MIRA
INFORM REPORT
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Report Date : |
02.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
china faw group
import and export corporation |
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Registered Office : |
No. 3025 Dongfeng
Street, Changchun, Jilin Province, 130011
Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
march 4, 1984 |
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Com. Reg. No.: |
2200001000309 |
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Legal Form : |
State-Owned Enterprise |
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Line of Business : |
Engaged in importing
automotive parts. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Up To usd 1,500,000 |
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Status : |
Good |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
name & address
china faw group
import and export corporation
no.3025 dongfeng street, changchun,
jilin PROVINCE, 130011 PR CHINA
TEL :
86 (0) 431-87655750
FAX :
86 (0) 431-87614780
EXECUTIVE SUMMARY
INCORPORATION DATE : march 4, 1984
REGISTRATION NO. : 2200001000309
REGISTERED LEGAL FORM : State-owned enterprise
STAFF STRENGTH :
155
REGISTERED CAPITAL : CNY 58,250,000
BUSINESS LINE :
trading
TURNOVER :
CNY 12,323,630,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 269,250,000 (AS OF DEC. 31,
2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 1,500,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY7.73 = US$1 AS OF 2007-3-30
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 state-owned enterprise at Jilin provincial Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on March 4, 1984.
Company Status: State-owned enterprise This form of business in PR
China is defined as a commodity production or operational units of a
socialist character which in accordance with the law, has autonomy in
management, takes full responsibility for its profits and losses and
practices independent business accounting. It is a legal person established
directly by central / local government or enterprise owned by central or
local government. In theory, the liabilities of this form of enterprise are
ultimately borne by the government, since the adoption of company law in mid-1994,
the Chinese government has planned to separate the ownership from
management and liabilities bearing.
SC’s registered
business scope includes contract with international project, international
tender service, exporting relation equipment, operating and acting as an agent
of importing and exporting various kinds of commodities and technology.
SC is mainly
engaged in importing automotive parts.
Mr. Jin Yi has
been chairman of SC since 1998.
SC owns about 155
staff at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Changchun. Our checks reveal that SC
rents the total premise about 3,000 square meters.
SC is not known to host web site of its own at present.
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name % of Shareholding
China Faw Group Corporation 100
China Faw Group Corporation:
======================
China FAW Group Corporation, commonly
referred to as FAW due to its original name of First Automotive Works, broke
ground for its first factory on July 15, 1953. Since then, FAW has been at the
forefront of promoting China's automobile industry. Although FAW began life
solely as a truck producer, it later expanded into the light-duty truck and car
sector. In 1991, working in partnership with Volkswagen AG, FAW created a new
state-of-the-art production facility with a yearly production capacity in
excess of 150,000 units. In 2002, Tianjin Automobile Industry (Group)
Corporation was merged into FAW Group Corporation, and began joint venture
production with Toyota Motor Corporation.
l
Chairman:
Mr. Jin Yi, 51 years old with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1998 to present Working in SC as chairman, and also working in China Faw Group Corporation
as
vice general manager.
l
General Manager:
Mr. Li Weidou, 43 years old with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2005 to present Working in SC as general manager, and also working in China Faw Group
Corporation
technology center as manager.
SC is mainly
engaged in importing automotive parts.
SC’s products
mainly include: automotive and parts.
SC sources its materials 20% from domestic
market, and 80% from overseas market, mainly Japan, USA and Europe. SC sells
80% of its products in domestic market, and 20% to overseas market, mainly USA,
Europe and Southeast Asian market.
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 Customer:
==============
China Faw Group Corporation
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.
Bank of China Changchun Branch
AC#：202100252108092001
Relationship:
Normal.
Balance Sheet (as
of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
145,380 |
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Inventory |
601,220 |
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Accounts
receivable |
505,440 |
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Other Accounts
receivable |
8,890 |
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Prepayment |
138,320 |
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To be
apportioned expense |
0 |
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Other current
assets |
705,640 |
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------------------ |
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Current assets |
2,104,890 |
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Fixed assets net
value |
121,770 |
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Projects under
construction |
0 |
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Long term
investment |
129,510 |
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Other assets |
3,220 |
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------------------ |
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Total assets |
2,359,390 |
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============= |
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Short loans |
0 |
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Accounts payable |
155,350 |
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Other Accounts
payable |
612,120 |
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Advances from
customers |
519,150 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
7,300 |
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------------------ |
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Current
liabilities |
1,293,920 |
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Long term liabilities |
796,220 |
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Other
liabilities |
0 |
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------------------ |
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Total
liabilities |
2,090,140 |
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Equities |
269,250 |
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------------------ |
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Total
liabilities & equities |
2,359,390 |
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Income Statement (as
of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
12,323,630 |
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Cost of goods
sold |
11,890,880 |
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Sales expense |
244,880 |
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Management expense |
70,620 |
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Finance expense |
87,640 |
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Profit before
tax |
101,630 |
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Less: profit tax |
41,680 |
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Profits |
59,950 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 1.63
*Quick ratio 1.16
*Liabilities to
assets 0.89
*Net profit
margin (%) 0.49
*Return on total
assets (%) 2.54
*Inventory
/Turnover ×365 18 days
*Accounts
receivable/Turnover ×365 15 days
*Turnover/Total
assets 5.22
* Cost of goods
sold/Turnover 0.96
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 average.
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SC’s return on total assets is fairly good.
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SC’s cost of goods sold is fairly high, 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 is maintained in an average level.
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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 2006.
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SC’s turnover is in a fairly good level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
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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: Stable.
Over the past 23 years, SC has made a stable growth with satisfactory
profit. A credit line up to USD 1,500,000
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%)