MIRA
INFORM REPORT
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Report Date : |
01.10.2007 |
IDENTIFICATION DETAILS
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Name : |
saurer (jintan)
textile machinery co., ltd. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
November 8, 2005 |
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Com. Reg. No.: |
004401 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture |
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Line of Business : |
Engaged in
manufacturing and selling textile machinery. |
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 1,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
saurer (jintan)
textile machinery co., ltd.
no.98
TEL :
86 (0) 519-82319901
FAX :
86 (0) 519-82319993
EXECUTIVE SUMMARY
INCORPORATION DATE : november 8, 2005
REGISTRATION NO. : 004401
REGISTERED LEGAL FORM : Chinese-foreign equity
joint venture
STAFF STRENGTH :
800
REGISTERED CAPITAL : usd 22,482,422
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 153,870,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 198,130,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : average
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY7.51 = US$1
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
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 November 8, 2005.
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 combing machines, bobbiner, parallel strip machines and new type textile
machinery, selling its products.
SC is mainly
engaged in manufacturing and selling textile machinery.
Mr. Heinrich
Fischer has been chairman of SC since 2005.
SC is known to have
approx. 800 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 Jintan city. Our checks
reveal that SC owns the total premise about 30,000 square meters.
SC is not known to host web site of its own at present.
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Jiangsu Jinsheng Industry Stock Co., Ltd. 30
Saurer China Holdings Co., Ltd. (
Jiangsu Jinsheng Industry Stock Co., Ltd.:
==============================
Jiangsu Jinsheng Industry Stock Co., Ltd. is
one of Top-100 private technical enterprises of
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Chairman:
Mr. Heinrich Fischer (
Working Experience(s):
From 2005 to present Working
in SC as chairman.
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General Manager:
Mr. Pan Xueping, 44 years old with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2005 to present Working in SC as general manager.
SC is mainly
engaged in manufacturing and selling textile machinery.
SC’s products mainly
include: cotton weaving equipment.
SC sources its materials 100% from domestic
market, mainly
The buying terms of SC include Check, T/T and Credit of 30 days. The
payment terms of SC include T/T, L/C and Credit of 30 days.
*Major Supplier:
==============
Jiangsu Jinsheng Industry Stock 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 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.
Construction Bank of
AC#：320016266436059008838
Relationship:
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
28,930 |
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Inventory |
37,170 |
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Accounts
receivable |
37,880 |
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Other Accounts
receivable |
41,360 |
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To be
apportioned expense |
810 |
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Other current
assets |
10,450 |
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Current assets |
156,600 |
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Fixed assets net
value |
60,000 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
33,790 |
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Total assets |
250,390 |
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Short loans |
0 |
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Accounts payable |
36,960 |
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Other Accounts
payable |
2,480 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
12,820 |
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Current
liabilities |
52,260 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
52,260 |
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Equities |
198,130 |
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Total
liabilities & equities |
250,390 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
153,870 |
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Cost of goods
sold |
121,870 |
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Sales expense |
11,550 |
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Management expense |
10,640 |
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Finance expense |
-550 |
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Profit before
tax |
10,840 |
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Less: profit tax |
0 |
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Profits |
10,840 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 3.00
*Quick ratio 2.29
*Liabilities to
assets 0.21
*Net profit
margin (%) 7.04
*Return on total
assets (%) 4.33
*Inventory
/Turnover ×365 88 days
*Accounts
receivable/Turnover ×365 90 days
*Turnover/Total
assets 0.61
* Cost of goods
sold/Turnover 0.79
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: AVERAGE
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The current ratio of SC is maintained in a fairly
good level.
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SC’s quick ratio is maintained in a fairly good
level.
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The inventory of SC is maintained in an acceptable
level.
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The accounts receivable of SC is maintained in an
acceptable level.
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SC has no short-term loan in 2006.
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SC’s turnover is in an acceptable 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 medium-sized in its line with fairly good background. A
credit line up to USD 1,000,000
would appear 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%)