MIRA
INFORM REPORT
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Report Date : |
16.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
lilly industries (shanghai) co., ltd. |
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Registered Office : |
No. 838, Jiaxin Road, Malu Town, Jiading District Shanghai 201818 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
oct. 20, 1999 |
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Com. Reg. No.: |
026461 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Engaged in manufacturing coating. |
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 150,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
lilly industries (shanghai) co., ltd.
no. 838, jiaxin
road, malu town, jiading district
shanghai 201818 PR CHINA
TEL: 86 (0)
21-59901345
FAX: 86 (0)
21-59901885
EXECUTIVE SUMMARY
INCORPORATION DATE : oct. 20, 1999
REGISTRATION NO. : 026461
REGISTERED LEGAL FORM : wholly foreign-owned
enterprise
STAFF STRENGTH :
300
REGISTERED CAPITAL : usd 15,100,000
BUSINESS LINE :
manufacturing
TURNOVER :
cny 300,420,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 105,790,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up
to usd 150,000 (PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fair
OPERATIONAL TREND : FAIRLY steady
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 7.75 = US$1 AS OF 2007-03-16
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 wholly foreign-owned enterprise at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on Oct. 20, 1999.
Company Status: Wholly foreign-owned enterprise. This
form of business in PR China is defined as a legal person. It is a limited
co. established within the territories of PR China with capital provided totally
by the foreign investors. More than one foreign investors may jointly
invest in a wholly foreign-owned enterprise. The investing party/parties
solely exercise management, reap profit and bear risks and liabilities by
themselves. This form of companies usually have a limited duration is
extendible upon approval of Examination and Approval Authorities.
SC’s
registered business scope includes manufacturing dope, paint, combination of solvent,
and additive; selling homegrown products; providing after services and
technical instruction.
SC is
mainly engaged in manufacturing coating.
Mr.
Dai Ning has been chairman of SC since 1999.
SC
owns about 300 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 Shanghai. Our checks
reveal that SC owns the total premise about 5,000 square
meters.
SC is not known to host website of its own at present.
Till December 31, 2006, SC’s paid-up capital reached CNY 177,250,000.
MAIN SHAREHOLDERS:
Name %
of Shareholding
America Engineered Polymer Solutions
Inc. 100
l
Chairman and
General Manager:
Mr. Dai Ning, in his 40’s with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 1999 to present Working in SC as chairman and general manager.
SC is mainly
engaged in manufacturing coating.
SC’s products mainly include: coil coating,
industrial coating, and building coating, etc.
SC sources its materials 70% from
domestic markets, and 30% from overseas market, mainly America. SC sells 80% of
its products in domestic markets, mainly Shanghai, and 20% to overseas market.
The buying terms of SC include 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 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.
SC’s
principals declined to release any bank information.
Balance Sheet (as
of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
23,730 |
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Inventory |
42,640 |
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Accounts
receivable |
66,470 |
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Bills receivable |
0 |
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Other Accounts
receivable |
3,500 |
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Accounts payable
in advance |
0 |
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To be apportioned
expense |
0 |
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Other current
assets |
9,450 |
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------------------ |
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Current assets |
145,790 |
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Fixed assets |
106,360 |
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Fixed assets net
value |
100,050 |
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Projects under
construction |
6,310 |
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Long term
investment |
0 |
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Other assets |
7,880 |
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Total assets |
260,030 |
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Short loans |
66,000 |
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Accounts payable |
57,290 |
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Accounts
receivable in advance |
0 |
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Other Accounts
payable |
1,680 |
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Salaries payable |
0 |
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Welfares payable |
0 |
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Taxes payable |
0 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
29,270 |
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------------------ |
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Current
liabilities |
154,240 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
154,240 |
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Equities |
105,790 |
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Total
liabilities & equities |
260,030 |
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Income Statement (as
of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
300,420 |
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Cost of goods
sold |
217,430 |
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Sales expense |
53,710 |
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Management expense |
44,420 |
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Finance expense |
2,080 |
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Non-operating
income |
820 |
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Profit before
tax |
-16,400 |
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Less: profit tax |
0 |
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Profits |
-16,400 |
Important
Ratios
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As
of Dec. 31, 2006 |
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*Current ratio |
0.95 |
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*Quick ratio |
0.67 |
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*Liabilities
to assets |
0.59 |
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*Net profit
margin (%) |
-5.46 |
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*Return on
total assets (%) |
-6.31 |
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*Inventory
/Turnover ×365 |
52 days |
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*Accounts
receivable/Turnover ×365 |
81 days |
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*Turnover/Total
assets |
1.16 |
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* Cost of
goods sold/Turnover |
0.72 |
PROFITABILITY:
FAIR
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The turnover of SC appears fairly good 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:
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 is maintained in a normal level.
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The accounts receivable of SC is maintained in a normal
level.
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The short-term loan of SC appears TOO 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: Fair.
SC is considered medium-sized in its line with fair financial
conditions. The large amount of short-term loan could be a threat to SC’s financial
condition. A credit line up to USD 150,000 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%)