MIRA
INFORM REPORT
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Report Date : |
31.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
firstech lighting
corporation |
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Registered Office : |
Building C1, Fumin
Industrial 2nd Road, Guanlan Town, Shenzhen City Guangdong
Province 518110 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
dec. 19, 2002 |
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Com. Reg. No.: |
310150 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Manufacturing light fitting. |
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 : |
Up To usd 200,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
name & address
firstech lighting
corporation
building c1, fumin industrial 2nd road,
guanlan town, shenzhen city
guangdong province 518110 PR CHINA
TEL :
86 (0) 755-28022000
FAX :
86 (0) 755-28025000
EXECUTIVE SUMMARY
INCORPORATION DATE : dec. 19, 2002
REGISTRATION NO. : 310150
REGISTERED LEGAL FORM : wholly foreign-owned enterprise
STAFF STRENGTH :
200
REGISTERED CAPITAL : usd 1,860,000
BUSINESS LINE :
manufacturing
TURNOVER :
cny 44,230,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 32,510,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up
to usd 200,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : steady
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 7.74 = US$1 AS OF 2007-03-30
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 wholly foreign-owned enterprise at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on Dec. 19, 2002.
Company Status: Wholly foreign-owned enterprise. This
form of business in PR China is defined as a legal person. It is a limited
co. established within the territories of PR China with capital provided
totally by the foreign investors. More than one foreign investors may
jointly invest in a wholly foreign-owned enterprise. The investing
party/parties solely exercise management, reap profit and bear risks and
liabilities by themselves. This form of companies usually have a limited
duration is extendible upon approval of Examination and Approval
Authorities.
SC’s
registered business scope includes manufacturing and selling light fitting and
illmination; research and development of related illuminative products;
additional: manufacturing and selling airplane illuminative components;
importing and exporting commodity & technology.
SC is
mainly engaged in manufacturing light fitting.
Mr. HYLAND JAMES HOWDEN has been chairman
of SC since 2002.
SC
owns about 200 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 Shenzhen.
Our checks reveal that SC rents the total premise about 20,000 square meters.
http://www.firstechlighting.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: info@sonlite-lighting.com
Till December 31, 2006, SC’s paid-up capital reached CNY 15,340,000.
In 2006, SC increased its registered capital from USD 1,600,000 to the
present.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Sonlite Lighting Industry (Hong
Kong) Co., Ltd. 100
l
Chairman and
General Manager:
Mr. HYLAND JAMES
HOWDEN, about 50 years old with university education. He is currently responsible
for the overall management of SC.
Working Experience(s):
From 2002 to present Working in SC as chairman and
general manager.
SC is mainly
engaged in manufacturing light fitting.
SC’s products mainly include: Halogen Lamps,
Auto ON-OFF Halogen Lamps, and metal halide par-lamps, etc.
SC sources its materials 30% from
domestic markets, mainly Guangdong province, and 70% from overseas market,
mainly Germany. SC sells 10% of its products in domestic markets, mainly
Guangdong province, and 90% to overseas market, mainly Canada.
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 15-30 days.
*Major Supplier:
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PHILIPS Germany Ltd.
*Major Customer:
==============
DAMAR LTD. CANADA
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.
Shenzhen Development Bank Guanlan Su-branch
AC#: 1100356357101
Relation: Normal
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
8,680 |
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Inventory |
14,090 |
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Accounts
receivable |
10,120 |
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Bills receivable |
0 |
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Other Accounts
receivable |
2,130 |
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Accounts payable
in advance |
0 |
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To be
apportioned expense |
0 |
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Other current
assets |
120 |
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------------------ |
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Current assets |
35,140 |
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Fixed assets |
11,630 |
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Fixed assets net
value |
11,500 |
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Projects under
construction |
130 |
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Long term
investment |
0 |
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Other assets |
-3,110 |
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------------------ |
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Total assets |
43,660 |
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============= |
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Short loans |
0 |
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Accounts payable |
7,700 |
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Bills payable |
1,400 |
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Accounts
receivable in advance |
0 |
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Other Accounts
payable |
1,780 |
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Salaries payable |
0 |
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Welfares payable |
0 |
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Taxes payable |
-690 |
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Withdraw the expenses
in advance |
0 |
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Other current
liabilities |
860 |
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Current
liabilities |
11,050 |
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Long term
liabilities |
100 |
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Other
liabilities |
0 |
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Total
liabilities |
11,150 |
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Equities |
32,510 |
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Total
liabilities & equities |
43,660 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
44,230 |
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Cost of goods
sold |
30,420 |
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Sales expense |
1,450 |
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Management expense |
3,700 |
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Finance expense |
360 |
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Non-operating
income |
120 |
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Profit before
tax |
8,420 |
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Less: profit tax |
640 |
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Profits |
7,780 |
Important Ratios
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As
of Dec. 31, 2006 |
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*Current ratio |
3.18 |
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*Quick ratio |
1.90 |
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*Liabilities
to assets |
0.26 |
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*Net profit
margin (%) |
17.59 |
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*Return on
total assets (%) |
17.82 |
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*Inventory
/Turnover ×365 |
116 days |
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*Accounts
receivable/Turnover ×365 |
84 days |
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*Turnover/Total
assets |
1.01 |
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* Cost of
goods sold/Turnover |
0.69 |
PROFITABILITY: FAIRLY GOOD
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The turnover of SC appears average 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.
l
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 fairly good
level.
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SC’s quick ratio is maintained in a fairly good level.
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The inventory of SC appears
LARGE.
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The accounts receivable of SC is maintained in a normal level.
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SC has no short-term loan in 2006.
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SC’s turnover is in an average level, comparing with the
size of its total assets.
LEVERAGE: FAIRLY GOOD
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The debt ratio of SC is low.
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The risk for SC to go bankrupt is low.
Overall financial condition of the SC:
Fairly good.
SC is considered
small-sized in its line with fairly good financial conditions. A credit line up
to USD 200,000 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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This score serves as a reference to
assess SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial condition (40%) Ownership background (20%) Payment
record (10%)
Credit history (10%) Market trend (10%) Operational
size (10%)