MIRA
INFORM REPORT
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Report Date : |
06.08.2007 |
IDENTIFICATION
DETAILS
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Name : |
CHINA GREATWALL COMPUTER
SHENZHEN CO., LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Jun. 20, 1997 |
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Com. Reg. No.: |
4403011015247 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Engaged in manufacturing computer and peripheral products. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Up To USD10,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
CHINA GREATWALL COMPUTER
SHENZHEN CO., LTD.
NANSHAN DISTRICT, SHENZHEN CITY,
TEL : 86 (0) 755-27622415
FAX : 86 (0)
755-27622415/27622387
EXECUTIVE SUMMARY
INCORPORATION DATE : jun. 20, 1997
REGISTRATION NO. :
4403011015247
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
STAFF STRENGTH : 3,447
REGISTERED CAPITAL : CNY
458,491,500
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 3,199,402,828.12 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 1,663,876,846.62 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY GOOD
OPERATIONAL TREND : STABLE
GENERAL REPUTATION : well-known
EXCHANGE RATE : CNY7.57=US1$ AS OF 2007-08-03
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY –
SC was registered as a shares limited company at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on Jun. 20, 1997.
Company Status: Shares limited co. This form of business in PR
China is defined as a legal person. Its registered capital is divided into
shares of equal par value and the co. raises capital by issuing share
certificates by promotion or by public offer. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to the extent of its total assets. The co has independent
property of legal person and enjoys property rights of legal person. The characteristics of the shares limited co. are as
follows: The establishment of the co.
requires at least two promoters and no more than 200, half of whom shall be domiciled
in The minimum registered capital
of a co. is CNY 5M. while that of the co. with foreign investment is CNY
5M. The total capital of a co. which propose to apply for publicly listed
must be no less than CNY 30M. The board of directors must consist of five to nineteen
directors. If the co. raises capital by public
offer, the promoters must not subscribe less than 35% of the total shares.
the promoters’ shares are restricted to transfer- within one year of the
offer. A state-owned enterprise that
is restructured into a shares limited co. must comply with the conditions
& requirements specified under the law & administrative rule.
SC’s registered business scope includes technical
development, manufacturing, sales, and after service of electric computer
hardware system, software system, network system, and electronics; providing relevant
technology and consulting service; industry development (projects need to be
reported for authorization); domestic commerce; supplying and selling of
commodities (excluding the products privileged, prohibited or franchised);
operating import & export business; selling its homegrown software and
electric publications; retailing various kinds of hardware and electric
publication.
SC is
mainly engaged in manufacturing computer and peripheral products.
Mr. Chen
Zhaoxiong has been chairman of SC since 2005.
SC owns
about 3,447 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 owns the total premise about 386,000 square meters.
http://www.greatwall.cn The
design is professional and the content is well organized. At present it in both
Chinese and English versions.
E-mail: stock@greatwall.com.cn
SC was listed as Great Wall Computer (Stock code: 000066). It is a
large-scale computer manufacturer with its own R&D. It is held by Great
Wall Technology Co., Ltd.
SC’s achievements:
There have been a lot of achievements during the past few years.
•SC is certified by ISO9000 and ISO14000;
•Great Wall trademark being officially affirmed as National Famous
Trademark by State Administration of Industry and Commerce;
•Great Wall brand products such as desktop computers, laptop computers
and servers are officially affirmed as
SC’s changes:
In 2005, SC changed its legal representative from Mr. Lu Ming to the
present.
MAIN SHAREHOLDERS: (As of Dec.
31, 2006)
Name %
of shareholdings
Great Wall Technology Company Limited 47.82
Bank of
Lin Junye 0.18
Yang Huizhong 0.13
Wang Qiusheng 0.11
Ou Lixia 0.10
Huang Ziping 0.09
Anhui Wanwei Group Co., Ltd. 0.09
Industrial and Commercial Bank of
-(Security Investment Fund of Rongtong)
Other shareholders 50.95
===================================
Great Wall Technology Co., Ltd (Great
Wall Tech, Stock code 0074. HK) is the major subsidiary of China Great Wall
Computer Group Co., it is established in Shenzhen on 20th March, 1998 with a
registered capital of CNY743,870,000, and was listed on The Stock Exchange of
Hong Kong Limited (the "Stock Exchange") on 5th August, 1999.
Add:
Nanshan District,
Zip Code: 518057
Tel:（86-755）26728686
Fax:（86-755）26633904
E-mail: webmaster@greatwalltech.com
Anhui Wanwei Group Co. Ltd, which once
was Anhui Vinlylon plant, is a large enterprise under the direct control of
State-owned Assets Supervision and Administration Commission of Anhui
Provincial Government. It is one of the “Top 50 Key Enterprises of Anhui
Province”. This modern industrial company has five subsidiaries. Its core
proprietary subsidiary, Anhui Wanwei updated hi-tech material Industry Co. Ltd,
is a public enterprise.
Add: No.56,
Tel: 0565-2317209
Fax: 0565-2317447
l
Chairman:
Mr. Chen Zhaoxiong, born in 1961, 46 years old with doctor’s degree. He is
currently responsible for the overall management of SC.
Working Experience(s):
Worked in China Great Wall Computer Group Co., Ltd. as chairman, in China Electric Information Industry Group Corp. as chairman, in China Integrated Circuit Design Co., Ltd. as chairman, in Shanghai Pudong Software Park Co., Ltd. as chairman, in Zhuhai South Software Park Development Co., Ltd. as chairman, in Academy of China Electric Information Industry Group as president, and in China Electric Industry Engineering Corp. as assistant manager;
From 2005 to present Working in SC as chairman;
At present Also working in Shenzhen Changcheng Kaifa Technology Co., ltd. as chairman.
l
General Manager:
Mr. Lu Ming, born in 1950, 57 years old with master’s
degree. He is currently responsible for the daily management of SC.
Working Experience(s):
Worked in SC as president, board member, and chairman;
From 2005 to present Working in SC as general manager;
At present Also working in China Great Wall Computer Group Co., Ltd. as general manager,
and in Great Wall Technology Company Limited as board member.
SC is
mainly engaged in manufacturing computer and peripheral products.
SC’s
products mainly include: digital, Power Supplies, Notebooks, and Monitors, etc.
SC
produced the very first set of advanced Chinese computer Great Wall 0520CH. Its
business covers computer systems and related peripherals, computer core parts,
broadband network and digital products such as desktops, notebooks, monitors,
power supplies, severs, printers and consumable electronics. It also provides
technical support.
SC sources
its materials 30% from domestic market, mainly
The buying terms of SC include Check, 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 Suppliers:
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Shenzhen ExcelStor Technology Co., Ltd.
XIAMEN XIAXIN ELECTRONICS COMPANY LIMITED
ShenZhen Huaming Computer Co., Ltd.
*Major Customers:
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Greatwall Information industry co., Ltd.
Xiamen Great Wall Broadband Network Services
Co., Ltd.
Changsha Jianbo Electric Technology Co.,
Ltd.
SC is
known to have the following subsidiaries:
Shang Wang Tong Electric Commerce Co., Ltd.
Beijing Greatwall Dingxing Network Communication Technology Co., Ltd.
Greatwall International System Technology (Shenzhen) Co., Ltd.
Shenzhen Hailiang Storage Device Co., Ltd.
Shenzhen Elcoteq Electronics 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.
Constructions
Bank of
AC#：023002630007167
Relationship:
Consolidated
Balance Sheet
Unit: CNY’000
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As of Dec. 31, 2005 |
As of Dec. 31, 2006 |
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Cash & bank |
577,307 |
617,940 |
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Short investment |
0 |
0 |
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Bills receivable |
152,056 |
155,558 |
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Accounts payable
advance |
31,111 |
19,585 |
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Accounts
receivable |
287,199 |
252,175 |
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Inventory |
192,837 |
228,012 |
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Other accounts
receivable |
207,372 |
27,874 |
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Expenses to be
apportioned |
335 |
369 |
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Other current
assets |
0 |
0 |
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Current assets |
1,448,217 |
1,301,513 |
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Fixed assets |
760,856 |
755,587 |
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Fixed assets net
value |
644,140 |
701,197 |
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Project
materials |
0 |
0 |
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Projects under
construction |
116,716 |
54,390 |
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Long term
investment |
207,768 |
180,936 |
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Other assets |
20,438 |
21,002 |
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Total assets |
2,437,279 |
2,259,038 |
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Short loans |
0 |
0 |
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Bills payable |
216,653 |
182,985 |
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Accounts payable |
272,485 |
257,753 |
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Salary payable |
0 |
0 |
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Welfares payable |
8,462 |
8,939 |
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Tax payable |
16,038 |
-7,199 |
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Account
receivable advance |
9,559 |
16,966 |
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Estimated
liabilities |
33,457 |
14,054 |
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Long-term investment
with in one year |
0 |
0 |
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Other accounts
payable |
59,279 |
35,721 |
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Drawing-expense
in advance |
50,645 |
54,810 |
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Other current
liabilities |
91 |
40 |
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------------------ |
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Current
liabilities |
666,669 |
564,069 |
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Long term
liabilities |
29,822 |
31,092 |
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Other
liabilities |
0 |
0 |
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Total
liabilities |
696,491 |
595,161 |
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Minority
Interests |
0 |
0 |
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Equities |
1,740,788 |
1,663,877 |
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Total
liabilities & equities |
2,437,279 |
2,259,038 |
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Consolidated
Income Statement
Unit: CNY’000
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As of Dec. 31,
2005 |
As of Dec. 31,
2006 |
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Turnover |
2,443,235 |
3,199,403 |
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Cost of goods
sold |
2,262,358 |
3,016,337 |
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Sales expense |
149,895 |
136,559 |
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Management expense |
97,690 |
40,614 |
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Finance expense |
4,762 |
-4,057 |
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Profit before
tax |
382,525 |
66,489 |
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Less: profit tax |
45,161 |
6,036 |
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Profits |
337,364 |
60,453 |
Important Ratios
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As
of Dec. 31, 2005 |
As
of Dec. 31, 2006 |
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*Current ratio |
2.17 |
2.31 |
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*Quick ratio |
1.88 |
1.90 |
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*Liabilities
to assets |
0.29 |
0.26 |
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*Net profit
margin (%) |
13.81 |
1.89 |
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*Return on
total assets (%) |
13.84 |
2.68 |
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*Inventory
/Turnover ×365 |
29 days |
26 days |
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*Accounts
receivable/Turnover ×365 |
43 days |
29 days |
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*Turnover/Total
assets |
1.00 |
1.42 |
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* Cost of goods
sold/Turnover |
0.93 |
0.94 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears fairly good in its line in 2005 and it increased
in 2006.
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SC’s net profit margin declined in 2006, but it is still maintained in a normal level.
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SC’s return on total assets declined in 2006, but it is
still maintained in a normal level.
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SC’s cost of goods sold is fairly high, comparing with its
turnover.
LIQUIDITY: FAIRLY
GOOD
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The current ratio of SC is maintained in a fairly good level in both
years.
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SC’s quick ratio is maintained in a fairly
good level in both years.
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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 a normal level.
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SC has no short loans in both years.
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SC’s turnover is in a fairly good 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 fairly low.
Overall
financial condition of the SC: Fairly good.
SC is
well-known in its industry with fairly good financial conditions. Credit
dealings with SC in favorable terms can be considered.
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%)