MIRA
INFORM REPORT
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Report Date : |
24.05.2007 |
IDENTIFICATION DETAILS
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Name : |
WUXI HUAGUANG
BOILER Co., Ltd. |
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Registered Office : |
No. 3, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
December 26, 2000 |
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Com. Reg. No.: |
3202001116308 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing
and selling different sorts of boilers. |
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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Maximum Credit Limit : |
Up To USD 4,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
WUXI HUAGUANG BOILER
Co., Ltd.
NO. 3,
TEL :
86 (0) 510-85215556
FAX :
86 (0) 510-85225852
EXECUTIVE SUMMARY
INCORPORATION DATE : DECEMBER 26, 2000
REGISTRATION NO. : 3202001116308
REGISTERED LEGAL FORM :
SHARES LIMITED COMPANY
STAFF STRENGTH : 1,529
REGISTERED CAPITAL : CNY 256,000,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 2,456,416,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 718,470,000 (AS OF DEC. 31, 2006)
PAYMENT : AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly steady
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : well-known
EXCHANGE RATE : CNY
7.65 = US1$ 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’s
correct company name should be Wuxi Huaguang Boiler Co., Ltd. instead of the
given name- Wuxi Hugguang Boiler Co., Ltd.
SC was registered as a shares limited co. at Jiangsu Provincial Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on December 26, 2000.
Company Status: Shares limited co. 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 manufacturing and selling station boilers, industrial boilers,
boiler ancillaries, water treating equipment and pressure vessels; selling
metal materials (excluding the noble metal), providing engineering services for
water treatment complete equipment, road transport, importing and exporting
business confirmed by foreign trade department.
SC is mainly
engaged in manufacturing and selling different sorts of boilers.
Mr. Wang Fujun has
been legal representative and chairman of SC since 2006.
SC owns
approximately 1,529 staff at present, including 255 technicians, 120 management
staff, 929 workers and 56 sales representatives.
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 200,000 square meters.
http://www.wuxiboiler.com/ The design is professional and the content is
well organized. At present it is in both Chinese and English versions.
Email: wbw@wuxiboiler.com
SC is a listed company in Shanghai Stock Exchange Market with the code
of 600475.
SC’s former chairman was Mr. Wan Guanqing, and in 2006, he was taken
place by Mr. Wang Fujun.
MAIN SHAREHOLDERS: (AS OF 2006)
Name %
of Shareholding
Bank of Communications – Anshun Security
Investment Fund 4.22
Industrial & Commercial Bank
of
Selection Security Investment
Fund 4.14
Asian Holding Co., Ltd. 3.13
Industrial & Commercial Bank
of
China Construction Bank – Huaan
Hongli Security Investment Fund 1.67
China Construction Bank – Boshi
Value Growth No. 2 Security Investment Fund 0.78
Jingbo Security Investment Fund 0.61
Other Shareholders 35.01
l
Legal representative and chairman:
Mr. Wang Fujun, 39 years old with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2006 to present Working in SC as chairman and legal representative.
l
General manager:
Mr. He Xiuliang, 46 years old with university
education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 2006 to present Working in SC as general manager.
*Officials:
=======
Name Title
Nie Haitao Director
Liu Chengfu Independent Director
Chen Juchang Independent Director
Xu Zhicheng Independent Director
Jiang Lianghong Supervisor
Xie Shiming Supervisor
SC is mainly
engaged in manufacturing and selling different sorts of boilers.
SC’s has progressively formed boilers for power plant, heat
recovery steam generation, boilers for garbage, flue gas desulphurization and
purification equipments, life-form fired boilers and water treatment
equipments.
SC sources its materials 80%
from domestic market, and 20% from overseas market, mainly
The buying terms of SC include Check, T/T, L/C and Credit of
30-60 days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60
days.
*Major Suppliers:
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Jiangyin Huatai Machinery Mfg. Co., Ltd.
Wuxi Electric Power Fuel Corporation.
SC is known to have the following subsidiaries:
Wuxi
Huilian Thermoelectricity Co., Ltd.
Wuxi
Huilian Garbage Thermoelectricity Co., Ltd.
Wuxi Huaguang
Industrial Boiler Co., Ltd.
Wuxi
Huaguang Boiler Water Treatment Project Co., Ltd.
Wuxi
Huaguang Boiler Transportation Co., Ltd.
Wuxi
Huaguang Boiler Power Piping 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.
Bank of
AC#：17231108094014
Relationship:
Consolidated Balance Sheet
Unit: CNY’000
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as of Dec. 31,
2005 |
as of Dec. 31,
2006 |
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Cash & bank |
1,467,475 |
1,300,823 |
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Inventory |
1,413,267 |
1,127,263 |
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Accounts
receivable |
192,330 |
345,523 |
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Notes receivable |
24,784 |
9,527 |
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Short-term
investments |
2,169 |
7,558 |
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Advances to
supplies |
64,921 |
68,588 |
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Other
receivables |
11,392 |
82,743 |
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Prepaid expenses |
139 |
0 |
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Other current
assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
3,176,477 |
2,942,025 |
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Fixed assets |
768,394 |
1,227,498 |
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Fixed assets net
value |
636,060 |
1,040,756 |
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Projects under
construction |
214,480 |
80,174 |
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Project
materials |
40,741 |
0 |
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Long-term investments |
31,649 |
54,862 |
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Intangible and
other assets |
70,411 |
115,246 |
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------------------ |
------------------ |
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Total assets |
4,169,818 |
4,233,063 |
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============= |
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Short loans |
120,000 |
115,000 |
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Accounts payable |
532,184 |
507,369 |
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Other Accounts
payable |
84,857 |
181,525 |
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Notes payable |
171,707 |
148,792 |
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Dividends
payable |
3,627 |
3,877 |
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Taxes payable |
-92,031 |
24,234 |
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Accrued payroll |
17,264 |
17,862 |
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Welfares payable |
9,241 |
17,112 |
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Accrued expenses |
2,211 |
771 |
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Advances from
customers |
2,356,170 |
1,904,780 |
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Other
current liabilities |
4,707 |
5,219 |
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----------------- |
----------------- |
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Current
liabilities |
3,209,937 |
2,926,541 |
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Long term
liabilities |
250,000 |
450,000 |
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------------------ |
------------------ |
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Total
liabilities |
3,459,937 |
3,376,541 |
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Shareholders
equities |
583,078 |
718,470 |
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Minority
Shareholders’ equity |
126,803 |
138,052 |
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------------------ |
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Total liabilities
& equities |
4,169,818 |
4,233,063 |
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Consolidated Income Statement
Unit: CNY’000
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as of Dec. 31,
2005 |
as of Dec. 31,
2006 |
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Turnover |
2,007,278 |
2,456,416 |
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Cost of goods
sold |
1,642,721 |
1,977,376 |
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Sales expense |
65,886 |
60,157 |
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Management expense |
187,078 |
245,318 |
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Finance expense |
-18,970 |
8,748 |
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Investment
income |
441 |
7,374 |
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Operation Profit |
133,442 |
179,390 |
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Less: profit tax |
15,450 |
21,071 |
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Minority
interest income |
5,873 |
14,927 |
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Net profit |
112,119 |
143,392 |
Important Ratios
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as of Dec. 31,
2005 |
as of Dec. 31,
2006 |
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*Current ratio |
0.99 |
1.01 |
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*Quick ratio |
0.55 |
0.62 |
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*Liabilities
to assets |
0.83 |
0.80 |
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*Net profit
margin (%) |
5.59 |
5.84 |
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*Return on
total assets (%) |
2.69 |
3.39 |
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*Fixed
assets/Total assets |
0.15 |
0.25 |
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*Inventory
/Turnover ×365 |
257days |
168days |
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*Accounts receivable/Turnover
×365 |
35days |
51days |
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*Turnover/Total
assets |
0.48 |
0.58 |
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* Cost of
goods sold/Turnover |
0.82 |
0.80 |
PROFITABILITY:
FAIRLY GOOD
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The turnover of SC appears fairly good in its line.
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SC’s net profit margin is fairly good.
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SC’s return on total assets is average.
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SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: FAIR
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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 fair level.
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The inventory of SC is maintained in a fairly large
level.
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The accounts receivable of SC is maintained in an
average level.
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SC’s short-term loan is in an average level.
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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 steady.
SC is considered medium-sized with stable development trend. A credit
line up to USD 4,000,000 would appear 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%)