%20CO%20LTD%2001-Nov-2007_files/image002.jpg){kind=small}
MIRA
INFORM REPORT
|
Report Date : |
01.11.2007 |
IDENTIFICATION
DETAILS
|
Name : |
TYCO THERMAL
CONTROLS (HUZHOU) Co., Ltd. |
|
|
|
|
Registered Office : |
Shuanglin
Industrial Park, Nanxun District, Huzhou, Zhejiang Province, 313012 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2006 |
|
|
|
|
Date of Incorporation : |
September 26, 2003 |
|
|
|
|
Com. Reg. No.: |
001328 |
|
|
|
|
Legal Form : |
Wholly Foreign-Owned Enterprise |
|
|
|
|
Line of Business : |
Engaged
in manufacturing and selling mineral insulating cable and plastic insulated
wire; supplying related technical services and after services. |
RATING &
COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
Litigation : |
Clear |
name & address
TYCO THERMAL
CONTROLS (HUZHOU) Co., Ltd.
SHUANGLIN INDUSTRIAL PARK, NANXUN DISTRICT,
HUZHOU, ZHEJIANG PROVINCE, 313012
PR CHINA.
TEL :
86 (0) 572-7362192
FAX :
86 (0) 572-7362126
EXECUTIVE SUMMARY
INCORPORATION DATE : SEPTEMBER 26, 2003
REGISTRATION NO. : 001328
REGISTERED LEGAL FORM :
WHOLLY FOREIGN-OWNED enterprise
STAFF STRENGTH : 125
REGISTERED CAPITAL : USD 6,000,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 22,797,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 9,206,000 (AS OF DEC. 31, 2006)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : under secured terms
MARKET CONDITION : average
FINANCIAL CONDITION : fair
OPERATIONAL TREND : fair
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
7.4715 = US1$
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
%20CO%20LTD%2001-Nov-2007_files/image003.gif){kind=small}
SC was registered as a wholly foreign-owned enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on September 26, 2003.
Company Status: Wholly foreign-owned enterprise This form of business in PR
China is defined as a legal person. It is a limited co. established within
the territories of PR China with capital provided totally by the foreign
investors. More than one foreign investor may jointly invest in a wholly
foreign-owned enterprise. The investing party/parties solely exercise
management, reap profit and bear risks and liabilities by themselves. This
form of companies usually have a limited duration is extendible upon
approval of Examination and Approval Authorities.
SC’s
registered business scope includes manufacturing mineral insulating cable and
other cables, plastic insulated wire and other wires, electrical equipment, copper
materials, heat temperature measure products, lacquered wire, hardware
castings, and other relative products; supplying related technical services and
after services; selling its products (not engaged in items limited and
prohibited by < Guidelines for Foreign Investors>, and with permit if
needed).
SC is
mainly engaged in manufacturing and selling mineral insulating cable and
plastic insulated wire; supplying related technical services and after
services.
Mr. James Charles Thompson has been legal representative and
chairman of SC since September 2003.
SC is known to have approx. 125 staff members 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 Huzhou.
Our checks reveal that SC rents the total premise about 700 square meters.
%20CO%20LTD%2001-Nov-2007_files/image005.jpg)
%20CO%20LTD%2001-Nov-2007_files/image006.gif){kind=small}
SC is not known to host website of its own at present.
%20CO%20LTD%2001-Nov-2007_files/image007.gif){kind=small}
No significant events or changes were found during our checks
with the local Administration for Industry and Commerce.
%20CO%20LTD%2001-Nov-2007_files/image008.gif){kind=small}
MAIN SHAREHOLDERS:
Name %
of Shareholding
Tyco Asia Investments Limited
(Mauritius) 100
%20CO%20LTD%2001-Nov-2007_files/image009.gif){kind=small}
l
Legal representative and chairman:
Mr. James Charles Thompson, American. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 2003 to present Working in SC as chairman and legal representative.
l
General manager:
Mr. Fang Ming, in his 50s. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2003 to present Working in SC as general manager.
%20CO%20LTD%2001-Nov-2007_files/image010.gif){kind=small}
SC is mainly
engaged in manufacturing and selling mineral insulating cable and plastic
insulated wire; supplying related technical services and after services.
SC’s products mainly include mineral insulated (MI) power
cable. The cables are designed to provide industrial and commercial environment
with the benefits of mineral insulated technology. Uses include fire-resistant
applications, such as fire alarm and other critical care system installations,
service and corrosion resistance applications.
%20CO%20LTD%2001-Nov-2007_files/image012.jpg)
SC sources its materials 40%
from domestic market, and 60% from overseas market, mainly USA and Belgium. SC
sells 50% of its products in domestic market, and 50% to overseas market,
mainly American and German market.
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 Supplier:
=============
Chinalco Shanghai Copper Co., Ltd.
*Major Customer:
==============
China National
Chemical Construction Corporation
%20CO%20LTD%2001-Nov-2007_files/image013.gif){kind=small}
SC is
not known to have any subsidiary at present.
%20CO%20LTD%2001-Nov-2007_files/image014.gif){kind=small}
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’s suppliers
declined to make any comments.
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.
%20CO%20LTD%2001-Nov-2007_files/image015.gif){kind=small}
Industrial & Commercial Bank of China Huzhou Branch.
AC#：1205210009001077278
Relationship:
Normal.
%20CO%20LTD%2001-Nov-2007_files/image016.gif){kind=small}
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
|
Cash & bank |
5,258 |
|
Notes receivable |
100 |
|
Inventory |
16,336 |
|
Accounts
receivable |
11,566 |
|
Advances to
suppliers |
124 |
|
Prepaid expenses |
14 |
|
Other
receivables |
906 |
|
Other current
assets |
0 |
|
|
------------------ |
|
Current assets |
34,304 |
|
Fixed assets |
21,144 |
|
Fixed assets net
value |
11,498 |
|
Projects under
construction |
2,657 |
|
Long term
investment |
0 |
|
Intangible
assets |
25,399 |
|
|
------------------ |
|
Total assets |
73,858 |
|
|
============= |
|
Short loans |
28,896 |
|
Accounts payable |
3,972 |
|
Other payable |
3,387 |
|
Taxes payable |
299 |
|
Advances from
customers |
912 |
|
Surcharge
payable |
4 |
|
Accrued expenses |
3,530 |
|
Long-term
liabilities due with in one year |
5,663 |
|
Other current
liabilities |
0 |
|
|
------------------ |
|
Current liabilities |
46,663 |
|
Long term
liabilities |
17,989 |
|
|
------------------ |
|
Total
liabilities |
64,652 |
|
Equities |
9,206 |
|
|
------------------ |
|
Total
liabilities & equities |
73,858 |
|
|
============= |
Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
|
Turnover |
22,797 |
|
Cost of goods sold |
21,095 |
|
Taxes and
additional of main operation |
28 |
|
Income
from other operations |
706 |
|
Sales expense |
2,700 |
|
Management expense |
12,377 |
|
Finance expense |
1,763 |
|
Non-operating
income |
286 |
|
Non-operating
expense |
204 |
|
Profit before
tax |
-14,377 |
|
Less: profit tax |
0 |
|
Profits |
-14,377 |
Important Ratios
=============
|
|
as
of Dec. 31, 2006 |
|
*Current ratio |
0.74 |
|
*Quick ratio |
0.39 |
|
*Liabilities
to assets |
0.88 |
|
*Net profit
margin (%) |
-63.07 |
|
*Return on
total assets (%) |
-19.47 |
|
*Inventory
/Turnover ×365 |
262 days |
|
*Accounts
receivable/Turnover ×365 |
186 days |
|
*Turnover/Total
assets |
0.31 |
|
* Cost of
goods sold/Turnover |
0.93 |
%20CO%20LTD%2001-Nov-2007_files/image017.gif){kind=small}
PROFITABILITY:
POOR
l
The turnover of SC appears average in its line.
l
SC’s net profit margin is poor.
l
SC’s return on total assets is poor.
l
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair level.
l
SC’s quick ratio is maintained in a poor level.
l
The inventory of SC appears LARGE.
l
The accounts receivable of SC is maintained in a fairly large level.
l
SC’s short-term loan appears LARGE.
l
SC’s turnover is in a fair level, comparing with the size of its total
assets.
LEVERAGE: FAIR
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
%20CO%20LTD%2001-Nov-2007_files/image018.gif){kind=small}
SC is considered small-sized in its line with fair financial conditions.
The large amount of short loans and inventory could be a threat to SC’s
financial condition. Credit dealings with SC are recommended under secured
terms at present.
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. |
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%)