MIRA
INFORM REPORT
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Report Date : |
26th February, 2007 |
IDENTIFICATION
DETAILS
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Name : |
GEA ECOFLEX CHINA CO., LTD. |
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Registered Office : |
No.218, Lane 1409 Jiqu Road, Huacao Town, Minhang District,, Shanghai,
201106 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 : |
13.05.2005 |
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Com. Reg. No.: |
038377 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Engaged in manufacturing and selling plate-type heat exchange
equipment. |
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 30,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
Company Name & Address
gea ecoflex china co., ltd.
no.218, lane 1409
jiqu road, huacao town, minhang district,, shanghai, 201106 PR CHINA.
TEL : 86 (0) 21-62960872
FAX : 86 (0) 21-63900556
EXECUTIVE SUMMARY
INCORPORATION DATE : May 13, 2005
REGISTRATION NO. : 038377
REGISTERED LEGAL FORM : Wholly foreign-owned
enterprise
STAFF STRENGTH :
18
REGISTERED CAPITAL : usd 200,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 10,720,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 2,660,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 30,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY7.75 = US$1 AS OF 2007-2-25
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 wholly foreign-owned enterprise at
local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on May 13, 2005.
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 plate-type heat exchange
equipment, and selling its products.
SC is mainly
engaged in manufacturing and selling plate-type heat exchange equipment.
Mr. Ulrich
Fehlauer has been chairman of SC since 2005.
SC owns about 18
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 Shanghai. Our checks reveal that
SC rents the total premise about 1,000 square meters.
SC is not known to host web site of its own at present.
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
(Germany) GEA Ecoflex GmbH 100
l
Chairman:
Mr. Ulrich Fehlauer (German), about 45 years old with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2005 to present Working
in SC as chairman.
l
General Manager:
Mr. Morten V. Henriksen (Denmark), about 45 years old with university
education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 2005 to present
Working in SC as general
manager.
SC is mainly
engaged in manufacturing and selling plate-type heat exchange equipment.
SC’s products
mainly include: plate-type heat exchange equipment.
SC sources its materials 100% from overseas
market, mainly Germany. SC sells 100% of its products in domestic market,
mainly Shanghai.
The buying terms of SC include T/T, L/C and Credit of 30 days. The
payment terms of SC include Check, T/T and Credit of 30 days.
*Major Customers:
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Shanghai Oufuluo Engineering Technology Equipment Co., Ltd.
*Major Suppliers:
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(Germany) GEA Ecoflex GmbH
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.
ABN AMRO Bank Shanghai Branch
AC#：40420788000008008108
Relationship:
Normal.
Balance Sheet (as of
Dec. 31, 2005)
Unit: CNY’000
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Cash & bank |
1,380 |
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Inventory |
8,510 |
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Accounts
receivable |
5,740 |
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Other Accounts
receivable |
540 |
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Prepayment |
3,690 |
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To be
apportioned expense |
160 |
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Other current
assets |
840 |
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Current assets |
20,860 |
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Fixed assets net
value |
380 |
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Projects under
construction |
0 |
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Long term investment |
0 |
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Other assets |
160 |
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Total assets |
21,400 |
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Short loans |
0 |
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Accounts payable |
14,460 |
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Other Accounts
payable |
1,480 |
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Withdraw the
expenses in advance |
200 |
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Other current liabilities |
2,600 |
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Current
liabilities |
18,740 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
18,740 |
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Equities |
2,660 |
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Total
liabilities & equities |
21,400 |
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Income Statement (as of Dec. 31, 2005)
Unit: CNY’000
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Turnover |
10,720 |
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Cost of goods
sold |
7,040 |
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Sales expense |
630 |
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Management expense |
2,050 |
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Finance expense |
-30 |
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Profit before
tax |
1,010 |
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Less: profit tax |
0 |
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Profits |
1,010 |
Important Ratios (as of Dec. 31, 2005)
*Current ratio 1.11
*Quick ratio 0.66
*Liabilities to
assets 0.88
*Net profit margin
(%) 9.42
*Return on total
assets (%) 4.72
*Inventory
/Turnover ×365 290 days
*Accounts
receivable/Turnover ×365 195 days
*Turnover/Total
assets 0.50
* Cost of goods
sold/Turnover 0.66
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 average.
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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 fairly good level.
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SC’s quick ratio is maintained in a fair level.
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The inventory of SC appears fairly large.
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The accounts receivable of SC appears fairly large.
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SC has no short-term loan in 2005.
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SC’s turnover is in a fair 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.
Over the past 2 years, SC has made a stable growth with satisfactory
profit. A credit line up to USD 30,000
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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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%)
PRIVATE & CONFIDENTIAL : This information
is provided to you at your request, you having employed MIPL for such purpose.
You will use the information as aid only in determining the propriety of giving
credit and generally as an aid to your business and for no other purpose. You
will hold the information in strict confidence, and shall not reveal it or make
it known to the subject persons, firms or corporations or to any other. MIPL
does not warrant the correctness of the information as you hold it free of any
liability whatsoever. You will be liable to and indemnify MIPL for any loss,
damage or expense, occasioned by your breach or non observance of any one, or
more of these conditions