MIRA
INFORM REPORT
|
Report Date : |
12.07.2007 |
IDENTIFICATION DETAILS
|
Name : |
ZHEJIANG HUAZHENG ELECTRONICS GROUP CO., LTD. |
|
|
|
|
Registered Office : |
No. 1, Baota Industrial Zone, Yuhang, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2005 |
|
|
|
|
Date of Incorporation : |
06.03.2003 |
|
|
|
|
Com. Reg. No.: |
3300001009466 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
Manufacturing Electronic Insulating Materials |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 500,000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
COMPANY NAME &
ADDRESS
ZHEJIANG HUAZHENG ELECTRONICS GROUP CO., LTD.
NO. 1, BAOTA INDUSTRIAL ZONE, YUHANG,
TEL: 86 (0) 571-88652961
FAX: 86 (0) 571-88652909/88662860
EXECUTIVE SUMMARY
INCORPORATION DATE : MAR. 6, 2003
REGISTRATION NO. : 3300001009466
REGISTERED LEGAL FORM : limited liabilities company
CHIEF EXECUTIVE : Mr. jin meixing (chairman)
STAFF STRENGTH : 1,000
REGISTERED CAPITAL : CNY 60,000,000
BUSINESS LINE : manufacturing
TURNOVER : CNY 251,550,000 (AS OF DEC. 31, 2005)
EQUITIES : CNY 65,770,000 (AS OF DEC. 31, 2005)
PAYMENT : AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY7.57 = US$1 AS OF 2007-7-11
SC was registered as a limited liabilities company at local Administration for Industry & Commerce (The official body of issuing and renewing business license) on Mar. 6, 2003.
Company Status: Limited liabilities company This form of business in PR China is defined as a legal
person. At least two shareholders and no more than fifty contribute its registered
capital jointly. 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 30% 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 manufacturing and selling electronic insulating materials; operating import and export business.
SC is mainly engaged in manufacturing electronic insulating materials.
Mr. Jin Meixing has been chairman of SC since 2003.
SC owns about 1,000 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 40,000 square meters.
www.xsccl.com The design is professional and the content is well organized. At present it is both in Chinese and English versions.
E-mail: xsdz@xinshengccl.com
No significant events or changes were found during our checks with the local AIC.
MAIN SHAREHOLDERS:
Name % of Shareholding
Holley Group Co., Ltd. 77
Zheng Shuyin 3.33
Liu Tao 3.17
Zhou Jianming 3
Yang Ruping 2.67
Tang Xinqiang 2.67
Wu Lifen 2.5
Zhu Youxi 2.5
==================
Holley Group Co., Ltd.
Web site: www.holley.cn
E-mail: webmaster@holley.cn
Address:
Tel: 0571-88900800
Fax: 0571-88052408
Chairman:
Mr. Jin Meixing born in 1960, with university education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2003 to present Working in SC as chairman.
General Manager:
Mr. Liu Tao , born in 1966 with university education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 2003 to present Working in SC as general manager.
SC is mainly engaged in manufacturing electronic insulating materials.
SC’s products mainly include: electronic insulating materials, etc.
SC sources its materials 80% from domestic market, mainly from
The buying terms of SC include T/T, L/C and Credit of 30-90 days. The payment terms of SC include T/T, L/C and Credit of 30-90 days.
*Major supplier:
=============
*Major Customer:
==============
Kinwong Electronics (Shenzhen) Co., Ltd.
Established in 1993, Kinwong
Electronics (Shenzhen) Co., Ltd. is solely invested by (
Address: No,
Zip Code : 518102
Tel : (86-755) 2769 7333
Fax : (86-755) 2769 7399
Website : http://www.kinwong.cn
E-mail : market@kinwong.com
SC is known to have the following subsidiaries:
Hangzhou Huatian Insulation Materials Co., Ltd.
Hangzhou Liansheng Insulation Materials Co., Ltd.
Hangzhou Xinsheng Import & Export Co., Ltd.
Hangzhou Xinsheng Printing Circuit Board Co., Ltd.
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.
Bank of
AC#：804023749008091001
Relationship:
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31, 2004 |
as of Dec. 31, 2005 |
|
Cash & bank |
32,980 |
32,490 |
|
Bills receivable |
2,400 |
2,210 |
|
Accounts receivable |
74,760 |
82,910 |
|
Accounts payable in advance |
3,670 |
570 |
|
Other Accounts receivable |
7,830 |
101,740 |
|
Inventory |
19,220 |
29,370 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
140,860 |
249,290 |
|
Fixed assets |
71,840 |
74,180 |
|
Fixed assets net value |
57,920 |
48,080 |
|
Projects under construction |
0 |
0 |
|
Long term investment |
9,610 |
20,950 |
|
Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
208,390 |
318,300 |
|
|
============= |
============= |
|
Short loans |
35,000 |
28,500 |
|
Bills payable |
22,950 |
22,620 |
|
Accounts payable |
15,680 |
40,080 |
|
Accounts receivable in advance |
1,480 |
840 |
|
Other Accounts payable |
16,140 |
112,040 |
|
Salaries payable |
450 |
520 |
|
Welfares payable |
490 |
470 |
|
Taxes payable |
1,800 |
340 |
|
Withdraw the expenses in advance |
30 |
120 |
|
Other current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current liabilities |
94,020 |
205,530 |
|
Long term liabilities |
50,000 |
47,000 |
|
Other liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total liabilities |
144,020 |
252,530 |
|
Equities |
64,370 |
65,770 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
208,390 |
318,300 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31, 2004 |
as of Dec. 31, 2005 |
|
Turnover |
250,680 |
251,550 |
|
Cost of goods sold |
207,850 |
218,020 |
|
Sales expense |
0 |
0 |
|
Management expense |
16,110 |
13,370 |
|
Finance expense |
5,830 |
5,420 |
|
Plus: Investment income |
560 |
40 |
|
Non-operating income |
340 |
370 |
|
Less: Non-operating expense |
2,890 |
130 |
|
Profit before tax |
19,210 |
16,120 |
|
Less: profit tax |
5,570 |
3,900 |
|
Profits |
13,640 |
12,220 |
Important Ratios
=============
|
|
As of Dec. 31, 2004 |
As of Dec. 31, 2005 |
|
*Current ratio |
1.50 |
1.21 |
|
*Quick ratio |
1.29 |
1.07 |
|
*Liabilities to assets |
0.69 |
0.79 |
|
*Net profit margin (%) |
5.44 |
4.86 |
|
*Return on total assets (%) |
6.55 |
3.84 |
|
*Fixed assets/Total assets |
0.34 |
0.23 |
|
*Inventory /Turnover ×365 |
28days |
43 days |
|
*Accounts receivable/Turnover ×365 |
109days |
120 days |
|
*Turnover/Total assets |
1.20 |
0.79 |
|
* Cost of goods sold/Turnover |
0.83 |
0.87 |
PROFITABILITY: FAIRLY GOOD
The turnover of SC appears fairly good in its line.
SC’s net profit margin is maintained in an average level in 2005.
SC’s return on total assets is maintained in an average level in 2005..
SC’s cost of goods sold is acceptable, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a normal level.
The inventory of SC is maintained in an acceptable level.
The accounts receivable of SC appears fairly large.
The short-term loan of SC appears acceptable.
SC’s turnover is in a acceptable level, comparing with the size of its total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
The risk for SC to go bankrupt is low.
Overall financial condition of the SC: Stable.
SC is considered medium-sized in its line with stable financial conditions. A credit line up to USD 500,000 would appear to be within SC’s capacities.
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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%)