MIRA
INFORM REPORT
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Report Date : |
25.10.2007 |
IDENTIFICATION DETAILS
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Name : |
SHANGHAI SAILSTAR MACHINERY GROUP 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 : |
29.06.1992 |
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Com. Reg. No.: |
310000400016492 |
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Legal Form : |
Wholly Foreign Owned |
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Line of Business : |
Manufacturing and Selling Dry-Cleaning Equipment, Industry Washing
Equipment and Washing Machine Glazing Series, Iron Equipment, Carpet Cleaning
Equipment, Coal-Burning Boilers, etc |
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 : |
USD 100,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
COMPANY NAME &
ADDRESS
SHANGHAI SAILSTAR MACHINERY GROUP CO., LTD.
NO.
TEL: 86 (0) 21-67100168
FAX: 86 (0) 21-67100155
EXECUTIVE SUMMARY
INCORPORATION DATE : JUN. 29, 1992
REGISTRATION NO. :
310000400016492
REGISTERED LEGAL FORM : WHOLLY foreign OWNED
CHIEF EXECUTIVE : MR. OUYANG CHANGJIAN (CHAIRMAN)
STAFF STRENGTH : 835
REGISTERED CAPITAL : USD 28,030,000
BUSINESS LINE :
MANUFACTURING
TURNOVER : cny 179,940,000 (AS OF DEC. 31, 2006)
EQUITIES : cny 15,050,000
(AS OF DEC. 31, 2006)
PAYMENT : AVERAGE
RECOMM.
MARKET CONDITION :
average
FINANCIAL CONDITION : FAIR
OPERATIONAL TREND : fairly steady
GENERAL REPUTATION : AVERAGE
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 wholly foreign owned enterprise at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Jun. 29, 1992.
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 dry-cleaning
equipment, industry washing equipment and washing machine glazing series, iron
equipment, carpet cleaning equipment, coal-burning boilers, fuel boilers, gas
boilers, boiler complement machines and installation services, pressure
vessels, carton machinery, printing machines, and selling its products.
SC is mainly engaged in manufacturing and selling dry-cleaning
equipment, industry washing equipment and washing machine glazing series, iron
equipment, carpet cleaning equipment, coal-burning boilers, etc.
Mr. Ouyang Changjian has been chairman of SC since 1992.
SC is known to have approx. 835 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 Shanghai. Our
checks reveal that SC owns the total premise about 110,000 square meters.
http://www.sailstar.com.cn
The
design is professional and the content is well organized. At present the web
site is both in Chinese and English versions.
E-Mail: bbsmaster@sailstar.com.cn
SC’s former registered capital was USD 15,530,000, and in 2005 it was
increased to the present amount.
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Purple Scroll (II) Investment Co., Ltd. 100
Purple Scroll (II) Investment Co., Ltd. is an investment subsidiary of
Morningside Group. Morningside Group is a private investment group founded in
1986 by the Chan family of
Morningside Group invests in private equity and venture capital
opportunities in North America,
Chairman and CEO:
Mr. Ouyang Changjian ,
Working Experience(s):
From 1992 to present Working in SC as chairman and CEO.
Also working in Morningside (
Vice CEO:
Mr. Cai Zhongle , 50 years old with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
From 2002 to present Working in SC as vice CEO.
SC is mainly engaged in manufacturing and selling dry-cleaning
equipment, industry washing equipment and washing machine glazing series, iron
equipment, carpet cleaning equipment, coal-burning boilers, etc.
SC’s products include dry-cleaning equipment, industry washing equipment
and washing machine glazing series, iron equipment, carpet cleaning equipment,
coal-burning boilers, fuel boilers, gas boilers, boiler complement machines,
and pressure vessels, carton machinery and printing machines, etc.
SC sources its materials 70% from domestic market, 30% from the overseas
market, mainly
The buying terms of SC include Check, T/T, L/C and Credit of 30-90 days.
The payment terms of SC include T/T, Check, L/C and Credit of 30-90 days.
Major clients:
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Suzhou Sailstar Boiler
Manufacturing Co., Ltd.
Shanghai Sailstar Researching Institute
Qingdao Jieshen Washing Co., Ltd.
SC is known to have 6 subsidiaries at present as following,
Shanghai Sailstar Saida Trade Co., Ltd.
Shanghai Sailstar Boiler Manufacturing Co.,
Ltd.
Shanghai Sailstar Electric Co., Ltd.
Shanghai Sailstar Supermarket Equipment Co.,
Ltd.
Shanghai Hangxing Boyou Chemical Co., Ltd.
Bowe Textile Cleaning
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.
Agriculture Bank of
AC#：03803900801101933
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 |
23,220 |
14,440 |
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Advances to suppliers |
29,360 |
18,050 |
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Accounts receivable |
87,640 |
96,700 |
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Inventory |
60,480 |
60,780 |
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Other receivables |
33,170 |
27,300 |
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Other current assets |
780 |
730 |
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Current assets |
234,650 |
218,000 |
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Fixed assets net value |
96,300 |
87,440 |
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Projects under construction |
20 |
160 |
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Long term investment |
13,390 |
3,210 |
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Other assets |
11,780 |
11,060 |
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Total assets |
356,140 |
319,870 |
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Short loans |
187,720 |
184,500 |
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Accounts payable |
63,010 |
50,440 |
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Advances from clients |
6,390 |
4,730 |
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Taxes payable |
2,270 |
2,280 |
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Salaries payable |
0 |
0 |
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Other payable |
35,120 |
51,000 |
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Other current liabilities |
18,520 |
11,870 |
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Current liabilities |
313,030 |
304,820 |
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Long term liabilities |
0 |
0 |
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Total liabilities |
313,030 |
304,820 |
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Equities |
43,110 |
15,050 |
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Total liabilities & equities |
356,140 |
319,870 |
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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 |
165,670 |
179,940 |
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Cost of goods sold |
137,410 |
145,810 |
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Sales expense |
43,160 |
37,550 |
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Management expense |
35,180 |
27,990 |
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Finance expense |
13,700 |
-1,410 |
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Profit before tax |
-69,950 |
-28,060 |
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Less: profit tax |
0 |
0 |
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Profits |
-69,950 |
-28,060 |
Important Ratios
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2005 |
2006 |
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*Current ratio |
0.75 |
0.72 |
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*Quick ratio |
0.56 |
0.52 |
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*Liabilities to assets |
0.88 |
0.95 |
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*Net profit margin (%) |
-41.82 |
-15.64 |
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*Return on total assets (%) |
-19.38 |
-8.78 |
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*Fixed assets/Total assets |
0.27 |
0.27 |
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*Inventory /Turnover ×365 |
133days |
122days |
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*Accounts receivable/Turnover ×365 |
192dats |
196days |
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*Turnover/Total assets |
0.64 |
0.56 |
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* Cost of goods sold/Turnover |
0.83 |
0.81 |
PROFITABILITY: FAIR
The turnover of SC appears fairly good in 2005 and 2006.
SC’s net profit margin is poor in 2005 and 2006.
SC’s return on total assets is poor in 2005 and 2006.
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a fair level in 2005 and 2006.
SC’s quick ratio is maintained in a fair level in 2005 and 2006.
The inventory of SC is fairly large in 2005 and 2006.
The account receivable of SC is fairly large in 2005 and 2006.
The short loans are LARGE in 2005 and 2006.
SC’s turnover is in a fair level, comparing with the size of its total
assets.
LEVERAGE: FAIR
The debt ratio of SC is fairly high in 2005 and high 2006.
The risk for SC to go bankrupt is average.
Overall financial condition of the SC: Fair.
SC is considered medium-sized in its line with fair financial
conditions. The large amount of short loans, inventory & accounts
receivable could be a threat to SC’s financial condition. A credit line up to
USD 100,000 appears acceptable upon a periodical review basis.
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%)