MIRA
INFORM REPORT
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Report Date : |
2nd
February, 2007 |
IDENTIFICATION
DETAILS
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Name : |
HULUDAO
HONGJING MOLYBDENUM PRODUCTS CO., LTD. |
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Registered Office : |
No. 41 Yingta Road, Lianshan District, Huludao, Liaoning
Province, 125000 Pr China |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
01.09.1998 |
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Com. Reg. No.: |
000151 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Engaged
in manufacturing and selling molybdenum, vanadium and cobalt products. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
2,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Company Name & Address
HULUDAO
HONGJING MOLYBDENUM PRODUCTS CO., LTD.
NO. 41 YINGTA ROAD, LIANSHAN
DISTRICT, HULUDAO, LIAONING PROVINCE, 125000 PR CHINA
TEL: 86
(0) 429-2652666
FAX: 86
(0) 429-8218020
EXECUTIVE SUMMARY
INCORPORATION DATE :
SEP. 1, 1998
REGISTRATION NO. :
000151
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY
JOINT VENTURE ENTERPRISE
STAFF STRENGTH :
300
REGISTERED CAPITAL :
CNY 4,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
cny 756,680,000 (AS OF DEC. 31, 2005)
EQUITIES :
cny 377,840,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE :
UP TO USD 2,000,000
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY GOOD
OPERATIONAL TREND :
UPWARD
GENERAL REPUTATION :
FAIRLY GOOD
EXCHANGE RATE :
CNY 7.77 = US$1 AS OF 2007-2-1
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 Chinese-foreign equity joint venture
enterprise at local Administration for Industry & Commerce (AIC - The
official body of issuing and renewing business license) on Sep. 1, 1998.
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 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 which have good competition position in international market may
extend beyond the 50 years limit.
SC’s registered business scope
includes manufacturing roasted molybdenum, cobalt sulfate, ferromolybdenum,
nickelous oxide, molybdenum trioxydatum; selling its owned products.
SC is mainly engaged in
manufacturing and selling molybdenum, vanadium and cobalt products.
Mr. Yang Qingming has been
chairman of SC since 1998.
SC owns about 300 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 Huludao. Our checks
reveal that SC owns the total premise about 11,500 square meters.
http://www.hjmoly.com The design is professional and the content
is well organized. At present it is in both Chinese and English versions.
SC has
passed ISO9001:2000 Quality Management Systems, ISO 14001:1996 Environmental
Management Systems and GB/T28001-2001 Occupational Health and Safety Management
Systems.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Taiwan International Developing Co., Ltd. 40
Yang Qingming 60
l
Chairman:
Mr. Yang
Qingming, in his 30’s with university education. He is currently responsible
for the overall management of SC.
Working Experience(s):
From 1998 to present Working
in SC as chairman.
l
General Manager:
Mr. Chen
Xiangyou, in his 50’s with university education. He is currently responsible
for the daily management of SC.
Working Experience(s):
From 1998 to present
Working in SC as general
manager.
SC is mainly engaged in
manufacturing and selling molybdenum, vanadium and cobalt products.
SC’s products mainly include:
Vanadium Pentoxide, Ferro Vanadium, high purity Roasted Molybdenum, Roasted
Molybdenum, Ferro Molybdenum and Cobalt Sulfate.
SC’s annual output of Vanadium
Pentoxide (V2O5 content 98%) can reach 5,000 metric tons; Ferro Vanadium (V
content 50% and 80%) 2,000 metric tons; high purity Roasted Molybdenum
Concentrates 2,000 metric tons; Roasted Molybdenum concentrates 1,500 metric
tons; Ferro Molybdenum 3,000 metric tons and Cobalt Sulfate 500 metric tons.
SC sources its materials 40% from
domestic market and 60% from the overseas markets mainly from Europe. SC sells
5% of its products in domestic markets and 95% of its products to the overseas
markets, mainly to Europe.
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 Client:
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Beiman Special Steel Co., Ltd.
*Major Supplier:
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Liaoning Jinzhou Frroalloy Charging Factory
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 refused to release any
information of its suppliers and the trade reference was not available.
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
and Commercial Bank of China Huludao Branch
AC#：0715021009201002767
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As of Dec. 31,
2005 |
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Cash & bank |
311,440 |
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Accounts receivable |
51,630 |
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Accounts payable advance |
61,320 |
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Other receivables |
64,620 |
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Inventory |
-80,610 |
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Other current assets |
9,860 |
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Current assets |
418,260 |
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Fixed assets net value |
18,200 |
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Projects under construction |
1,850 |
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Long term investment |
0 |
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Other assets |
0 |
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Total assets |
438,310 |
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Short loans |
0 |
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Accounts payable |
55,210 |
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Accounts receivable advance |
0 |
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Taxes payable |
-1,070 |
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Salaries payable |
0 |
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Other payable |
6,100 |
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Other current liabilities |
230 |
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Current liabilities |
60,470 |
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Long term liabilities |
0 |
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Total liabilities |
60,470 |
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Equities |
377,840 |
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Total liabilities &
equities |
438,310 |
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Income Statement
Unit: CNY’000
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As of Dec. 31, 2005 |
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Turnover |
756,680 |
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Cost of goods sold |
621,650 |
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Sales expense |
2,160 |
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Management expense |
6,820 |
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Finance expense |
2,530 |
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Profit before tax |
123,720 |
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Less: profit tax |
16,360 |
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Profits |
107,360 |
Important Ratios
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as
of Dec. 31, 2005 |
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*Current ratio |
6.92 |
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*Quick ratio |
8.25 |
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*Liabilities
to assets |
0.14 |
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*Net profit
margin (%) |
14.19 |
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*Return on
total assets (%) |
24.49 |
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*Fixed
assets/Total assets |
0.04 |
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*Inventory
/Turnover ×365 |
/ |
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*Accounts
receivable/Turnover ×365 |
25days |
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*Turnover/Total
assets |
1.73 |
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* Cost of
goods sold/Turnover |
0.82 |
PROFITABILITY: GOOD
l
The
turnover of SC appears fairly good in its line.
l
SC’s
net profit margin is fairly good.
l
SC’s
return on total assets is fairly good.
l
SC’s
cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIRLY GOOD
l
The
current ratio of SC is maintained in a fairly good level.
l
SC’s
quick ratio is maintained in a fairly good level.
l
The
accounts receivable of SC is average.
l
SC
has no short loans in 2005.
l
SC’s
turnover is in a fairly good level, comparing with the size of its total
assets.
LEVERAGE: FAIRLY GOOD
l
The
debt ratio of SC is fairly low.
l
The
risk for SC to go bankrupt is low.
Overall financial condition of the SC:
Fairly Good.
SC is
considered medium-sized in its line with fairly good financial conditions. SC
has made a stable growth with fairly good profit. A credit line up to 2,000,000
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/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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