDRAULIC
UN-COILER
Ø 10TON HYDRAULIC UN-COILER (WITH
COIL CAR)
Ø 300MMx1.5TON UN-COILER
Ø 1000/1250MMx5TON MANDREL
UN-COILER
Ø 600MMx3TON HYDRAULIC UN-COILER
Ø 1000/1200mmx5TON HYDRAULIC
UN-COILER
SC’s annual output can reach 500
sets.
SC sources its materials 100%
from domestic market. SC sells 70% of its products in domestic market, and 30%
to the overseas market, mainly to Europe.
The
buying terms of SC include Check, 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:
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Zhangzhou Tongli Trading Co., Ltd.
*Major Client:
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Baosteel Group Engineering Construction Corp
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.
Construction
Bank of China Xiamen Branch
AC#：53602210005638
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As of Dec. 31,
2005 |
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Cash & bank |
2,190 |
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Accounts payable advance |
0 |
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Accounts receivable |
7,240 |
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Inventory |
4,720 |
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Other accounts receivable |
20 |
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Expenses
to be apportioned |
0 |
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Other current assets |
2,190 |
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Current assets |
16,360 |
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Fixed assets |
16,240 |
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Long term investment |
0 |
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Projects under construction |
0 |
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Other assets |
20 |
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Total assets |
32,620 |
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Short loans |
0 |
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Accounts payable |
500 |
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Salary payable |
0 |
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Tax payable |
-210 |
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Account receivable advance |
16,530 |
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Estimated
liabilities |
0 |
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Other accounts payable |
280 |
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Drawing-expense in advance |
0 |
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Other current liabilities |
0 |
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Current liabilities |
17,100 |
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Long term liabilities |
0 |
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Other liabilities |
0 |
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Total liabilities |
17,100 |
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Equities |
15,520 |
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Total liabilities &
equities |
32,620 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2005 |
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Turnover |
68,890 |
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Cost of goods sold |
59,790 |
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Sales expense |
3,680 |
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Management expense |
2,070 |
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Finance expense |
60 |
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Profit before tax |
3,180 |
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Less: profit tax |
480 |
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Profits |
2,700 |
Important Ratios
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2005 |
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*Current ratio |
0.96 |
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*Quick ratio |
0.68 |
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*Liabilities
to assets |
0.52 |
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*Net profit
margin (%) |
3.92 |
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*Return on
total assets (%) |
8.28 |
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*Fixed
assets/Total assets |
0.50 |
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*Inventory
/Turnover ×365 |
25days |
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*Accounts
receivable/Turnover ×365 |
38days |
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*Turnover/Total
assets |
2.11 |
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* Cost of
goods sold/Turnover |
0.87 |
PROFITABILITY: AVERAGE
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The
turnover of SC appears fairly good in its line.
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SC’s
net profit margin is average in 2005.
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SC’s
return on total assets is average in 2005.
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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 normal level.
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SC’s
quick ratio is maintained in a fair level.
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The
inventory of SC is average.
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The
accounts receivable of SC is average.
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SC’s
turnover is in an acceptable 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 small-sized in its line with stable financial conditions. A credit
line up to USD 100,000 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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