MIRA
INFORM REPORT
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Report Date : |
12.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
FORMTEK MACHINERY (BEIJING) CO., LTD. |
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Registered Office : |
Beiqijia High Tech Industrial Park, Changping District,
Beijing, 102209 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Aug. 26, 2003 |
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Com. Reg. No.: |
018739 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Engaged
in developing, producing and selling metal extracting machines, and providing
after services. |
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 300,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
FORMTEK MACHINERY (BEIJING) CO., LTD.
BEIQIJIA HIGH TECH INDUSTRIAL PARK, CHANGPING DISTRICT,
BEIJING, 102209 PR CHINA
TEL : 0086-10-89758065
FAX :
0086-10-89751509
EXECUTIVE SUMMARY
INCORPORATION DATE :
AUG. 26, 2003
REGISTRATION NO. :
018739
REGISTERED LEGAL FORM :
WHOLLY FOREIGN-OWNED ENTERPRISE
CHIEF EXECUTIVE :
MR. NICOLAS FERRER (CHAIRMAN)
STAFF STRENGTH :
60
REGISTERED CAPITAL :
US$ 885,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 48,480,000 (AS OF DEC. 31,
2006)
EQUITIES :
CNY 30,320,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE :
UP TO USD 300,000
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION :
STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 7.42080 =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 Aug. 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 developing and
producing metal extracting machines,
advanced equipment and industrial software used in manufacturing and
processing; technology consultation and services for its products; and selling
its products.
SC is
mainly engaged in developing, producing and selling metal extracting machines,
and providing after services.
Mr.
Nicolas Ferrer has been legal representative and chairman of SC since 2003.
SC is known to have approx. 60 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
Beijing. Our checks reveal that SC rents the total premise about 2,000 square
meters.
http://www.formtek.com.cn/
The design is professional and the content is
well organized. At present it is in Chinese version.
E-Mail: info@formtek.com.cn
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Formtek Inc. (U.S.A.) 100
Formtek provides secure and scalable content management solutions with an open systems approach that allows for easy implementation into most IT environments.
Phone: US+1.800.FORMTEK (1.800.367.6835)
Sales
Phone: 904.829.9251
Email: sales@formtek.com
l
Legal representative and chairman:
Mr. Nicolas Ferrer, 58 years old with university education.
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.
SC is
mainly engaged in developing, producing and selling metal extracting machines,
and providing after services.
SC’s products mainly include: lock former Vulcan 1000,
button punch snap lock machine, auto-guide flanger LK16AGF, lock former button
punch snap lock flanger and cheek bender.
SC sources its materials 80% from domestic market and 20%
from the overseas market. SC sells 90% of its products to overseas market, mainly in America and
Europe, and 10% 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.
*Major Supplier*
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Mestek Inc.
*Major Customer*
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Mestek Inc.
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.
SC declined to release
its banking details.
Balance Sheet
Unit: CNY’000
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as
of Dec. 31, 2006 |
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Cash
& bank |
13,420 |
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Bills
receivable |
0 |
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Accounts
receivable |
12,930 |
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Other
receivables |
1,110 |
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Advances to suppliers |
2,160 |
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Inventory |
11,750 |
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Prepaid expenses |
150 |
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Other
current assets |
0 |
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------------------ |
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Current
assets |
41,520 |
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Fixed assets |
1,150 |
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Fixed
assets net value |
1,150 |
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Projects
under construction |
0 |
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Long
term investment |
0 |
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Other
assets |
0 |
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Total
assets |
42,670 |
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============= |
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Short
loans |
0 |
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Bills
payable |
0 |
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Accounts
payable |
9,800 |
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Welfare
payable |
0 |
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Advances from
clients |
990 |
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Accrued
payroll |
0 |
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Tax
payable |
400 |
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Other
payable |
1,160 |
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Surcharge
payable |
0 |
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Other
current liabilities |
0 |
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Current
liabilities |
12,350 |
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Long
term liabilities |
0 |
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Total
liabilities |
12,350 |
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Equities |
30,320 |
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------------------ |
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Total
liabilities & equities |
42,670 |
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Income Statement
Unit: CNY’000
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as of Dec. 31, 2006 |
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Turnover |
48,480 |
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Cost of goods
sold |
23,210 |
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Sales expense |
1,900 |
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Management expense |
3,640 |
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Finance expense |
1,010 |
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Profit before
tax |
18,690 |
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Less: profit tax |
0 |
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Profits |
18,690 |
Important Ratios
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as
of Dec. 31, 2006 |
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*Current ratio |
3.36 |
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*Quick ratio |
2.41 |
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*Liabilities
to assets |
0.29 |
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*Net profit
margin (%) |
38.55 |
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*Return on
total assets (%) |
43.80 |
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*Fixed
assets/Total assets |
0.03 |
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*Inventory
/Turnover ×365 |
89 days |
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*Accounts
receivable/Turnover ×365 |
98 days |
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*Turnover/Total
assets |
1.14 |
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* Cost of
goods sold/Turnover |
0.48 |
PROFITABILITY:
FAIRLY GOOD
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The turnover of SC appears average 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:
AVERAGE
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The current ratio of SC is maintained in a normal level.
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SC’s quick ratio is maintained in a normal level.
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The inventory conversion period of SC appears long.
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The accounts receivable of SC appears fairly large.
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SC’s turnover is in an average level, comparing with the
size of its total assets.
LEVERAGE:
AVERAGE
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The debt ratio of SC is low.
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The risk for SC to go bankrupt is average.
Overall
financial condition of the SC: Stable.
SC is considered small-sized in its line with stable
financial conditions. It is considered a credit line up to USD 300,000 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%)