MIRA
INFORM REPORT
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Report Date : |
08.06.2007 |
IDENTIFICATION DETAILS
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Name : |
norinco equipment
co., ltd. |
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Registered Office : |
A - 12, Guang An |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Aug. 6, 1998 |
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Com. Reg. No.: |
1100001907772 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in exporting civilian guns and bullets. |
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 : |
Up To usd 300,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
norinco equipment
co., ltd.
A12, GUANG AN
TEL :
86 (0) 10-63720181
FAX :
86 (0) 10-63522914/83682449
EXECUTIVE SUMMARY
INCORPORATION DATE : aug. 6, 1998
REGISTRATION NO. : 1100001907772
REGISTERED LEGAL FORM : limited li
STAFF STRENGTH :
40
REGISTERED CAPITAL : cny20,000,000
BUSINESS LINE :
trading
TURNOVER :
cny257,380 ,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 37,520,000 (AS OF DEC. 31, 2006)
PAYMENT :
average
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.63 = US$1 AS OF 2007-06-07
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 limited liabilities company at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on Aug. 6, 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 importing and exporting
commodity & technology, and agency business; selling light industry
products, textiles, electromechanical products, chemical products, electronics,
Anti- riot products, and sporting equipment and materials.
SC is mainly
engaged in exporting civilian guns and bullets.
Mr. Lu Jianwei has
been chairman of SC since 1998.
SC owns about 40
staff at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Beijing. Our checks reveal that SC
rents the total premise about 1,000 square meters.
http://www.norincoequipment.cn The design
is professional and the content is well organized. At present, the web is both
in Chinese and English versions.
E-mail: sports@norinco.com.cn
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name % of Shareholding
China North Industries Corp. 100
China North Industries
Corporation (NORINCO) is an enterprise group engaged in both products and
capital operation, integrated with R&D, manufacturing, marketing, and
services. NORINCO mainly deals with defense products, international engineering
contracting, optronic products, chemical products, sports arms & equipment,
automobiles and logistics services, etc.
Address: 12A Guang An Men
Nan Jie,
Telephone: (8610) 63529988
Facsimile: (8610)
63540398
Website: http://www.norinco.com.cn
E-mail: norinco@norinco.com.cn
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Chairman and
General Manager:
Mr. Lu Jianwei, born in 1965, 42 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 general manager;
At present Also working as legal representative and chairman in Chongqing North
Qingshan Fine Machinery
Manufacturing Co., Ltd., and
Guangda Sporting Development Co., Ltd..
SC is mainly engaged
in exporting civilian guns and bullets.
SC’s products are as follows:
Anti-terrorism & riot control: Military
& police standard gun, riot control products etc.
Protection products: Personal & site
protection, safety inspection products etc.
Firearms
& ammunitions: Pistols, rifles, shotguns, ammunitions etc.
Optical products: Riflescopes, binoculars,
telescope, night-vision, communication products etc.
Outdoors & sports products:
Shooting equipments, fishing and hunting products, outdoors equipments etc.
SC sources its materials 100%
from domestic market, mainly
The
buying terms of SC include T/T and Credit of 30-60 days. The payment terms of
SC include T/T, L/C and Credit of 15-30 days.
*Major Supplier:
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State-owned 313th Plant
*Major Customer:
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DEPAIPMENP INC. (Sri Lanka
SC is known to have 2 subsidiaries at
present, as follows:
Chongqing North Qingshan Fine Machinery
Manufacturing 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.
Construction Bank
of
AC#：2610060809
Relationship:
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
15,070 |
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Inventory |
87,890 |
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43,450 |
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Other |
170 |
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36,290 |
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To be apportioned
expense |
0 |
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Other current
assets |
4,060 |
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Current assets |
186,930 |
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Fixed assets |
520 |
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Long term
investment |
6,700 |
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Other assets |
20 |
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Total assets |
194,170 |
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Short loans |
0 |
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Bills payable |
13,100 |
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43,580 |
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25,520 |
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Other |
9,950 |
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Taxes payable |
-3,120 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
51,030 |
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Current
liabilities |
140,060 |
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Long term
liabilities |
16,590 |
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Other
liabilities |
0 |
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Total
liabilities |
156,650 |
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Equities |
37,520 |
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Total
liabilities & equities |
194,170 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
257,380 |
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Cost of goods
sold |
200,980 |
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Sales expense |
28,440 |
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Management expense |
9,920 |
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Finance expense |
2,730 |
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Non-operating
income |
130 |
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Profit before
tax |
15,440 |
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Less: profit tax |
5,610 |
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Profits |
9,830 |
Important Ratios
(as of Dec. 31, 2006)
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*Current ratio 1.33
*Quick ratio 0.71
*Liabilities to assets 0.81
*Net profit margin (%) 3.82
*Return on total assets (%) 5.06
*Inventory /Turnover ×365 125
days
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*Turnover/Total assets 1.33
* Cost of goods sold/Turnover 0.78
PROFIT
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The turnover of SC appears fairly good in its line.
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SC’s net profit margin is acceptable.
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SC’s return on total assets is fairly good.
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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.
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SC’s quick ratio is maintained in a fair level.
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The inventory of SC is maintained in a large level.
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The accounts receivable of SC is maintained in a
normal level.
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SC has no short-term loan in 2006.
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SC’s turnover is in a fairly good level, comparing
with the size of its total assets.
LEVERAGE:
FAIR
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The debt ratio of SC is fairly high.
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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. A credit line
up to USD300,000 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%)