MIRA
INFORM REPORT
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Report Date : |
02.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
CHANGZHOU HUA R
SHENG REFLECTIVE MATERIAL CO., LTD. |
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Registered Office : |
No.8, Yueyang Road,
Zouqu Town Industry Zone, Wujin District, Changzhou, Jiangsu Province, 213144
Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
December 30, 2001 |
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Com. Reg. No.: |
002894 |
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Legal Form : |
Chinese-Foreign Equity Joint
Venture Enterprise |
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Line of Business : |
Engaged
in researching, developing and manufacturing reflective materials. |
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 400,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
CHANGZHOU HUA R SHENG REFLECTIVE MATERIAL CO., LTD.
NO.8, YUEYANG ROAD, ZOUQU TOWN INDUSTRY ZONE,
WUJIN DISTRICT, CHANGZHOU, JIANGSU PROVINCE, 213144
PR CHINA.
TEL :
86 (0) 519-83634176
FAX :
86 (0) 519-83832106
EXECUTIVE SUMMARY
INCORPORATION DATE : DECEMBER 30, 2001
REGISTRATION NO. : 002894
REGISTERED LEGAL FORM :
CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
STAFF STRENGTH : 450
REGISTERED CAPITAL : USD 1,200,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 108,962,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 60,010,000 (AS OF DEC. 31,
2006)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 400,000 (PERIODICAL REVIEW)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
7.461 = 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
Note: Instead of the given name, SC’s correct name should be the heading one.
The given address is the former address of SC, the currently
address is the above stated one.
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 December 30, 2001.
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 investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has 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 that have good competition
position in international market may extend beyond the 50 years limit.
SC’s
registered business scope includes manufacturing reflective membrane, reflective
fabric, reflective leather, and reflective sign; selling self-made products
(with permit if needed).
SC is
mainly engaged in researching, developing and manufacturing reflective
materials.
Mr. Lu
Yajian has been legal representative and chairman of SC since December 2001.
SC is known to have approx. 450 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
Changzhou. Our checks reveal that SC owns the total premise about 18,000 square
meters.
http://www.huarsheng.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 the local Administration for Industry and Commerce.
SC’s quality system meets the international standards of ISO9001
and ISO14001.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Changzhou Changtong Reflective Material Factory (Chinese Pinyin) 51
Chaoze (Hong Kong) Co., Ltd (Chinese Pinyin) 49
l
Legal representative, chairman and general manager:
Mr. Lu Yajian, ID # 320421580216341 He
is currently responsible for the overall management of SC.
Working Experience(s):
From 2001 to present Working in SC as chairman, legal representative and general manager.
l
Vice general manager:
Ms. Jin Wei, ID # 320421610415342 she is currently responsible for the daily management of SC.
Working Experience(s):
From 2001 to present Working in SC as vice general manager.
*Officials:
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Name Title
Feng Weicheng Vice chairman
SC is
mainly engaged in researching, developing and manufacturing reflective
materials.
SC’s main products include advertisement grade, engineering
grade, license plate grade, high intensity grade reflective sheeting, series
printing film and photo luminescent tape, and reflective materials for civil
use. The products are widely used for the marking signs and safety signs in the
roads, railways, shipment, advertisement, traffic, etc.
SC sources its materials 100%
from domestic market. SC sells 50% of its products in domestic market, and 50%
to overseas market, mainly American and Indian market.
The buying terms of SC include Check, T/T and Credit of
30-60 days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60
days.
*Brand:
*Major Suppliers:
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Taizhou Directionoal Reflecting Materials Co., Ltd.
*Major Customers:
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Guangzhou
Liancheng Zhonggang 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’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.
Agriculture Bank of China Changzhou Branch Wujin Sub-branch.
AC#：348-606601040000898
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
47,480 |
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Inventory |
36,195 |
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Accounts
receivable |
29,643 |
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Short-term
investments |
260 |
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Notes receivable |
850 |
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Advances to
suppliers |
1,338 |
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Other
receivables |
5,096 |
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Other current assets |
3 |
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Current assets |
120,865 |
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Fixed assets |
38,010 |
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Fixed assets net
value |
30,654 |
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Projects under
construction |
29,139 |
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Long term
investment |
0 |
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Intangible and
other assets |
11,591 |
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Total assets |
192,249 |
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Short loans |
73,000 |
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Accounts payable |
9,195 |
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Other payable |
1,053 |
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Accrued payroll |
3,432 |
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Taxes payable |
1,946 |
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Notes payable |
14,810 |
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Surcharge
payable |
24 |
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Long-term liabilities
due with in one year |
22,000 |
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Advances from
customers |
6,776 |
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Other current
liabilities |
3 |
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Current
liabilities |
132,239 |
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Long term
liabilities |
0 |
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Total
liabilities |
132,239 |
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Equities |
60,010 |
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Total
liabilities & equities |
192,249 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
108,962 |
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Cost of goods
sold |
75,784 |
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Sales expense |
5,397 |
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Management expense |
7,614 |
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Finance expense |
3,875 |
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Subsidy income |
70 |
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Non-operating expense |
480 |
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Profit before
tax |
15,881 |
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Less: profit tax |
2,070 |
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Profits |
13,811 |
Important Ratios
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as
of Dec. 31, 2006 |
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*Current ratio |
0.91 |
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*Quick ratio |
0.64 |
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*Liabilities
to assets |
0.69 |
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*Net profit
margin (%) |
12.68 |
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*Return on
total assets (%) |
7.18 |
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*Inventory
/Turnover ×365 |
122 days |
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*Accounts receivable/Turnover
×365 |
100 days |
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*Turnover/Total
assets |
0.57 |
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* Cost of
goods sold/Turnover |
0.70 |
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 fairly good.
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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 fair level.
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SC’s quick ratio is maintained in a fair level.
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The inventory of SC appears fairly large.
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The accounts receivable of SC appears fairly large.
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SC’s short-term loan is LARGE.
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SC’s turnover is in a fair level, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is fairly high.
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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 favorable market conditions.
The large amount of short loans could be a threat to SC’s financial condition.
A credit line up to USD 400,000 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. |
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%)