MIRA
INFORM REPORT
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Report Date : |
05.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
jiangyin kangrui
stainless steel products co., ltd. |
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Registered Office : |
Xiaohuang Road,
Yunting Industrial Zone, Jiangyin, Jiangsu Province, 214422 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
June 18, 2001 |
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Com. Reg. No.: |
000229 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Engaged in
manufacturing and selling metal wire. |
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 400,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
jiangyin kangrui
stainless steel products co., ltd.
xiaohuang road, yunting industrial zone,
jiangyin,
jiangsu PROVINCE, 214422 PR CHINA
TEL: 86 (0) 510-86010020
FAX: 86 (0) 510-86010012
EXECUTIVE SUMMARY
INCORPORATION DATE : june 18, 2001
REGISTRATION NO. : 000229
REGISTERED LEGAL FORM : Chinese-foreign equity
joint venture enterprise
STAFF STRENGTH :
200
REGISTERED CAPITAL : usd 2,800,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 293,311,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 31,892,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 400,000
MARKET CONDITION : average
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 Renminbi
SC was registered as a Chinese-foreign equity joint venture enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on June 18, 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 investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has 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 that have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered
business scope includes manufacturing and processing metal wire, metal levers,
and other metal products, selling its own products.
SC is mainly
engaged in manufacturing and selling metal wire.
Mr. Zhu Wei has
been chairman of SC since 2001.
SC is known to
have approx. 200 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 Jiangyin. Our checks reveal that
SC owns the total premise about 12,500 square meters.
http://www.chinakangrui.com The
design is professional and the content is well organized. At present the web
site is in Chinese, Japanese and English versions.
E-mail: sales@chinakangrui.com
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Jiangyin Kangde Stainless Steel Products
Co., Ltd. 75
Hong Kong Kangda Industry Co., Ltd. 25
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Chairman and
General Manager:
Mr. Zhu Wei, 37 years old 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 and general manager.
SC is mainly
engaged in manufacturing and selling metal wire.
SC’s products
mainly include: EPQ wire, Spring Wire, Cold-heading Wire, Nail Wire, Spoke Wire,
Weaving /Tie Wire, Roping Wire, Free cutting Wire, Annealing Wire, Chemical
Composition, Approximate comparative table.
SC sources its materials 100% from domestic
market, mainly Jiangsu. SC sells 70% of its products in domestic market, and
30% to overseas market, mainly Southeast Asian market.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
SC is not
known to have any subsidiary at present.
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.
SC declined to
release its bank details.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
37,194 |
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Inventory |
45,174 |
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Accounts
receivable |
48,768 |
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Other Accounts
receivable |
59,739 |
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To be
apportioned expense |
0 |
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Other current
assets |
-45,168 |
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------------------ |
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Current assets |
145,707 |
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Fixed assets net
value |
15,862 |
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Projects under
construction |
0 |
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Long term investment |
0 |
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Other assets |
6 |
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Total assets |
161,575 |
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============= |
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Short loans |
76,689 |
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Accounts payable |
21,718 |
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Other Accounts
payable |
3,034 |
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Withdraw the
expenses in advance |
0 |
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Other current liabilities |
28,242 |
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Current
liabilities |
129,683 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
129,683 |
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Equities |
31,892 |
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Total
liabilities & equities |
161,575 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
293,311 |
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Cost of goods
sold |
271,671 |
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Sales expense |
4,812 |
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Management expense |
5,829 |
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Finance expense |
3,920 |
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Profit before
tax |
7,294 |
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Less: profit tax |
925 |
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Profits |
6,369 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 1.12
*Quick ratio 0.78
*Liabilities to
assets 0.80
*Net profit
margin (%) 2.17
*Return on total
assets (%) 3.94
*Inventory
/Turnover ×365 56 days
*Accounts
receivable/Turnover ×365 61 days
*Turnover/Total
assets 1.82
* Cost of goods
sold/Turnover 0.93
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: 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 an average level.
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The accounts receivable of SC is maintained in an average level.
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SC’s short-term loan appears LARGE.
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SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIR
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The debt ratio of SC is fairly high.
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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. The large amount of short loans could be a threat to SC’s financial
condition. A credit line up to USD 400,000
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. |
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%)