MIRA
INFORM REPORT
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Report Date : |
05.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
XIAMEN HAICANG ECONOMY & TRADE DEVELOPMENT CORP. |
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Registered Office : |
Investment General Building, Songyu Passenger Ferry Port Haicang
District, Xiamen City, Fujian Province 361026 |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
23.01.1997 |
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Com. Reg. No.: |
3502051001127 |
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Legal Form : |
State-Owned Enterprise |
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Line of Business : |
Engaged in International Trade |
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 : |
USD 100,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
COMPANY NAME &
ADDRESS
XIAMEN HAICANG ECONOMY & TRADE DEVELOPMENT CORP.
Investment General Building, Songyu Passenger Ferry Port Haicang
District, Xiamen City, Fujian Province 361026 PR CHINA
TEL: 86 (0) 592-6890988
FAX: 86 (0) 592-6890955
EXECUTIVE SUMMARY
INCORPORATION DATE : jan. 23, 1997
REGISTRATION NO. :
3502051001127
REGISTERED LEGAL FORM : STATE-OWNED
ENTERPRISE
CHIEF EXECUTIVE :
MR. LIU YAGUO (CHAIRMAN)
STAFF STRENGTH :
31
REGISTERED CAPITAL : CNY 20,000,000
BUSINESS LINE :
TRADING
TURNOVER :
CNY 523,290,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 9,310,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE :
UP TO USD 100,000
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fair
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
7.47 =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: SC’s complete name should be the above stated one, instead of the
given one Xiamen Haicang Economy.
SC was registered as a state-owned enterprise at local Administration
for Industry & Commerce (AIC - The official body of issuing and renewing
business license) on Jan. 23, 1997.
Company Status: State-owned enterprise This form of business in PR China is defined as a commodity
production or operational units of a socialist character which in
accordance with the law, has autonomy in management, takes full
responsibility for its profits and losses and practices independent
business accounting. It is a legal person established directly by central /
local government or enterprise owned by central or local government. In
theory, the liabilities of this form of enterprise are ultimately borne by
the government, since the adoption of company law in mid-1994, the Chinese
government has planned to separate the ownership from management and
liabilities bearing.
SC’s registered business scope includes importing and exporting commodities and technologies, excluding export commodities under state-unified operation and import commodities operated by the state-designated companies;
processing trade, including counter trade & transit trade; wholesaling, purchasing
and selling timber, metal materials, building materials, electromechanical equipment, hardware,
textile materials, textiles, garments, shoes & hats, and groceries.
SC is mainly engaged in international trade.
Mr. Liu Yaguo has been chairman of SC since 1997.
SC is known to have approx. 31 staff members at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the commercial zone of Xiamen. Our checks reveal
that SC rents the total premise about 800 square meters.
http://www.hc-parts.com The design is professional and the content
is well organized. At present the web is only in English version.
E-mail: HCPARTS@126.COM
No significant events or changes were found during our checks with the
local AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Xiamen Haicang Investment Corp. 100
Chairman and General Manager:
Mr. Liu Yaguo , in his 40’s university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1997 to present Working in SC as chairman and
general manager.
SC is mainly engaged in international trade.
SC’s products mainly include: piston ring, cylinder block, cylinder
head, crankshaft & con rod, injector & nozzle, and turbo charger, etc.
SC sources its materials 40% from domestic market, mainly Fujian
province, and 60% from overseas market. SC sells 95% in domestic market, mainly
Fujian province, and 5% to overseas market, mainly America, Europe, Asia, and
Middle East.
The buying terms of SC include T/T, L/C, Check and Credit of 30-60 days.
The payment terms of SC include T/T, L/C, Check and Credit of 30-60 days.
*Major Supplier:
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Fuzhou Development Zone Rongsheng Trade Co., Ltd.
*Major Customer:
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Xiamen Terongte Import & Export Trading Co., Ltd.
SC is known to have the following subsidiaries at present:
Xiamen Luhaitong Industry Co., Ltd.
Address: Section 42, Haicang Bridge Service Zone, Haicang Town, Xinglin
District, Xiamen
Tel: 0592-5828397
Xiamen Haitou Real Estate Co., Ltd.
Address: Investment General Building, Songyu Passenger Ferry Port,
Haicang District, Xiamen
Tel: 0592-6898888
Fax: 0592-6892052
Xiamen Jinhaicang Advertisement & Decoration Engineering Corp.
Address: Shitang, Xinglin District, Xiamen
Xiamen Haicang Economy & Trade Services Corp.
Address: Jinhong Building, Haicang Town, Xinglin District, Xiamen
Tel: 0592-6051635
Xiamen Haicang Jinhai Petroleum Co., Ltd.
Address: Maqing Road, Haicang, Xinglin District, Xiamen
Tel: 0592-6051069
Xiamen Haixinyang Petroleum & Gas Co., Ltd.
Address: Section 17-1, Xinyang Industrial Zone, Haicang District, Xiamen
Tel: 0592-2210308
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 and Commercial Bank of China
AC#：4100026009022500567
Relationship: Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2006 |
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Cash & bank |
44,380 |
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Inventory |
4,880 |
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Accounts receivable |
51,240 |
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Bills receivable |
50 |
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Other Accounts receivable |
220 |
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Advances to suppliers |
223,310 |
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To be apportioned expense |
0 |
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Other current assets |
1,330 |
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Current assets |
325,410 |
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Fixed assets |
1,110 |
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Long term investment |
23,860 |
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Other assets |
20 |
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Total assets |
350,400 |
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Short loans |
10,000 |
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Accounts payable |
25,700 |
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Advance from clients |
114,660 |
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Bills payable |
87,500 |
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Other Accounts payable |
73,460 |
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Withdraw the expenses in advance |
0 |
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Other current liabilities |
29,390 |
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Current liabilities |
340,710 |
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Long term liabilities |
380 |
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Other liabilities |
0 |
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Total liabilities |
341,090 |
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Equities |
9,310 |
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Total liabilities & equities |
350,400 |
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Income Statement
Unit: CNY’000
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As
of Dec. 31, 2006 |
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Turnover |
523,290 |
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Cost of goods sold |
505,570 |
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Sales expense |
13,380 |
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Management expense |
1,980 |
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Finance expense |
1,910 |
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Profit before tax |
4,120 |
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Less: profit tax |
450 |
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Profits |
3,670 |
Important Ratios
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As
of Dec. 31, 2006 |
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*Current ratio |
0.96 |
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*Quick ratio |
0.94 |
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*Liabilities to assets |
0.97 |
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*Net profit margin (%) |
0.70 |
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*Return on total assets (%) |
1.05 |
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*Inventory /Turnover ×365 |
3days |
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*Accounts receivable/Turnover ×365 |
36days |
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*Turnover/Total assets |
1.49 |
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* Cost of goods sold/Turnover |
0.97 |
PROFITABILITY: AVERAGE
The turnover of SC appears fairly good in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of goods sold is fairly high, comparing with its turnover.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level.
SC’s quick ratio is maintained in a normal level.
The inventory of SC is maintained in an average level.
The accounts receivable of SC appears fairly large.
The short-term loan of SC appears fairly large.
SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIR
The debt ratio of SC is high.
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 fairly stable financial conditions.
A credit line up to USD 100,000 appears 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. |
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%)