MIRA
INFORM REPORT
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Report Date : |
12.07.2007 |
IDENTIFICATION DETAILS
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Name : |
EATON FLUID POWER ( |
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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 : |
Jan. 21, 1998 |
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Com. Reg. No.: |
311923 |
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Legal Form : |
Wholly Foreign-Owned |
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Line of Business : |
Manufacturing and
selling fluid pressure transmission systems. |
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 : |
Up To usd 1,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
EATON FLUID POWER (
NO.
TEL : 86 (0) 21-50460011
FAX : 86 (0) 21-50460767
EXECUTIVE SUMMARY
INCORPORATION DATE : JAN. 21, 1998
REGISTRATION NO. : 311923
REGISTERED LEGAL FORM : WHOLLY FOREIGN-OWNED
STAFF STRENGTH :
126
REGISTERED CAPITAL : USD 2,100,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
cny 497,144,000 (AS OF DEC. 31, 2005)
EQUITIES :
cny 181,140,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY GOOD
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.60= US$1 AS OF 2007-7-12
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 wholly foreign-owned enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Jan. 21, 1998.
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, developing and
processing fluid pressure systems, transmission gears and motors; international
trade, transiting trade and free trade storage service.
SC is mainly
engaged in manufacturing and selling fluid pressure transmission systems.
Mr. Nelda Janine
Connors has been chairman of SC since 1998.
SC owns about 126
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 owns the total premise about 12,000 square meters.
http://www.eaton.com It is the website of its parent company. The
design is professional and the content is well organized. At present it is in
English version.
No significant events or changes were found during our checks with local
AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Eaton (
===========================
Eaton Corporation, a Fortune 500 company, is
a global diversified industrial manufacturer with Business in Fluid Power,
Electrical, Automotive and Truck industries. Its major products include Fluid
power systems and services for industrial, mobile and aircraft equipment;
Electrical systems and components for power quality, distribution and control;
Automotive engine air management systems and power-train controls for fuel
economy; and Intelligent drive-train systems for fuel economy and safety in
trucks. Eaton has 61,000 employees, more than 150 manufacturing facilities
worldwide, and sells around 40,000 products to customers in more than 125
countries.
Eaton (
Nowadays, it has 20 manufacturing
facilities, 26 sales offices and more than 5,000 employees in
Add: 11/F Hong Kong New World Building No.
300 Huaihai Mid Road,
Tel: 86 21-63879988
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Chairman and
General Manager:
Mr. Nelda Janine Connors, in his 50’s with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 1998 to present Working
in SC as chairman and general manager.
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Vice General
Manager:
Mr. Liu Huangming, 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 vice general
manager.
SC is mainly
engaged in manufacturing and selling fluid pressure transmission systems.
SC’s products
mainly include: fluid pressure transmission systems and its parts.
SC’s main brands
are “VICKERS” (pumps and valves) and “Char-Lynn” (motors and redirectors).
SC sources its
materials 100% from domestic market. SC sells 60% of its products in domestic
market, and 40% to the overseas market, mainly to
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:
============
Eaton Corp
Liaohe Jinma Oilfield Co., Ltd
SC is
known to have an office in
Room
1806
Tel: 86
0411-82539886
Fax: 86
0411-82539885
Email: walterwang@eaton.com
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.
Industrial and Commercial Bank of
AC#：1001192309016230293
Relationship:
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2005 |
As
of Dec. 31, 2006 |
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Cash & bank |
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51,110 |
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Accounts paid in
advance |
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10,540 |
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Accounts
receivable |
77,907 |
126,780 |
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Inventory |
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134,550 |
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Other
receivables |
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2,830 |
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Other current
assets |
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65,220 |
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------------------ |
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Current assets |
231,794 |
391,030 |
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Fixed assets net
value |
7,140 |
14,320 |
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Projects under
construction |
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30 |
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Long term
investment |
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0 |
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Other assets |
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59,530 |
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------------------ |
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Total assets |
311,673 |
464,910 |
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============= |
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Short loans |
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0 |
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Accounts payable |
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147,430 |
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Accounts
received in advance |
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40,550 |
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Taxes payable |
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8,860 |
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Salaries payable |
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7,180 |
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Other payable |
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47,520 |
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Other current
liabilities |
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32,230 |
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Current
liabilities |
221,307 |
283,770 |
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Long term
liabilities |
0 |
0 |
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------------------ |
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Total
liabilities |
221,307 |
283,770 |
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Equities |
90,366 |
181,140 |
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------------------ |
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Total
liabilities & equities |
311,673 |
464,910 |
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Income Statement
Unit: CNY’000
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As of Dec. 31,
2005 |
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Turnover |
497,144 |
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Cost of goods
sold |
429,597 |
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Sales expense |
25,477 |
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Management expense |
23,628 |
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Finance expense |
-3,018 |
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Profit before
tax |
72,603 |
Important Ratios
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2005 |
2006 |
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*Current ratio |
1.05 |
1.38 |
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*Quick ratio |
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0.91 |
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*Liabilities
to assets |
0.71 |
0.61 |
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*Net profit
margin (%) |
/ |
/ |
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*Return on
total assets (%) |
/ |
/ |
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*Fixed
assets/Total assets |
0.02 |
0.03 |
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*Inventory
/Turnover ×365 |
/ |
/ |
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*Accounts
receivable/Turnover ×365 |
57days |
/ |
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*Turnover/Total
assets |
1.60 |
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* Cost of
goods sold/Turnover |
0.86 |
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PROFITABILITY:
FAIRLY GOOD
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The turnover of SC appears fairly good in 2005.
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SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: AVERAGE
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The current ratio of SC is maintained in a normal
level in 2005 and 2006.
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SC’s quick ratio is maintained in a normal level in
2006.
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The accounts receivable of SC is average in 2005,
and it appears fairly large in 2006.
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SC’s turnover is in a fairly good 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 low.
Overall financial
condition of the SC: Fairly good.
SC is considered medium-sized in its line with fairly good financial
conditions. Over the past 9 years, SC has made a stable growth with
satisfactory 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%)