MIRA
INFORM REPORT
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Report Date : |
30.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
HEBEI JINDU FERROALLOY
GROUP CO., LTD. |
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Registered Office : |
No. 38, Wusong East Street, Qinghe County, Hebei Province
054800 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Oct. 12, 2003 |
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Com. Reg. No.: |
1300002000208 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in manufacturing and selling ferroalloy products. |
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 200,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
hebei jindu
ferroalloy group co., ltd.
NO. 38, WUSONG EAST STREET, QINGHE COUNTY
HEBEI PROVINCE 054800 PR
CHINA
TEL :
86 (0) 319-8060765
FAX :
86 (0) 319-8063247
EXECUTIVE SUMMARY
INCORPORATION DATE : oct. 12, 2003
REGISTRATION NO. : 1300002000208
REGISTERED LEGAL FORM : limited liabilities
company
STAFF STRENGTH :
186
REGISTERED CAPITAL : cny24,500,000
BUSINESS LINE :
manufacturing
TURNOVER :
cny196,650,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 33,960,000 (AS OF DEC. 31, 2006)
PAYMENT :
GOOD
RECOMM. CREDIT RANGE : up to usd 200,000 (periodical review)
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.40 = US$1
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 limited liabilities company at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on Oct. 12, 2003.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. 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. : CNY 500,000.00 -trading &wholesaling
co. : CNY 500,000.00 -retailing co. : CNY 300,000.00 -consultancy & service
co. : CNY 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 exporting metallurgical furnace burden
and nonferrous metal; importing raw materials, machinery, instrument and
apparatus, components, and relevant technology; manufacturing and selling
cemented carbides; purchasing and selling steel materials.
SC is
mainly engaged in manufacturing and selling ferroalloy products.
Mr. Sun Yuhua has
been chairman of SC since 2003.
SC owns about 186
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 Qinghe. Our checks
reveal that SC rents the total premise about 39,960 square meters.
http://www.cnalloy.com The design is professional and the content
is well organized. At present the web is both in Chinese and English versions.
E-mail: jindu@cnalloy.com
SC’s products have passed the test of authoritative organizations such
as CIQ、NKKK、SGS、ALEX, and end-users as well. And SC gained
many honors such as "Focus on contract, credit standing unit",
"China Agricultural Bank's AAA grade faithful enterprise", "Hebei
strongest private enterprise", "Major supported enterprise in
Hebei".
MAIN SHAREHOLDERS:
Name % of
Shareholding
Sun Yuhua 30.71
Sun Yuguo 30.00
Sun Xinrong 30.00
Other individuals
9.29
l
Chairman and
General Manager:
Mr. Sun Yuhua, in his 40’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1994 to present Working in SC as chairman and general manager.
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Assistant Manager:
Mr. Sun Yuguo, in his 40’s with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 1994 to present Working in SC as assistant manager.
SC is
mainly engaged in manufacturing and selling ferroalloy products.
SC’s products mainly include:
Ferro Molybdenum, Ferro Titanium, and Molybdenum Oxide,
etc.
SC’s capacity of ferromolybdenum and ferrotitanium is
3600mt/year and 3000mt/year respectively.
SC sources its materials 100%
from domestic market, mainly Hunan and Hebei province; SC sells its products
80% to overseas market, mainly Turkey, Malaysia, Japan, and Korea, and 20% in
domestic market, mainly Hebei province.
The
buying terms of SC include T/T and Credit of 30-60 days. The payment terms of
SC include T/T, L/C and Credit of 30-60 days.
*Major Supplier:
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Hunan Rucheng County Non-ferrous metals Plant
SC is known to have the following
subsidiaries:
Hebei Jinrui Casting Co., Ltd.
Qinghe County Jindu Trading Co., Ltd.
Overall payment appraisal :
( ) Excellent (X) Good ( ) 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 : A trade enquiry currently
conducted with SC's supplier(s) reveal the following:
Wogen Recourses Ltd. DCM DECO AUSTRIA
Beijing office CHINA OFFICE
Contact Person: Mr. David Bi Ms. Dammy Deng
Products sold: Ferro
Molybdenum Ferro Molybdenum
& Ferro
Titanium &
Ferro Titanium
Date account opened: Many years 3
years
Line of credit: Good Good
Terms: T/T T/T & L/C
Average monthly sales: N/A N/A
Current balance: N/A N/A
Rating Key : 2 2
Any Special
Comments: _______________________________________
Payment record keys :
1 = Prompt : Payment made before the credit
period expires
2 = As agreed terms : Payment made upon due
date
3 = Slightly slow but acceptable : Payment
made 5 to 20 days beyond agreed terms
4 = Slow : Payment made 16 to 45 days beyond
agreed terms
5 = Poor : Payment made over 45 days beyond
agreed terms
6
= No comment : Account is newly opened & record is not yet established
Note : In
some instances, payment beyond terms can be the result of disputes over
merchandise, lost invoices, disputed accounts & etc.
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.
Agricultural Bank of China Qinghe Sub-branch
AC#：50236001040024253
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
4,750 |
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Inventory |
20,500 |
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Accounts
receivable |
26,290 |
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Other Accounts
receivable |
3,060 |
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Accounts payable
in advance |
43,190 |
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To be
apportioned expense |
0 |
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Other current
assets |
400 |
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Current assets |
98,190 |
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Fixed assets |
5,970 |
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Fixed assets net
value |
5,590 |
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Projects under
construction |
380 |
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Long term
investment |
12,000 |
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Other assets |
1,690 |
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Total assets |
117,850 |
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Short loans |
0 |
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Accounts payable |
21,560 |
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Accounts
receivable in advance |
0 |
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Other Accounts
payable |
54,690 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
7,640 |
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Current liabilities |
83,890 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
83,890 |
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Equities |
33,960 |
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Total
liabilities & equities |
117,850 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
196,650 |
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Cost of goods
sold |
193,350 |
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Sales expense |
1,850 |
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Management expense |
1,180 |
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Finance expense |
7,970 |
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Profit before
tax |
-10,300 |
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Less: profit tax |
0 |
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Profits |
-10,300 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 1.17
*Quick ratio 0.93
*Liabilities to
assets 0.71
*Net profit
margin (%) -5.24
*Return on total
assets (%) -8.74
*Inventory
/Turnover ×365 38 days
*Accounts
receivable/Turnover ×365 49 days
*Turnover/Total
assets 1.67
* Cost of goods
sold/Turnover 0.98
PROFITABILITY: FAIR
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The turnover of SC appears fairly good in its line.
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SC’s net profit margin is fair.
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SC’s return on total assets is fair.
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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 normal level.
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SC’s quick ratio is maintained in a normal level.
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The inventory of SC is maintained in a normal level.
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The accounts receivable of SC is maintained in a normal 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 average.
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The risk for SC to go bankrupt is average.
Overall
financial condition of the SC: Fairly stable.
SC is considered medium-sized in its line with fairly stable financial
conditions. A credit line up to USD200,000 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%)