MIRA
INFORM REPORT
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Report Date : |
27.09.2007 |
IDENTIFICATION DETAILS
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Name : |
COSCO ( |
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Registered Office : |
No. 1, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Mar. 6, 1990 |
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Com. Reg. No.: |
000077 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture |
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Line of Business : |
Engaged in repairing vessels, and exporting maritime works
module. |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
Up To usd 5,000,000 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
COSCO (
NO. 1,
TEL : 86 (0) 513-85056200
FAX : 86 (0) 513-85056284
EXECUTIVE SUMMARY
INCORPORATION DATE : mar. 6, 1990
REGISTRATION NO. : 000077
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE
STAFF STRENGTH :
1,163
REGISTERED CAPITAL : usd16,831,700
BUSINESS LINE :
manufacturing
TURNOVER : cny 1,507,200,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 529,020,000 (AS OF DEC. 31, 2006)
PAYMENT :
average
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STRONG
OPERATIONAL TREND : steady
GENERAL REPUTATION : WELL-KNOWN
EXCHANGE RATE :
CNY 7.51 = US$1
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
Note: SC’s concrete name should be the above stated one, instead of the given one COSCO SHIPYARD CO., LTD.
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 Mar. 6, 1990.
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 repairing various kinds of native vessels, overseas
vessels, and ocean engineering equipment; building and selling various of
vessels, ocean engineering equipment, harbor machinery, and hoisting machinery;
manufacturing and selling metal structures, shipping components used for land
and ship, and providing relevant assorted services; undertaking overseas
mechanical and electrical engineering and domestic international tender
projects; exporting equipment and material; and dispatching labors needed by
external engineering.
SC is
mainly engaged in repairing vessels and exporting maritime works module.
Mr. Ji Haisheng
has been chairman of SC since 1990.
SC owns about
1,163 staff 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 Nantong. Our checks reveal that SC
owns the total premise about 400,000 square meters.
SC is not known to host web site of its own at present.
SC’s total investment is USD39,660,000. Till December 31, 2006, SC’s
paid-up capital reached CNY87,110,000.
MAIN SHAREHOLDERS:
Name Investment (’000) % of Shareholding
COSCO Shipyard Group Co., Ltd. 8,415.9 50.0003
COSCO Investment (
===========================
COSCO Shipyard Group Co., Ltd, world famous as
Address:
Fax: 0086-(0) 411-39229998
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Chairman:
Mr. Ji Haisheng, bon in 1952, 55 years old with university education. He
is currently responsible for the overall management of SC.
Working Experience(s):
From 1990 to present Working in SC as chairman;
At present Working in COSCO
Investment (
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Vice-chairman:
Mr. Wang Xingru, born in 1965, 42 years old with university education. He is currently responsible for the daily management of SC.
Working Experience(s):
From 1990 to present Working in SC as vice-chairman;
At present Working in COSCO Shipyard Group Co., Ltd. as chairman.
Assistant Managers:
Zhou Xiedong ID# 320602490729255
Wang Zaizhong ID# 210202481126421
Board Members:
Li Jianxiong
Ye Binlin
Guo Dasong
Min Jianguo
SC is mainly
engaged in repairing vessels, and exporting
maritime works module.
SC’s products mainly include: maritime works module, and other vessel
component.
SC hands approximately 150 vessels per year.
SC sources its materials 100% from domestic
market, mainly
The buying terms of SC include T/T and Credit of 30-90 days. The payment
terms of SC include T/T, L/C and Credit of 30-90 days.
*Major Supplier:
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*Major Customer:
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COSCO Shipyard Group 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 did not provide
any name of trade/service suppliers and we have no other sources to conduct the
enquiry at present.
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
AC#：15810408091001
Relationship:
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
15,360 |
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Inventory |
228,220 |
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Accounts
receivable |
232,250 |
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Other Accounts
receivable |
112,990 |
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Accounts payable
in advance |
7,870 |
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To be
apportioned expense |
0 |
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Other current
assets |
0 |
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Current assets |
596,690 |
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Fixed assets |
577,770 |
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Fixed assets net
value |
510,800 |
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Projects under
construction |
66,970 |
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Long term
investment |
0 |
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Other assets |
2,780 |
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Total assets |
1,177,240 |
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Short loans |
40,000 |
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Accounts payable |
189,150 |
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Accounts
receivable in advance |
122,660 |
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Other Accounts
payable |
87,290 |
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Salaries payable |
0 |
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Welfares payable |
28,150 |
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Taxes payable |
-11,550 |
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Withdraw the expenses
in advance |
0 |
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Other current
liabilities |
165,040 |
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Current
liabilities |
620,740 |
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Long term
liabilities |
27,480 |
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Other
liabilities |
0 |
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Total
liabilities |
648,220 |
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Equities |
529,020 |
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Total
liabilities & equities |
1,177,240 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
1,507,200 |
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Cost of goods
sold |
1,062,880 |
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Sales expense |
54,590 |
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Management expense |
92,670 |
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Finance expense |
6,960 |
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Profit before
tax |
373,250 |
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Less: profit tax |
43,100 |
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Profits |
330,150 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 0.96
*Quick ratio 0.59
*Liabilities to
assets 0.55
*Net
profit margin (%) 21.90
*Return
on total assets (%) 28.04
*Inventory
/Turnover ×365 55
days
*Accounts
receivable/Turnover ×365 56
days
*Turnover/Total
assets 1.28
*Cost
of goods sold/Turnover 0.71
PROFITABILITY:
GOOD
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The turnover of SC appears fairly good
in its line.
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SC’s net profit margin is good.
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SC’s return on total assets is good.
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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.
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SC’s quick ratio is maintained in a fair level.
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The inventory of SC is maintained in a slightly large level.
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The accounts receivable of SC is maintained in a normal level.
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The short-term loan of SC is maintained in a normal
level.
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SC’s turnover is in a fairly good
level, comparing with the size of its total assets.
LEVERAGE:
FAIRLY GOOD
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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: Strong.
OPINION AMOUNT: USD1,800,000
Over the past 17 years, SC has made a stable growth with satisfactory profit.
A credit line at the above amount appears 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%)