MIRA
INFORM REPORT
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Report Date : |
18.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
wuhan changshi
road construction and maintenance equipment co., ltd. |
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Registered Office : |
Xinghua Road, Southwest
Industrial Park, Wuhan Economy Development Zone, Hubei Province, 430056 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
December 30, 2003 |
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Com. Reg. No.: |
4201002124037 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in
manufacturing and selling road construction machinery. |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Up To usd 15,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
wuhan changshi road
construction and maintenance equipment co., ltd.
xinghua road, southwest industrial park, wuhan
economy development zone, hubei PROVINCE, 430056 PR CHINA
TEL :
86 (0) 27-84297675
FAX :
86 (0) 27-84472746
EXECUTIVE SUMMARY
INCORPORATION DATE : december 30, 2003
REGISTRATION NO. : 4201002124037
REGISTERED LEGAL FORM : Limited liabilities
company
STAFF STRENGTH :
50
REGISTERED CAPITAL : CNY 5,000,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 2,670,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 4,290,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 15,000 (periodical review)
MARKET CONDITION : average
FINANCIAL CONDITION : fair
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 7.38 = 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 limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on December 30, 2003.
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 developing, manufacturing, installing and selling energy-saving
heating equipment, mechanical and electrical products; researching,
manufacturing and developing atmospheric hot water boilers, importing and
exporting goods and technology.
SC is mainly
engaged in manufacturing and selling road construction machinery.
Mr. Chang Shikun
has been chairman of SC since 2003.
SC is known to
have approx. 50 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 Wuhan. Our checks reveal
that SC rents the total premise about 4,000 square meters.
http://www.wuhancs.com The design
is professional and the content is well organized. At present the web site is
both in Chinese and English versions.
E-mail: Tangyongcs@163.com
No significant events or changes were found during our checks with the local
Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Chang Shikun 70
Han Lianying 30
l
Chairman:
Mr. Chang Shikun, about 40 years old with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 2003 to present Working
in SC as chairman.
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General Manager:
Mr. Tang Yong, about 35 years old with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
From 2003 to present Working in SC as general manager.
SC is mainly
engaged in manufacturing and selling road construction machinery.
SC’s products
mainly include: asphalt storage house, horizontal asphalt tank, modified
asphalt heating mixing tank & modified asphalt production equipment,
asphalt tank container, wwc concrete mixing plant, asphalt heating transportation
tank semi trailer, horizontal coal tank, tank container.
SC sources its materials 100% from domestic
market, mainly Hubei. SC sells 80% of its products in domestic market, and 20%
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’s management
declined to release its bank details.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
700 |
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Inventory |
4,840 |
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Accounts
receivable |
340 |
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Other Accounts
receivable |
10 |
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To be apportioned
expense |
0 |
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Other current
assets |
160 |
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Current assets |
6,050 |
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Fixed assets net
value |
9,700 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
10 |
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Total assets |
15,760 |
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Short loans |
2,000 |
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Accounts payable |
820 |
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Other Accounts
payable |
5,220 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
3,430 |
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Current
liabilities |
11,470 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
11,470 |
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Equities |
4,290 |
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Total
liabilities & equities |
15,760 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
2,670 |
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Cost of goods sold |
2,190 |
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Sales expense |
250 |
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Management expense |
710 |
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Finance expense |
100 |
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Profit before tax |
-600 |
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Less: profit tax |
0 |
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Profits |
-600 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 0.53
*Quick ratio 0.11
*Liabilities to
assets 0.73
*Net profit
margin (%) -22.47
*Return on total
assets (%) -3.81
*Inventory
/Turnover ×365 662 days
*Accounts
receivable/Turnover ×365 46 days
*Turnover/Total
assets 0.17
* Cost of goods
sold/Turnover 0.82
PROFITABILITY:
FAIR
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The turnover of SC appears average 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 average, 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 poor level.
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The inventory of SC appears large.
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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 fairly large.
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SC’s turnover is in a fair 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 above average.
Overall financial
condition of the SC: Fair.
SC is considered small-sized in its line with fair financial conditions.
The large amount of inventory could be a threat to SC’s financial condition. A
credit line up to USD 15,000
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%)