MIRA
INFORM REPORT
|
Report Date : |
15.10.2007 |
IDENTIFICATION DETAILS
|
Name : |
MODENTIC VALVE CORP. ( |
|
|
|
|
Registered Office : |
No. 71, Siemens
Road Jiangning Economic & Technical Development Zone, Nanjing, Jiangsu, Province,
211100 Pr |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2006 |
|
|
|
|
Date of Incorporation : |
August 13, 1998 |
|
|
|
|
Com. Reg. No.: |
004593 |
|
|
|
|
Legal Form : |
Wholly Foreign-Owned |
|
|
|
|
Line of Business : |
Engaged in manufacturing and selling various valves and
fittings and controlling systems. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
Up To USD 150,000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
Litigation : |
Clear |
name & address
MODENTIC VALVE CORP. (
No. 71,
Zone,
TEL :
86 (0) 25-52103040
FAX :
86 (0) 25-52103039
EXECUTIVE SUMMARY
INCORPORATION DATE : AUGUST 13, 1998
REGISTRATION NO. : 004593
REGISTERED LEGAL FORM :
WHOLLY FOREIGN-OWNED
STAFF STRENGTH : 85
REGISTERED CAPITAL : USD 500,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 30,220,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 20,890,000 (AS OF DEC. 31, 2006)
PAYMENT : AVERAGE
RECOMM.
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY
7.509 = 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 wholly foreign-owned enterprise at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on August 13, 1998.
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 manufacturing various metal valves used in
high-class hygienic porcelain manufacture lines, hardware, such as pipeline
fittings; selling its products and supplying related services.
SC is mainly
engaged in manufacturing and selling various valves and fittings and
controlling systems. Its main products include lining valves, high temperature,
high pressure and well performance valves, alloy steel valves, adjusting
valves, electro-gas actuated controlling valves, industrial valves, plug valves, quick connectors, diaphragm valves, etc.
Mr. Li Liantai has been legal representative and chairman of SC since
August, 1998.
SC is known to have approx. 85 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
Nanjing. Our checks reveal that SC owns the total premise about 1,000 square
meters.
http://www.modentic.com.cn/
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
Email:modentic@public1.ptt.js.cn
No significant events or changes were found during our
checks with the local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Huang Hongsen (Taiwanese) 20
Huang Shiyao (Taiwanese) 20
Ruihong International Co., Ltd
(Chinese Pinyin) (
l
Legal representative and chairman:
Mr. Li Liantai, about 50 years old. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1998 to present Working in SC as chairman and legal representative.
l
Vice general manager:
Ms. Ding Xiaorui, about 30 years old. She is
currently responsible for the daily management
of SC.
Working Experience(s):
Now Working in SC as vice general manager.
SC is
mainly engaged in manufacturing and selling various valves and fittings and controlling
systems. Its main products include lining valves, high temperature, high
pressure and well performance valves, alloy steel valves, adjusting valves, electro-gas actuated controlling valves,
industrial valves, plug valves, quick
connectors, diaphragm valves, etc.
SC sources its materials 90%
from domestic market, and 10% from overseas market, mainly
The buying terms of SC include Check, T/T, L/C and Credit of
30-60 days. The payment terms of SC include Check, T/T, L/C and Credit of 30-60
days.
*Major Supplier:
=============
Huacheng precision casting company
*Major Customer:
==============
Changchun Chemical Industry 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 : A trade enquiry currently
conducted with SC's supplier(s) reveal the following:
Products sold: Coupling
Roughcast
Date account opened: About in 2001 or 2002
Line of credit: N/A
Terms: 30%
paid in advance, fully paid after receiving goods
Average monthly sales: N/A
Current balance: N/A
Rating Key : 2
Any Special Comments:
_______________________________________
Payment record keys :
1 = Prompt : Payment made before the credit
period expires
2 = As agreed terms : Payment made upon due
date
3 = Slightly slow but acceptable : Payment
made 5 to 20 days beyond agreed terms
4 = Slow : Payment made 16 to 45 days beyond
agreed terms
5 = Poor : Payment made over 45 days beyond
agreed terms
6
= No comment : Account is newly opened & record is not yet established
Note : In
some instances, payment beyond terms can be the result of disputes over
merchandise, lost invoices, disputed accounts & etc.
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.
Agriculture Bank of China Nanjing Branch Jiangning
Development Zone Sub-branch.
AC#：132001040001371
Relationship:
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
|
Cash & bank |
9,700 |
|
Inventory |
11,980 |
|
Accounts
receivable |
3,800 |
|
Advances to
suppliers |
20 |
|
Other
receivables |
3,100 |
|
Other current
assets |
0 |
|
|
------------------ |
|
Current assets |
28,600 |
|
Fixed assets |
6,570 |
|
Fixed assets net
value |
3,800 |
|
Projects under
construction |
0 |
|
Long term
investment |
0 |
|
Intangible
assets |
730 |
|
Other assets |
10 |
|
|
------------------ |
|
Total assets |
33,140 |
|
|
============= |
|
Short loans |
0 |
|
Accounts payable |
10,180 |
|
Other payable |
1,870 |
|
Taxes payable |
200 |
|
Accounts
receivable in advance |
0 |
|
Other current
liabilities |
0 |
|
|
------------------ |
|
Current
liabilities |
12,250 |
|
Long term
liabilities |
0 |
|
|
------------------ |
|
Total
liabilities |
12,250 |
|
Equities |
20,890 |
|
|
------------------ |
|
Total
liabilities & equities |
33,140 |
|
|
============= |
Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
|
Turnover |
30,220 |
|
Cost of goods
sold |
19,280 |
|
Sales expense |
2,420 |
|
Management expense |
3,180 |
|
Finance expense |
-20 |
|
Profit before
tax |
5,350 |
|
Less: profit tax |
640 |
|
Profits |
4,710 |
Important Ratios
=============
|
|
as
of Dec. 31, 2006 |
|
*Current ratio |
2.33 |
|
*Quick ratio |
1.36 |
|
*Liabilities
to assets |
0.37 |
|
*Net profit
margin (%) |
15.59 |
|
*Return on
total assets (%) |
14.21 |
|
*Inventory
/Turnover ×365 |
145 days |
|
*Accounts
receivable/Turnover ×365 |
46 days |
|
*Turnover/Total
assets |
0.91 |
|
* Cost of
goods sold/Turnover |
0.64 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears average in its line.
l
SC’s net profit margin is fairly good.
l
SC’s return on total assets is fairly good.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a fairly
good level.
l
SC’s quick ratio is maintained in a fairly good
level.
l
The inventory of SC is maintained in a fairly large
level.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’s has no short-term loans.
l
SC’s turnover is in an average level, comparing
with the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Stable.
SC is considered small-sized in its line with stable financial
conditions. A credit line up to USD 150,000
would appear to be within SC’s capacities.
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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%)