MIRA
INFORM REPORT
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Report Date : |
05.06.2007 |
IDENTIFICATION DETAILS
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Name : |
JIANGSU GUOQIANG
ZINC PLATING INDUSTRIAL 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 : |
15.10.1998 |
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Com. Reg. No.: |
3204812100528 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and
Selling hot zinc plating and belt steel |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
USD 1,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
COMPANY NAME &
ADDRESS
JIANGSU GUOQIANG ZINC
PLATING INDUSTRIAL CO., LTD.
TEL: 86 (0)
519-7741222
FAX: 86 (0) 519-7741250
EXECUTIVE SUMMARY
INCORPORATION
DATE : OCT. 15,
1998
REGISTRATION
NO. :
3204812100528
REGISTERED
LEGAL FORM : LIMITED LIABILITIES CO.
CHIEF
EXECUTIVE :
MR. YUAN GUOQIANG (CHAIRMAN)
STAFF
STRENGTH :
2,300
REGISTERED
CAPITAL : CNY 125,800,000
BUSINESS
LINE :
MANUFACTURING
TURNOVER : CNY
1,789,140,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 177,790,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET
CONDITION :
COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 7.60 =US1$
AS OF
SC was registered as a limited liabilities co. at
local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on Oct. 15, 1998.
Company Status:
Limited liabilities co. This form of business in PR China is defined as a legal
person. Shareholders bear limited liability to the extent of shareholding,
and the co. is liable for its debts only to extent of its total assets. The
characteristics of this form of co. are as follows: Upon the establishment of the co., an investment
certificate is issued to the each of shareholders. The board of directors is comprised of three to thirteen
members. The minimum registered capital for a co. is listed as
follows: -manufacturing co.
:
CNY 500,000.00 -trading &wholesaling co. :
CNY 500,000.00 -retailing co. : CNY 300,000.00 -consultancy & service co. :
CNY 100,000.00 Shareholders may take their capital contributions in cash
or by means of tangible assets or intangible assets such as industrial
property and non-patented technology. Cash contributed by all shareholders must account for at
least 50% of the registered capital while contribution by intangible assets
must not exceed 20% of the registered capital. Existing shareholders have pre-exemption right to purchase
shares of the co. offered for sale by the other shareholders and to
subscribe for the newly increased registered capital of the co.
SC’s registered business scope includes metal surface hot sealing and processing; manufacturing and selling welded pipe, metal products and plastics products; manufacturing and constructing traffic safety engineering services; designing and constructing landscape projects; importing and exporting various goods and technology and acting as an agent for it.
SC is mainly engaged in
manufacturing and selling hot zinc plating and belt steel.
Mr. Yuan Guoqiang has been chairman of SC since 1998.
SC owns approximately
2,300 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 Liyang. Our checks reveal that SC owns
the total premise about 62,000 square meters.
http://www.jsgq.cn. At present the website is under
construction.
No significant events or changes were found during our
checks with local AIC.
MAIN SHAREHOLDERS:
Name % of Shareholding
Yuan
Guoqiang 90
Fang Mulin 10
Chairman and General Manager:
Mr. Yuan Guoqiang , in his
Working Experience(s):
From 1998 to present
Working in SC as chairman and general manager.
Vice General Manager:
Mr. Fang Mulin , in his
Working Experience(s):
From 1998 to present
Working in SC as vice general manager.
SC is mainly engaged in
manufacturing and selling hot zinc plating and belt steel.
SC’s products mainly
include: hot zinc plating and belt steel.
SC’s annual output of hot
zinc plating can reach 500,000 tons and belt steel can reach 600,000 tons.
SC sources its
materials 100% from domestic market. SC sells 90% of
its products in domestic market and 10% to overseas market.
The buying
terms of SC include Check, T/T and Credit of days. The payment terms of SC
include Check, T/T, L/C and Credit of days.
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.
Agriculture Bank of
AC#: 7730520309110093001
Relationship:
Balance
Sheet
Unit: CNY’000 (as of Dec. 31, 2006)
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Cash
& bank |
200,960 |
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Accounts
receivable |
123,740 |
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Other
receivables |
-36,460 |
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Accounts
paid advance |
130,820 |
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Inventory |
224,450 |
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Other
current assets |
10,120 |
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Current
assets |
653,630 |
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Fixed
assets net value |
259,710 |
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Projects
under construction |
93,760 |
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Long
term investment |
0 |
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Other
assets |
57,300 |
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Total
assets |
1,064,400 |
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Short
loans |
291,410 |
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Accounts
payable |
228,840 |
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Tax
payable |
6,060 |
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Account
received advance |
-34,090 |
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Other
payable |
8,330 |
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Other
current liabilities |
386,060 |
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Current
liabilities |
886,610 |
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Long
term liabilities |
0 |
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Total
liabilities |
886,610 |
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Equities |
177,790 |
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Total
liabilities & equities |
1,064,400 |
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Income
Statement
Unit: CNY’000 (as of Dec. 31, 2006)
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Turnover |
1,789,140 |
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Cost of goods sold |
1,754,860 |
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Sales expense |
74,670 |
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Management expense |
21,820 |
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Finance expense |
24,920 |
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Profit before tax |
-120 |
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Less: profit tax |
0 |
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Profits |
-120 |
Important
Ratios
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as of Dec. 31, 2006 |
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*Current ratio |
0.74 |
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*Quick ratio |
0.48 |
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*Liabilities to assets |
0.83 |
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*Net profit margin (%) |
0.00 |
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*Return on total assets (%) |
0.00 |
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*Fixed assets/Total assets |
0.24 |
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*Inventory /Turnover ×365 |
46days |
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*Accounts receivable/Turnover ×365 |
25days |
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*Turnover/Total assets |
1.68 |
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* Cost of goods sold/Turnover |
0.98 |
PROFITABILITY: AVERAGE
The turnover of SC appears fairly good in its line.
SC’s net profit margin is fair.
SC’s return on total assets is fair.
SC’s cost of goods sold is high, comparing with its turnover, which makes the net profit negative.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level.
SC’s quick ratio is maintained in a fairly poor level.
The inventory of SC appears acceptable.
The accounts receivable of SC appears acceptable.
SC’s turnover is in a fairly good level, comparing with the size of its total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is fairly high.
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fairly stable.
SC is considered medium-sized in its line with fairly stable
financial conditions. profit. A credit line up to USD 1,000,000 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%)