MIRA
INFORM REPORT
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Report Date : |
13.06.2007 |
IDENTIFICATION DETAILS
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Name : |
jiangyin yuantai
stainless steel products Co., Ltd. |
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Registered Office : |
No. 215, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
December 9, 1994 |
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Com. Reg. No.: |
000267 |
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Legal Form : |
Chinese-Foreign Equity Joint
Venture |
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Line of Business : |
Manufacturing and selling stainless steel wire. |
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 500,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
jiangyin yuantai
stainless steel products Co., Ltd.
NO. 215,
TEL :
86 (0) 510-86101192
FAX :
86 (0) 510-86116641
EXECUTIVE SUMMARY
INCORPORATION DATE : DECEMBER 9, 1994
REGISTRATION NO. : 000267
REGISTERED LEGAL FORM :
CHINESE-FOREIGN EQUITY JOINT VENTURE
STAFF STRENGTH : 178
REGISTERED CAPITAL : USD 8,400,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 326,450,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 85,660,000
(AS OF DEC. 31, 2006)
PAYMENT : AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
7.63 = US1$ AS OF 2007-6-13
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
Note: SC’s correct company name should be Jiangyin Yuantai Stainless Steel Products Co., Ltd. instead of the given name- Jiangyin Yuantai Steel Products Co., Ltd.
SC was registered as a Chinese-foreign equity joint venture enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on December 9, 1994.
Company Status:
Chinese-foreign equity joint venture enterprise This form of business in PR China is
defined as a legal person. It is a limited co. jointly invested by one or more
foreign companies and one or more PR China controlled companies within the
territories of PR China according to a certain proportion of capital
investment. The investing parties exercise business management, share
profits and bear all risks and liabilities of the co. together. The equity
joint venture law requires that foreign party contribute not less than 25%
of the registered capital, with no maximum. The joint venture usually have
a limited duration of 10 to 50 years. Enterprise with large investment,
long construction periods, low investment returns, introducing of advanced
technology & advanced technology products which have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered
business scope includes manufacturing stainless steel wire, welding materials,
stainless steel standard components, carbon steel and machinery equipment of
the above products, stainless steel wire finished goods, and selling self-made
products.
SC is mainly engaged
in manufacturing and selling stainless steel wire.
Mr. Li Guoguang has been legal representative and chairman of SC since
1994.
SC owns approximately 178 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
Jiangyin. Our checks reveal that SC owns the total premise about 30,000 square
meters.
http://www.ytwire.com.cn/ The
design is professional and the content is well organized. At present it is in
both Chinese and English versions.
The given contact person Ms. Xiaoqing Gao is SC’s sales
manager.
MAIN SHAREHOLDERS:
Name %
of Shareholding
CHEER BRIGHT LTD. (BVI) 82.75
CIVIC HOLDINGS LTD. (BVI) 5.25
Jiangyin Hongsheng Co., Ltd. 12
l
Legal representative and chairman:
Mr. Li Guoguang, in his 50’s with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 1994 to present Working in SC as chairman and legal representative.
l
General manager:
Mr. Lin Shijie, 45 years old with university
education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 2000 to present Working in SC as general manager.
*Officials:
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Name Title
Yan Chongxiao Director
Kao Weiting Director
Hong Guoming Director
Chen Xianneng Director
Dubian Kangli Director
SC is mainly
engaged in manufacturing and selling stainless steel wire.
SC’s products
mainly include stainless steel wire, alloy steel wires, stainless steel welding
wires, spring wire, welding wire, cold heading wire, weaving wire, etc.
SC sources its materials 40% from
domestic market, and 60% from overseas market, mainly
The buying terms of SC include Check, T/T, L/C and Credit of
30-60 days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60
days.
*Major Supplier:
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Fasten Group Corporation.
*Major Customer:
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Shanghai
Anzi Industrial Co., Ltd.
SC is known to have the following subsidiaries:
Shanghai
Branch
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.
Shanghai Pudong Development Bank Jiangyin Sub-branch.
AC#：8504135003815
Relationship:
Balance Sheet (as of
Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
56,340 |
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Inventory |
55,750 |
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Accounts
receivable |
50,980 |
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Advances to
suppliers |
13,200 |
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Notes receivable |
3,720 |
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Other
receivables |
140 |
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Prepaid expenses |
130 |
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Other current
assets |
30 |
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Current assets |
180,290 |
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Fixed assets |
70,220 |
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Fixed assets net
value |
17,670 |
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Projects under
construction |
16,830 |
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Long term
investment |
0 |
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Other assets |
190 |
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Total assets |
214,980 |
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Short loans |
52,520 |
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Accounts payable |
21,280 |
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Other payable |
1,390 |
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Notes payable |
53,000 |
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Taxes payable |
850 |
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Accrued payroll |
280 |
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Other current
liabilities |
0 |
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Current
liabilities |
129,320 |
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Long term
liabilities |
0 |
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Total
liabilities |
129,320 |
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Equities |
85,660 |
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Total
liabilities & equities |
214,980 |
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Income Statement (as
of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
326,450 |
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Cost of goods
sold |
297,590 |
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Add:
Income from other operations |
2,370 |
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Sales expense |
4,690 |
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Management expense |
4,680 |
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Finance expense |
2,400 |
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Profit before
tax |
19,300 |
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Less: profit tax |
9,780 |
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Profits |
9,520 |
Important Ratios
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as
of Dec. 31, 2006 |
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*Current ratio |
1.39 |
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*Quick ratio |
0.96 |
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*Liabilities
to assets |
0.60 |
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*Net profit
margin (%) |
2.92 |
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*Return on total
assets (%) |
4.43 |
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*Fixed
assets/Total assets |
0.08 |
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*Inventory
/Turnover ×365 |
62days |
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*Accounts
receivable/Turnover ×365 |
57days |
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*Turnover/Total
assets |
1.52 |
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* Cost of
goods sold/Turnover |
0.91 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears fairly good in its line.
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SC’s net profit margin is average.
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SC’s return on total assets is fairly good.
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SC’s cost of goods sold is fairly high, 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 normal level.
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The inventory of SC is maintained in an average
level.
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The accounts receivable of SC is maintained in an
average level.
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SC’s short-term loan appears fairly large.
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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 average.
Overall financial
condition of the SC: Stable.
SC is considered an old-established business with stable financial
conditions. A credit line up to USD 500,000 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%)