MIRA
INFORM REPORT
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Report Date : |
17th
November, 2006 |
IDENTIFICATION
DETAILS
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Name : |
shenyang liming aero-engine group corporation |
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Registered Office : |
No.6
Dongta Street, Dadong District, Shenyang,
Liaoning Province, 110043 Pr China. |
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Country : |
China |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
12.01.1984 |
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Com. Reg. No.: |
2101001104409 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged
in manufacturing and selling aero trubine. |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 5,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
Company name & Address
shenyang liming aero-engine group corporation
no.6 dongta street, dadong district, shenyang,
liaoning province, 110043 PR CHINA.
TEL : 86
(0) 24-24830843
FAX : 86
(0) 24-24830013
EXECUTIVE SUMMARY
INCORPORATION DATE :
january 12, 1984
REGISTRATION NO. :
2101001104409
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
10,000
REGISTERED CAPITAL :
CNY 1,630,873,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 2,170,000,000 (AS OF DEC.
31, 2005)
EQUITIES :
CNY 1,993,500,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE :
UP TO usd 5,000,000
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
fairly good
OPERATIONAL TREND :
fairly good
GENERAL REPUTATION :
WELL-KNOWN
EXCHANGE RATE :
CNY7.87 = US$1 AS OF 2006-11-16
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 January 12, 1984.
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 processing and manufacturing industrial
products, processing machinery equipment and aluminum materials, domestic
trade, exporting its products and technology; importing materials, instrument,
machinery and equipment, parts and technology needed for its production;
processing with the imported materials and compensation trade agreement.
SC is mainly engaged in manufacturing
and selling aero turbine.
Mr. Jiang Wei has been chairman
of SC since 2000.
SC owns about 10,000 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 Shenyang. Our checks
reveal that SC owns the total premise about 1,180,000 square meters.
http://www.lmaeg.com
The design is professional and the content is well organized. At present the
web site is only in Chinese version.
E-mail: lm@lmaeg.com
No significant events or changes were found during
our checks with the local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
China Aviation Industry Corporation 87
China Huarong Asset Management Corporation 13
China Aviation Industry Corporation:
===========================
China Aviation Industry Corporation I (AVIC
I), established on July 1, 1999, is an ultra-large state-owned enterprise.
Under AVIC I, there are 47 large and
medium-sized manufacturing facilities,
31 research and development institutes, 22 affiliated specialized
companies and institutions, the total employment is 240,000 and total assets
100 billion CNY.
China Huarong Asset Management Corporation:
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Authorized by the State Council, China
Huarong Asset Management Corporation was founded on October 19, 1999 in
Beijing.
The company is a wholly state-owned
financial institution with independent legal status.
The registered capital amounts to 10 billion
RMB.
The major role of the Company is to
purchase, manage and dispose of NPLs acquired from financial institutions.
The Company's operational goal is to
preserve the asset value and maximize the recovery value.
The Company is under the supervision of
China Banking Regulatory Commission. As to the financial business not
supervised by CBRC, the concerning departments from China Securities Regulatory
Commission shall carry out the supervision. The Ministry of Finance supervises
the financial activities of the Company.
l
Chairman
and General Manager:
Mr. Jiang
Wei, 49 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 manufacturing
and selling aero trubine.
Brand: Liming.
SC’s products mainly include:
QD-128 combustion turbine, QD-70 combustion turbine.
SC sources its materials 80% from domestic
market, and 20% from overseas market, mainly USA and Europe. SC sells 90% of
its products in domestic market, and 10% to overseas market, mainly Southeast
Asian, USA and Europe.
The
buying terms of SC include T/T, L/C and Credit of 30-60 days. The payment terms
of SC include T/T, L/C and Credit of 30-60 days.
*Major
Customers:
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China Aviation Industry Corporation
*Major
Suppliers:
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USA GEAE
INC.
SC is
known to have 2 subsidiaries at present:
Shanghai
Feipu Industrial and Trading Corporation
Beijing
Liming Ruitai Technology Co., Ltd.
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 Shenyang Branch
AC#：33010001092210015-51
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As of Dec. 31,
2004 |
As of Dec. 31, 2005 |
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Accounts receivable |
362,711 |
310,000 |
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Current assets |
2,406,139 |
3,028,190 |
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Fixed assets |
992,498 |
1,362,850 |
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Total assets |
5,024,555 |
5,800,000 |
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Total liabilities |
3,276,810 |
3,806,500 |
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Equities |
1,747,745 |
1,993,500 |
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Total liabilities &
equities |
5,024,555 |
5,800,000 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2004 |
As of Dec. 31, 2005 |
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Turnover |
1,652,165 |
2,170,000 |
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Cost of goods sold |
1,140,123 |
1,550,000 |
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Sales expense |
16,008 |
25,000 |
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Management expense |
401,852 |
505,000 |
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Finance expense |
70,964 |
70,000 |
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Profit before tax |
32,988 |
35,500 |
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Less: profit tax |
1,430 |
3,620 |
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Profits |
31,558 |
31,880 |
Important Ratios
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As
of Dec. 31, 2004 |
As
of Dec. 31, 2005 |
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*Liabilities
to assets |
0.65 |
0.66 |
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*Net profit
margin (%) |
1.91 |
1.47 |
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*Return on
total assets (%) |
0.63 |
0.55 |
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*Accounts
receivable/Turnover ×365 |
80 |
52 |
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*Turnover/Total
assets |
0.33 |
0.37 |
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* Cost of
goods sold/Turnover |
0.69 |
0.71 |
PROFITABILITY: FAIRLY GOOD
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The
turnover of SC appears fairly good 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 average.
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SC’s
cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
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The
accounts receivable of SC is maintained in an acceptable level.
l
SC’s
turnover is in an acceptable level, comparing with the size of its total
assets.
LEVERAGE: FAIRLY GOOD
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The
debt ratio of SC is average.
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The
risk for SC to go bankrupt is low.
Overall financial condition of the SC: Fairly
Good.
Over the
past 22 years, SC has made a stable growth with acceptable profit. A credit
line up to USD 5,000,000 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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