MIRA
INFORM REPORT
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Report Date : |
28.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
SBW ELECTRO-MECHANICS
IMPORT & EXPORT CO., LTD. |
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Registered Office : |
No. 36, North Yunfeng Street, Tiexi District, Shenyang City,
Liaoning Province 110022 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
aug. 28, 2003 |
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Com. Reg. No.: |
2101061150052 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Importing
and exporting
electromechanical products. |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Up To usd 50,000 |
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Status : |
Small Company |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
name & address
sbw
electro-mechanics import & export co., ltd.
NO. 36, NORTH YUNFENG STREET, TIEXI DISTRICT, SHENYANG CITY
LIAONING PROVINCE 110022 PR
CHINA
TEL :
86 (0) 24-25801581
FAX :
86 (0) 24-25862964
EXECUTIVE SUMMARY
INCORPORATION DATE : aug. 28, 2003
REGISTRATION NO. : 2101061150052
REGISTERED LEGAL FORM : limited liabilities
company
STAFF STRENGTH :
36
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE :
trading
TURNOVER :
cny 278,160,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 7,040,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 50,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.74 = US$1 AS OF 2007-03-27
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 Aug. 28, 2003.
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 design, installation,
debugging, and maintenance of electromechanical engineering items; selling
machinery, electric equipment, components, automation control equipment,
apparatus and instruments, optical instrument, and metal materials; consulting
service of electromechanical engineering items; importing and exporting
commodities & technologies.
SC is
mainly engaged in importing and exporting electromechanical products.
Mr. Su Yongqiang
has been chairman of SC since 2003.
SC owns about 36
staff at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Shenyang. Our checks reveal that SC
owns the total premise about 400 square meters.
http://www.sbw-turbo.cn The design is
professional and the content is well organized. At present, the web is only in
Chinese versions.
E-mail: info@sbw-turbo.com
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name
% of Shareholding
Shenyang Blower Works (Group) Co., Ltd. 60
Beijing Fu Di Si Mo Control Equipment Co.,
Ltd. 20
Other individuals 20
l
Chairman and
General Manager:
Mr. Su Yongqiang, born in 1953, 54 years old
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 and
general manager;
At present Working in
Shenyang Blower Works (Group) Co., Ltd. as legal
representative and
chairman.
l
Assistant
Manager:
Mr. Xiang Anding, in his 40’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 assistant
manager.
SC is mainly
engaged in importing and exporting electromechanical products.
SC’s products
mainly include: compressor, blast blower, and water pump, etc.
SC sources its
materials 20% from domestic market, mainly Liaoning province, and 80% from
overseas market, mainly America and Germany; SC sells its products 60% in
domestic market, mainly Zhejiang and Liaoning province, and 40% to overseas
market, mainly India.
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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Shenyang Blower Works (Group) Co., Ltd.
*Major Customer:
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Hangzhou Dissolved Air Co., Ltd.
Address: Sanliyang, Gongchen Bridge, Hangzhou City
Tel: 0571-88173809
Fax: 0571-88170109
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.
Construction
Bank of China
AC#:
4000082269005978
Relation: Normal
Balance Sheet (as of
Dec. 31, 2005)
Unit: CNY’000
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Cash & bank |
33,740 |
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Inventory |
0 |
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Accounts
receivable |
22,040 |
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Other Accounts
receivable |
5,120 |
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Accounts payable
in advance |
64,980 |
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To be
apportioned expense |
0 |
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Other current
assets |
7,230 |
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Current assets |
133,110 |
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Fixed assets |
2,600 |
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Long term
investment |
0 |
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Other assets |
-10 |
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Total assets |
135,700 |
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Short loans |
0 |
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Bills payable |
0 |
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Accounts payable |
31,080 |
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Accounts
receivable in advance |
78,660 |
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Other Accounts
payable |
4,680 |
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Salaries payable |
0 |
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Welfares payable |
130 |
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Taxes payable |
630 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
13,480 |
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Current
liabilities |
128,660 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
128,660 |
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Equities |
7,040 |
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Total
liabilities & equities |
135,700 |
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Income Statement (as
of Dec. 31, 2005)
Unit: CNY’000
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Turnover |
278,160 |
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Cost of goods
sold |
261,380 |
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Sales expense |
9,240 |
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Management expense |
4,960 |
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Finance expense |
-180 |
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Non-operating
expense |
450 |
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Profit before
tax |
2,310 |
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Less: profit tax |
770 |
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Profits |
1,540 |
Important Ratios (as of Dec. 31, 2005)
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*Current ratio 1.03
*Quick ratio 1.03
*Liabilities to
assets 0.95
*Net profit
margin (%) 0.55
*Return on total
assets (%) 1.13
*Inventory
/Turnover ×365 /
*Accounts
receivable/Turnover ×365 29 days
*Turnover/Total
assets 2.05
* Cost of goods
sold/Turnover 0.94
PROFITABILITY:
AVERAGE
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The turnover of SC appears fairly good in its line.
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SC’s net profit margin is acceptable.
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SC’s return on total assets is acceptable.
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SC’s cost of goods sold is high, comparing with its
turnover.
LIQUIDITY:
AVERAGE
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The current ratio of SC is maintained in a normal level.
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SC’s quick ratio is maintained in a normal level.
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SC has no inventory in 2005.
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The accounts receivable of SC is maintained in an acceptable level.
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SC has no short-term loan in 2005.
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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 high.
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The risk for SC to go bankrupt is above average.
Overall
financial condition of the SC: Fairly stable.
SC is considered small-sized in its line with fairly stable financial
conditions. A credit line up to USD 50,000 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%)