MIRA
INFORM REPORT
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Report Date : |
24.10.2007 |
IDENTIFICATION DETAILS
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Name : |
NINGBO FRIENDSHIP BRONZE WARE CO., LTD. |
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Registered Office : |
No.268 |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
10.08.2000 |
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Com. Reg. No.: |
3302822002947 |
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Legal Form : |
Limited Liabilities Co |
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Line of Business : |
Manufacturing and selling copper pipe fittings, copper valves
and copper proximate matters. |
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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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
COMPANY NAME &
ADDRESS
NINGBO FRIENDSHIP BRONZE WARE CO., LTD.
NO.268
TEL: 0086-574-63509999
FAX: 0086-574-63510700
EXECUTIVE SUMMARY
INCORPORATION DATE :
AUG. 10, 2000
REGISTRATION NO. :
3302822002947
REGISTERED LEGAL FORM :
LIMITED LIABILITIES CO.
CHIEF EXECUTIVE :
MS. ZHOU MENGQUN (CHAIRMAN)
STAFF STRENGTH :
345
REGISTERED CAPITAL :
CNY 3,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 100,740,000 (AS OF DEC. 31,
2006)
EQUITIES :
CNY 7,090,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION :
AVERAGE
EXCHANGE RATE :
CNY 7.49320=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 limited liabilities co. at local Administration for Industry
& Commerce (AIC - The official body of issuing and renewing business
license) on Aug. 10, 2000.
Company Status:
Limited liabilities co. This form of
business in PR China is defined as a legal person. No more than fifty shareholders contribute its registered
capital jointly. Shareholders bear limited liability to the extent of
shareholding, and the co. is liable for its debts only to extent of its
total assets. The characteristics of this form of co. are as follows: Upon the
establishment of the co., an investment certificate is issued to the each
of shareholders. The board of
directors is comprised of three to thirteen members. The minimum
registered capital for a co. is CNY 30,000. Shareholders may
take their capital contributions in cash or by means of tangible assets or
intangible assets such as industrial property and non-patented technology. Cash contributed by
all shareholders must account for at least 30% of the registered capital. Existing
shareholders have pre-exemption right to purchase shares of the co. offered
for sale by the other shareholders and to subscribe for the newly increased
registered capital of the co.
SC’s registered business scope includes manufacturing and processing
water-heating copper pipes, valve fittings, plastic products, hardware
fittings, and POY terylene; wholesaling and retailing plastic materials,
chemical fiber materials, chemical materials (excluding hazardous articles) and
textiles; importing and exporting commodities and technology, excluding items limited or
prohibited by the state.
SC is mainly engaged in manufacturing and selling copper pipe fittings, copper
valves and copper proximate matters.
Ms. Zhou Mengqun has been legal representative and chairman of SC since
2000.
SC is known to have approx. 345 staff members at present.
SC is currently operating at the above stated address, and this address
houses its operating office in the commercial zone of Guangzhou. Our checks
reveal that SC owns the total premise about 25,000 square meters.
http://www.nbfriendship.com/english/pro1.php The design is professional and the content is
well organized. At present it is in English version.
E-mail: nbyyty@cnool.net
No significant events or changes were found during our checks with the
local Administration for Industry & Commerce.
MAIN SHAREHOLDERS:
Name
%
of Shareholding
Cen Qianda 66.67
Zhou Mengqun
33.33
Legal representative and chairman:
Ms. Zhou Mengqun , 42 years old with university education. She is currently
responsible for the overall management of SC.
Working Experience(s):
From 2000 to present Working
in SC as chairman and legal representative.
SC is mainly engaged in manufacturing and selling copper pipe fittings,
copper valves and copper proximate matters.
SC’s products mainly include: press fittings, compression fittings, PPR
pipe fittings, copper pipe fittings, PB pipe fittings, manifolds and valves,
forged parts and water meters.
SC sources its materials 100% from domestic market. SC sells 70% of its
products to overseas market, mainly in
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: 
*Major Supplier*
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*Major Customer*
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Foshan Xiehe Installing and Fixing Pipe Fittings 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.
China Construction Bank Cixi Sub-branch.
AC#：33101995141050019745
Relationship:
Balance Sheet
Unit: CNY’000
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as
of Dec. 31, 2006 |
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Cash & bank |
1,320 |
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Bills receivable |
0 |
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Accounts receivable |
19,000 |
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Subsidies receivable |
0 |
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Other receivables |
320 |
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Advances to suppliers |
0 |
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Inventory |
3,580 |
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Prepaid expenses |
90 |
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Other current assets |
0 |
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Current assets |
24,310 |
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Fixed assets |
17,190 |
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Fixed assets net value |
17,190 |
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Projects under construction |
0 |
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Long term investment |
0 |
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Other assets |
2,880 |
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Total assets |
44,380 |
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Short loans |
0 |
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Bills payable |
0 |
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Accounts payable |
4,420 |
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Welfare payable |
1,800 |
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Advances from clients |
0 |
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Accrued payroll |
1,010 |
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Tax payable |
-420 |
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Other payable |
1,450 |
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Surcharge payable |
150 |
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Accrued expenses |
80 |
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Other current liabilities |
0 |
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Current liabilities |
8,490 |
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Long term liabilities |
28,800 |
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Total liabilities |
37,290 |
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Equities |
7,090 |
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Total liabilities & equities |
44,380 |
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Income Statement
Unit: CNY’000
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as
of Dec. 31, 2006 |
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Turnover |
100,740 |
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Cost of goods sold |
93,370 |
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Sales expense |
510 |
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Management expense |
2,710 |
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Finance expense |
580 |
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Profit before tax |
2,980 |
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Less: profit tax |
1,040 |
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Profits |
1,940 |
Important Ratios
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as of Dec. 31, 2006 |
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*Current ratio |
2.86 |
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*Quick ratio |
2.44 |
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*Liabilities to assets |
0.84 |
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*Net profit margin (%) |
1.93 |
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*Return on total assets (%) |
4.37 |
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*Fixed assets/Total assets |
0.39 |
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*Inventory /Turnover ×365 |
13 days |
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*Accounts receivable/Turnover ×365 |
69 days |
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*Turnover/Total assets |
2.27 |
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* Cost of goods sold/Turnover |
0.93 |
PROFITABILITY: AVERAGE
The turnover of SC appears fairly good in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a fairly good level.
SC’s quick ratio is maintained in a fairly good level.
The inventory of SC and inventory
conversion period appears average.
The accounts receivable appears fairly large.
There’s no short loan of SC in 2006.
SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIR
The debt ratio of SC is fairly high.
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. The large amount of accounts receivable could be a threat to SC’s
financial condition. Taking into consideration of SC’s general performance,
reputation 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 |
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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%)