MIRA
INFORM REPORT
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Report Date : |
28.09.2007 |
IDENTIFICATION DETAILS
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Name : |
IN-POWER ELECTRIC ( |
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Registered Office : |
Room 1605, Bld. A,
Intelli-Center, No. 18, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Mar. 8, 2004 |
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Com. Reg. No.: |
110000410194659 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture |
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Line of Business : |
Engaged in selling electric appliances. |
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 USD100,000 |
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Status : |
Small Company |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
name & address
IN-POWER ELECTRIC (
room 1605, bld. a, intelli-center, no. 18,
TEL :
86 (0) 10-82600600
FAX :
86 (0) 10-82300608
EXECUTIVE SUMMARY
INCORPORATION DATE : mar. 8, 2004
REGISTRATION NO. :
110000410194659
REGISTERED LEGAL FORM : CHINESE-FOREIGN
EQUITY JOINT VENTURE
STAFF STRENGTH :
42
REGISTERED CAPITAL : USD1,328,000
BUSINESS LINE :
trading
TURNOVER :
CNY22,525,000 (AS OF DEC. 31, 2006)
EQUITIES :
CNY11,985,000 (AS OF DEC. 31, 2006)
PAYMENT :
AVERAGE
RECOMM.
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY
7.51 =US1$ AS OF
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 Mar. 8, 2004.
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 not to engage in any items prohibited by laws, administrative regulation
and State Council; able to engage in items that needs permit according to the
regulation of the State Council, after obtaining the permit from relative
authorities and the registration in the AIC; and select to deal with any items
that do not need any permit.
SC is mainly
engaged in selling electric appliances.
Mr. Zhang Xinyu
has been chairman of SC since 2007.
SC is
known to have approx. 42 staff members at present.
SC is
currently operating at the above stated address, and this address houses its
operating office in the development zone of Beijing. Our checks reveal that SC
rents the total premise about 300 square
meters.
http://www.in-power.net The
design is professional and the content is well organized. At present it is both
in Chinese and English versions.
E-mail: info@in-power.net
Until December 31, 2006, SC’s paid-up capital was CNY1,655,000.
In 2007, SC’s registered capital was increased from
USD280,000 to the present amount, and meanwhile, SC’s former legal
representative Yan Wanhua was replaced by the present one.
MAIN SHAREHOLDERS:
Name % of Shareholding
Technology Co., Ltd.
In-Power Electric GmbH 25
l
Chairman and General
Manager:
Mr. Zhang Xinyu, in his
Working Experience(s):
Since 2007 Working in SC as chairman and general manager.
SC is mainly
engaged in selling electric appliances.
SC’s products
mainly include: passive filter compensation system, active filter, Mains Active
Restoring System (MARS), medium and high voltage reactive compensation and
harmonic filter, power quality on-line monitor, power system harmonic analysis
and simulation software, etc.
SC sources its materials 25%
from domestic market, and 75% from overseas market, mainly
The buying terms
of SC include T/T, L/C, and Credit of 30-60 days. The payment terms of SC
include T/T, and Credit of 30-60 days.
*Major Supplier:
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MERHER INC.
*Major Customer:
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Guangzhou Baiyun Electric
Appliance 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#：811913803808092001
Relationship:
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
8,870 |
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Inventory |
5,100 |
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Accounts
receivable |
5,690 |
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Other Accounts
receivable |
488 |
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Advances to
suppliers |
4,220 |
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To be
apportioned expense |
0 |
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Other current
assets |
1,104 |
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Current assets |
25,472 |
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Fixed assets |
210 |
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Long term
investment |
0 |
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Other assets |
518 |
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Total assets |
26,200 |
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Short loans |
0 |
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Accounts payable |
3,826 |
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Taxes payable |
277 |
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Advances from
clients |
9,666 |
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Other Accounts
payable |
443 |
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Withdraw the
expenses in advance |
0 |
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Other current
liabilities |
3 |
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Current
liabilities |
14,215 |
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Long term
liabilities |
0 |
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Other
liabilities |
0 |
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Total
liabilities |
14,215 |
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Equities |
11,985 |
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Total
liabilities & equities |
26,200 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
22,525 |
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Cost of goods
sold |
13,920 |
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Sales expense |
2,655 |
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Management expense |
1,961 |
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Finance expense |
-15 |
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Profit before
tax |
4,000 |
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Less: profit tax |
0 |
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Profits |
4,000 |
Important Ratios (as of Dec. 31, 2006)
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*Current ratio 1.79
*Quick ratio 1.43
*Liabilities to
assets 0.54
*Net profit
margin (%) 17.76
*Return on total
assets (%) 15.27
*Inventory
/Turnover ×365 83 days
*Accounts
receivable/Turnover ×365 92 days
*Turnover/Total
assets 0.86
*Cost of goods
sold/Turnover 0.62
PROFITABILITY:
FAIRLY GOOD
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The turnover of SC appears average in
its line.
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SC’s net profit margin is fairly good.
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SC’s return on total assets is fairly 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 normal level.
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The inventory of SC is maintained in an acceptable
level.
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The accounts receivable of SC is maintained in an
acceptable level.
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SC has no short-term loan in 2006.
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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 average.
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The risk for SC to go bankrupt is low.
Overall
financial condition of the SC: Stable.
SC is considered small-sized in its line with stable financial
conditions. A credit line up to USD100,000 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%)