MIRA
INFORM REPORT
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Report Date : |
22.10.2007 |
IDENTIFICATION DETAILS
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Name : |
WUHAN FIAMM ENTERTECH CO., LTD. |
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Registered Office : |
No. 458 Hannan Road, Shamao Town, Hannan District, Wuhan,
Hubei Province, 430090 Pr |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Dec. 10, 2004 |
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Com. Reg. No.: |
005091 |
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Legal Form : |
Chinese Foreign Equity Joint Venture |
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Line of Business : |
Engaged in
manufacturing and selling power supply products. |
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 600,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
WUHAN FIAMM ENTERTECH CO., LTD.
NO.
TEL : 86 (0)
27-84782088
FAX : 86 (0) 27-84782888
EXECUTIVE SUMMARY
INCORPORATION DATE : DEC. 10, 2004
REGISTRATION NO. : 005091
REGISTERED LEGAL FORM : CHINESE FOREIGN EQUITY
JOINT VENTURE
STAFF STRENGTH :
1,100
REGISTERED CAPITAL : USD 10,250,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
cny 333,360,000 (AS OF DEC. 31, 2006)
EQUITIES :
cny 99,890,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly STable
OPERATIONAL TREND : steady
GENERAL REPUTATION : well known
EXCHANGE RATE :
CNY 7.50= 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 Dec. 10, 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 developing, manufacturing and
selling high technology power supply products, storage batteries and related
raw materials and parts; providing related services and consultation.
SC is mainly
engaged in manufacturing and selling power supply products.
Mr. Ad Maule has been
chairman of SC since 2004.
SC is known
to have approx. 1,100 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 Wuhan. Our checks reveal
that SC owns the total premise about 110,000 square meters.
http://www.fiammenertech.com
. The design is professional and the content is well organized. At present it
is in Chinese and English versions.
Changes of its registered information:
|
Date of change |
Item |
Before the
change |
After the change |
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Jan. 5, 2006 |
Shareholders |
Fiamm SpA80%; Wuhan Meidijia Coating Co.,
Ltd. 20% |
Wuhan Huading Printing & Package
Industrial Zone Management Co., Ltd.20%; SIMEST SpA（Societa’ Italiana Per Le
Imprese All’Estero 18.20%;
Fiamm Group |
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Feb. 16, 2006 |
shareholders |
Wuhan Huading Printing & Package
Industrial Zone Management Co., Ltd.20%; SIMEST SpA Societa’ Italiana Per Le
Imprese All’Estero 18.20%;
Fiamm Group |
USA Fiamm Technology Inc 15%; Wuhan
Huading Printing & Package Industrial Zone Management Co., Ltd.5%; SIMEST
SpA（Societa’ Italiana Per Le
Imprese All’Estero 18.20%;
Fiamm Group Italy 61.8% |
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Nov. 8, 2006 |
Shareholders |
USA Fiamm Technology Inc 15%; Wuhan
Huading Printing & Package Industrial Zone Management Co., Ltd.5%; SIMEST
SpA Societa’ Italiana Per Le
Imprese All’Estero 18.20%; Fiamm Group Italy 61.8% |
USA Fiamm Technology Inc 15%; Wuhan
Huading Printing & Package Industrial Zone Management Co., Ltd.5%; SIMEST
SpA Societa’ Italiana Per Le
Imprese All’Estero 18.20%;
Italy Fiamm Automotive Battery Co., Ltd. 61.8% |
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Nov. 24, 2006 |
Shareholders |
USA Fiamm Technology Inc 15%; Wuhan
Huading Printing & Package Industrial Zone Management Co., Ltd. 5%;
SIMEST SpA Societa’ Italiana Per Le
Imprese All’Estero 18.20%;
Italy Fiamm Automotive Battery Co., Ltd. 61.8% |
USA Fiamm Technology Inc 15%; Wuhan
Huading Printing & Package Industrial Zone Management Co., Ltd.5%; SIMEST
SpA Societa’ Italiana Per Le
Imprese All’Estero
18.20%;Fiamm Group Italy 61.8% |
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MAIN SHAREHOLDERS:
Name %
of Shareholding
Fiamm Group
SIMEST SpA（Societa’ Italiana Per Le Imprese All’Estero） 18.20
Wuhan Huading Printing & Package
Industrial Zone Management Co., Ltd. 5.00
SIMEST SpA
Corso Vittorio Emanuele II, n. 323
00186
Tel：＋3906 686351
Fax：＋3906 68635220
FIAMM Group Italy is Italian-based investors
owned company that has been producing/marketing lead acid batteries since 1942.
Fiamm Group Italy has 11 manufacturing plants worldwide with more than 3,000
employees and a yearly turnover of more than USD 500 million.
FIAMM’s factories for Standby Batteries are
as follows:
|
FACTORY LOCATION |
PRODUCTS |
ANNUAL CAPACITY |
TOTAL STAFF |
|
Fiamm SpA, Via Dovaro 8, |
Stand-by Batteries |
15,000 tons a year |
380 |
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Fiamm, |
Stand-by Batteries (AGM) |
7,700 tons lead a year |
110 |
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Fiamm Enertech Co., Ltd. |
Stand-by Batteries (AGM) |
15,000 tons lead a year |
1,100 |
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Fiamm S.P. SpA, Via A.Volta 9, |
Stand-by Batteries (VRLA) |
6,000 tons lead a year |
140 |
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Akuma Prumyslone Baterie SRO, |
Stand-by Batteries (VRLA, AGM) |
2,000 tons lead a year |
100 |
l
Chairman:
Mr. Mr. Ad Maule, Italian, 43 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.
l
General Manager:
Mr. Luigi Migliorini, Italian, in his
Working Experience(s):
From 2004 to present Working in SC as general manager.
SC is mainly
engaged in manufacturing and selling power supply products.
SC’s products mainly
include: lead acid batteries for Standby Application (Telecom, UPS, Industrial
Services), Automotive (Starter batteries for cars), as well as Warning Horns
and Antennas for the OEMs car industry.
SC sources its
materials 80% from domestic market, and 20% from the overseas market, mainly
European countries. SC sells 60% of its products in domestic market, and 40% to
the 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 T/T, L/C and Credit of 30-60 days.
FIAMM Standby Batteries for Telecom and UPS applications have been approved/used by several key players during the last few years, as for example:
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ALCATEL |
AMERITECH |
SINGAPORE
TELECOM |
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 refused to release any information of its
suppliers and the trade reference was not available.
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.
Industrial and Commercial Bank of China Development Zone Sub-Bank
AC#：3202018709210049578
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 |
8,260 |
2,780 |
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Advances to
suppliers |
7,810 |
9,990 |
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Accounts
receivable |
67,320 |
100,280 |
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Inventory |
28,890 |
55,710 |
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Other
receivables |
60 |
140 |
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Other current
assets |
1,370 |
90 |
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------------------ |
----------------- |
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Current assets |
113,710 |
168,990 |
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Fixed assets net
value |
72,530 |
99,590 |
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Projects under
construction |
23,430 |
30,420 |
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Long term
investment |
0 |
0 |
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Other assets |
12,430 |
12,170 |
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---------------- |
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Total assets |
222,100 |
311,170 |
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============= |
============ |
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Short loans |
44,260 |
99,670 |
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Accounts payable |
33,470 |
57,350 |
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Advances from
clients |
330 |
8,410 |
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Taxes payable |
-4,670 |
-1,380 |
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Salaries payable |
1,930 |
1,510 |
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Other payable |
5,890 |
5,070 |
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Estimated
liabilities |
1,300 |
1,860 |
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Long term
liabilities due within one year |
0 |
20,000 |
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Other current
liabilities |
4,660 |
2,790 |
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------------------ |
----------------- |
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Current
liabilities |
87,170 |
195,280 |
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Long term
liabilities |
36,000 |
16,000 |
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----------------- |
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Total
liabilities |
123,170 |
211,280 |
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Equities |
98,930 |
99,890 |
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------------------ |
------------------ |
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Total
liabilities & equities |
222,100 |
311,170 |
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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 |
247,140 |
333,360 |
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Cost of goods
sold |
193,240 |
300,160 |
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Sales expense |
22,300 |
18,460 |
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Management expense |
13,920 |
7,550 |
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Finance expense |
3,250 |
7,640 |
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Profit before
tax |
14,220 |
890 |
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Less: profit tax |
0 |
0 |
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Profits |
14,220 |
890 |
Important Ratios
=============
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2005 |
2006 |
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*Current ratio |
1.30 |
0.86 |
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*Quick ratio |
0.98 |
0.58 |
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*Liabilities
to assets |
0.55 |
0.68 |
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*Net profit
margin (%) |
5.75 |
0.27 |
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*Return on
total assets (%) |
6.40 |
0.29 |
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*Fixed
assets/Total assets |
0.32 |
0.32 |
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*Inventory
/Turnover ×365 |
41days |
60days |
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*Accounts
receivable/Turnover ×365 |
99days |
110days |
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*Turnover/Total
assets |
1.11 |
1.07 |
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* Cost of
goods sold/Turnover |
0.78 |
0.90 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears fairly good, and it
increased in 2006.
l
SC’s net profit margin is fairly good in 2005 but
average in 2006.
l
SC’s return on total assets is fairly good in 2005
but average in 2006.
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 normal
level in 2005 but in a fair level in 2006.
l
SC’s quick ratio is maintained in a normal level in
2005 but in a fair level in 2006.
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The accounts receivable of SC is fairly large in
2005 and 2006.
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The inventory of SC is average in 2005 and 2006.
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The short loans of SC are fairly large in 2006.
l
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 average in 2005 and 2006.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is well-known in its industry with fairly stable financial conditions.
The large amount of short loans & accounts receivable could be a threat to
SC’s financial condition. Taking into consideration of SC’s general
performance, background as well as market conditions we would rate SC as an
average credit risk company.
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 |
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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%)