MIRA
INFORM REPORT
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Report Date : |
12.07.2007 |
IDENTIFICATION DETAILS
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Name : |
XIAMEN RAPID PRECION MACHINERY CO., LTD |
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Registered Office : |
No. 22, |
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Country : |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
16.03.2001 |
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Com. Reg. No.: |
05386 |
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Legal Form : |
Wholly Foreign-Owned |
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Line of Business : |
Manufacturing Textile Machinery Equipments |
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 100,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
COMPANY NAME &
ADDRESS
XIAMEN RAPID PRECION MACHINERY CO., LTD.
No. 22,
TEL: 86 (0) 592-5811927
FAX: 86 (0) 592-5809651
EXECUTIVE SUMMARY
INCORPORATION DATE : mar. 16, 2001
REGISTRATION NO. : 05386
REGISTERED LEGAL FORM :
wholly foreign-owned
CHIEF EXECUTIVE : Mr. tang ruineng (CHAIRMAN)
STAFF STRENGTH : 48
REGISTERED CAPITAL : usd 200,000
BUSINESS LINE : manufacturing
TURNOVER : cny 15,965,000 (AS OF DEC. 31, 2005)
EQUITIES : CNY 7,692,000 (AS OF DEC. 31, 2005)
PAYMENT : AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : steady
GENERAL REPUTATION : average
EXCHANGE RATE : CNY 7.56 = US$1 AS OF 2007-07-12
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 Mar. 16, 2001.
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 assembling, manufacturing and repairing textile machinery equipments and measuring instruments; and after-sale services.
SC is mainly engaged in manufacturing textile machinery equipments, etc.
Mr. Tang Ruineng has been chairman of SC since 2006.
SC owns about 48 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 Xiamen. Our checks reveal that SC rents the total premise about 2,000 square meters.
SC is not known to host website of its own at present.
Till December 31, 2005, SC’s paid-up capital reached CNY 1,665,000.
In 2006, SC changed its legal representative from Huang Guicai to the present.
MAIN SHAREHOLDERS:
Name % of Shareholding
UNIKING NATIONAL CO., LTD. (
Chairman:
Mr. Tang Ruineng, about 48 years old with university education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2001 to 2006 Worked in SC as general manager;
From 2006 to present Working in SC as chairman.
General Manager:
Mr. Li Wenzhang , in his 40’s with university education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 2001 to 2006 Worked in SC as shareholder;
From 2006 to present Working in SC as general manager.
SC is mainly engaged in manufacturing textile machinery equipments, etc.
SC’s products mainly include: textile machinery equipments and measuring instruments.
SC sources its materials 95% from domestic markets, mainly
The buying terms of SC include T/T, L/C and Credit of 30-60 days. The payment terms of SC include T/T, L/C and Credit of 15-30 days.
*Major Customers:
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Ningbo Xin Hai’an International Trade Co., Ltd.
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.
Construction Bank of
AC#: 35101512001059888888
Relation:
Balance Sheet (as of Dec. 31, 2005)
Unit: CNY’000
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Cash & bank |
1,059 |
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Inventory |
7,424 |
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Accounts receivable |
1,352 |
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Bills receivable |
0 |
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Other Accounts receivable |
86 |
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Accounts payable in advance |
2 |
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To be apportioned expense |
0 |
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Other current assets |
467 |
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Current assets |
10,390 |
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Fixed assets |
343 |
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Long term investment |
0 |
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Other assets |
155 |
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Total assets |
10,888 |
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Short loans |
0 |
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Accounts payable |
1,614 |
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Accounts receivable in advance |
1,156 |
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Other Accounts payable |
356 |
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Salaries payable |
5 |
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Welfares payable |
20 |
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Taxes payable |
45 |
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Withdraw the expenses in advance |
0 |
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Other current liabilities |
0 |
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Current liabilities |
3,196 |
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Long term liabilities |
0 |
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Other liabilities |
0 |
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Total liabilities |
3,196 |
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Equities |
7,692 |
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Total liabilities & equities |
10,888 |
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Income Statement (as of Dec. 31, 2005)
Unit: CNY’000
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Turnover |
15,965 |
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Cost of goods sold |
10,844 |
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Sales expense |
2,419 |
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Management expense |
1,264 |
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Finance expense |
-63 |
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Non-operating income |
698 |
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Profit before tax |
2,199 |
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Less: profit tax |
165 |
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Profits |
2,034 |
Important Ratios
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As of Dec. 31, 2005 |
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*Current ratio |
3.25 |
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*Quick ratio |
0.93 |
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*Liabilities to assets |
0.29 |
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*Net profit margin (%) |
12.74 |
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*Return on total assets (%) |
18.68 |
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*Inventory /Turnover ×365 |
170 days |
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*Accounts receivable/Turnover ×365 |
31 days |
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*Turnover/Total assets |
1.47 |
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* Cost of goods sold/Turnover |
0.68 |
PROFITABILITY: FAIRLY GOOD
The turnover of SC appears fairly good in its line.
SC’s net profit margin is fairly good.
SC’s return on total assets is fairly good.
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a fairly good level.
SC’s quick ratio is maintained in a normal level.
The inventory of SC appears TOO LARGE.
The accounts receivable of SC is maintained in a normal level.
SC has no short-term loan in 2005.
SC’s turnover is in a fairly good level, comparing with the size of its total assets.
LEVERAGE: FAIRLY GOOD
The debt ratio of SC is low.
The risk for SC to go bankrupt is low.
Overall financial condition of the SC: Fairly good.
SC is considered small-sized in its line with fairly good financial conditions. The large amount of inventory could be a threat to SC’s financial condition. A credit line up to USD 100,000 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%)