MIRA
INFORM REPORT
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Report Date : |
13.07.2007 |
IDENTIFICATION DETAILS
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Name : |
JUNMA TYRE CORD CO., LTD. |
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Registered Office : |
No.80 |
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Country : |
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Financials (as on) : |
2006 |
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Date of Incorporation : |
12.06.1998 |
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Com. Reg. No.: |
000435 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and Selling Cord Fabric |
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 1,500,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
COMPANY NAME &
ADDRESS
JUNMA TYRE CORD CO., LTD.
No.80
TEL: 86 (0) 512-58291688
FAX: 86 (0) 512-58292308
EXECUTIVE SUMMARY
INCORPORATION DATE : june 12, 1998
REGISTRATION NO. : 000435
REGISTERED LEGAL FORM : Shares
limited company
CHIEF EXECUTIVE :
MR. yang peixing (CHAIRMAN)
STAFF STRENGTH :
1,902
REGISTERED CAPITAL : CNY 73,400,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 1,894,339,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 354,675,000
(AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : StEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY7.57 = US$1 AS OF
SC was registered as a shares limited company at local Administration
for Industry & Commerce (AIC - The official body of issuing and renewing
business license) on June 12, 1998.
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 cannot be allowed to serve as promoters. The minimum registered capital of a co. is CNY 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 selling cord fabric,
thread, wholesale self-made products and similar products.
SC is mainly engaged in manufacturing and selling cord fabric.
Mr. Yang Peixing has been chairman of SC since 1998.
SC owns about 1,902 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 Zhangjiagang.
Our checks reveal that SC owns the total premise about 165,000 square meters.
http://www.junmachina.com The
design is professional and the content is well organized. At present the web
site is only in Chinese version.
E-mail: master@junmachina.com
SC is a listed company in Singapore Stock Exchange Market.
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Chen Zufu 5.96
Jiang Jianping 3.41
Liu Yaoxiang 3.40
Liu Zhenfeng 6.13
2G Capital (
Yang Peixing 14.99
Zhangjiagang Bole Investment Development
Company 41.04
Chairman:
Mr. Yang Peixing , 45 years old 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 also working in Jiangsu Junma
Group Co., Ltd. as chairman.
General Manager:
Mr. Liu Zhenfeng , 53 years old with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
From 1998 to present Working in SC as general manager.
SC is mainly engaged in manufacturing and selling cord fabric.
Brand: Junma
SC’s products mainly include: steel cord, gumming cord fabric.
SC sources its materials 100% from domestic market, mainly
The buying terms of SC include Check, T/T and Credit of 30-45 days. The
payment terms of SC include T/T, L/C and Credit of 30-45 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.
SC declined to release its bank details.
BALANCE SHEET
2006 2005
CNY’000 CNY’000
ASSETS
Non-current assets
Property,
plant and equipment 327,774 371,899
Intangible
assets 11 28
Lease
prepayment 18,878 19,291
Investment
in subsidiary 55,000
55,000
Deferred
income tax assets 44,243
16,645
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Current assets
Inventories 159,969 163,633
Trade
and other receivables 933,414 759,826
Tax
recoverable 954 954
Cash
and cash equivalents 183,384 241,582
1,277,721 1,165,995
Total assets 1,723,627 1,628,858
EQUITY
Capital and reserves attributable to
The Company’s equity holders
Share
capital and share premium 179,340 179,340
Other
reserves 50,554 50,554
Retained
earnings 124,781 183,552
354,675 413,446
Minority interest
in equity - -
Total equity 354,675 413,446
LIABILITIES
Non-current liability
Borrowings - 175,000
Current liabilities
Trade
and other payables 352,652 446,430
Borrowings 1,016,300
593,982
1,368,952 1,040,412
Total liabilities 1,368,952 1,215,412
Total equity and
liabilities 1,723,627 1,628,858
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CONSOLIDATED INCOME STATEMENT
2006 2005
CNY’000 CNY’000
Revenue 1,894,339
2,194,937
Cost
of sales (1,872,745)
(2,100,099)
Gross profit 21,594 94,838
Other
income 42,362
30,582
Distribution
expenses (42,124) (51,150)
Administrative
expenses (33,350) (34,750)
Other
operating expenses (6,175)
(9,514)
Operation
(loss)/profit (17,693)
30,006
Finance
costs (90,141)
(58,862)
Loss before income
tax
(107,834) (28,856)
Income
tax credit 25,505 6,421
Loss for the year (82,329) (22,435)
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Attributable to:
Equity
holders of the Company (71,728) (5,693)
Minority
interest (10,601) (16,742)
(82,329) (22,435)
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Important Ratios
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As of Dec. 31, 2006 |
As of Dec. 31, 2005 |
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*Current ratio |
0.93 |
1.12 |
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*Quick ratio |
0.82 |
0.96 |
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*Liabilities to assets |
0.79 |
0.75 |
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*Net profit margin (%) |
-4.35 |
-1.02 |
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*Return on total assets (%) |
-4.78 |
-1.38 |
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*Inventory /Turnover ×365 |
31 days |
27 days |
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*Turnover/Total assets |
1.10 |
1.35 |
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* Cost of goods sold/Turnover |
0.99 |
0.96 |
PROFITABILITY: FAIR
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 fairly high, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in an average level.
SC’s quick ratio is maintained in a normal level.
The inventory of SC is maintained in an average level.
SC’s turnover is in an acceptable level, comparing with the size of its total assets.
The borrowings in current liability appears TOO LARGE.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fairly stable.
SC is considered large-sized in its line with fairly stable financial conditions. The large amount of borrowings could be a threat to SC’s financial condition. A credit line up to USD 1,500,000 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%)