MIRA
INFORM REPORT
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Report Date : |
19.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
ZHEJIANG HUAZHENG ELECTRONICS GROUP CO., LTD. |
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Registered Office : |
No. 1, Baota Industrial Zone, Yuhang, Hangzhou City
Zhejiang Province, 311121 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
MAR. 6, 2003 |
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Com. Reg. No.: |
3300001009466 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing electronic insulating materials. |
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 500,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
ZHEJIANG HUAZHENG ELECTRONICS GROUP CO., LTD.
NO. 1, BAOTA INDUSTRIAL ZONE, YUHANG, HANGZHOU CITY
ZHEJIANG PROVINCE, 311121 PR CHINA
TEL : 86 (0) 571-88652961
FAX : 86 (0) 571-88652909
EXECUTIVE SUMMARY
INCORPORATION DATE : MAR. 6, 2003
REGISTRATION NO. : 3300001009466
REGISTERED LEGAL FORM : limited liabilities
company
STAFF STRENGTH :
1,000
REGISTERED CAPITAL : rmb 60,000,000
BUSINESS LINE :
manufacturing
TURNOVER :
RMB 251,540,000 (AS OF DEC. 31, 2005)
EQUITIES :
RMB 65,770,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 500,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
RMB 7.72 = US$1 AS OF 2007-04-19
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
RMB - China Ren Min Bi Yuan
Note: The correct name of SC should be the heading one, instead of the given name – Hejtang Huazheng Electbonics Group Co Ltd.
SC was registered as a limited liabilities company at local
Administration for Industry & Commerce (The official body of issuing and
renewing business license) on Mar. 6, 2003.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. At least two shareholders and no more
than fifty contribute its registered capital jointly. 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. : RMB 500,000.00 -trading &wholesaling
co. : RMB 500,000.00 -retailing co. : RMB 300,000.00 -consultancy & service co. : RMB
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 manufacturing and selling electronic insulating materials,
and operating import and export business.
SC is mainly
engaged in manufacturing electronic insulating materials.
Mr. Jin Meixing
has been chairman of SC since 2003.
SC owns about
1,000 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 Hangzhou. Our checks reveal that
SC rents the total premise about 40,000 square meters.
http://www.xinshengccl.com The design is
professional and the content is well organized. At present it is both in
Chinese and English versions.
E-mail: xsdz@xinshengccl.com
In 2004, one of SC’s shareholders Zhejiang
Huatai Fine Chemical Co., Ltd. was changed to Chongqing Holley Shareholding
Co., Ltd.
In Jan. of 2006, SC changed its company name
from Hangzhou Xinsheng Electronic Material Co., Ltd. to the present one.
MAIN SHAREHOLDERS:
Name Investment (RMB’000)
% of Shareholding
Holley Industry Group Co., Ltd. 55,000 91.67
Chongqing Holley Shareholding Co., Ltd. 5,000 8.33
l
Chairman:
Mr. Jin Meixing, in his 40’s 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.
l
General Manager:
Mr. Liu Tao, 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 general manager.
SC is mainly
engaged in manufacturing electronic insulating materials.
SC’s products mainly include: electronic insulating materials, etc.
SC sources its materials
80% from domestic market, mainly from Guangdong province, and 20% from
international market, mainly from Taiwan. SC sells its products 47% to
international market, mainly to India and Korea, and 53% in domestic market,
mainly in Guangdong province.
The buying terms
of SC include T/T, L/C and Credit of 30-90 days. The payment terms of SC
include T/T, L/C and Credit of 30-90 days.
*Major supplier:
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Guangzhou Hongchang Electronic Materials Co., Ltd.
*Major Customer:
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Jingwang Electronics (Shenzhen) Co., Ltd.
SC is
known to have the following subsidiaries:
Hangzhou
Huatian Insulation Materials Co., Ltd.
Hangzhou
Liansheng Insulation Materials Co., Ltd.
Hangzhou
Xinsheng Import & Export Co., Ltd.
Hangzhou
Huachuang Electromechanical Co., Ltd.
Chongqing
Huachuang Electromechanical Co., Ltd.
Hangzhou
Xinsheng Printing Circuit Board 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.
Bank of China
Zhejiang Branch
AC#：804023749008091001
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2005)
Unit: RMB thousand
yuan
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Cash & bank |
35,910 |
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Inventory |
29,650 |
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Accounts
receivable |
82,230 |
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Other Accounts
receivable |
3,460 |
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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 |
2,220 |
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Current assets |
153,470 |
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Fixed assets |
48,060 |
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Long term
investment |
20,950 |
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Other assets |
10 |
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Total assets |
222,490 |
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Short loans |
28,500 |
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Accounts payable |
39,790 |
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Accounts
receivable in advance |
0 |
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Other Accounts
payable |
13,760 |
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Welfares payable |
460 |
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Salaries payable |
510 |
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Taxes payable |
340 |
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Withdraw the
expenses in advance |
120 |
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Other current
liabilities |
26,240 |
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Current
liabilities |
109,720 |
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Long term
liabilities |
47,000 |
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Other
liabilities |
0 |
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Total
liabilities |
156,720 |
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Equities |
65,770 |
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Total
liabilities & equities |
222,490 |
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Income Statement (as
of Dec. 31, 2005)
Unit: RMB thousand
yuan
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Turnover |
251,540 |
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Cost of goods
sold |
218,020 |
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Sales expense |
7,010 |
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Management expense |
13,360 |
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Finance expense |
5,410 |
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Non-operating
income |
1,970 |
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Profit before
tax |
9,710 |
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Less: profit tax |
3,900 |
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Profits |
5,810 |
Important
Ratios
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As
of Dec. 31, 2005 |
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*Current ratio |
1.40 |
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*Quick ratio |
1.13 |
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*Liabilities
to assets |
0.70 |
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*Net profit
margin (%) |
2.31 |
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*Return on
total assets (%) |
2.61 |
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*Inventory
/Turnover ×365 |
43 days |
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*Accounts
receivable/Turnover ×365 |
119 days |
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*Turnover/Total
assets |
1.13 |
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* Cost of
goods sold/Turnover |
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 average.
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SC’s return on total assets is average.
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SC’s cost of goods sold is acceptable, 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 a normal level.
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The accounts receivable of SC appears TOO
LARGE.
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The short-term loan of SC appears fairly
large.
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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 acceptable.
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The risk for SC to go bankrupt is average.
Overall
financial condition of the SC: Stable.
SC is considered medium-sized in its line with stable financial conditions.
A credit line up to USD 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%)