MIRA
INFORM REPORT
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Report Date : |
01.10.2007 |
IDENTIFICATION DETAILS
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Name : |
SHANDONG WEIDA HEAVY INDUSTRIES CO., LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
Jun. 12, 2001 |
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Com. Reg. No.: |
3700002805677 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Engaged
in processing, manufacturing and selling various machine tools. |
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 120,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
SHANDONG WEIDA HEAVY INDUSTRIES CO., LTD.
NO.
TEL : 0086-632-5559488
FAX :
0086-632-5153395
EXECUTIVE SUMMARY
INCORPORATION DATE :
JUN. 12, 2001
REGISTRATION NO. :
3700002805677
REGISTERED LEGAL FORM :
SHARES LIMITED CO.
CHIEF EXECUTIVE :
MR. LV ZIJIN (CHAIRMAN)
STAFF STRENGTH :
1,200
REGISTERED CAPITAL :
CNY 18,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 78,483,000 (AS OF DEC. 31,
2005)
EQUITIES :
CNY 18,028,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION :
AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 7.51081=US1$
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 shares limited co. at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Jun. 12, 2001.
Company Status:
Shares limited co. This
form of business in PR China is defined as a legal person. Its registered
capital is divided into shares of equal par value and the co. raises
capital by issuing share certificates by promotion or by public offer.
Shareholders bear limited liability to the extent of shareholding, and the
co. is liable for its debts only to the extent of its total assets. The co
has independent property of legal person and enjoys property rights of
legal person. The characteristics of the shares limited co. are as follows: The
establishment of the co. requires at least two promoters and no more than
200, half of whom shall be domiciled in The
minimum registered capital of a co. is CNY The
board of directors must consist of five to nineteen directors. If the co. raises
capital by public offer, the promoters must not subscribe less than 35% of
the total shares. the promoters’ shares are restricted to transfer- within
one year of the offer. A
state-owned enterprise that is restructured into a shares limited co. must
comply with the conditions & requirements specified under the law &
administrative rule.
SC’s registered business scope includes processing, manufacturing
and selling metal cutting machines and its accessories; importing and exporting commodities and technologies, excluding items limited or prohibited by laws and administrative
regulation (with the permit if needed).
SC is mainly
engaged in processing, manufacturing and selling various machine tools.
Mr. Lv
Zijin has been legal representative and chairman of SC since 2004.
SC is known to have approx. 1,200 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
Tengzhou. Our checks reveal that SC owns the total premise about 110,000 square
meters.
http://www.weida-mc.com/
The design is professional and the content is
well organized. At present it is both in Chinese and English versions.
E-Mail: weidamc@263.net
Changes of SC’s registration information:
|
Date of change |
Item |
Before the change |
After the change |
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|
Legal representative |
Mr. Xu Zuwei |
Mr. Lv Zijin |
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Registered capital |
CNY 6,000,000 |
CNY 14,190,000 |
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Shareholders (Shareholding) |
Lv Zijin (51%), Qi Panhua
(3%), Zhang Yanling (3%), Li Kesheng (0.75%), Yu Deyin (3%), Yin Yunguo (3%),
Sun Fengshan (2%), Zhu Jun (3.5%), Ma Hongdong (0.5%), Kong Fanyuan (1%),
Zhan Yong (0.5%), Liu Bing (1.17%), Liu Xin (1.75%), Dang Jinxing (0.83%),
Yang Gangning (5%), Lv Shihai (5%), Song Jianjun (3.75%), Liu Xigui (2%), Sun
Jingming (1.67%), Du Yuanhai (1.25%), Lei Xiangyuan (1%), Zhu Yuan (3.5%), Di
Chengjun (0.5%), Wang Xuejun (1.25%), Qin Anguo (0.08%) |
Lv Zijin (55.53%), Zhang
Yanling (2.82%), Li Kesheng (0.35%), Yu Deyin (2.82%), Yin Yunguo (2.54%),
Zhu Jun (2.96%), Ma Hongdong (0.42%), Wei Qiang (2.82%), Yang Zhenting
(1.41%), Zhu Chuangang (0.07%), Zhu Yuan (2.96%), Di Chengjun (0.42%), Wang
Xuejun (0.7%), Gan Zhiying (0.145%), Liu Xigui (1.69%), Sun Jingming (1.41%),
Du Yuanhai (0.78%), Lei Xiangyuan (1.41%), Liu Bing (0.63%), Liu Xin (2.18%),
Dang Jinxing (0.7%), Yang Gangning (2.82%), Song Jianjun (2.82%), Li Runfeng
(0.07%), Su Zihao (0.07%), Qi Panhua (2.82%), Li
Weiguo (0.07%), Wang Hua (0.145%), Miao Fubiao (0.21%), Zhang Daodong
(0.07%), Zhang Jun (0.145%), Sun Zhuobiao (0.145%), Wang Shude (0.56%), Zhang
Guangdi (0.07%), Sun Gang (0.07%), Liu Yanjun (0.145%), Yu Zhenhai (0.145%),
Wang Wei (0.28%), Wang Kaiyan (0.07%), Li Yonggui (0.28%), Qin Anguo (0.04%),
Dang Jinqi (0.07%), Zhong Weijun (0.04%), Wang Xiyu (0.21%), Ren Chengwei
(0.145%), Ma Shiyou (0.145%), Sun Fengshan (0.85%), Kong Fanyuan (0.42%),
Zhan Yong (0.21%), Lv Shihai (2.10%) |
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Registered capital |
CNY 14,190,000 |
CNY 18,000,000 |
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Registered Legal Form |
Limited liabilities co. |
Shares limited co. |
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Registered name |
Tengzhou Weida Machine Tools Co., Ltd. |
Shandong Weida Heavy Industries
Co., Ltd. |
MAIN SHAREHOLDERS:
Name % of Shareholding
Lv Zijin 55.53
Zhang Yanling
2.82
Li Kesheng
0.35
Yu Deyin
2.82
Yin Yunguo 2.54
Zhu Jun
2.96
Ma Hongdong
0.42
Wei Qiang
2.82
Yang Zhenting 1.41
Zhu Chuangang 0.07
Zhu Yuan
2.96
Di Chengjun
0.42
Wang Xuejun
0.7
Gan Zhiying
0.145
Liu Xigui
1.69
Sun Jingming 1.41
Du Yuanhai
0.78
Lei Xiangyuan
1.41
Liu Bing
0.63
Liu Xin 2.18
Dang Jinxing
0.7
Yang Gangning
2.82
Song Jianjun
2.82
Li Runfeng
0.07
Su Zihao
0.07
Qi Panhua
2.82
Li Weiguo 0.07
Wang Hua
0.145
Miao Fubiao
0.21
Zhang Daodong
0.07
Zhang Jun 0.145
Sun Zhuobiao
0.145
Wang Shude
0.56
Zhang Guangdi
0.07
Sun Gang
0.07
Liu Yanjun
0.145
Yu Zhenhai
0.145
Wang Wei 0.28
Wang Kaiyan
0.07
Li Yonggui
0.28
Qin Anguo
0.04
Dang Jinqi 0.07
Zhong Weijun
0.04
Wang Xiyu
0.21
Ren Chengwei 0.145
Ma Shiyou
0.145
Sun Fengshan
0.85
Kong Fanyuan 0.42
Zhan Yong 0.21
Lv Shihai
2.10
l
Legal
representative and
chairman:
Mr. Lv Zijin, in his
Working Experience(s):
From 2004 to present Working in SC as chairman and legal representative.
SC is
mainly engaged in processing, manufacturing and selling various machine tools.
SC’s products mainly include: nc milling machines,
knee-and-column milling machines, vertical millers and automatic milling
machines.
SC sources its materials 80% from domestic market and 20%
from the overseas market. SC sells 10% of its products to overseas market, mainly in North America,
Europe and
The buying terms of SC include Check, L/C, T/T and Credit of
30-60 days. The payment terms of SC include Check, T/T, and Credit of 30-60
days.
Brand: Weida
* Subsidiary Company *
==================
Beijing Tech-Race Science & Technology Co., Ltd.
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.
China
Construction Bank Tengzhou Branch Shanbei Sub-branch
AC#：37001646863050009805
Relationship:
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 |
2,040 |
7,814 |
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Bills
receivable |
80 |
130 |
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Accounts
receivable |
6,482 |
3,397 |
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Other
receivables |
98 |
6,139 |
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Advances to
suppliers |
0 |
7,435 |
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Subsidies
receivable |
0 |
66 |
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Inventory |
12,033 |
14,981 |
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Other
current assets |
0 |
0 |
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------------------ |
------------------ |
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Current
assets |
20,733 |
39,962 |
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Fixed assets |
11,821 |
12,577 |
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Fixed
assets net value |
11,792 |
12,569 |
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Projects
under construction |
29 |
8 |
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Long
term investment |
975 |
4,510 |
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Other
assets |
8,652 |
8,408 |
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------------------ |
------------------ |
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Total
assets |
42,181 |
65,457 |
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============= |
============= |
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Short
loans |
0 |
5,000 |
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Bills
payable |
0 |
0 |
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Accounts
payable |
17,085 |
23,966 |
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Welfare
payable |
873 |
374 |
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Advances from
clients |
1,556 |
3,148 |
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Accrued
payroll |
0 |
0 |
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Tax
payable |
133 |
-164 |
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Other
payable |
13,059 |
13,833 |
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Surcharge
payable |
6 |
13 |
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Other
current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current
liabilities |
32,712 |
46,170 |
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Long
term liabilities |
229 |
1,259 |
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------------------ |
------------------ |
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Total
liabilities |
32,941 |
47,429 |
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Equities |
9,240 |
18,028 |
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------------------ |
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Total
liabilities & equities |
42,181 |
65,457 |
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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 |
55,587 |
78,483 |
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Cost of goods
sold |
47,731 |
69,132 |
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Sales expense |
3,994 |
3,810 |
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Management expense |
3,558 |
4,405 |
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Finance expense |
-36 |
204 |
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Subsidy income |
568 |
669 |
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Profit before
tax |
804 |
1,535 |
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Less: profit tax |
268 |
518 |
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Profits |
536 |
1,017 |
Important Ratios
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as
of Dec. 31, 2004 |
as
of Dec. 31, 2005 |
|
*Current ratio |
0.63 |
0.87 |
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*Quick ratio |
0.27 |
0.54 |
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*Liabilities
to assets |
0.78 |
0.72 |
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*Net profit
margin (%) |
0.96 |
1.30 |
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*Return on
total assets (%) |
1.27 |
1.55 |
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*Fixed
assets/Total assets |
0.28 |
0.19 |
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*Inventory
/Turnover ×365 |
80 days |
70 days |
|
*Accounts
receivable/Turnover ×365 |
43 days |
16 days |
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*Turnover/Total
assets |
1.32 |
1.20 |
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* Cost of
goods sold/Turnover |
0.86 |
0.88 |
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.
l
SC’s return on total assets is average.
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.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory of SC and inventory conversion period appears fairly large.
l
The accounts receivable of SC appears acceptable.
l
SC’s short-term loan is in an average
level.
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: Fairly stable.
SC is considered medium-sized in its line with fairly stable
financial conditions. A credit line up to USD 120,000 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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
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 |
|
<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%)