MIRA
INFORM REPORT
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Report Date : |
24.05.2007 |
IDENTIFICATION DETAILS
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Name : |
ERDOS XINHUA SILICON METAL INDUSTRY CO., LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Jul. 10, 2001 |
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Com. Reg. No.: |
1527252000385 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and selling metal silicon. |
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 500,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
ERDOS XINHUA SILICON METAL INDUSTRY CO., LTD.
NO.
INNER MONGOLIA, 017000 PR
TEL : 86 (0) 477-6471339
FAX : 86 (0) 477-6471327
EXECUTIVE SUMMARY
INCORPORATION DATE : JUL. 10, 2001
REGISTRATION NO. : 1527252000385
REGISTERED LEGAL FORM : LIMITED LIABILiTIES
COMPANY
STAFF STRENGTH :
950
REGISTERED CAPITAL : CNY 269,600,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 300,000,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 256,080,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.67= US$1 AS OF 2007-5-24
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
SC was registered as a limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Jul. 10, 2001.
Company Status: Limited liabilities co. This form of business in PR
China is defined as a legal person. Shareholders bear limited liability to the
extent of shareholding, and the co. is liable for its debts only to extent
of its total assets. The characteristics of this form of co. are as
follows: Upon the establishment of the
co., an investment certificate is issued to the each of shareholders. The board of directors is
comprised of three to thirteen members. The minimum registered capital
for a co. is listed as follows: -manufacturing co. :
CNY 500,000.00 -trading &wholesaling
co. : CNY 500,000.00 -retailing co. :
CNY 300,000.00 -consultancy & service
co. : CNY 100,000.00 Shareholders may take their
capital contributions in cash or by means of tangible assets or intangible
assets such as industrial property and non-patented technology. Cash contributed by all
shareholders must account for at least 50% of the registered capital while
contribution by intangible assets must not exceed 20% of the registered
capital. Existing shareholders have
pre-exemption right to purchase shares of the co. offered for sale by the
other shareholders and to subscribe for the newly increased registered
capital of the co.
SC’s registered business scope includes manufacturing and selling metal silicon,
calcium carbide, ferroalloy; importing the parts and technology needed for its
production; processing with the materials; processing with imported materials,
processing with imported samples, assembling with imported parts, and
compensation trade in agreement.
SC is mainly
engaged in manufacturing and selling metal silicon.
Mr. Qiao Yuhua has
been chairman of SC since 2001.
SC owns about 950
staff.
SC is
currently operating at the above stated address, and this address houses its
operating office and factory in the industrial zone of Erdos. Our checks reveal
that SC owns the total premise about 250,000 square meters.
http://www.j2chem.com. The design
is professional and the content is well organized. At present it is in both
Chinese and English versions.
No significant events or changes were found during our checks with local
AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Qiao Yuhua 54
Wang Guoqing 23
Wang Yuming 23
l
Chairman:
Mr. Qiao Yuhua in his 40’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2001 to present Working
in SC as chairman.
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General Manager:
Mr. Miao Huaimin in his 40’s with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2001 to present Working in SC as general manager.
SC is mainly
engaged in manufacturing and selling metal silicon.
SC’s products
mainly include: metal silicon, ferro silicon, silicon manganese, calcium
carbide.
SC’s annual output
of metal silicon can reach 60,000 tons and calcium carbide 60,000 tons.
SC sources its
materials 100% from domestic market. SC sells 90% of its products in domestic
market and 10% to the overseas markets, mainly to
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.
SC is
known to have 3 subsidiaries at present.
Erdos
Zhengfeng Mining Industry Co., Ltd.
Erdos Jintuo
Pharmaceutical 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 refused to release any information of its
suppliers and the trade reference was not available.
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.
Construction Bank of
AC#：1500168713905000098
Relationship:
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2006 |
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Cash & bank |
48,920 |
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Accounts payable
advance |
0 |
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Accounts
receivable |
28,370 |
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Inventory |
48,680 |
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Other
receivables |
54,540 |
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Other current
assets |
26,310 |
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Current assets |
206,820 |
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Fixed assets net
value |
102,770 |
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Projects under
construction |
15,370 |
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Long term
investment |
168,660 |
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Other assets |
84,090 |
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Total assets |
577,710 |
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Short loans |
76,000 |
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Accounts payable |
16,460 |
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Accounts
receivable advance |
0 |
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Taxes payable |
-850 |
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Salaries payable |
1,170 |
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Other payable |
81,540 |
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Other current
liabilities |
121,040 |
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Current
liabilities |
295,360 |
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Long term
liabilities |
26,270 |
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Total
liabilities |
321,630 |
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Equities |
256,080 |
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Total
liabilities & equities |
577,710 |
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Income Statement
Unit: CNY’000
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As of Dec. 31,
2006 |
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Turnover |
300,000 |
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Profits |
-3,000 |
Important Ratios
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2006 |
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*Current ratio |
0.70 |
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*Quick ratio |
0.54 |
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*Liabilities
to assets |
0.56 |
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*Net profit
margin (%) |
-1.00 |
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*Return on
total assets (%) |
-0.52 |
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*Fixed assets/Total
assets |
0.18 |
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*Inventory
/Turnover ×365 |
59days |
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*Accounts
receivable/Turnover ×365 |
35days |
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*Turnover/Total
assets |
0.52 |
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* Cost of
goods sold/Turnover |
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PROFITABILITY:
FAIR
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The turnover of SC appears average in its line.
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SC’s net profit margin is fair in 2006.
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SC’s return on total assets is fair in 2006.
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 fair level.
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The accounts receivable of SC is average.
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The inventory of SC is average.
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The short loans appear acceptable.
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SC’s turnover is in an acceptable 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: Fairly stable.
SC is considered medium-sized in its line with fairly 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
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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%)