MIRA
INFORM REPORT
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Report Date : |
05.09.2007 |
IDENTIFICATION DETAILS
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Name : |
Wuhan Chancay
Machinery & Electronics Co., Ltd. |
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Registered Office : |
Suite 4 8/F Huigushikong
Building, Huaguang Street, East Lake Dev. Zone, Wuhan, Hubei Province, 430070
Pr |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Aug. 9, 2004 |
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Com. Reg. No.: |
4201002178650 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in international trade. |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Up To usd 5,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
Wuhan Chancay
Machinery & Electronics Co., Ltd.
EAST LAKE DEV. ZONE,
TEL :
86 (0) 27-87592071
FAX :
86 (0) 27-87592091
EXECUTIVE SUMMARY
INCORPORATION DATE : AUG. 9, 2004
REGISTRATION NO. : 4201002178650
REGISTERED LEGAL FORM : LIMITED LIABILITIES
COMPANY
STAFF STRENGTH :
12
REGISTERED CAPITAL : CNY 2,000,000
BUSINESS LINE :
TRADING
TURNOVER :
cny 7,000,000 (AS OF DEC. 31, 2006)
EQUITIES :
cny 1,140,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.55= US$1 AS OF
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
Note: The name of SC should be the heading one, in stead of the given name.
SC was registered as a limited liabilities company at local Administration for Industry & Commerce (AIC - The official body of issuing and renewing business license) on Aug. 9, 2004.
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 selling common machinery, metal materials,
hardware and electronics products; importing and exporting various goods and
technologies.
SC is mainly
engaged in international trade.
Mr.
SC is known
to have approx. 12 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 Wuhan. Our checks reveal that SC
rents the total premise about 160 square meters.
http://www.chancay.com.cn The
design is professional and the content is well organized. At present it is in
English version.
No significant events or changes were found during our checks with local
AIC.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Deng Chunmei 25
Deng Jiangmin 10
Liu Li 10
l
Chairman and
General Manager:
Mr. Cao Haiming, in his
Working Experience(s):
From 2004 to present Working
in SC as chairman and general manager.
SC is mainly
engaged in international trade.
SC’s products
mainly include: agricultural machinery (wheel tractors, walking tractors, lawn
mower implement of the tractors), engineering machinery (skid steer loaders,
mini excavators, bulldozer forklifts) and flexible small products such as
go-cart, ATV, golf cars, hand pallet trucks.
SC sources its
materials 100% from domestic market. SC sells 100% of its products to the
overseas market, mainly American and European countries.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Suppliers:
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Wuhan Gland Machinery Co., Ltd
Wuhan Gatstar Engineering & Machinery
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 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.
Merchants Bank of China Wuhan branch
AC#：0283860710001
Relationship:
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2006 |
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Cash & bank |
160 |
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Advances to
suppliers |
3,870 |
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Accounts
receivable |
-9,360 |
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Inventory |
2,140 |
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Other
receivables |
2,620 |
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Other current
assets |
1,700 |
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Current assets |
1,130 |
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Fixed assets net
value |
390 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
0 |
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Total assets |
1,520 |
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Short loans |
0 |
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Accounts payable |
360 |
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Advances from
clients |
190 |
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Taxes payable |
-380 |
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Salaries payable |
0 |
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Other payable |
160 |
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Other current
liabilities |
50 |
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Current
liabilities |
380 |
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Long term
liabilities |
0 |
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Total
liabilities |
380 |
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Equities |
1,140 |
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Total
liabilities & equities |
1,520 |
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Income Statement
Unit: CNY’000
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As of Dec. 31,
2006 |
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Turnover |
7,000 |
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Profits |
-200 |
Important Ratios
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2006 |
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*Current ratio |
2.97 |
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*Quick ratio |
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*Liabilities
to assets |
0.25 |
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*Net profit
margin (%) |
-2.86 |
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*Return on
total assets (%) |
-13.16 |
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*Fixed
assets/Total assets |
0.26 |
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*Inventory
/Turnover ×365 |
112days |
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*Accounts
receivable/Turnover ×365 |
/ |
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*Turnover/Total
assets |
4.61 |
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*Cost of goods
sold/Turnover |
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PROFITABILITY:
FAIR
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The turnover of SC appears average in its line.
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SC’s net profit margin is fair in 2006.
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SC’s return on total assets is fairly poor in 2006.
LIQUIDITY: AVERAGE
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The current ratio of SC is maintained in an average
level in 2006.
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The inventory of SC is LARGE.
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SC’s turnover is in an acceptable level, comparing
with the size of its total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is fairly low.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly stable.
SC is considered small-sized in its line with fairly stable financial
conditions. Credit dealings of small amount can be considered for it at
present.
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%)