MIRA
INFORM REPORT
|
Report Date : |
21st
November, 2006 |
IDENTIFICATION
DETAILS
|
Name : |
HUANGSHAN
WANNAN MACHINERY COMPANY LIMITED |
|
|
|
|
Registered Office : |
No.
193 Huangshan Road, Huizhou District, Huangshan, Anhui Province, 245061 Pr China |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2005 |
|
|
|
|
Date of Incorporation : |
26.11.1997 |
|
|
|
|
Com. Reg. No.: |
3410042300164 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
Engaged
in manufacturing and selling milling machine. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 50,
000 |
|
|
|
|
Status : |
Satisfactory
|
|
|
|
|
Payment Behaviour : |
Regular
|
|
|
|
|
Litigation : |
Clear |
Company Name & Address
HUANGSHAN WANNAN MACHINERY CO., LTD.
NO. 193 HUANGSHAN ROAD, HUIZHOU DISTRICT, HUANGSHAN,
anhui PROVINCE, 245061 PR CHINA
TEL : 86
(0) 559-3511493
FAX : 86
(0) 559-3511680
EXECUTIVE SUMMARY
INCORPORATION DATE :
NOV. 26, 1997
REGISTRATION NO. :
3410042300164
REGISTERED LEGAL FORM : LIMITED LIABILITES
COMPANY
STAFF STRENGTH :
420
REGISTERED CAPITAL :
CNY 25,000,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 39,690,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 32,590,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE :
UP TO usd 50,000 (periodical review)
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
fair
OPERATIONAL TREND :
FAIRLY STEADY
GENERAL REPUTATION :
average
EXCHANGE RATE :
CNY 7.87 = US$1 AS OF 2006-11-23
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. 26, 1997.
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 manufacturing and selling milling machine, CNC milling machine, belt
pulley, toothed pulley, taper sleeve, sprocket wheel, gear, motor parts,
metals, machinery parts, valve snap, electric machinery parts; repairing
machinery and equipment; exporting universal radial milling machine, gear,
sprocket wheel; importing the materials, machinery, parts and technology.
SC is mainly engaged in
manufacturing and selling milling machine.
Mr. Wang Xiaodong has been chairman of SC since 1997. SC owns about
420 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 Huangshan. Our checks
reveal that SC owns the total premise about 33,000 square meters.
http://www.wannan.com.cn.
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
E-Mail: hswjc@163.com
Huangshan
Wannan Machinery Co., Ltd., formerly Shanghai No.7 Machine Tool Works, was set
up in 1928.
In 1987,
SC changed its name to Anhui Wannan Machinery Factory.
In 2003
SC changed its legal form to Limited Liabilities Company and changed its name
to the present one.
It is
one of the major 25 professional factories for milling machines in China.
SC is a
member of China Machine Tool Association--Milling Machine Branch and China
General Machinery Components Industry Association--Chain Transmission Branch. SC
obtained ISO9001-1994 and ISO9001-2000 quality management system authentications
in 1998 and 2004.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Wang Xiaodong 汪晓东 37
Fang Jianhui 方建辉 32
Wang Qingfeng 王庆峰 14
Zhang Qi 张琦 7
Zhang Xuezhong 张学中 10
l
Chairman:
Mr. Wang
Xiaodong, in his 30’s with university education. He is currently responsible
for the overall management of SC.
Working Experience(s):
From 2003 to present Working in SC as chairman.
l
General
Manager:
Mr.
Zhang Xuezhong, in his 50’s with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2003 to present
Working in SC as general
manager.
SC is mainly engaged in
manufacturing and selling milling machine.
SC’s products mainly include: CNC
machine tools, Ordinary machinery, Sprockets, Domestic machine tool, Transmission
chain.
SC’s products are widely used in
all kinds of mechanical processing industry.
SC sources its materials 100% from
domestic market. SC sells 90% of its products in domestic market, and 10% to
the overseas market, mainly to USA, Spain, Italy, Japan, Argentina, South and
East of Asia, Middle East, Europe, etc.
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 Suppliers:
=============
Chint Group Huangshan Electric Appliance Selling Co., Ltd.
*Major Clients:
============
Wujiang Zhengyang Eletromechanical 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 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 Huangshan Branch
AC#：1310094109022101153
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
As of Dec. 31,
2005 |
|
Cash & bank |
1,520 |
|
Accounts payable advance |
0 |
|
Accounts receivable |
2,500 |
|
Inventory |
20,100 |
|
Other accounts receivable |
2,650 |
|
Expenses
to be apportioned |
0 |
|
Other current assets |
270 |
|
|
------------------- |
|
Current assets |
27,040 |
|
Fixed assets |
21,540 |
|
Long term investment |
0 |
|
Projects under construction |
0 |
|
Other assets |
13,880 |
|
|
-------------- |
|
Total assets |
62,460 |
|
|
============ |
|
Short loans |
18,800 |
|
Accounts payable |
7,820 |
|
Salary payable |
0 |
|
Tax payable |
0 |
|
Account receivable advance |
0 |
|
Estimated
liabilities |
0 |
|
Other accounts payable |
-3,260 |
|
Drawing-expense in advance |
0 |
|
Other current liabilities |
2,610 |
|
|
------------------ |
|
Current liabilities |
25,970 |
|
Long term liabilities |
3,900 |
|
Other liabilities |
0 |
|
|
------------------ |
|
Total liabilities |
29,870 |
|
Equities |
32,590 |
|
|
------------------- |
|
Total liabilities &
equities |
62,460 |
|
|
=========== |
Income Statement
Unit: CNY’000
|
|
As of Dec. 31, 2005 |
|
Turnover |
39,690 |
|
Cost of goods sold |
29,760 |
|
Sales expense |
1,820 |
|
Management expense |
5,030 |
|
Finance expense |
1,310 |
|
Profit before tax |
1,590 |
|
Less: profit tax |
0 |
|
Profits |
1,590 |
Important Ratios
=============
|
|
2005 |
|
*Current ratio |
1.04 |
|
*Quick ratio |
0.27 |
|
*Liabilities
to assets |
0.46 |
|
*Net profit
margin (%) |
4.01 |
|
*Return on
total assets (%) |
2.55 |
|
*Fixed
assets/Total assets |
0.34 |
|
*Inventory
/Turnover ×365 |
185days |
|
*Accounts
receivable/Turnover ×365 |
23days |
|
*Turnover/Total
assets |
0.64 |
|
* Cost of
goods sold/Turnover |
0.75 |
PROFITABILITY: AVERAGE
l
The
turnover of SC appears acceptable in 2005.
l
SC’s
net profit margin is fairly good in 2005.
l
SC’s
return on total assets is fairly good in 2005.
l
SC’s
cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
l
The
current ratio of SC is maintained in a normal level.
l
SC’s
quick ratio is maintained in a POOR level.
l
The
inventory of SC is fairly large.
l
The
accounts receivable of SC is average.
l
SC’s
short loans are fairly large.
l
SC’s
turnover is in an acceptable level, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
l
The
debt ratio of SC is average.
l
The
risk for SC to go bankrupt is low.
Overall financial condition of the SC: Fair.
SC is
considered medium-sized in its line with fair financial conditions. A credit line
up to USD50,000 would appear to be within SC’s capacities upon a periodical
review basis.
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|