MIRA
INFORM REPORT
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Report Date : |
01.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
WUHAN CHANCAY MACHINERY & ELECTRONICS CO., LTD. |
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Registered Office : |
11/F, Ju Hao Hua Ting Building, No. 460, Wuluo Road, Wuhan
City, Hubei Province 430070 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
09.08.2004 |
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Com. Reg. No.: |
4201002178650 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Selling mechanical equipment used for agriculture and project. |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Up To USD 5,000 |
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Status : |
Small Company |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
name & address
WUHAN CHANCAY MACHINERY & ELECTRONICS CO., LTD.
11/F, JU HAO HUA TING BUILDING, NO. 460, WULUO ROAD, WUHAN CITY
HUBEI PROVINCE 430070 PR CHINA
TEL: 86 (0) 27-50705099
FAX: 86 (0) 27-50705098
EXECUTIVE SUMMARY
INCORPORATION DATE : aug. 9, 2004
REGISTRATION NO. : 4201002178650
REGISTERED LEGAL FORM : limited liabilities
company
STAFF STRENGTH :
12
REGISTERED CAPITAL : cny 2,000,000
BUSINESS LINE :
trading
TURNOVER :
CNY 3,460,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 950,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 5,000 (PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fair
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.74 = US$1 AS OF 2007-03-01
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 limited liabilities company at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on Aug. 9, 2004.
Company Status: Limited liabilities co. 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 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 selling general equipment, metal material, hardware,
electrical products; and importing and exporting all kinds of commodities and
technologies.
SC is mainly
engaged in selling mechanical equipment used for agriculture and project.
Mr. Cao Haiming
has been chairman of SC since 2004.
SC owns about 12
staff at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Wuhan. Our checks reveal that SC
rents the total premise about 100 square meters.
http://www.chancay.com.cn It is
the website of its parent company, the design is professional and the content
is well organized. At present, the web is only in English version.
E-mail: worldhaina@yahoo.com
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Cao Haiming 55
Deng Chunmei 25
Liu Li 10
Deng Jiangling 10
l
Chairman and
General manager:
Mr. Cao Haiming, 31 years old with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2004 to present
Working in SC as chairman and general manager.
SC is mainly
engaged in selling mechanical equipment used for agriculture and project.
SC’s products mainly include: agricultural
equipment, engineering equipment, and construction equipment, etc.
SC sources its
materials 100% from domestic market, mainly Hubei province. SC sells its
products 100% to overseas market, mainly Belgium.
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 30-60 days.
*Major Supplier:
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Hubei Huayu Electromechanical & Engineering Machinery
Co., Ltd.
*Major Customer:
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HENDIRK LTD. (Belgium)
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.
Minsheng Bank
AC#：0502014170004497
Relationship:
Normal.
Balance Sheet (as
of Dec. 31, 2005)
Unit: CNY’000
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Cash & bank |
3,190 |
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Inventory |
130 |
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Accounts
receivable |
-770 |
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Other Accounts
receivable |
0 |
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Accounts payable
in advance |
310 |
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To be
apportioned expense |
0 |
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Other current
assets |
70 |
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Current assets |
2,930 |
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Fixed assets |
120 |
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Long term
investment |
0 |
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Other assets |
0 |
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Total assets |
3,050 |
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Short loans |
0 |
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Accounts payable |
520 |
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Salaries payable |
0 |
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Welfares payable |
10 |
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Taxes payable |
-20 |
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Accounts
receivable in advance |
1,300 |
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Other Accounts
payable |
290 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
0 |
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Current
liabilities |
2,100 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
2,100 |
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Equities |
950 |
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Total
liabilities & equities |
3,050 |
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Income Statement (as
of Dec. 31, 2005)
Unit: CNY’000
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Turnover |
3,460 |
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Cost of goods
sold |
2,950 |
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Sales expense |
290 |
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Management expense |
300 |
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Finance expense |
0 |
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Non-operating
expense |
10 |
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Profit before
tax |
-90 |
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Less: profit tax |
0 |
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Profits |
-90 |
Important
Ratios
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As
of Dec. 31, 2005 |
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*Current ratio |
1.40 |
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*Quick ratio |
1.33 |
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*Liabilities
to assets |
0.69 |
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*Net profit
margin (%) |
-2.60 |
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*Return on
total assets (%) |
-2.95 |
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*Inventory
/Turnover ×365 |
14 days |
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*Accounts
receivable/Turnover ×365 |
/ |
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*Turnover/Total
assets |
1.13 |
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* Cost of
goods sold/Turnover |
0.85 |
PROFITABILITY:
FAIR
l
The turnover of SC appears average in its line.
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SC’s net profit margin is fair.
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SC’s return on total assets is fair.
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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 normal level
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The inventory of SC is maintained in a normal level.
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SC has no short-term loan in 2005.
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SC’s turnover is in an average 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 above average.
Overall
financial condition of the SC: Fair.
SC is considered small-sized in its line with fair financial conditions.
A credit line up to USD 5,000 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