MIRA
INFORM REPORT
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Report Date : |
23.08.2007 |
IDENTIFICATION DETAILS
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Name : |
ZHEJIANG EAST
TOOLS MANUFACTURE Co., Ltd. |
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Registered Office : |
Shangjiaoling, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
June 12, 2000 |
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Com. Reg. No.: |
3325262000204 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in manufacturing
and selling mould 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 100,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
ZHEJIANG EAST TOOLS
MANUFACTURE Co., Ltd.
SHANGJIAOLING,
TEL
86 (0) 578-3130248
FAX
86 (0) 571-3130738
EXECUTIVE SUMMARY
INCORPORATION DATE : june 12, 2000
REGISTRATION NO. : 3325262000204
REGISTERED LEGAL FORM : LIMITED LIABILITIES COMPANY
STAFF STRENGTH : 810
REGISTERED CAPITAL : CNY 8,890,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 313,020,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 17,740,000
(AS OF DEC. 31, 2006)
PAYMENT : AVERAGE
RECOMM.
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
7.59 = US1$ AS OF 2007-8-23
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 limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on June 12, 2000.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. No more than fifty shareholders
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 CNY 30,000. 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 30% 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 metal cutting
tools, wood-working tools and mould materials; exporting its products and
technology; importing machinery, components, raw materials, instruments and
meters, and technology required in production (excluding the items defined or
the prohibited by the state); processing with imported materials, processing
with imported samples, assembling with imported
parts, and compensation trade in agreement.
SC is mainly
engaged in manufacturing and selling mould materials.
Mr. Tian Qingliang
has been legal representative and chairman of SC
since 2000.
SC is
known to have approx. 810 staff members 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 Lishui. Our checks reveal that SC owns/rents the total premise about 22,000
square meters.
www.easttool.com The design is professional and the content is
well organized. At present it is in Chinese version.
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Tian Qingliang 91.5
Lu Nanfa 8.5
l
Legal representative and General manager:
Mr. Tian Qingliang,
born in 1966, with university education. He is currently responsible for the
overall management of SC.
Working Experience(s):
From 2000 to present Working in SC as chairman and general manager.
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Vice-general manager:
Mr. Lu Nanfa, born in 1965, with university
education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 2000 to present Working in SC as vice-general manager.
SC is mainly
engaged in manufacturing and selling mould materials.
SC’s products
mainly include coiled bar, forges bar, cold-drawn steel wire, cold-rolled steel
strips, hot-rolled round bar, and flat steel, etc.
SC sources its materials 100%
from domestic market. SC sells 50% of its products in domestic market, and 50%
to overseas market, mainly
The buying terms of SC include Check, T/T and Credit of
30-60 days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60
days.
*Major Supplier:
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*Major Customer:
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Taizhou
Baida Refrigeration Co., Ltd.
SC is known to have the following subsidiaries:
Huzhou
Branch
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.
Industrial & Commercial Bank of
AC#：1210281029200003823
Relationship:
Note: The given
bank information – Bank of China
SC’s financial
manager said SC has no bank account in Bank of China.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
5,750 |
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Inventory |
83,210 |
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Accounts
receivable |
59,000 |
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Advances to
suppliers |
3,010 |
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Other
receivables |
13,670 |
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Other current assets |
480 |
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Current assets |
165,120 |
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Fixed assets |
28,320 |
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Fixed assets net
value |
18,830 |
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Projects under
construction |
2,660 |
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Long term
investment |
1,400 |
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Other assets |
3,730 |
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Total assets |
191,740 |
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Short loans |
127,130 |
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Accounts payable |
30,750 |
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Other payable |
700 |
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Bills payable |
3,300 |
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Taxes payable |
1,810 |
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Welfare expenses
payable |
3,450 |
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Advances from
customers |
170 |
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Accrued payroll |
4,950 |
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Other current
liabilities |
1,740 |
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Current
liabilities |
174,000 |
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Long term
liabilities |
0 |
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Total
liabilities |
174,000 |
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Equities |
17,740 |
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Total
liabilities & equities |
191,740 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
313,020 |
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Cost of goods
sold |
293,000 |
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Sales expense |
2,250 |
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Management expense |
6,500 |
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Finance expense |
6,280 |
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Profit before
tax |
4,710 |
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Less: profit tax |
1,560 |
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Profits |
3,150 |
Important Ratios
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as
of Dec. 31, 2006 |
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*Current ratio |
0.95 |
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*Quick ratio |
0.47 |
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*Liabilities
to assets |
0.91 |
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*Net profit
margin (%) |
1.01 |
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*Return on
total assets (%) |
1.64 |
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*Fixed
assets/Total assets |
1.00 |
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*Inventory
/Turnover ×365 |
97days |
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*Accounts
receivable/Turnover ×365 |
69days |
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*Turnover/Total
assets |
1.63 |
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*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 average.
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SC’s return on total assets is average.
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SC’s cost of goods sold is fairly 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 appears TOO LARGE.
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The accounts receivable of SC appears LARGE.
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SC’s short-term loan appears TOO LARGE.
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SC’s turnover is in an acceptable level, comparing
with the size of its total assets.
LEVERAGE: FAIR
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The debt ratio of SC is fairy 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 medium-sized in its line with fairly stable financial
conditions. The large amount of short loans could be a threat to SC’s financial
condition. A credit line up to USD100,000 would appear to be within SC’s
capacities upon a periodical review basis.
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. |
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%)