MIRA
INFORM REPORT
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Report Date : |
29.10.2007 |
IDENTIFICATION DETAILS
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Name : |
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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 : |
Jun. 27, 2000 |
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Com. Reg. No.: |
027267 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture |
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Line of Business : |
Engaged in manufacturing
and selling copper clad laminates. |
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 2,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
NO.
TEL :
86 (0) 21-69178464
FAX :
86 (0) 21-69178833
EXECUTIVE SUMMARY
INCORPORATION DATE : JUN. 27, 2000
REGISTRATION NO. : 027267
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY
JOINT VENTURE
STAFF STRENGTH :
560
REGISTERED CAPITAL : USD 20,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
cny 615,710,000 (AS OF DEC. 31, 2006)
EQUITIES :
cny 165,600,000 (AS OF DEC. 31, 2006)
PAYMENT :
average
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : well known
EXCHANGE RATE :
CNY 7.48= 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 Jun. 27, 2000.
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 semiconductors,
copper clad laminate specially used by optical electronics; selling its
products.
SC is mainly
engaged in manufacturing and selling copper clad laminates.
Mr. Bao Xiuyin has
been chairman of SC since 2000.
SC is known
to have approx. 560 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 100,000 square meters.
http://www.ccl-china.com The
design is professional and the content is well organized. At present it is in
both Chinese and English versions.
No significant events or changes were found during our checks with local
AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Shanghai Nanya Technology Group Co., Ltd. 65
Hong Kong Weidi Co., Ltd. 35
Shanghai Nanya Technology Group Co., Ltd.
Add:
Tel: 86 021-59175555
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Chairman:
Mr. Bao Xiuyin, in his
Working Experience(s):
From 2000 to present Working
in SC as chairman.
Also working in Shanghai Nanya Technology Group Co., Ltd., and Hong Kong Weidi Co., Ltd., as chairman.
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General Manager:
Mr. Zheng Hairong, in his
Working Experience(s):
From 2000 to present Working in SC as general manager.
SC is mainly
engaged in manufacturing and selling copper clad laminates.
SC’s products mainly include: FR-4 Thin Laminate for Multilayer, FR-4
Rigid Laminate.
SC’s annual output
can reach 5,000,000 pieces.
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 American and European countries.
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.
*Major Client:
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Kunshan Suyuan Electron Co., Ltd.
*Major Supplier:
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Anhui Danfeng Group Tongcheng Glass Fiber
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:
Supplier
A
Products sold: glass
fiber
Date account opened: 2004
Line of credit: /
Terms: T/T, credit of 30-60 days
Average monthly sales: /
Current balance: No comment
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
AC#：03806808015015885
Relationship:
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2006 |
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Cash & bank |
40,910 |
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Advances to suppliers |
0 |
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Accounts
receivable |
163,260 |
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Bills payable |
3,430 |
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Inventory |
81,740 |
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Other
receivables |
22,020 |
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Other current
assets |
1,930 |
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Current assets |
313,290 |
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Fixed assets net
value |
80,920 |
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Projects under
construction |
450 |
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Long term
investment |
0 |
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Other assets |
0 |
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Total assets |
394,660 |
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Short loans |
55,150 |
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Accounts payable |
106,450 |
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Advances from
clients |
8,300 |
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Taxes payable |
3,450 |
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Salaries payable |
750 |
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Other payable |
780 |
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Other current
liabilities |
36,180 |
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Current
liabilities |
211,060 |
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Long term
liabilities |
18,000 |
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Total
liabilities |
229,060 |
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Equities |
165,600 |
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Total
liabilities & equities |
394,660 |
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Income Statement
Unit: CNY’000
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As of Dec. 31,
2006 |
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Turnover |
615,710 |
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Cost of goods
sold |
544,400 |
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Sales expense |
15,900 |
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Management expense |
7,220 |
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Finance expense |
8,680 |
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Profit before
tax |
40,250 |
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Less: profit tax |
1,370 |
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Profits |
38,880 |
Important Ratios
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2006 |
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*Current ratio |
1.48 |
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*Quick ratio |
1.10 |
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*Liabilities
to assets |
0.58 |
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*Net profit
margin (%) |
6.31 |
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*Return on
total assets (%) |
9.85 |
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*Fixed
assets/Total assets |
0.21 |
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*Inventory
/Turnover ×365 |
48days |
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*Accounts
receivable/Turnover ×365 |
97days |
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*Turnover/Total
assets |
1.56 |
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* Cost of
goods sold/Turnover |
0.88 |
PROFITABILITY:
FAIRLY GOOD
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The turnover of SC appears fairly good in 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 normal
level in 2006.
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SC’s quick ratio is maintained in a normal level in
2006.
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The accounts receivable of SC is fairly large.
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The inventory of SC is average.
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The short loans are average.
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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 average.
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The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Stable.
SC is well-known in its industry with stable financial conditions. Over
the past 7 years, SC has made a stable growth with satisfactory profit. A
credit line up to USD 2,000,000 would appear 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%)