MIRA
INFORM REPORT
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Report Date : |
12.05.2007 |
IDENTIFICATION DETAILS
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Name : |
BENECKE CHANGSHUN AUTO
TRIM (ZHANGJIAGANG) CO., LTD. |
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Registered Office : |
No. 1, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Mar. 18, 2005 |
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Com. Reg. No.: |
004049 |
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Legal Form : |
Chinese Foreign Equity Joint Venture |
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Line of Business : |
Manufacturing engineering plastics and plastic alloy. |
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 30,000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
name & address
benecke changshun
auto trim (zhangjiagang) co., ltd.
NO. 1,
TEL :
86 (0) 512-58376005
FAX :
86 (0) 512-58376010
EXECUTIVE SUMMARY
INCORPORATION DATE : mar. 18, 2005
REGISTRATION NO. : 004049
REGISTERED LEGAL FORM : CHINESE FOREIGN EQUITY JOINT VENTURE
STAFF STRENGTH :
147
REGISTERED CAPITAL : eur 4,512,000
BUSINESS LINE :
manufacturing
TURNOVER : cny 21,170,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 23,590,000 (AS OF DEC. 31, 2006)
PAYMENT :
average
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly poor
OPERATIONAL TREND : fairly steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.69 = US$1 AS OF 2007-05-11
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
Note: SC’s address should be the above stated one, and the given
one Changshun Building, No. 1 Zhangyang Highway, Jingang Town, Zhangjiagang
City is SC’s former address.
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 Mar. 18, 2005.
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.
SC’s registered business
scope includes developing and manufacturing engineering plastics and plastic
alloy; and selling its homegrown products; operating import & export
business.
SC is
mainly engaged in manufacturing engineering plastics and plastic alloy.
Mr. Gu Renfa has
been chairman of SC since 2005.
SC owns about 147
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 Zhangjiagang. Our checks
reveal that SC owns the total premise about 20,000 square meters.
SC is not known to host web site of its own at present.
SC’s total investment is EUR9,023,000. Till December 31, 2006, SC’s
paid-up capital reached CNY43,590,000.
SC started its normal business in June of 2006.
MAIN SHAREHOLDERS:
Name Investment
(EUR’000) % of Shareholding
ContiTech Ltd. GmbH 2,301 51
l
Chairman:
Mr. Gu Renfa, born in 1963, 44 years old with university education. He
is currently responsible for the overall management of SC.
Working Experience(s):
From 2005 to present Working in SC as chairman;
At present Working in Jiangsu Changshun Group Co., Ltd. as chairman.
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General Manager:
Mr. DR. KERLE TOBIAS, in his 40’s with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2005 to present Working in SC as general manager;
SC’s directors:
Dr. Leiss Dirk
Schurr Manfred Gerhard
SC is mainly
engaged in manufacturing engineering plastics
and plastic alloy.
SC’s products mainly include: high
performance board, and PVC surface, etc.
SC sources its materials 20% from domestic
market, mainly
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 15-30 days.
*Major Supplier:
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Shanghai Jiangyi Industry Co., Ltd.
*Major Customer:
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Ningbo Jing-Shang-Hua-Xiang Auto Component 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.
Agricultural
Bank of
AC#：527201040007401
Relationship:
Balance Sheet (as
of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
1,150 |
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Inventory |
22,520 |
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Accounts
receivable |
11,790 |
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Bills receivable |
0 |
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Other Accounts
receivable |
510 |
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Accounts payable
in advance |
130 |
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To be
apportioned expense |
0 |
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Other current
assets |
170 |
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Current assets |
36,270 |
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Fixed assets |
42,260 |
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Long term
investment |
0 |
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Other assets |
6,030 |
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Total assets |
84,560 |
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Short loans |
31,600 |
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Accounts payable |
19,900 |
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Bills payable |
0 |
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Accounts
receivable in advance |
0 |
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Other Accounts
payable |
1,730 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
-2,260 |
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Current
liabilities |
50,970 |
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Long term
liabilities |
10,000 |
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Other
liabilities |
0 |
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Total
liabilities |
60,970 |
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Equities |
23,590 |
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Total
liabilities & equities |
84,560 |
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Income Statement (as of
Dec. 31, 2006)
Unit: CNY’000
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Turnover |
21,170 |
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Cost of goods
sold |
22,280 |
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Sales expense |
1,970 |
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Management expense |
15,910 |
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Finance expense |
1,040 |
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Non-operating
income |
30 |
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Profit before
tax |
-20,000 |
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Less: profit tax |
0 |
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Profits |
-20,000 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 0.71
*Quick ratio 0.27
*Liabilities to
assets 0.72
*Net
profit margin (%) -94.47
*Return
on total assets (%) -23.65
*Inventory
/Turnover ×365 388
days
*Accounts
receivable/Turnover ×365 203
days
*Turnover/Total
assets 0.25
*Cost
of goods sold/Turnover 1.05
PROFITABILITY: POOR
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The turnover of SC appears fair in its line.
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SC’s net profit margin is poor.
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SC’s return on total assets is poor.
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SC’s cost of goods sold is too high,
comparing with its turnover.
LIQUIDITY:
FAIR
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The current ratio of SC is maintained
in a fair level.
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SC’s quick ratio is maintained in a poor level.
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The inventory of SC appears LARGE.
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The accounts receivable of SC appears LARGE.
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The short-term loan of SC appears TOO LARGE.
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SC’s turnover is in a fair level,
comparing with the size of its total assets.
LEVERAGE: FAIR
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The debt ratio of SC is fairly high.
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The risk for SC to go bankrupt is above average.
Overall
financial condition of the SC: Fairly poor.
SC is considered medium-sized in its line with fairly poor financial conditions. The large amount of short-term loan
could be a threat to SC’s financial condition. A credit line up to USD 30,000
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%)