MIRA
INFORM REPORT
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Report Date : |
22.01.2007 |
IDENTIFICATION DETAILS
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Name : |
nexans tianjin magnet wire & cables co.,
ltd. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
22.10.1998 |
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Com. Reg. No.: |
012314 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture |
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Line of Business : |
Engaged
in manufacturing and selling magnet wires and cables. |
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
nexans tianjin
magnet wire & cables co., ltd.
NO.
TEL: 86 (0)
22-83967032
FAX: 86 (0) 22-83967030
EXECUTIVE SUMMARY
INCORPORATION DATE :
OCT. 22, 1998
REGISTRATION NO. :
012314
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY
JOINT VENTURE
STAFF STRENGTH :
156
REGISTERED CAPITAL :
USD 11,297,500
BUSINESS LINE :
MANUFACTURING
TURNOVER :
cny 197,038,000
(AS OF DEC. 31, 2005)
EQUITIES :
cny 65,855,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 7.83 = US$1 AS OF 2006-12-26
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
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 Oct. 22, 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 have 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 magnet wires and cables;
selling its products and providing the related service.
SC is mainly engaged in manufacturing
and selling magnet wires and cables.
Mr. Michel Lemaire has been
chairman of SC since 2004.
SC owns about 156 staff.
SC is
currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Tianjin. Our checks
reveal that SC owns the total premise about 12,000 square meters.
http://www.nexans.com.cn
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
SC’s
former chairman was Zhang Wenli and at
the end of 2004 he was taken place by the present one.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Nexans HQ 64.75
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Nexans HQ
16, rue
Tel: +33 (0) 1 56 69 84 00
Fax: +33 (0) 1 56 69 84 84
The company was reformed by Alcatel Electric
Cables and Parts and in Jun. 2001 it listed in France Stock Exchange.
It has factories in 29 countries with about
17,000 staff. Its turnover of 2003 reached 4 billion EUR. Its products include
telecommunication products, electric cable products and electric wire products.
It has 4 Chinese-foreign equity joint
venture enterprises and 4 wholly foreign-owned enterprises in
Ø
Nexans (
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Nexans Hong Kong Co., Ltd.
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Nexans (
Ø
Nexans (
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Shanghai Nexans Kanghua Cables Co., Ltd.
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Kanshan Kaite Telecommunication Co., Ltd.
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Tianjin Nexans Magnet Wire & Cables Co., Ltd.
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Nanning Huacheng Electric Cables Co., Ltd.
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Chairman:
Mr.
Michel Lemaire, in his 40’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2004 to present Working in SC as chairman.
l
General
Manager:
Mr.
Bertrand Filef, in his 40’s with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2004 to present
Working in SC as general
manager.
SC is mainly engaged in manufacturing
and selling magnet wires and cables.
SC’s products mainly include:
*CTC:
E-Cu58 F20
CPR1
CPR2
CPR3
CuAg0.1(R)
*Paper-Insulated Flat Winding
Wire
*Paper-Insulated Flat Winding
Wire
SC’s annual output can reach
3,600 tons.
SC’s testing equipments are from
Germany ZWICK Company and Austria MAG Company.
SC sources its materials 80% from
domestic market and 20% from the overseas markets, mainly
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 Clients:
============
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Norway Statnett Company
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Baoding Tianwei Group Co., Ltd.
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General Electrics Railway Transportation Corp
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.
SC refused to
release any information about its bank.
Financial Summary
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Unit:
CNY’000
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As of Dec. 31, 2004 |
As of Dec. 31, 2005 |
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Accounts receivable |
48,314 |
72,428 |
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Current assets |
57,378 |
74,431 |
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Fixed assets |
62,820 |
56,322 |
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Total assets |
136,226 |
155,578 |
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Current liabilities |
74,832 |
89,723 |
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Total liabilities |
74,832 |
89,723 |
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Equities |
61,394 |
65,855 |
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Total liabilities &
equities |
136,226 |
155,578 |
Income Statement
Unit: CNY’000
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As of Dec. 31, 2004 |
As of Dec. 31, 2005 |
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Turnover |
127,526 |
197,038 |
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Cost of goods sold |
110,299 |
170,583 |
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Sales expense |
5,324 |
7,309 |
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Management expense |
13,261 |
10,877 |
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Finance expense |
2,990 |
3,854 |
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Profit before tax |
-4,188 |
4,461 |
Important Ratios
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As
of Dec. 31, 2004 |
As
of Dec. 31, 2005 |
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*Current ratio |
0.77 |
0.83 |
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*Liabilities
to assets |
0.55 |
0.58 |
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*Fixed
assets/Total assets |
0.46 |
0.36 |
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*Accounts
receivable/Turnover ×365 |
138days |
134days |
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*Turnover/Total
assets |
0.94 |
1.27 |
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*Cost of goods
sold/Turnover |
0.86 |
0.87 |
PROFITABILITY: AVERAGE
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The turnover of SC appears average in its line.
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SC’s profit before tax appears fair in 2004, but average in 2005.
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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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The accounts receivable of SC appears fairly large in both 2004 and
2005.
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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:
Fairly stable.
SC is
considered small-sized in its line with fairly stable financial conditions. A
credit line up to USD 200,000 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/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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