MIRA
INFORM REPORT
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Report Date : |
21.09.2007 |
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. 19, 1998 |
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Com. Reg. No.: |
1304212050054 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Engaged in manufacturing
and selling seamless steel pipes. |
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 usd500,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
EAST NO.
TEL : 86 (0)
310-7161285
FAX : 86 (0) 310-7163918
EXECUTIVE SUMMARY
INCORPORATION DATE : JUN. 19, 1998
REGISTRATION NO. : 1304212050054
REGISTERED LEGAL FORM : LIMITED LIABILITIES
COMPANY
STAFF STRENGTH :
500
REGISTERED CAPITAL : CNY 36,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
cny 228,610,000 (AS OF DEC. 31, 2006)
EQUITIES :
cny 60,780,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.52= US$1
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
Note: Instead of the given name, SC’s name should be the above stated one.
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 Jun. 19, 1998.
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, selling and
exporting seamless steel pipes; importing machinery, parts and raw materials
needed in its manufacture.
SC is mainly engaged
in manufacturing and selling seamless steel pipes.
Mr. Wei Mingzhong
has been chairman of SC since 1998.
SC is known
to have approx. 500 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 Handan. Our checks
reveal that SC owns the total premise about 17,500 square meters.
http://www.jmwfgg.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
Xi Meiyun 11.11
Wei Mingzhong 88.89
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Chairman and
General Manager:
Mr. Wei Mingzhong, in his
Working Experience(s):
From 1998 to present Working
in SC as chairman and general manager.
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Sales Manager:
Mr. Wei Haitao, in his
Working Experience(s):
From 1998 to present Working in SC as sales manager.
SC is mainly
engaged in manufacturing and selling seamless steel pipes.
SC’s products
mainly include: seamless steel pipes.
SC has 3 hot
rolling production lines and 7 hard-drawing production lines. Its annual output
can reach 150,000 tons.
SC’s main brand is
“Hongling”.
SC sources its
materials 80% from domestic market, and 20% from the overseas market, mainly European
countries. SC sells 50% of its products in domestic market, and 50% to the
overseas market, mainly to 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:
==========
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.
Bank of Constructions Fudong Sub-branch
AC#：13001647108050501063
Relationship:
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2006 |
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Cash & bank |
3,580 |
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Advances to
suppliers |
20,870 |
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Accounts
receivable |
7,330 |
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Inventory |
33,580 |
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Other
receivables |
2,950 |
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Other current
assets |
5,130 |
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Current assets |
73,440 |
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Fixed assets net
value |
54,700 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
18,170 |
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Total assets |
146,310 |
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Short loans |
26,880 |
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Accounts payable |
8,160 |
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Advances from
clients |
15,410 |
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Taxes payable |
2,650 |
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Salaries payable |
1,080 |
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Other payable |
550 |
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Other current
liabilities |
1,810 |
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Current
liabilities |
56,540 |
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Long term
liabilities |
28,990 |
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Total
liabilities |
85,530 |
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Equities |
60,780 |
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Total
liabilities & equities |
146,310 |
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Income Statement
Unit: CNY’000
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As of Dec. 31,
2006 |
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Turnover |
228,610 |
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Cost of goods
sold |
207,070 |
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Sales expense |
1,730 |
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Management expense |
12,520 |
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Finance expense |
1,240 |
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Profit before
tax |
6,050 |
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Less: profit tax |
1,800 |
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Profits |
4,250 |
Important Ratios
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2006 |
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*Current ratio |
1.30 |
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*Quick ratio |
0.70 |
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*Liabilities
to assets |
0.58 |
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*Net profit
margin (%) |
1.86 |
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*Return on
total assets (%) |
2.90 |
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*Fixed
assets/Total assets |
0.37 |
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*Inventory
/Turnover ×365 |
54days |
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*Accounts
receivable/Turnover ×365 |
12days |
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*Turnover/Total
assets |
1.56 |
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* Cost of
goods sold/Turnover |
0.91 |
PROFITABILITY: AVERAGE
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The turnover of SC appears fairly good in 2006.
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SC’s net profit margin is average in 2006.
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SC’s return on total assets is average in 2006.
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SC’s cost of goods sold is fairly high, 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 an average level
in 2006.
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The accounts receivable of SC is average.
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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 average.
Overall financial
condition of the SC: Stable.
SC is well-known in its industry with stable financial conditions. Over
the past 9 years, SC has made a stable growth with fairly good profit. A credit
line up to USD 400,000 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%)