MIRA
INFORM REPORT
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Report Date : |
31.05.2007 |
IDENTIFICATION DETAILS
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Name : |
CIXI THREE CIRCLE
DIESEL ENGINE 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 : |
July 9, 1997 |
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Com. Reg. No.: |
003725 |
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Legal Form : |
Chinese-Foreign Equity Joint
Venture |
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Line of Business : |
Manufacturing
and repairing internal-combustion engines, generators, electromotors, machine
tools, casting, hardware, agricultural machines and tools. |
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 500,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
CIXI THREE CIRCLE
DIESEL ENGINE Co., Ltd.
NO.329
TEL :
86 (0) 574-63113972
FAX :
86 (0) 574-63113973
EXECUTIVE SUMMARY
INCORPORATION DATE : JULY 9, 1997
REGISTRATION NO. : 003725
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE
STAFF STRENGTH : 330
REGISTERED CAPITAL : USD 3,600,000
BUSINESS LINE : MANUFACTURING
TURNOVER :
CNY135,830,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 64,620,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FaIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
7.6482 = US1$ AS OF 2007-5-30
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 Chinese-foreign equity joint venture enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on July 9, 1997.
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 manufacturing and repairing
internal-combustion engines, generators, electromotors, machine tools, casting,
hardware, agricultural machines and tools.
SC is mainly
engaged in manufacturing and selling diesel engines,
water pumps, generators agricultural machines and
tools.
Mr. Hu
Xuedan has been legal representative and chairman of SC since1997.
SC owns
approximately 330 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 Cixi.
Our checks reveal that SC owns the total
premise.
http://www.3circle.com The design is professional and the content is
well organized. At present it is in both Chinese and English versions.
Email: sanhuan@public.cx.nbptt.zj.cn
SC has got the certification of ISO9002.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Cixi Engine
l
Legal representative and chairman:
Mr. Hu Xuedan. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 1997 to present Working in SC as chairman and legal representative.
SC’s registered
business scope includes manufacturing and repairing internal-combustion
engines, generators, electromotors, machine tools, casting, hardware,
agricultural machines and tools.
SC is mainly
engaged in manufacturing and selling diesel engines,
water pumps, generators agricultural machines and
tools.
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.
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 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.
SC’s management
declined to release its bank details.
Balance Sheet (as
of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
7,650 |
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Inventory |
12,980 |
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Accounts
receivable |
63,420 |
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Advances to
suppliers |
820 |
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Notes receivable |
2,560 |
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Prepaid expenses |
30 |
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Other
receivables |
21,800 |
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Other current
assets |
30 |
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Current assets |
109,290 |
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Fixed assets net
value |
17,680 |
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Projects under
construction |
0 |
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Long term
investment |
14,500 |
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Other assets |
3,530 |
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Total assets |
145,000 |
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Short loans |
18,000 |
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Accounts payable |
42,560 |
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Other payable |
14,900 |
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Welfare expenses
payable |
0 |
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Advances from
customers |
8,190 |
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Notes payable |
9,000 |
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Taxes payable |
-13,420 |
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Other current
liabilities |
1,150 |
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Current
liabilities |
80,380 |
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Long term
liabilities |
0 |
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Total
liabilities |
80,380 |
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Equities |
64,620 |
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Total
liabilities & equities |
145,000 |
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Income Statement (as of
Dec. 31, 2006)
Unit: CNY’000
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Turnover |
135,830 |
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Cost of goods
sold |
117,160 |
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Sales expense |
5,620 |
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Management expense |
6,380 |
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Finance expense |
770 |
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Profit before
tax |
5,650 |
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Less: profit tax |
1,580 |
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Profits |
4,070 |
Important Ratios
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as
of Dec. 31, 2006 |
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*Current ratio |
1.36 |
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*Quick ratio |
1.2 |
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*Liabilities
to assets |
0.55 |
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*Net profit
margin (%) |
3 |
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*Return on
total assets (%) |
2.81 |
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*Inventory
/Turnover ×365 |
35 days |
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*Accounts
receivable/Turnover ×365 |
170 days |
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*Turnover/Total
assets |
0.94 |
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* Cost of
goods sold/Turnover |
0.86 |
PROFITABILITY:
AVERAGE
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The turnover of SC appears fairly good in its line.
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SC’s net profit margin is average.
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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: AVERAGE
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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 fairly good
level.
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The inventory of SC is maintained in an average
level.
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The accounts receivable of SC appears fairly large.
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SC’s short-term loan is 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 low.
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.
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%)