MIRA
INFORM REPORT
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Report Date : |
29.06.2007 |
IDENTIFICATION DETAILS
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Name : |
HANGZHOU ZHEDA LIANFA MACHINERY CO., LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Nov. 26, 1997 |
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Com. Reg. No.: |
002888 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture |
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Line of Business : |
Manufacturing and selling machineries. |
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 40,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
HANGZHOU ZHEDA LIANFA MACHINERY CO., LTD.
TEL : 86 (0)
571-82206358
FAX : 86 (0) 571-82269697
EXECUTIVE SUMMARY
INCORPORATION DATE : NOV. 26, 1997
REGISTRATION NO. : 002888
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY
JOINT VENTURE
STAFF STRENGTH :
25
REGISTERED CAPITAL : USD 250,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
cny 52,530,000 (AS OF DEC. 31, 2006)
EQUITIES :
cny 6,390,000
(AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.62= US$1 AS OF 2007-6-29
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 Nov. 26, 1997.
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 agriculture
machineries, chemical machineries, construction machineries, light industry
machineries and its parts, plastic products; selling its products.
SC is mainly
engaged in manufacturing and selling machineries.
Mr. Kong Dewei has
been chairman of SC since 1997.
SC owns about 25
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 Hangzhou. Our checks
reveal that SC rents the total premise about 10,000 square meters.
http://zdlfjx.go3.icpcn.com The
design is professional and the content is well organized. At present it is in
both Chinese and English versions.
No significant events or changes were found during our checks with local
AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Xiongping Co., Ltd. (
Xiaoshan The No.2 Chemical Plastics Factory 45
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Chairman and
General Manager:
Mr. Kong Dewei, in his 50’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1997 to present Working
in SC as chairman and general manager.
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Vice Genera
Manager:
Mr. Yu Tao, in his 20’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 vice general
manager.
SC is mainly engaged
in manufacturing and selling machineries.
SC’s products
mainly include: air cool machineries and water cool machineries.
SC sources its
materials 100% from domestic market. SC sells 50% of its products in domestic
market and 50% to the overseas markets, mainly to American and
The buying terms of SC include Check, T/T 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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Changzhou Machineries Equipment Co., Ltd.
*Major Supplier:
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Cixi Feida Wheel 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.
CITIC Bank of
AC#：94982400000922
Relationship:
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2006 |
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Cash & bank |
810 |
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Accounts paid in
advance |
0 |
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Accounts
receivable |
8,110 |
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Inventory |
10,010 |
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Other
receivables |
130 |
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Other current
assets |
4,180 |
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Current assets |
23,240 |
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Fixed assets net
value |
1,500 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
130 |
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Total assets |
24,870 |
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Short loans |
16,700 |
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Accounts payable |
4,870 |
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Accounts
received in advance |
0 |
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Taxes payable |
-3,550 |
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Salaries payable |
0 |
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Other payable |
260 |
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Other current
liabilities |
0 |
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Current
liabilities |
18,480 |
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Long term
liabilities |
0 |
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Total
liabilities |
18,480 |
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Equities |
6,390 |
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Total
liabilities & equities |
24,870 |
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Income Statement
Unit: CNY’000
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As of Dec. 31,
2006 |
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Turnover |
52,530 |
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Cost of goods
sold |
46,040 |
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Sales expense |
2,830 |
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Management expense |
1,830 |
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Finance expense |
1,090 |
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Profit before
tax |
1,080 |
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Less: profit tax |
290 |
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Profits |
790 |
Important Ratios
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2006 |
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*Current ratio |
1.26 |
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*Quick ratio |
0.72 |
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*Liabilities
to assets |
0.74 |
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*Net profit
margin (%) |
1.50 |
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*Return on
total assets (%) |
3.18 |
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*Fixed
assets/Total assets |
0.06 |
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*Inventory
/Turnover ×365 |
70days |
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*Accounts
receivable/Turnover ×365 |
56days |
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*Turnover/Total
assets |
2.11 |
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* Cost of
goods sold/Turnover |
0.88 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears fairly good in 2006.
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SC’s net profit margin is average in 2006.
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SC’s return on total assets is average in 2006.
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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 normal
level in 2006.
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SC’s quick ratio is maintained in a fair level in
2006.
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The accounts receivable of SC is fairly large.
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The inventory of SC is fairly large.
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SC’s short-term loan appears TOO 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 fairly high.
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The risk for SC to go bankrupt is above 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 40,000 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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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%)