MIRA
INFORM REPORT
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Report Date : |
20.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
ZHEJIANG HAILIANG CO., LTD. |
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Registered Office : |
Diankou Town, Zhuji, Zhejiang, 311814 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
OCT. 29, 2001 |
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Com. Reg. No.: |
002325 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Manufacturing and selling copper products. |
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 3,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
ZHEJIANG HAILIANG CO., LTD.
DIANKOU TOWN, ZHUJI,
ZHEJIANG, 311814 PR CHINA
TEL : 86 (0) 575-7069035
FAX : 86 (0) 575-7069008
EXECUTIVE SUMMARY
INCORPORATION DATE : OCT. 29, 2001
REGISTRATION NO. :
002325
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE
ENTERPRISE
CHIEF EXECUTIVE :
MR. FENG HAILIANG (CHAIRMAN)
STAFF STRENGTH : 2,649
REGISTERED CAPITAL : CNY
203,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 2,195,013,654.08 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 392,863,353.80 (AS OF DEC. 31,
2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE :
UP TO USD 3,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : WELL KNOWN
EXCHANGE RATE : CNY7.72=US$1 AS OF 2007-04-20
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 (The official body of issuing and renewing business license) on Oct. 29, 2001.
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
manufacturing and processing copper pipe, copper strap, copper foil and other
copper products.
SC is
mainly engaged in manufacturing and selling copper products.
Mr. Feng
Hailiang has been chairman of SC since 2001.
SC owns
about 2,649 staff at present.
SC is
currently operating at the above stated address, and this address houses its
operating office and factory in the industry zone of Zhuji. Our checks reveal that
SC owns the total premise about 230,000 square meters.
http://www.hailiang.com The design
is professional and the content is well organized. At present, the web is in
Chinese, English, Japanese, and Korean versions.
SC has got the certificates of USA NSF, Canada WHI, USA UPC and Europe
KITE MARK, ISO14001
and ISO 9001: 2000, etc.
MAIN SHAREHOLDERS:
Name % of Shareholding
Hailiang Group Co., Ltd. 48.53
Z & P Enterprises Corporation
34.86
Shaoxing Zhongyu Metal Goods and Materials
Co., Ltd. 1.14
Zhu Zhangquan
1.53
Cao Jianguo
2.03
Qian Angjun 1.55
Chen Dong
2.52
Yang Lin
2.46
Wang Ming
1.28
Zhao Xuelong
0.9
Wang Hu 1.08
Fu Linzhong
1.09
Tang Jimiao
1.03
l
Chairman:
Mr. Feng Hailiang, in his 40’s with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2001 to present Working in SC as chairman;
At present Also working Hailiang Group Co., Ltd and Chongqing Haiyu Property Co., Ltd as
Chairman.
l
General Manager:
Mr. Chen Dong, in his 40’s with university
education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 2001 to present Working in SC as general manager.
SC is
mainly engaged in manufacturing and selling copper products.
SC’s products mainly include: copper stick, copper pipe, copper strap, and
copper foil. At present its products are widely used for air-condition
refrigeration, building canal, automobile industry, electronics information,
traffic transportation.
SC’s main brand is
“Hailiang”.
At present, SC’s
annual output is approximately 120,000 tons.
SC
sources its materials 60% from domestic market, and 40% from USA and Europe. SC
sells 70% of its products in domestic market, and 30% to Southeast Asian market
and Europe.
The buying terms of SC include Check, T/T, L/C and Credit of
30-60 days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60
days.
SC is
known to have 4 subsidiaries and 5 offices as following,
Shaoxing jinshi Machinery Co., Ltd.
Hailiang Group Zhejiang Copper Processing
Researching Institute Co., Ltd.
Zhejiang Hailiang International Trade Co.,
Ltd.
Zhejiang Keyu Metal Materials Co., Ltd.
Guangdong Office
0757-22260607
0757-22277217
Beijing Office
010-88130603
010-88130603
E-Mail: shirelyluck@hotmail.com
Luqiao Office
0576-2410323
0576-2410323
Tianjin Office
022-26715015
022-26715015
Shenzhen Office
0756-8629334
0756-8629334
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 Diankou Office
AC#：330656344012611069836
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2004 |
As
of Dec. 31, 2005 |
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Cash & bank |
261,470 |
65,896 |
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Inventory |
166,932 |
200,601 |
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Bills receivable |
35,846 |
4,339 |
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Accounts
receivable |
143,316 |
152,864 |
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Other Accounts
receivable |
4,282 |
3,590 |
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Accounts payable
in advance |
266,456 |
137,486 |
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To be
apportioned expense |
202 |
53 |
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Other current
assets |
5,120 |
16,104 |
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------------------ |
------------------ |
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Current assets |
883,624 |
580,933 |
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Fixed assets |
288,285 |
424,605 |
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Fixed assets net
value |
219,806 |
346,747 |
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Projects under
construction |
68,479 |
77,858 |
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Long term
investment |
119,979 |
134,115 |
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Other assets |
4,915 |
4,796 |
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Total assets |
1,296,803 |
1,144,449 |
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============= |
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Short loans |
491,018 |
243,154 |
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Bills payable |
300,500 |
0 |
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Accounts payable |
189,086 |
376,858 |
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Accounts
receivable in advance |
45,206 |
26,380 |
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Other Accounts
payable |
5,758 |
4,618 |
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Salaries payable |
6,195 |
3,251 |
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Welfares payable |
5,519 |
779 |
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Taxes payable |
-11,582 |
-13,307 |
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Withdraw the
expenses in advance |
7,315 |
6,347 |
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Other current
liabilities |
13,230 |
13,406 |
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------------------ |
------------------ |
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Current
liabilities |
1,052,245 |
661,486 |
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Long term
liabilities |
11,100 |
90,100 |
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Other
liabilities |
0 |
0 |
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------------------ |
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Total
liabilities |
1,063,345 |
751,586 |
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Equities |
233,458 |
392,863 |
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------------------ |
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Total
liabilities & equities |
1,296,803 |
1,144,449 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2004 |
As of Dec. 31, 2005 |
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Turnover |
1,631,768 |
2,195,014 |
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Cost of goods
sold |
1,518,530 |
2,086,339 |
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Sales expense |
27,226 |
42,964 |
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Management expense |
18,295 |
20,758 |
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Finance expense |
36,193 |
24,218 |
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Profit before
tax |
60,551 |
79,774 |
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Less: profit tax |
0 |
0 |
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Profits |
60,551 |
79,774 |
Important
Ratios
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As
of Dec. 31, 2004 |
As
of Dec. 31, 2005 |
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*Current ratio |
0.84 |
0.88 |
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*Quick ratio |
0.68 |
0.57 |
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*Liabilities
to assets |
0.82 |
0.66 |
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*Net profit
margin (%) |
3.71 |
3.63 |
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*Return on
total assets (%) |
4.67 |
6.97 |
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*Inventory
/Turnover ×365 |
37 days |
33 days |
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*Accounts
receivable/Turnover ×365 |
32 days |
25 days |
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*Turnover/Total
assets |
1.26 |
1.92 |
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* Cost of
goods sold/Turnover |
0.93 |
0.95 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line, and it went
up in 2005.
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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 high, comparing with its
turnover.
LIQUIDITY:
FAIR
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The current ratio of SC is maintained in a fair level.
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SC’s quick ratio is maintained in a fair level.
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The inventory of SC is maintained in a
slightly large level.
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The accounts receivable of SC is maintained in
a normal level.
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The short-term loan of SC appears 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 average.
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The risk for SC to go bankrupt is low.
Overall
financial condition of the SC: Stable.
SC is considered medium-sized in its line with stable financial
conditions. The large amount of
short-term loan could be a threat to SC’s financial condition. A credit line up
to USD3,000,000 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%)