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MIRA
INFORM REPORT
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Report Date : |
2nd
February, 2007 |
IDENTIFICATION
DETAILS
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Name : |
MG MINI GEARS
(SUZHOU) CO., LTD. |
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Registered Office : |
No.8 Minsheng Road, Shengpu Town, Suzhou Industrial Park Zone,
Jiangsu Province, 215021 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 : |
05.09.2003 |
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Com. Reg. No.: |
021286 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Engaged
in manufacturing and selling key equipment and related fittings of garden
machinery. |
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 : |
USD 200,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Company Name & Address
MG MINI
GEARS (SUZHOU) CO., LTD.
no.8
minsheng road, shengpu town, suzhou industrial park zone, jiangsu province,
215021 PR CHINA.
TEL : 86 (0) 512-62816625
FAX : 86 (0) 512-62816629
EXECUTIVE SUMMARY
INCORPORATION DATE :
September 5, 2003
REGISTRATION NO. :
021286
REGISTERED LEGAL FORM : Wholly foreign-owned
enterprise
STAFF STRENGTH :
123
REGISTERED CAPITAL :
usd 3,300,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 71,160,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 33,610,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE :
UP TO usd 200,000
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY7.76 = 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 Renminbi
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SC was registered as a wholly foreign-owned enterprise at
local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on September 5, 2003.
Company Status: Wholly foreign-owned
enterprise This form of
business in PR China is defined as a legal person. It is a limited co.
established within the territories of PR China with capital provided
totally by the foreign investors. More than one foreign investors may
jointly invest in a wholly foreign-owned enterprise. The investing
party/parties solely exercise management, reap profit and bear risks and
liabilities by themselves. This form of companies usually have a limited
duration is extendible upon approval of Examination and Approval
Authorities.
SC’s registered business scope
includes designing and manufacturing key equipment and related fittings of
garden machinery; selling its products and provide after sales service.
SC is mainly engaged in
manufacturing and selling key equipment and related fittings of garden machinery.
Mr. Alexander Bossard has been
chairman of SC since 2003.
SC owns about 123 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 Suzhou. Our checks
reveal that SC rents the total premise about 3,000 square meters.
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SC is
not known to host web site of its own at present.
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No
significant events or changes were found during our checks with the local
Administration for Industry & Commerce.
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MAIN SHAREHOLDERS:
Name %
of Shareholding
MG MINIGEARS SPA (Italy) 100
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Chairman:
Mr.
Alexander Bossard (Italian), about 55 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.
Fabio Antonello (Italian), about 45 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.
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SC is mainly engaged in
manufacturing and selling key equipment and related fittings of garden
machinery.
Brand: MG
SC’s products mainly include:
mini gears.
SC sources its materials 20% from domestic
market, and 80% from overseas market. SC sells 100% of its products to overseas
market, mainly Korea and Brazil.
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.
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SC is
not known to have any subsidiary at present.
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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.
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Agricultural
Bank of China Suzhou Branch
AC#：10-550101040101719
Relationship:
Normal.
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Balance Sheet (as of Dec. 31, 2005)
Unit: CNY’000
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Cash & bank |
590 |
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Inventory |
12,930 |
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Accounts receivable |
20,940 |
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Other Accounts receivable |
590 |
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To be apportioned expense |
380 |
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Other current assets |
5,320 |
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Current assets |
40,750 |
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Fixed assets net value |
44,210 |
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Projects under construction |
0 |
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Long term investment |
0 |
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Other assets |
450 |
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Total assets |
85,410 |
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Short loans |
10,850 |
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Accounts payable |
27,600 |
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Other Accounts payable |
210 |
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Withdraw the expenses in
advance |
1,180 |
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Other current liabilities |
-550 |
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Current liabilities |
39,290 |
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Long term liabilities |
12,510 |
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Other liabilities |
0 |
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Total liabilities |
51,800 |
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Equities |
33,610 |
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Total liabilities &
equities |
85,410 |
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Income Statement (as of Dec. 31, 2005)
Unit: CNY’000
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Turnover |
71,160 |
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Cost of goods sold |
53,770 |
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Sales expense |
1,240 |
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Management expense |
7,610 |
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Finance expense |
1,760 |
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Profit before tax |
7,150 |
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Less: profit tax |
0 |
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Profits |
7,150 |
Important Ratios (as of Dec. 31, 2005)
*Current ratio 1.04
*Quick ratio 0.71
*Liabilities to
assets 0.61
*Net profit
margin (%) 10.05
*Return on total
assets (%) 8.37
*Inventory
/Turnover ×365 66 days
*Accounts
receivable/Turnover ×365 107 days
*Turnover/Total
assets 0.83
* Cost of goods
sold/Turnover 0.76
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PROFITABILITY: AVERAGE
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The
turnover of SC appears average in its line.
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SC’s
net profit margin is fairly good.
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SC’s
return on total assets is fairly good.
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SC’s
cost of goods sold is average, 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 fair level.
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The
inventory of SC is maintained in an average level.
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The
accounts receivable of SC appears fairly large.
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SC’s
short-term loan appears fairly large.
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SC’s
turnover is in an acceptable 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:
Stable.
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Over the
past 4 years, SC has made a stable growth with satisfactory profit. A credit
line up to USD 200,000 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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