MIRA
INFORM REPORT
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Report Date : |
26.02.2007 |
IDENTIFICATION
DETAILS
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Name : |
AEROSPACE COMMUNICATIONS HOLDINGS CO., LTD. |
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Registered Office : |
No. 138 Jiefang Road, Hangzhou, Zhejiang Province, 310003
Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
11.06.1992 |
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Com. Reg. No.: |
3300001000742 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Engaged in
telecommunication equipment maintenance, developing aerospace communication
products; manufacturing and selling light textile machineries and textiles. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Up To USD 1,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
AEROSPACE COMMUNICATIONS HOLDINGS CO., LTD.
NO. 138 JIEFANG ROAD, HANGZHOU,
ZHEJIANG PROVINCE, 310003 PR CHINA
TEL: 86 (0) 571-87081905
FAX: 86 (0) 571-97081909
EXECUTIVE SUMMARY
INCORPORATION DATE : JUN. 11, 1992
REGISTRATION NO. : 3300001000742
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
STAFF STRENGTH :
202
REGISTERED CAPITAL : CNY 326,172,000
BUSINESS LINE : MANUFACTURING
TURNOVER :
cny 2,386,699,000 (AS OF DEC. 31, 2005)
EQUITIES :
cny 547,742,000
(AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 1,000,000 (PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.77 = US$1 AS OF 2007-2-15
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Ren Min Bi
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 Jun. 11, 1992.
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 can not be allowed to serve
as promoters. The minimum registered capital
of a co. is CNY10M. while that of the co. with foreign investment is RMB
30M. The total capital of a co. which propose to apply for publicly listed
must not less than RMB 50M. 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 organizing the manufacture and
sale of light textiles and materials, textiles machinery and fittings; import
and export business of knitting and textiles, chemicals and materials;
processing and compensation trade in agreement; industry investment, developing
computer software and network engineering, and repairing hardware;
manufacturing and selling pipes; real estate developing; selling building
materials, metal materials, hardware, oils and products; economic technology
consulting, storage, communication engineering, communication equipment
maintenance; communication business affecting, computer network service;
investing communication industry, managing enterprise assets and developing
communication.
SC is mainly
engaged in telecommunication equipment maintenance, developing aerospace communication
products; manufacturing and selling light textile machineries and textiles.
Mr. Chen Pengfei
has been chairman of SC since 2003.
SC owns about 202
staff at presnet.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Hangzhou. Our checks reveal that SC
owns the total premise about 8,000 square meters.
http://www.aerocom.cn The design is
professional and the content is well organized. At present it is in both
Chinese and English versions.
SC was listed at Shanghai Stock Exchange in September 1993 with the
stock code of 600677.
MAIN SHAREHOLDERS:
Name %
of Shareholding
China-Aerospace Science and Industry
Corporation 22.40
Zhejiang Guoxin Holding Group Co., Ltd. 5.50
China Mobile Communication No. 7 Researching
Institute 4.50
China Textile Goods and Materials (Group)
Corp. 1.74
China Power Finance Co., Ltd. 1.25
Suzhou Investment Co., Ltd. 0.96
China Construction Bank Zhejiang Trust &
Investment Corp. 0.61
Haitong Security Co., Ltd. 0.60
Zhejiang Orient Holdings Co., Ltd. 0.46
Chinese Academy of Sciences Nanjing Branch 0.46
Other shareholders 61.52
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China-Aerospace Science and Industry
Corporation
Under the direct administration of the State Council, China-Aerospace
Science and Industry Corporation is one of the biggest enterprises solely owned
by the State. Within CASIC, four divisions have been established, including six
large-scale academies, over 180 enterprises and institutions with nearly
100.000 employees in total, among which 40 percent are technicians and
engineers of different specialties.
Add: No.8 Fucheng Rd, Haidian District
Beijing
Post code: 100830
Tel: (010)68373522 68373622
Fax: (010)68373626
Website: http://www.casic.com.cn
E-mail: bgt@casic.com.cn
l
Chairman:
Mr. Chen Pengfei, in his 40’s 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.
Also working in China Aerospace Industry Corporation as
general manager and Hong Kong Zhongrun International Investment Co., Ltd. as
director.
l
Vice Chairman:
Mr. Chen Zhixiong, in his 60’s with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
From 2003 to present
Working in SC as vice chairman.
SC is mainly
engaged in telecommunication equipment maintenance, developing aerospace
communication products; manufacturing and selling light textile machineries and
textiles.
SC is a professional service-provider corporation in the field of
communication technology, such as network maintenance, communication network
management software, system integration and advanced consultation service.
The partners of SC include many famous companies in the global
communication field such as equipment manufacturers Motorola and Samsung, and
operators such as China Mobile, China Unicom, China Telecom and China Netcom.
Currently the mobile communication network maintained by SC covers more
than ten provinces in China. SC has the engineering ability to work for
inter-provincial and large-area mobile communication system and has a whole
professional team working on RF planning, on-site designing, installation and
testing, system optimization and preventive maintenance.
SC made good progress in the area of network RF optimization for better
serving the mobile network operators and improve the quality of network
operation. The Technology Center of the Company has more than 100 talented
people with higher degrees that form a team leading in technology level in the
industry in China.
SC works aggressively in setting up sale channels all over China and
marketing vigorously for high-tech mobile communication products. At the same time,
SC is doing large quantity wholesale with the cooperation of mobile operators
because it has all kinds of good sources and good quality capitals.
SC sources its
materials 70% from domestic market and 30% from the overseas markets mainly
from Europe. SC sells 60% of its products in domestic market and 40% to the
overseas markets, mainly to American and Europe.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include T/T, L/C and Credit of 30-60 days.
SC is
known to have more than twenty share-controlled and joint-investment companies,
and below are the major ones:
Shenyang
Aerospace Xinle Co., Ltd.
Chengdu
Aerospace Communication Equipment Co., Ltd.
Shenyang
Aerospace Xinxing Electromechanical Co., Ltd.
Hangzhou
Zhonghui Textiles Co., Ltd.
Ningbo
Zhongxin Wool Textile Group
Zhejiang
Zancheng Development 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 refused to release any information of its
suppliers and the trade reference was not available.
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 China Hangzhou Branch
AC#：71066070061003375
Relationship:
Normal.
Consolidated Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2004 |
As
of Dec. 31, 2005 |
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Cash & bank |
561,097 |
455,784 |
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Accounts
receivable |
167,483 |
252,742 |
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Short term
investment |
32,055 |
26,776 |
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Accounts payable
advance |
78,916 |
109,687 |
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Bills receivable
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15,347 |
8,346 |
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Other
receivables |
172,340 |
125,672 |
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Inventory |
433,444 |
406,539 |
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Other current
assets |
4,400 |
3,367 |
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Current assets |
1,465,082 |
1,388,913 |
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Fixed assets net
value |
529,016 |
518,902 |
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Projects under
construction |
12,040 |
47,400 |
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Long term
investment |
61,924 |
55,721 |
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Other assets |
107,256 |
156,718 |
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Total assets |
2,175,318 |
2,167,654 |
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Short loans |
748,540 |
702,650 |
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Accounts payable |
142,468 |
168,681 |
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Accounts
receivable advance |
107,790 |
165,995 |
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Welfare expenses
payable |
20,305 |
24,911 |
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Bills payable |
195,251 |
162,632 |
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Dividends
payable |
14,265 |
14,214 |
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Taxes payable |
83 |
-6,027 |
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Salaries payable |
7,882 |
7,281 |
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Other payable |
112,868 |
136,653 |
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Accrued expenses |
3,575 |
3,969 |
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Long term
liabilities due within one year |
7,510 |
1,939 |
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Other current
liabilities |
896 |
665 |
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------------------ |
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Current
liabilities |
1,361,433 |
1,383,563 |
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Long term
liabilities |
122,973 |
82,095 |
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Total
liabilities |
1,484,406 |
1,465,658 |
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Minority
Shareholders’ equity |
155,464 |
154,254 |
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Equities |
535,448 |
547,742 |
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Total
liabilities & equities |
2,175,318 |
2,167,654 |
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Consolidated Income Statement
Unit: CNY’000
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As of Dec. 31, 2004 |
As of Dec. 31, 2005 |
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Turnover |
2,691,771 |
2,386,699 |
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Cost of goods
sold |
2,382,089 |
2,069,136 |
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Sales expense |
56,794 |
44,715 |
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Management expense |
179,573 |
207,644 |
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Finance expense |
55,138 |
45,299 |
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Profit before
tax |
26,563 |
30,269 |
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Minority
Shareholders’ profit and loss |
11,475 |
6,893 |
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Less: profit tax |
4,819 |
11,590 |
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Profits |
10,268 |
11,785 |
Important Ratios
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as
of Dec. 31, 2004 |
as
of Dec. 31, 2005 |
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*Current ratio |
1.08 |
1.00 |
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*Quick ratio |
0.76 |
0.71 |
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*Liabilities
to assets |
0.68 |
0.68 |
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*Net profit
margin (%) |
0.37 |
0.46 |
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*Return on
total assets (%) |
0.46 |
0.51 |
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*Fixed
assets/Total assets |
0.24 |
0.24 |
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*Inventory
/Turnover ×365 |
59days |
62days |
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*Accounts
receivable/Turnover ×365 |
23days |
39days |
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*Turnover/Total
assets |
1.24 |
1.10 |
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* Cost of
goods sold/Turnover |
0.89 |
0.87 |
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 average.
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SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
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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 accounts receivable of SC is maintained in a normal level.
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The inventory of SC is maintained in a normal level.
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The short loans appear TOO LARGE.
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SC’s turnover is in an acceptable 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 low.
Overall financial
condition of the SC: Fairly stable.
SC is considered medium-sized in its line with stable financial conditions. A credit line up to USD 1,000,000 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%)
PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions