MIRA
INFORM REPORT
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Report Date : |
23.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
ANHUI HUISHANG METAL CO., LTD. |
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Registered Office : |
No. 258 Wuhu Road, Hefei, Anhui Province, 230061 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
SEP. 28, 2000 |
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Com. Reg. No.: |
3400001300182 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Importing and exporting metal materials and other goods. |
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 600,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
name & address
ANHUI HUISHANG METAL CO., LTD.
NO. 258 WUHU ROAD, HEFEI, ANHUI PROVINCE, 230061 PR CHINA
TEL: 86 (0) 551-2861713
FAX: 86 (0) 551-2861640
EXECUTIVE SUMMARY
INCORPORATION DATE : SEP. 28, 2000
REGISTRATION NO. : 3400001300182
REGISTERED LEGAL FORM : SHARES LIMITED COMPANY
STAFF STRENGTH :
80
REGISTERED CAPITAL : cny 85,000,000
BUSINESS LINE : INTERNATIONAL
TRADE
TURNOVER :
CNY 2,778,416,000 (AS OF DEC. 31, 2005)
EQUITIES :
CNY 100,175,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 600,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY stable
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
7.73 =US1$ AS OF 2007-3-23
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 shares limited company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Sep. 28, 2000.
Company Status: Shares limited company 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 CNY 10M. while that of the co. with
foreign investment is CNY 30M. The total capital of a co. which propose to
apply for publicly listed must not less than CNY 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 selling of metal materials, minerals,
chemically materials(excluding dangerous goods), rubber products, textile fiber and products, garments,
machinery equipments, apparatus & instruments, animal products, office
supplies, building materials, wood materials, wire and cable, coal, automobile
(including cars), motorcycles, computer and its components(excluding the items
with special permit); developing, transferring and selling of software;
operating and acting as an agent of importing and exporting commodities and
technologies permit by foreign trade department, storage services, technology
developing(excluding agent), consulting service.
SC is mainly
engaged in importing and exporting metal materials
and other goods.
Mr. Zhang Weijiang
has been chairman of SC since 2000.
SC owns
approximately 80 staff at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the commercial zone of Hefei. Our checks reveal that SC
owns the total premise about 1,500 square meters.
http://www.tjct.cn The design is
professional and the content is well organized. At present it is in Chinese
version.
No significant events or changes were found during our
checks with the local AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Anhui Huishang Group Co., Ltd. 58.82
Liu Yong刘勇 23.53
Anhui State-owned Assets
Operation Co., Ltd. 5.88
Shanghai Baosteel Trading Co.,
Ltd. 3.53
Anhui Development &
Investment Co., Ltd. 3.53
Anhui Anxing Union Company 2.35
Tangsteel Group 1.18
Wuhan Iron & Steel (Group)
Corp. 1.18
l
Chairman:
Mr. Zhang Weijian,
in his 50’s with university education. He is currently responsible for the
overall management of SC.
Working Experience(s):
From 2000 to present Working in SC as chairman.
l
General manager:
Mr. Liu Yong, in his 50’s 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.
SC is mainly
engaged in importing and exporting metal materials
and other goods.
SC’s products mainly include: metal materials, coal, chemical materials,
textile fiber, textile goods, garment, machinery equipment, apparatus &
instrument, ceramic products, animal products.
SC sources its materials 80% from domestic
market, and 20% from overseas market. SC sells 20% of its products in domestic
market, and 80% to overseas market.
The buying terms of SC include Check, L/C, T/T and Credit of
30-60 days. The payment terms of SC include Check, L/C, T/T, and Credit of
30-60 days.
SC is known to have the following subsidiaries:
Anhui Huishang Metal Co., Ltd. Strategic
Information Department
Anhui Huishang Metal Co., Ltd. Human Resources
Department
Anhui Huishang Metal Co., Ltd. Economic Management Department
Anhui Huishang Metal Co., Ltd. Nonferrous
Department
Anhui Huishang Metal Co., Ltd. Financial Department
Anhui Huishang Metal Co., Ltd. Law Department
Anhui Huishang Metal Co., Ltd. Resources Development Department
Anhui Huishang Metal Co., Ltd. Imp & Exp Co., Ltd.
Anhui Huishang Metal Co., Ltd. Bengbu Branch
Anhui Huishang Metal Co., Ltd. Nanjing Branch
Anhui Huishang Metal Co., Ltd. Fuyang Branch
Anhui Huishang Metal Co., Ltd. Huainan Branch
Anhui Huishang Metal Co., Ltd. Tongling Branch
Anhui Huishang Metal Co., Ltd. Anqing Branch
Anhui Huishang Metal Co., Ltd. Huangshan Branch
Anhui Huishang Metal Co., Ltd. Maanshan Branch
Anhui Huishang Metal Co., Ltd. Wuhu Branch
Anhui Huishang Metal Co., Ltd. Xi’an Branch
Anhui Huishang Metal Co., Ltd. Wuhan Branch
Shanghai Huishang Metal Materials Co., Ltd.
Hefei Huishang Metal Materials Co., Ltd.
Anhui Huishang Metal Logistics Co., Ltd.
Anhui Huishang Logistics Co., Ltd.
Anhui Hualong Recycling
Resources Co., Ltd.
Anhui Huishang Steel Processing and Distributing Market
Anhui Steel Center Retailing Market(network market)
Anhui Huishang Garments 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 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.
China Everbright
Bank Hefei Sub-branch
AC#：8319301011586
Relationship:
Normal.
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 |
122,887 |
277,820 |
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Bills receivable |
17,137 |
2,882 |
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Accounts
receivable |
115,004 |
183,210 |
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Other
receivables |
26,471 |
16,529 |
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Accounts payable
advance |
329,713 |
278,850 |
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Inventory |
44,448 |
41,870 |
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Other current
assets |
1,649 |
7,881 |
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------------------ |
------------------ |
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Current assets |
657,309 |
809,042 |
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Fixed assets |
16,562 |
17,415 |
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Fixed assets net
value |
7,545 |
6,422 |
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Projects under
construction |
2,208 |
1,939 |
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Long term
investment |
92,329 |
111,517 |
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Other assets |
33 |
154 |
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------------------ |
------------------ |
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Total assets |
759,424 |
929,074 |
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============= |
============= |
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Short loans |
320,000 |
316,000 |
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Bills payable |
278,450 |
431,170 |
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Accounts
receivable advance |
26,148 |
26,743 |
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Salary payable |
521 |
1,400 |
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Welfare payable |
2,219 |
177 |
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Tax payable |
6,150 |
8,910 |
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Other payable |
20,399 |
52,692 |
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Other current
liabilities |
6,687 |
-8,192 |
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------------------ |
------------------ |
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Current
liabilities |
660,574 |
828,900 |
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Long term
liabilities |
0 |
0 |
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------------------ |
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Total
liabilities |
660,574 |
828,900 |
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Equities |
98,850 |
100,174 |
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Total
liabilities & equities |
759,424 |
929,074 |
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Income Statement
Unit: CNY’000
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as
of Dec. 31, 2004 |
as
of Dec. 31, 2005 |
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Turnover |
2,730,344 |
2,778,416 |
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Cost of goods
sold |
2,667,107 |
2,705,668 |
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Sales expense |
26,300 |
29,788 |
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Management expense |
15,548 |
15,985 |
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Finance expense |
37,651 |
26,929 |
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Profit before
tax |
1,501 |
7,275 |
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Less: profit tax |
248 |
0 |
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Profits |
1,253 |
7,275 |
Important Ratios
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as
of Dec. 31, 2004 |
as
of Dec. 31, 2005 |
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*Current ratio |
1.00 |
0.98 |
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*Quick ratio |
0.93 |
0.93 |
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*Liabilities
to assets |
0.87 |
0.89 |
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*Net profit
margin (%) |
0.05 |
0.26 |
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*Return on
total assets (%) |
0.16 |
0.78 |
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*Fixed
assets/Total assets |
0.02 |
0.02 |
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*Inventory
/Turnover ×365 |
6days |
6days |
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*Accounts
receivable/Turnover ×365 |
15days |
24days |
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*Turnover/Total
assets |
3.60 |
2.99 |
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* Cost of
goods sold/Turnover |
0.98 |
0.97 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears fairly good in its line, and there was an
increase in 2005.
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SC’s net profit margin moved up in 2005 and remains average.
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SC’s return on total assets remains at an average level.
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SC’s cost of goods sold to turnover ratio is maintained in a normal
level.
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 appears acceptable.
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The accounts receivable of SC appears average.
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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: FAIR
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The debt ratio of SC is maintained in a fairly high level.
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The risk for SC to go bankrupt is average.
Overall financial condition
of the SC: Fairly stable.
SC is considered medium-sized in its line with fairly stable financial
conditions. It is considered a credit line up to USD 600,000 appears 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%)