MIRA
INFORM REPORT
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Report Date : |
18.10.2007 |
IDENTIFICATION DETAILS
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Name : |
NINGBO HAITIAN HUAYUAN MACHINERY CO., LTD. |
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Registered Office : |
Export Processing
Zone, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Aug. 26, 2004 |
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Com. Reg. No.: |
008533 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture |
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Line of Business : |
Engaged in manufacturing
plastic machinery and components. |
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
NINGBO HAITIAN HUAYUAN MACHINERY CO., LTD.
export processing zone,
TEL :
86 (0) 574-86177242/86188888
FAX :
86 (0) 574-86221864
EXECUTIVE SUMMARY
INCORPORATION DATE : aug. 26, 2004
REGISTRATION NO. :
008533
REGISTERED LEGAL FORM : CHINESE-FOREIGN
EQUITY JOINT VENTURE
STAFF STRENGTH :
390
REGISTERED CAPITAL : USD 18,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 418,780,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY 197,970,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
7.50 =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 Chinese-foreign equity joint venture
enterprise at local Administration for Industry & Commerce (AIC - The
official body of issuing and renewing business license) on Aug. 26,
2004.
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 plastic machinery
and components.
SC is mainly
engaged in manufacturing plastic machinery and components.
Mr. Zhang
Jingzhang has been chairman of SC since 2004.
SC is
known to have approx. 390 staff members at present.
SC is currently
operating at the above stated address, and this address houses its operating
office and factory in the export processing zone of Ningbo. Our checks reveal
that SC rents the total premise about 25,000
square meters.
SC is not known to host website of its own at present.
Until December 31, 2005, SC’s paid-up capital was CNY 62,470,000, and
until Dec. 31, 2006, SC’s paid-up capital reached CNY 135,830,000.
SC started its business normally in 2006.
MAIN SHAREHOLDERS:
Name % of
Shareholding
Ningbo Haitian Plastic Machinery
Group Co., Ltd. 30
DEVELOP KIND LTD. B.V.I 70
======================
Ningbo Haitian Plastic Machinery
Group Co., Ltd.
Address: No. 32,
Tel: 0574-86177266
Fax: 0574-86181808
l
Chairman and
General Manager:
Mr. Zhang Jingzhang, born in 1937, 70 years
old with university education. He is currently responsible for the overall
management of SC.
Working Experience(s):
From 2004 to present Working in SC as chairman and general manager;
At present Working in Ningbo Haitian Plastic Machinery Group Co., Ltd., in Ningbo Haitian
Co., Ltd., in
Processing Zone Haitian Fine Chemical
Machinery Co., Ltd., and in
Haitian Technology Co., Ltd., as chairman.
SC is mainly
engaged in manufacturing plastic machinery and components.
SC’s products mainly
include: various plastic machinery and components.
SC sources its materials 90%
from domestic market, mainly
The buying terms
of SC include T/T, L/C, and Credit of 30-60 days. The payment terms of SC
include T/T, L/C, and Credit of 15-30 days.
*Major Supplier:
============
Taiwan Hongxun Co., Ltd.
*Major Customer:
============
Haitian European 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’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.
Bank of
AC#：28307208091001
Relationship:
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2005 |
As
of Dec. 31, 2006 |
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Cash & bank |
5,380 |
13,700 |
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Inventory |
16,020 |
102,390 |
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Accounts
receivable |
0 |
117,740 |
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Other Accounts
receivable |
340 |
590 |
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Advances to
suppliers |
0 |
0 |
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To be
apportioned expense |
0 |
0 |
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Other current
assets |
790 |
0 |
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------------------ |
------------------ |
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Current assets |
22,530 |
234,420 |
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Fixed assets |
64,500 |
63,020 |
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Long term
investment |
0 |
0 |
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Other assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
87,030 |
297,440 |
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============= |
============= |
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Short loans |
0 |
0 |
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Accounts payable |
14,680 |
77,470 |
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Advance from
clients |
0 |
0 |
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Taxes payable |
10 |
40 |
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Other Accounts
payable |
10,180 |
2,770 |
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Withdraw the
expenses in advance |
0 |
0 |
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Other current liabilities |
1,870 |
19,190 |
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Current
liabilities |
26,740 |
99,470 |
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Long term
liabilities |
0 |
0 |
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Other
liabilities |
0 |
0 |
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------------------ |
------------------ |
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Total
liabilities |
26,740 |
99,470 |
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Equities |
60,290 |
197,970 |
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------------------ |
------------------ |
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Total
liabilities & equities |
87,030 |
297,440 |
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Income Statement
Unit: CNY’000
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As of Dec. 31,
2005 |
As of Dec. 31,
2006 |
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Turnover |
0 |
418,780 |
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Cost of goods
sold |
0 |
306,910 |
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Sales expense |
370 |
45,070 |
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Management expense |
370 |
5,640 |
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Finance expense |
-50 |
940 |
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Profit before
tax |
-690 |
64,330 |
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Less: profit tax |
0 |
0 |
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Profits |
-690 |
64,330 |
Important Ratios
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As
of Dec. 31, 2005 |
As
of Dec. 31, 2006 |
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*Current ratio |
0.84 |
2.36 |
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*Quick ratio |
0.24 |
1.33 |
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*Liabilities
to assets |
0.31 |
0.33 |
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*Net profit
margin (%) |
/ |
15.36 |
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*Return on
total assets (%) |
-0.79 |
21.63 |
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*Inventory
/Turnover ×365 |
/ |
89 days |
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*Accounts
receivable/Turnover ×365 |
/ |
103 days |
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*Turnover/Total
assets |
/ |
1.41 |
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*Cost of goods
sold/Turnover |
/ |
0.73 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good
in its line 2006.
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SC’s net profit margin is fairly good
in 2006.
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SC’s return on total assets is fairly
good in 2006.
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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 fair level in 2005, but fairly good in 2006
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SC’s quick ratio is maintained in a
poor level in 2005, but fairly good in 2006.
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The inventory of SC is maintained in a fairly large level in 2006.
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SC has no accounts receivable in 2005, but in 2006,
the accounts receivable appears fairly large.
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SC has no short-term loan in both years.
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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.
l
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 stable financial
conditions. A credit line up to USD 1,000,000 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%)