MIRA
INFORM REPORT
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Report Date : |
02.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
FUZHOU HSIUNG PENG METAL ELECTRICAL FITTING Co., Ltd. |
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Registered Office : |
No. 13, Guoyou Road, Aojiang Investment Zone, Lianjiang County,
Fuzhou, Fujian Province, 350500 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
15.06.2004 |
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Com. Reg. No.: |
004795 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
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Line of Business : |
Engaged in
manufacturing and selling hardware parts. |
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 15,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
name & address
FUZHOU HSIUNG PENG METAL ELECTRICAL FITTING Co.,
Ltd.
NO. 13, GUOYOU ROAD, AOJIANG INVESTMENT ZONE,
LIANJIANG COUNTY, FUZHOU, FUJIAN PROVINCE, 350500 PR CHINA
TEL: 86 (0) 591-26238690
FAX: 86 (0) 591-26238690
EXECUTIVE SUMMARY
INCORPORATION DATE : june 15, 2004
REGISTRATION NO. : 004795
REGISTERED LEGAL FORM :
CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
STAFF STRENGTH : 55
REGISTERED CAPITAL : usd 120,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 8,150,000 (AS OF DEC. 31, 2005)
EQUITIES : CNY 2,130,000 (AS OF DEC. 31, 2005)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 15,000 (PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : fairLY STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
7.74 = US1$ AS OF 2007-3-2
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
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 June 15, 2004.
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 starter crust, motherboard, metal tip,
transmitting filament and capacitor.
SC is mainly
engaged in manufacturing and selling hardware parts.
Mr. Qiu Jixiong has been legal representative and chairman of SC since
2004.
SC owns approximately 55 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
Fuzhou. Our checks reveal that SC rents the total premise about 1,380 square
meters.
SC is not known to host website of its own at present.
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Malaysia Namin Hsiung Peng Metal
Electrical Fitting Co., Ltd. 50
Lianjiang County Qiushi Electrical Fitting
Co., Ltd. 50
l
Legal representative and chairman:
Mr. Qiu Jixiong, in his 40’s 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 legal representative.
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General manager:
Mr. Qiu Jifang, in his 50’s with high school
education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 2004 to present Working
in SC as general manager.
SC is mainly
engaged in manufacturing and selling hardware parts.
SC’s products mainly include nickel alloy wire, foil, strap,
and other hardware parts.
SC sources its materials 60%
from domestic market, and 40% from overseas market, mainly Korea and India. SC
sells 100% of its products in domestic market.
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 and Credit of 30-60
days.
*Major Supplier:
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Fuzhou Xiangfeng Trading Co., Ltd.
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.
Bank of China Lianjiang County Sub-branch
AC#：366700681808091001
Relationship:
Normal.
Balance Sheet (as
of Dec. 31, 2005)
Unit: CNY’000
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Cash & bank |
1,090 |
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Inventory |
2,120 |
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Accounts
receivable |
0 |
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Advances to
suppliers |
0 |
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Other
receivables |
0 |
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Other current
assets |
250 |
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Current assets |
3,460 |
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Fixed assets |
1,870 |
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Fixed assets net
value |
1,210 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
0 |
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Total assets |
4,670 |
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============= |
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Short loans |
0 |
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Accounts payable |
2,110 |
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Other payable |
70 |
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Welfare expenses
payable |
0 |
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Other current
liabilities |
360 |
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Current
liabilities |
2,540 |
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Long term
liabilities |
0 |
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Total
liabilities |
2,540 |
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Equities |
2,130 |
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Total
liabilities & equities |
4,670 |
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Income Statement (as
of Dec. 31, 2005)
Unit: CNY’000
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Turnover |
8,150 |
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Cost of goods
sold |
7,630 |
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Sales expense |
0 |
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Management expense |
390 |
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Finance expense |
10 |
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Profit before
tax |
130 |
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Less: profit tax |
0 |
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Profits |
130 |
Important Ratios
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as
of Dec. 31, 2005 |
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*Current ratio |
1.36 |
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*Quick ratio |
0.53 |
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*Liabilities
to assets |
0.54 |
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*Net profit margin
(%) |
1.60 |
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*Return on
total assets (%) |
2.78 |
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*Fixed
assets/Total assets |
0.26 |
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*Inventory
/Turnover ×365 |
95days |
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*Accounts
receivable/Turnover ×365 |
/ |
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*Turnover/Total
assets |
1.75 |
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* Cost of
goods sold/Turnover |
0.94 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears average 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 fairly high, 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 inventory of SC appears fairly 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 above average.
Overall financial
condition of the SC: Fairly stable.
SC is considered small-sized in its line with fairly stable financial conditions.
A credit line up to USD 15,000 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