MIRA
INFORM REPORT
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Report Date : |
17th
November, 2006 |
IDENTIFICATION
DETAILS
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Name : |
GUIZHOU
ANDA AVIATION FORGING CO., LTD. |
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Registered Office : |
P.O.Box:
22 Anshun, Guizhou Province, 561005 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 : |
28.03.2000 |
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Com. Reg. No.: |
5225011200496 |
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Legal Form : |
Limited
liabilities company |
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Line of Business : |
Engaged
in forging and casting; processing and repairing 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
600,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
Company name & Address
GUIZHOU
ANDA AVIATION FORGING CO., LTD.
P.O.BOX:
22 ANSHUN,
GUIZHOU
PROVINCE, 561005 PR CHINA
TEL : 86 (0) 853-3393419
FAX : 86 (0) 853-3393676
EXECUTIVE SUMMARY
INCORPORATION
DATE : MARCH 28, 2000
REGISTRATION
NO. : 5225011200496
REGISTERED
LEGAL FORM : Limited liabilities
company
CHIEF
EXECUTIVE : MR. GUO
HONG (CHAIRMAN)
STAFF
STRENGTH : 1,736
REGISTERED
CAPITAL : CNY 71,290,000
BUSINESS
LINE :
manufacturing
TURNOVER : CNY 305,280,000 (AS OF DEC. 31, 2005)
EQUITIES : CNY 172,090,000
(AS OF DEC. 31, 2005)
PAYMENT : AVERAGE
RECOMM.
CREDIT RANGE : UP TO usd 600,000
(PERIODICAL REVIEW)
MARKET
CONDITION : COMPETITIVE
FINANCIAL
CONDITION : FAIRY STABLE
OPERATIONAL
TREND : STEADY
GENERAL
REPUTATION : AVERAGE
EXCHANGE
RATE : CNY7.87 = US$1
AS OF 2006-11-17
Adopted
abbreviations:
ANS -
amount not stated
NS - not
stated
SC -
subject company (the company inquired by you)
NA - not
available
CNY -
China Yuan Renminbi
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 March 28, 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 forging and
casting; forging technology development and consultation; processing and
repairing machinery; exporting its products and technologies; importing
materials, instrument, machinery and equipment, parts and technology needed for
its production.
SC is
mainly engaged in forging and casting; processing and repairing
machinery.
Mr. Guo
Hong has been chairman of SC since 2000.
SC owns about
1,736 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 Anshun. Our checks
reveal that SC owns the total premise about 410,000 square meters.
http://www.andaforging.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: inform@andaforging.com
No
significant events or changes were found during our checks with the local
Administration for Industry & Commerce.
MAIN
SHAREHOLDERS:
Name %
of Shareholding
Guizhou
Aviation Industry (Group) Co., Ltd. 100
Chairman and General Manager:
Mr. Guo
Hong, about 50 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 and
general manager.
SC is
mainly engaged in forging and casting; processing and repairing
machinery.
SC’s
products mainly include: all kinds of forging with stainless steel, Al-alloy, super
alloy, Ti-alloy and other steel raw material.
SC
sources its materials 100% from domestic market, mainly Liaoning. SC sells 80%
of its products in domestic market, and 20% to overseas market, mainly
Southeast Asian market.
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
Customer:
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Guizhou
Liyang Machinery Factory
*Major
Supplier:
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Fushun
Special Steel Co., Ltd.
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.
Industrial
and Commercial Bank of China Anshun Sub-Branch
AC#：2404031009022100154
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2005)
Unit:
CNY’000
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Cash
& bank |
55,890 |
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Inventory |
119,400 |
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Accounts
receivable |
51,820 |
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Other
Accounts receivable |
4,350 |
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To be
apportioned expense |
0 |
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Other
current assets |
99,380 |
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Current
assets |
330,840 |
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Fixed
assets |
334,720 |
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Fixed
assets net value |
191,130 |
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Projects
under construction |
0 |
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Long
term investment |
6,110 |
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Other
assets |
17,680 |
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Total
assets |
545,760 |
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Short
loans |
108,000 |
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Accounts
payable |
36,370 |
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Other
Accounts payable |
22,720 |
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Advances
from customers |
73,720 |
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Withdraw
the expenses in advance |
0 |
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Other
current liabilities |
65,820 |
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Current
liabilities |
306,630 |
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Long
term liabilities |
49,000 |
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Other
liabilities |
18,040 |
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Total
liabilities |
373,670 |
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Equities |
172,090 |
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Total
liabilities & equities |
545,760 |
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Income Statement (as of Dec. 31, 2005)
Unit:
CNY’000
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Turnover |
305,280 |
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Cost
of goods sold |
236,730 |
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Sales
expense |
21,230 |
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Management
expense |
47,900 |
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Finance
expense |
8,690 |
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Profit
before tax |
11,860 |
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Less:
profit tax |
2,020 |
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Profits |
9,840 |
Important Ratios (as of Dec. 31, 2005)
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*Current
ratio 1.08
*Quick
ratio 0.69
*Liabilities
to assets 0.68
*Net
profit margin (%) 3.22
*Return
on total assets (%) 1.80
*Inventory
/Turnover ×365 143 days
*Accounts
receivable/Turnover ×365 62 days
*Turnover/Total
assets 0.56
* Cost
of goods sold/Turnover 0.78
PROFITABILITY:
AVERAGE
The
turnover of SC appears average in its line.
SC’s net
profit margin is fairly good.
SC’s
return on total assets is average.
SC’s
cost of goods sold is average, comparing with its turnover.
LIQUIDITY:
FAIR
The
current ratio of SC is maintained in a normal level.
SC’s
quick ratio is maintained in a fair level.
The
inventory of SC appears LARGE.
The
accounts receivable of SC is maintained in an acceptable level.
SC’s
short-term loan appears TOO LARGE.
SC’s
turnover is in an acceptable 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 medium-sized in its line with fairly stable financial conditions.
The large amount of short-term loan could be a threat to SC’s financial
conditions. A credit line up to USD 600,000 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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