MIRA
INFORM REPORT
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Report Date : |
02.05.2007 |
IDENTIFICATION DETAILS
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Name : |
NANYANG BROTHERS TOBACCO CO. LTD. |
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Registered Office : |
9 Tsing Yeung Circuit, N.T. |
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Country : |
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Date of Incorporation : |
10-5-1994 |
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Com. Reg. No.: |
477567 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacture & sale of cigarettes. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
NANYANG BROTHERS TOBACCO CO. LTD.
9 TSING YEUNG CIRCUIT, N.T., HK
TEL : 852 2761-3321
FAX : 852 2760-7241
EXECUTIVE SUMMARY
INCORPORATION DATE :
10-5-1994
REGISTRATION NO. :
477567
REGISTERED LEGAL FORM : PRIVATE
LIMITED CO.
CHIEF EXECUTIVE :
CHEN SHUZI (DIRECTOR & GENERAL
MANAGER)
STAFF STRENGTH :
350
AUTHORIZED CAPITAL :
$8,001,000 = 1,000 ORDINARY SHARES @ $1. +
8,000,000 NON-VOTING DEFERRED SHARES @ $1.-
PAID-UP CAPITAL
: $8,000,002
BUSINESS LINE :
MANUFACTURE & SALES OF CIGARETTES
TURNOVER :
$1,638M (YEAR ENDED 31-12-2005)
EQUITIES :
N/A (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : GOOD
EXCHANGE RATE :
HKD 7.82180 = USD1 AS OF 2007-05-02
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
M - million
HKD –
SC is a private limited company registered under incorporation file no.
477567 on 10-5-1994.
SC's shareholders & directors are shown to be as follows:
Shareholders (as at 10-5-2006) Number
of shares held
- S.I. Nanyang Tobacco Holdings Ltd. 2
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Ordinary Shares 2
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- Nanyang Tobacco Holdings Ltd. 7,999,999
- Chen Jin Bang 1
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Non-voting Deferred Shares 8,000,000
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Directors (as at 14-10-2006)
- Lu Dayong / P469466(3)
- Zheng Zhiping / P632965(2)
- Chen Shuzi / P939829(9)
- Chen Qiyong / R314053(8)
- Ding Zhongde / R401910(4)
The above registration information is based on SC's annual return filed
at Companies Registry within the last 2 years.
Our current search revealed certain material change or amendment of SC
has been recorded within the last 2 years & noted as follows:
Partial change in SC's directorship as follows:
Name(s) of resigned director(s) Resignation
date
Hu Jiahua 14-10-2005
Liu Haibao 14-10-2005
Name(s) of newly appointed director(s) Appointment
date
Cheng Qiyong 14-10-2005
Ding Zhongde 14-10-2005
Shares transfers :
Date No. of shares Transferor(s) Transferee(s)
11-5-2006 1 SIHL Nominees Ltd. S.I. Nanyang
Tobacco Holdings
Ltd.
SC is a subsidiary of S.I. Nanyang Tobacco Holdings Ltd. whose partial information
is as follows:
- Registered address:
- Business line: As an offshore co. reportedly representing the equity
interest of SC's existing directors
- Civil litigation & winding-up petition: None in our database
SC is, in turn, an ultimate subsidiary of Shanghai Industrial Holdings
Ltd., which is a public co. listed on the SEHK with stock code of 363, whose
partial information is as follows:
Year established : 1996
Registered/business
address : 26/F, Harcourt House,
Business line : As a holding co.
with diverse interests in investment of the following field:
infrastructure, manufacture &
distribution of consumer products & medicine
No. of employees : 11,886
(group, as at 31-12-2004)
Civil litigation & winding-up
petition records :
See below
Turnover :
$6,851 (group, year ended 31-12-2006)
Partial financial data of the said company:
Items Fiscal
yr 31-12-2006 Fiscal yr 31-12-2005
Current assets : $11,231M $10,310M
Current
liabilities : $2,253M $2,683M
Fixed assets &
non-current assets : $12,469M $11,662M
Tangible
worth/(net deficit) : $21,405M $19,289M
Turnover : $6,851M $6,025M
Net income/(net
loss) : $1,500M $1,256M
A check of our database indicates that the said co. was sued in the
following civil claim(s):
Date :
27-1-2007
Defendants(s) : The said co.
Plaintiff(s) : Luo Ping
Cause of claim : Salary
Claimed amount : ANS
Date :
1-2-2007
Defendants(s) : The said co.
Plaintiff(s) : Luo Ping
Cause of claim : Wages
Claimed amount : $1,923,415
Chen Suzi, director & general manager:
- Born in 1947
- He graduated from
- Formerly director & deputy general manager of Shanghai Rubber Tyre
(Group) Ltd.
Currently active in SC's day-to-day operations & is responsible for
its management.
Registered residential address: Flat B, 20/F, Li Chit Garden,
Credit history
check : This refers to a check of our
database whether the said person has been involved in any of
the following
records stored by us within the last 6 years:
Civil litigation
as defendants : None in our database
Bankruptcy/winding-up
petitions : None in our database
Delinquent payment
records : None in our database
Debt collection records : No overdue amount owed by the said person was
placed to us for collection
Ding Zhongde, director:
- Born in 1949 & married
- He was appointed an executive director of Shanghai Industrial Holdings
Ltd. in January 2004
- Also currently director of Shanghai Industrial Investment (Holdings)
United Holdings Co. Ltd. &
the vice chairman of SIIC Shanghai (Holdings) Co. Ltd.
- He is also the chairman of Shanghai Industrial United Holdings Medical
Co. Ltd. & Shanghai Huarui Investment
Co. Ltd.
- He obtained a Master degree in Business Management from
designation of senior economist
- Formerly Deputy Director of
experience in economic research
and enterprise management
Currently active in SC's day-to-day operations & is responsible for
its management.
Registered residential address: Flat F, 14/F, Block 9,
Credit history
check : This refers to a check of our
database whether the said person has been involved in any of
the following
records stored by us within the last 6 years:
Civil litigation
as defendants : None in our database
Bankruptcy/winding-up
petitions : None in our database
Delinquent payment
records : None in our database
Debt collection records : No overdue amount owed by the said person was
placed to us for collection
Ownership background appraisal:
Rating : 1 Obtained scores : 85 (see explanatory notes
below)
Keys : 1 : scores
81-100 : Excellent
2
: scores 61-80 : Good
3
: scores 46-60 : Average
4
: scores 21-45 : Fair
5
: scores 01-20 : Poor
The rating indicates the personal financial & operational strength
of SC's major principals. It is
calculated from a composite of scores obtained from the following 5 factors
which carry equal weight in our analysis:
Personal financial strength, credit history & trade reputation,
business experience & track record, market connection and management skill.
During our report preparation, the principals could not be contacted
while the staff members hesitated to release financial information without the
principals' consent.
Outside sources indicated that SC's turnover for the year ended
31-3-2006 was $1,638M.
As per current co. search, total amount of indebtedness of SC in respect
of all mortgages and charges which are required to be registered with Companies
Registry as at 10-5-2006 was NA.
Banking relations are maintained principally with:
- HSBC
- Bank of
- Bank of Communications Co. Ltd.
- Hang Seng Bank Ltd.
This section will contain the civil litigations & winding-up
petitions filed against SC for the last 6 years (as stored in our database),
and the mortgage/charge records filed by SC for the last 2 years. In
Civil litigation/winding-up petitions : (X) see below ( )
see attached sheet
Date :
3-11-2001
Defendant(s) : SC + Zhou Yuquan
Plaintiff(s) : Yick Hing Construction Co. Ltd.
Cause of claim : Motor Claim
Claimed amount : ANS
Date :
6-8-2003
Defendant(s) : SC
Plaintiff(s) : Li Chi Fai
Cause of claim : Injury
Claimed amount : ANS
Date :
8-3-2004
Defendant(s) : SC + Chung Yung So
Plaintiff(s) : Chiang Pou Chi
Cause of claim : Motor Claim
Claimed amount : ANS
Mortgage/charge record(s) : None filed since its incorporation date.
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 records 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.
Business categories :
SC is engaged in manufacture & sale of cigarettes.
Production is assigned to its affiliated factory/joint venture
factory located at the heading business
address.
A portion is sold under its own brand(s) "Double Happiness",
"Winner", "The Globe" & "Gentori".
Principal purchases :
Major
types of sourcing : Tobacco
raw materials
Local--type
of suppliers : Importers &
distributors
Buying
terms : Credit
of 30-45 days
Overseas--supplying
countries : PR China,
Buying
terms : D/A, T/T
& L/C
Principal market :
Local--type
of customers : Wholesalers, retailers
& dealers
Selling
terms : Credit of 30
days
Overseas--buying
countries : PR China, Taiwan & SE
Asia
Selling
terms : L/C &
T/T
Total number of employees : 350.
Location : Maintaining
its office, factory & warehouse at the heading business address which
occupies a gross area of 440,000 square feet at an industrial building in an
industrial district.
Condition inside the premises during our
visit :
Office/factory layout : Standard.
Affiliate(s):
Company name :
The Wing Fat Printing Co. Ltd.
Year established : 1920
Business nature : Provision of printing services &
manufacture of paper products
Address :
Turnover :
$466M (year ended 31-12-2004)
Civil litigation & winding-up petition records: None in our database
Affiliate(s):
Company name :
SIHL Treasury Ltd.
Year established : 1997
Business nature : Investment holding
Address : 26/F, Harcourt House,
Turnover :
NA
Civil litigation & winding-up petition records: None in our database
SC is considered a well-maintained business with solid base to meet
fairly large amount of credit dealings.
Shanghai Industrial Holdings Ltd.'s share price movements are as
follows:
- Closed on 30-4-2007: $20.55
- Year high / low: $21.00 / $13.30
- Price earning ratio: 15.82
News
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The director of SC, Lu Dayong & other three parties were charged by
the ICAC with allegedly laundering $50.3M in proceeds from suspected cigarette
smuggling & other corrupt activities in August 2004. He was acquitted of
those charges after doubts were cast over the language proficiency of ICAC
officers.
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%)