MIRA
INFORM REPORT
|
Report Date : |
23.05.2007 |
IDENTIFICATION DETAILS
|
Name : |
wuxi baile sheet metal
co., ltd. |
|
|
|
|
Registered Office : |
No.
81 B Area, Block B, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2005 |
|
|
|
|
Date of Incorporation : |
November 21, 2003 |
|
|
|
|
Com. Reg. No.: |
006664 |
|
|
|
|
Legal Form : |
Chinese-Foreign Equity Joint Venture |
|
|
|
|
Line of Business : |
Engaged in
manufacturing and selling cold-strip steel and sheet metal. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
Up To usd 500,000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
Name & address
wuxi baile sheet metal co., ltd.
no. 81 b area, block b,
TEL: 86 (0) 510-83072832
FAX: 86 (0)
510-83072215
EXECUTIVE SUMMARY
INCORPORATION
DATE : november 21, 2003
REGISTRATION
NO. : 006664
REGISTERED
LEGAL FORM : Chinese-foreign equity joint venture
CHIEF
EXECUTIVE : MR. miao
zhong (CHAIRMAN)
STAFF
STRENGTH : 400
REGISTERED
CAPITAL : usd 5,000,000
BUSINESS
LINE :
manufacturing
TURNOVER : CNY 587,720,000 (AS OF DEC. 31,
2005)
EQUITIES : CNY 79,890,000 (AS OF DEC. 31, 2005)
PAYMENT
: AVERAGE
RECOMM.
MARKET
CONDITION : COMPETITIVE
FINANCIAL
CONDITION : STABLE
OPERATIONAL
TREND : STEADY
GENERAL
REPUTATION : AVERAGE
EXCHANGE
RATE : CNY7.95 = US$1
AS OF 2006-09-06
SC was registered
as a Chinese-foreign equity joint venture enterprise at local Administration
for Industry & Commerce (The official body of issuing and renewing business
license) on November 21, 2003.
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 scopes include manufacturing cold-strip steel, sheet metal, and
selling its owned products.
SC is mainly
engaged in manufacturing and selling cold-strip steel and sheet metal.
Mr. Miao Zhong has
been chairman of SC since 2003.
SC owns about 400
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 Wuxi. Our checks reveal that SC
owns the total premise about 36,000 square meters.
SC is not known to
host web site of its own at present.
No significant
events or changes were found during our checks with the local Administration
for Industry & Commerce.
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Hong Jinfa (
Chairman and General Manager:
Mr. Miao Zhong, 38
years old with university education. He is currently responsible for the
overall management of SC.
Working Experience(s):
From 2003 to
present Working in SC as
chairman and general manager.
Vice General Manager:
Mr. Miao Jun , 37
years old with university education. He is currently responsible for the daily
management of SC.
Working
Experience(s):
From 2003 to present Working
in SC as vice general manager.
SC is mainly
engaged in manufacturing and selling cold-strip steel, and sheet metal.
Brand: “Baile”.
SC’s products mainly
include: cold-strip steel, sheet metal (specification: 0.20-3.0MMX24-750MM)
SC’s total annual
output of the cold-strip steel is about 240,000 tons.
SC sources its
materials 100% from domestic market, mainly from
The buying terms of
SC include Check, T/T and Credit of 30-60 days. The payment terms of SC include
T/T, L/C and Credit of 30-60 days.
*Major Customers:
==============
Shanghai Kangxiang
Materials Co., Ltd.
*Major Suppliers:
==============
Wuxi City Huasheng
Gas 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.
Wuxi City
Commercial Bank
AC#5804060188700000219
Relationship:
Balance Sheet (as
of Dec. 31, 2005)
Unit: CNY’000
|
Cash & bank |
106,650 |
|
Inventory |
86,070 |
|
Accounts
receivable |
15,880 |
|
Other Accounts
receivable |
150 |
|
To be apportioned
expense |
890 |
|
Other current
assets |
52,270 |
|
|
------------------ |
|
Current assets |
261,910 |
|
Fixed assets |
90,490 |
|
Fixed assets net
value |
83,730 |
|
Projects under
construction |
0 |
|
Long term
investment |
0 |
|
Other assets |
16,430 |
|
|
------------------ |
|
Total assets |
362,070 |
|
|
============= |
|
Short loans |
74,500 |
|
Accounts payable |
39,180 |
|
Other Accounts
payable |
57,930 |
|
Notes payable |
102,000 |
|
Advances from
customers |
11,530 |
|
Withdraw the
expenses in advance |
120 |
|
Other current
liabilities |
-3,080 |
|
|
------------------ |
|
Current
liabilities |
282,180 |
|
Long term
liabilities |
0 |
|
Other liabilities |
0 |
|
|
------------------ |
|
Total liabilities |
282,180 |
|
Equities |
79,890 |
|
|
------------------ |
|
Total liabilities
& equities |
362,070 |
|
|
============= |
Income Statement (as
of Dec. 31, 2005)
Unit: CNY’000
|
Turnover |
587,720 |
|
Cost of goods
sold |
537,540 |
|
Sales expense |
7,570 |
|
Management expense |
5,230 |
|
Finance expense |
6,330 |
|
Profit before tax |
41,600 |
|
Less: profit tax |
0 |
|
Profits |
41,600 |
Important Ratios (as of Dec. 31, 2005)
=============================
*Current ratio 0.93
*Quick ratio 0.62
*Liabilities to
assets 0.78
*Net profit margin
(%) 7.08
*Return on total
assets (%) 11.49
*Inventory
/Turnover ×365 53
days
*Accounts
receivable/Turnover ×365 10
days
*Turnover/Total assets 1.62
* Cost of goods
sold/Turnover 0.91
PROFITABILITY: FAIRLY GOOD
The turnover of SC
appears fairly good in its line.
SC’s net profit
margin is fairly good.
SC’s return on
total assets is fairly good.
SC’s cost of goods
sold is fairly high, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio
of SC is maintained in a normal level.
SC’s quick ratio is
maintained in a fair level.
The inventory of SC
appears fairly large.
The accounts receivable
of SC is maintained in an acceptable level.
SC’s short-term
loan appears LARGE.
SC’s turnover is in
a fairly good level, comparing with the size of its total assets.
LEVERAGE: FAIR
The debt ratio of
SC is fairly high.
The risk for SC to
go bankrupt is average.
Overall financial condition of the SC:
Stable.
SC is considered
medium-sized in its line with stable financial conditions. A credit line up to
USD 500,000 would appear to be
within SC’s capacities upon a periodical review basis.
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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%)