MIRA
INFORM REPORT
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Report Date : |
05.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
SHANGHAI TAIHENG MACHINERY CO., LTD. |
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Registered Office : |
No. 1298 Lianxi Road, Pudong New District, Shanghai,
201204 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
Sep. 27, 1993 |
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Com. Reg. No.: |
3101152004055 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged
in manufacturing and operating rubber & plastic mechanical equipment and
PVC rolling equipment. |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Up To USD 20,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
SHANGHAI TAIHENG MACHINERY CO., LTD.
NO.1298 LIANXI ROAD, PUDONG NEW DISTRICT, SHANGHAI, 201204 PR
CHINA
TEL : 0086-21-58911410
FAX :
0086-21-58912158
EXECUTIVE SUMMARY
INCORPORATION DATE :
SEP. 27, 1993
REGISTRATION NO. :
3101152004055
REGISTERED LEGAL FORM :
LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MR. ZHANG XUERONG (CHAIRMAN)
STAFF STRENGTH :
180
REGISTERED CAPITAL :
CNY 3,500,000
BUSINESS LINE : MANUFACTURING
TURNOVER :
CNY 30,839,000 (AS OF DEC. 31,
2005)
EQUITIES :
CNY 4,374,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE :
UP TO USD 20,000 (PERIODICAL REVIEW)
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 7.45550=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 limited liabilities co. at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Sep. 27, 1993.
Company Status: Limited liabilities co. This
form of business in PR China is defined as a legal person. No more than
fifty shareholders contribute its
registered capital jointly. Shareholders bear limited liability to the
extent of shareholding, and the co. is liable for its debts only to extent
of its total assets. The characteristics of this form of co. are as
follows: Upon
the establishment of the co., an investment certificate is issued to the
each of shareholders. The
board of directors is comprised of three to thirteen members. The
minimum registered capital for a co. is CNY 30,000. Shareholders
may take their capital contributions in cash or by means of tangible assets
or intangible assets such as industrial property and non-patented
technology. Cash
contributed by all shareholders must account for at least 30% of the
registered capital. Existing
shareholders have pre-exemption right to purchase shares of the co. offered
for sale by the other shareholders and to subscribe for the newly increased
registered capital of the co.
SC’s registered business scope includes manufacturing light
industry electronic automatic controlling boxes.
SC is
mainly engaged in manufacturing and operating rubber & plastic mechanical
equipment and PVC rolling equipment.
Mr.
Zhang Xuerong has been legal representative and chairman of SC since 1993.
SC is known to have approx. 180 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 Shanghai.
Our checks reveal that SC owns the total premise about 10,000 square meters.
SC is not known to host website of its own at present.
Position : Plaintiff
Defendant: Shanghai Light Industry Machinery Co., Ltd. Extrusion Equipment
Case Issue : Contract Dispute
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Zhang Xuerong 90
Ren Yuguo 10
l
Legal representative and chairman:
Mr. Zhang Xuerong, born in 1952 with university education.
He is currently responsible for the overall management of SC.
Working Experience(s):
From 1993 to present Working in SC as chairman and legal representative.
SC is
mainly engaged in manufacturing and operating rubber & plastic mechanical
equipment and PVC rolling equipment.
SC’s products mainly include: three-roll cylinder, four-roll
cylinder and five -roll cylinder.
SC sources its materials 80% from domestic market and 20%
from the overseas market. SC sells 60% of its products to overseas market, mainly in Southeast Asia,
North America, Hong Kong and Taiwan, and 40% in domestic market.
The buying terms of SC include Check, L/C, T/T and Credit of
15-30 days. The payment terms of SC include Check, T/T, and Credit of 15-30
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 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 China Beicai Sub-branch
AC#：009994-40809100
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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as
of Dec. 31, 2004 |
as
of Dec. 31, 2005 |
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Cash
& bank |
637 |
621 |
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Bills
receivable |
0 |
0 |
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Accounts
receivable |
1,072 |
523 |
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Other
receivables |
536 |
380 |
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Advances to
suppliers |
718 |
767 |
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Inventory |
26,917 |
17,122 |
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Other
current assets |
0 |
0 |
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------------------ |
------------------ |
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Current
assets |
29,880 |
19,413 |
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Fixed assets |
16,483 |
18,481 |
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Fixed
assets net value |
1,924 |
346 |
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Disposal of
fixed assets |
-970 |
0 |
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Projects
under construction |
15,529 |
18,135 |
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Long
term investment |
2 |
2 |
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Other
assets |
0 |
0 |
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------------------ |
------------------ |
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Total
assets |
46,365 |
37,896 |
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============= |
============= |
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Short
loans |
2,250 |
0 |
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Bills
payable |
0 |
0 |
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Accounts
payable |
10,480 |
10,811 |
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Welfare
payable |
254 |
276 |
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Advances from
clients |
22,397 |
10,335 |
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Accrued
payroll |
0 |
0 |
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Tax
payable |
-2 |
13 |
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Other
payable |
5,809 |
11,295 |
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Surcharge
payable |
860 |
792 |
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Other
current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current
liabilities |
42,048 |
33,522 |
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Long
term liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
42,048 |
33,522 |
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Equities |
4,317 |
4,374 |
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------------------ |
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Total
liabilities & equities |
46,365 |
37,896 |
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Income Statement
Unit: CNY’000
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as of Dec. 31, 2004 |
as of Dec. 31, 2005 |
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Turnover |
14,264 |
30,839 |
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Cost of goods
sold |
11,516 |
28,813 |
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Sales expense |
1,023 |
928 |
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Management expense |
1,575 |
1,008 |
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Finance expense |
230 |
59 |
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Profit before
tax |
5 |
68 |
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Less: profit tax |
0 |
10 |
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Profits |
5 |
58 |
Important Ratios
=============
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as
of Dec. 31, 2004 |
as
of Dec. 31, 2005 |
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*Current ratio |
0.71 |
0.58 |
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*Quick ratio |
0.07 |
0.07 |
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*Liabilities
to assets |
0.91 |
0.88 |
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*Net profit
margin (%) |
0.04 |
0.19 |
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*Return on
total assets (%) |
0.01 |
0.15 |
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*Fixed
assets/Total assets |
0.36 |
0.49 |
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*Inventory
/Turnover ×365 |
689 days |
203 days |
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*Accounts
receivable/Turnover ×365 |
28 days |
7 days |
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*Turnover/Total
assets |
0.31 |
0.81 |
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* Cost of
goods sold/Turnover |
0.81 |
0.93 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in its line, and it
increased in 2005.
l
SC’s net profit margin is average in its line, and it
increased in 2005.
l
SC’s return on total assets is average in its line, and it
increased in 2005.
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, and
it moved down in 2005.
l
SC’s quick ratio is maintained in a POOR level.
l
The inventory of SC appears LARGE.
l
The accounts payable of SC appears fairly large.
l
SC’s turnover is in an average 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.
SC is considered medium-sized in its line with fair financial conditions.
The large amount of inventory could be a threat to SC’s financial condition. A
credit line up to USD 20,000 appears 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%)