MIRA
INFORM REPORT
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Report Date : |
22.01.2007 |
IDENTIFICATION DETAILS
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Name : |
jiangsu hongyuan textile machinery co.,
ltd. |
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Registered Office : |
No.11 |
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Country : |
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Financials (as on) : |
31/12/2005 |
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Date of Incorporation : |
February
7, 1994 |
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Com. Reg. No.: |
3200001104116 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Engaged
in manufacturing and selling textile machinery, equipment and parts. |
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 800,000 |
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Status : |
Satisfactory
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
Name
jiangsu
hongyuan textile machinery co., ltd.
no.11
TEL: 86
(0) 510-85804827
FAX: 86
(0) 510-85804923
EXECUTIVE SUMMARY
INCORPORATION DATE :
february 7, 1994
REGISTRATION NO. :
3200001104116
REGISTERED LEGAL FORM : Shares limited company
STAFF STRENGTH :
1,230
REGISTERED CAPITAL :
CNY 140,810,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 446,240,000 (AS OF DEC. 31,
2005)
EQUITIES :
CNY 140,810,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
STABLE
OPERATIONAL TREND :
steady
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY7.88 = US$1 AS OF 2006-11-2
SC was registered as a shares limited company at
Company Status: Shares limited co. This form of
business in PR China is defined as a legal person. Its registered capital is
divided into shares of equal par value and the co. raises capital by
issuing share certificates by promotion or by public offer. Shareholders
bear limited liability to the extent of shareholding, and the co. is liable
for its debts only to the extent of its total assets. The characteristics
of the shares limited co. are as follows: The establishment of
the co. requires at least five promoters and at least three of them must be
PR- China controlled legal persons. Natural person can not be allowed to
serve as promoters. The minimum
registered capital of a co. is CNY 10M. while that of the co. with foreign
investment is CNY 30M. The total capital of a co. which propose to apply
for publicly listed must not less than CNY 50M. The board of
directors must consist of an odd number of five to nineteen directors. If the co. raises
capital by public offer, the promoters must not subscribe less than 35% of
the total shares. the promoters’ shares are restricted to transfer- within
three years of the offer. Directors can not transfer the shares they hold
in the co. during their terms of office. A state-owned
enterprise that is restructured into a shares limited co. must comply with
the conditions & requirements specified under the law &
administrative rule.
SC’s registered business scope
includes manufacturing and processing textile machinery, equipment and fittings,
industry special equipment and general equipment, electrical machinery,
automobile parts, needle textiles, chemical fiber; installment and maintenance
of mechanical equipment; spinning and weaving technical service; selling
mechanical and electrical products, needle textiles, plastic products, metal
material, chemical raw materials and products and lumber; exporting its
products and technology; importing materials, instrument, machinery and
equipment, parts and technology needed for its production.
SC is mainly engaged in manufacturing
and selling textile machinery, equipment and fittings.
Mr. Wen Yuanqi has been chairman
of SC since 1994.
SC owns about 1,230 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 Wuxi. Our checks reveal
that SC owns the total premise about 100,000 square meters.
http://www.wxhy.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: hy@wxhy.com
SC has
got the certificate of ISO9001.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Jiangsu Zhengyuan Group Corporation 0.71
Shareholder’s Union of Staff 5.90
l
Chairman:
Mr. Wen
Yuanqi, 49 years old with university education. He is currently responsible for
the overall management of SC.
Working Experience(s):
From 1994 to present Working in SC as chairman.
l
General Manager:
Mr. Zhou Zhiqiang, 43 years old with
university education. He is currently responsible for the daily management of
SC.
Working Experience(s):
From 1994 to present
Working in SC as general
manager.
SC is mainly engaged in manufacturing
and selling textile machinery, equipment and parts.
Brand: Hongyuan.
SC’s products mainly include:
High Speed Draw - texturizing
Machinery
Cotton Spinning Machinery
Roving Frame
Comber
Lap Winder
Ring Spinning Frame
Staple Fiber Two-for-One Twister
Drawing Frame
Fancy Yarn Machinery
Fancy Yarn Machine
Crochet Machine
Computerized Flat Knitting Machine
Chenille Machine
Functional Draw-texturizing Machine
Finishing and Dyeing Machinery
Chainless Mercerizing Range
Stenter
Dye Jigger
Singe-cum-Alkalize Machine
Steaming And Washing Machine
Ironing and Drying Range
Deweighting and
Spare parts
For Finishing and Dyeing
Machinery
SC sources its materials 100% from domestic
market, mainly
The
buying terms of SC include Check, T/T and Credit of 30-90 days. The payment
terms of SC include T/T, L/C and Credit of 30-90 days.
*Major
Customer:
==============
*Major
Supplier:
==============
SC is
known to have 2 subsidiaries as following:
Jiangsu
Hongyuan Textile Machinery Co., Ltd. 3TH Textile Machinery Factory
Jiangsu
Hongyuan Textile Machinery Co., Ltd. 5TH Textile Machinery Factory
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.
Industrial
and Commercial Bank of
AC#1103020209000021192
Relationship:
Balance Sheet (as of Dec. 31, 2005)
Unit: CNY’000
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Cash & bank |
172,580 |
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Inventory |
54,670 |
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Accounts receivable |
52,110 |
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Other Accounts receivable |
69,800 |
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To be apportioned expense |
0 |
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Other current assets |
65,160 |
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------------------ |
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Current assets |
414,320 |
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Fixed assets |
130,660 |
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Fixed assets net value |
73,930 |
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Projects under construction |
0 |
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Long term investment |
9,350 |
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Other assets |
70 |
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Total assets |
497,670 |
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Short loans |
30,510 |
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Accounts payable |
73,470 |
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Other Accounts payable |
40,750 |
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Notes payable |
67,300 |
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Advances from customers |
77,650 |
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Withdraw the expenses in
advance |
0 |
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Other current liabilities |
7,470 |
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Current liabilities |
297,150 |
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Long term liabilities |
0 |
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Other liabilities |
59,710 |
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Total liabilities |
356,860 |
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Equities |
140,810 |
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Total liabilities &
equities |
497,670 |
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Income Statement (as of Dec. 31, 2005)
Unit: CNY’000
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Turnover |
446,240 |
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Cost of goods sold |
355,850 |
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Sales expense |
10,230 |
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Management expense |
50,630 |
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Finance expense |
2,020 |
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Profit before tax |
23,290 |
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Less: profit tax |
9,490 |
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Profits |
13,800 |
Important Ratios (as of Dec. 31, 2005)
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*Current ratio 1.39
*Quick ratio 1.21
*Liabilities to
assets 0.72
*Net profit
margin (%) 3.11
*Return on total
assets (%) 2.77
*Inventory
/Turnover ×365 45 days
*Accounts receivable/Turnover
×365 43
days
*Turnover/Total
assets 0.89
* Cost of goods
sold/Turnover 0.80
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 average.
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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: FAILRY GOOD
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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 fairly good 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 acceptable level.
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SC’s short-term loan is in an average level.
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SC’s turnover is in an average 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.
SC is considered
medium-sized in its line with stable financial conditions. A credit line up to USD
800,000 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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