MIRA
INFORM REPORT
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Report Date : |
27th
November, 2006 |
IDENTIFICATION
DETAILS
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Name : |
SHANDONG SEM MACHINERY CO., LTD. |
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Registered Office : |
Yunxiahe
Huizu Town, Qingzhou, Shandong Province, 262500 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 : |
28.02.1989 |
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Com. Reg. No.: |
004044 |
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Legal Form : |
Chinese Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Engaged
in manufacturing and selling machineries. |
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 : |
USD200,000 |
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Status : |
Satisfactory
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
Company name & ADdress
SHANDONG SEM MACHINERY CO., LTD.
YUNXIAHE HUIZU TOWN, QINGZHOU,
SHANDONG PROVINCE, 262500 PR CHINA
TEL : 86
(0) 536-3818603
FAX : 86
(0) 536-3818232
EXECUTIVE SUMMARY
INCORPORATION DATE :
FEB. 28, 1989
REGISTRATION NO. :
004044
REGISTERED LEGAL FORM : cHINESE FOREIGN EQUITY
JOINT VENTURE ENTERPRISE
STAFF STRENGTH :
1,470
REGISTERED CAPITAL :
CNY 4,360,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 1,210,845,000 (AS OF
DEC. 31, 2005)
EQUITIES :
CNY 21,915,000 (AS
OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE :
UP TO usd 200,000
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
fairLY STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 7.90 = US$1 AS OF 2006-11-28
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 Chinese
foreign equity joint venture enterprise at local Administration for Industry
& Commerce (AIC - The official body of issuing and renewing business
license) on Feb. 28, 1989.
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 designing and manufacturing engineering machinery, agriculture
machinery, building machinery, and its parts; selling its products and
providing after sales service.
SC is mainly engaged in
manufacturing and selling machineries.
Mr. Paul David Blackburn has been
chairman of SC since 2005.
SC owns 1,470 staff.
SC is
currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Qingzhou. Our checks
reveal that SC owns the total premise about 350,000 square meters.
http://www.china-sg.com.
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
SC was
formerly named Shandong Engineering Machinery Factory, which was established in
1989 as a state-owned enterprise. In 2003 it was changed to a limited
liabilities company.
In Mar.
2005 Caterpillar purchased 40% of SC’s shares (Caterpillar (China) Investment
Co., Ltd., 30% and Caterpillar (Hong Kong) Co., Ltd. 10%).
SC’s
former legal representative was Mr. Wang Chunquan and in Mar. 2005 it was changed to the present - Mr. Paul David
Blackburn.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Caterpillar (China) Investment Co.,
Ltd. 30
Caterpillar (Hong Kong) Co., Ltd. 10
Wang Chunquan 25
Other 22 individuals 35
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Chairman:
Mr. Paul
David Blackburn (白博恩), in his 40’s with university education. He
is currently responsible for the overall management of SC.
Working Experience(s):
From 2005 to present Working in SC as chairman.
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Vice Chairman:
Mr. Wang
Chunquan (王春泉), in his 50’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 vice chairman.
From 2003 to 2005 Working in SC as chairman.
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General
Manager:
Mr. Yang
Yinggen, 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 machineries.
SC’s products mainly include:
shovel loader, trench-digging machine, and loader digger, etc.
SC’s annual output can reach
10,000 sets.
SC sources its materials 80% from
domestic market and 20% from the overseas market, mainly from America. SC sells
90% of its products in domestic market, and 10% to the overseas market, mainly
to Southeast Asia and Europe.
The
buying terms of SC include Check, L/C, T/T and Credit of 30-60 days. The payment
terms of SC include T/T, L/C and Credit of 30-60 days.
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 Qingzhou Sub-branch
AC#：3600190313052217
Relationship:
Normal.
Financial Summary
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Unit: CNY’000
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As of Dec. 31,
2004 |
As of Dec. 31, 2005 |
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Accounts receivable |
75,840 |
144,949 |
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Inventory |
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Current assets |
577,000 |
641,380 |
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Fixed assets |
169,000 |
150,410 |
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Long term investment |
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Total assets |
808,667 |
810,070 |
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Current liabilities |
792,246 |
788,155 |
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Total liabilities |
792,246 |
788,155 |
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Equities |
16,421 |
21,915 |
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Total liabilities &
equities |
808,667 |
810,070 |
Income Statement
Unit: CNY’000
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As of Dec. 31, 2004 |
As of Dec. 31, 2005 |
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Turnover |
1,051,430 |
1,210,845 |
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Cost of goods sold |
925,808 |
1,054,768 |
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Sales expense |
69,000 |
85,810 |
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Management expense |
53,661 |
50,231 |
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Finance expense |
21,433 |
23,531 |
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Profit before tax |
8,000 |
10,115 |
Important Ratios
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As
of Dec. 31, 2004 |
As
of Dec. 31, 2005 |
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*Current ratio |
0.73 |
0.81 |
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*Quick ratio |
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*Liabilities
to assets |
0.98 |
0.97 |
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*Net profit
margin (%) |
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*Return on
total assets (%) |
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*Fixed
assets/Total assets |
20.90 |
18.57 |
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*Inventory
/Turnover ×365 |
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*Accounts
receivable/Turnover ×365 |
26days |
44days |
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*Turnover/Total
assets |
1.30 |
1.49 |
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* Cost of
goods sold/Turnover |
0.88 |
0.87 |
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 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 fair level.
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The
accounts receivable of SC appears average.
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SC’s
turnover is in a fairly good level, comparing with the size of its total
assets.
LEVERAGE: FAIR
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The
debt ratio of SC is fairly high.
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The
risk for SC to go bankrupt is low.
Overall financial condition of the SC:
Fairly stable.
SC is
considered medium-sized in its line with fairly stable financial conditions. A
credit line up to USD200,000 appears to be within SC’s capacities at present.
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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