MIRA
INFORM REPORT
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Report Date : |
05.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
LIANZHONG ( GUANGZHOU ) STAINLESS STEEL CORPORATION |
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Registered Office : |
No.1, Lianguang Road, East Section, Economic And Technology Develop Zone,
Guangzhou, Guangdong Province, 510760 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
December 30, 2001 |
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Com. Reg. No.: |
100313 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Smelting
stainless steel, including flat
steel, steel plate, hot and cold steel
coils. |
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 1,500,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
LIANZHONG (
GUANGZHOU ) STAINLESS STEEL CORPORATION
NO.1, LIANGUANG ROAD,
EAST SECTION, ECONOMIC AND TECHNOLOGY DEVELOP ZONE, GUANGZHOU, GUANGDONG
PROVINCE, 510760 PR CHINA.
TEL : 86 (0) 20-32108888
FAX : 86 (0) 20-32108855
EXECUTIVE SUMMARY
INCORPORATION DATE : DECEMBER 30, 2001
REGISTRATION NO. : 100313
REGISTERED LEGAL FORM :
WHOLLY FOREIGN-OWNED enterprise
STAFF STRENGTH : 2,000
REGISTERED CAPITAL : USD 277,718,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 545,312,000 (AS OF
DEC. 31, 2005)
EQUITIES : CNY 1,250,676,000 (AS OF DEC. 31, 2005)
PAYMENT : AVERAGE
RECOMM. CREDIT RANGE : UP TO USD 1,500,000 (periodical review)
MARKET CONDITION : competitive
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
7.4555 = 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
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 December 30, 2001.
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 smelting stainless steel; manufacturing and processing cold and hot rolled stainless steel coils and series
products; supplying technology services and after services (consecutive
cold rolling lines can engage in direct operation, while other items do not operate in the preparation period).
SC is mainly
engaged in smelting stainless steel, including flat steel, steel plate, hot and cold steel coils.
Mr. Li
Bixian has been legal representative and chairman of SC since December 2001.
SC is known to have approx. 2,000 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 Guangzhou.
SC’s accountant refused to release details of their premise.
http://www.lisco.com.cn/index.html
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
SC’s quality system meets the international standards of
ISO9001、ISO14001、OHSAS18001、PED、ISO17025.
Changes of its registered information:
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Date of change |
Item |
Before the change |
After the change |
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2002-11 |
Main Shareholders |
Public Zone Co., Ltd (100%) |
Public Zone Co., Ltd (51%) Valleyfield Limited (49%) |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Public Zone Co., Ltd (BVI) 51
Valleyfield Limited (Samoa) 49
l
Legal representative and chairman:
Mr. Li Bixian, in his 60’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 and legal representative.
Also
working in Public Zone Co., Ltd (B. V. I.) as chairman.
*Officials:
=======
Name Title
Xu Wenjian Director
Li Chongwei Director
SC is mainly
engaged in smelting stainless steel, including flat steel, steel plate, hot and cold steel coils.
SC has completed 1st-phase project and started its normal operation
since 2005. The other projects are still in preparation.
SC sources its materials 60%
from domestic market, and 40% from overseas market, mainly Taiwan. SC sells 70%
of its products in domestic market, and 30% to overseas 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 Suppliers:
=============
Yieh United Steel Corporation
Liangang Heavy Industries Co., Ltd
Changshu Qiyang Xinxing Building Material Co., Ltd
Valleyfield Limited
*Major Customer:
==============
Yieh
Mau Corporation
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.
Industrial & Commercial Bank of China Guangzhou Branch
Huangpu Sub-branch.
AC#：3602001309111188833
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2005)
Unit: CNY’000
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Cash & bank |
481,208 |
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Inventory |
347,899 |
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Accounts
receivable |
85,505 |
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Advances to
suppliers |
22,273 |
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Other
receivables |
58,288 |
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Prepaid expenses |
35 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
995,208 |
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Fixed assets |
1,954,833 |
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Fixed assets net
value |
1,930,900 |
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Projects under
construction |
1,821,906 |
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Long term
investment |
0 |
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Intangible
assets |
940 |
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------------------ |
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Total assets |
4,748,954 |
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============= |
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Short loans |
500,059 |
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Accounts payable |
637,609 |
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Other payable |
128,071 |
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Accrued payroll |
5,592 |
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Taxes payable |
2,650 |
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Accounts from
customer |
157,866 |
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Accrued expenses |
50,266 |
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Other current
liabilities |
0 |
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------------------ |
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Current
liabilities |
1,482,113 |
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Long term
liabilities |
2,016,165 |
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------------------ |
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Total
liabilities |
3,498,278 |
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Equities |
1,250,676 |
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------------------ |
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Total
liabilities & equities |
4,748,954 |
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============= |
Income Statement (as of Dec. 31, 2005)
Unit: CNY’000
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Turnover |
545,312 |
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Cost of goods
sold |
608,284 |
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Sales expense |
5,115 |
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Management expense |
62,353 |
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Finance expense |
13,086 |
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Non-operating
income |
35 |
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Non-operating expense |
93 |
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Profit before
tax |
-143,586 |
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Less: profit tax |
0 |
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Profits |
-143,586 |
Important Ratios
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as
of Dec. 31, 2005 |
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*Current ratio |
0.67 |
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*Quick ratio |
0.44 |
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*Liabilities
to assets |
0.74 |
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*Net profit
margin (%) |
-26.33 |
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*Return on
total assets (%) |
-3.02 |
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*Inventory
/Turnover ×365 |
233 days |
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*Accounts
receivable/Turnover ×365 |
58 days |
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*Turnover/Total
assets |
0.11 |
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* Cost of
goods sold/Turnover |
1.12 |
PROFITABILITY:
FAIR
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is poor.
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SC’s return on total assets is fair.
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SC’s cost of goods sold is high, 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 conversion period of SC is long.
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The accounts payable of SC appears fairly large.
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SC’s short-term loan is maintained in an average level.
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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.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fair.
SC is considered a medium-sized company in its line with fairly
good background. A credit line up to USD 1,500,000 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. |
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%)