MIRA
INFORM REPORT
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Report Date : |
02.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
NINGBO KEGUANG MECHANICAL AND ELECTRICAL
PRODUCTS CO., LTD. |
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Registered Office : |
No. 710 West Zhenluo Road, Luotuo Street, Ningbo, Zhejiang Province,
315202 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
06.01.1998 |
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Com. Reg. No.: |
3302112300201 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Manufacturing and Selling Electromechanical Equipment. |
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 : |
usd 30,000 |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
naem & address
NINGBO KEGUANG MECHANICAL AND ELECTRICAL PRODUCTS CO., LTD.
NO. 710 WEST ZHENLUO ROAD, LUOTUO STREET, NINGBO,
ZHEJIANG PROVINCE, 315202 PR
CHINA
710
TEL: 86
(0) 574-86586149 FAX: 86 (0)
574-86589901
EXECUTIVE SUMMARY
INCORPORATION DATE : JAN. 6, 1998
REGISTRATION NO. : 3302112300201
REGISTERED LEGAL FORM : LIMITED LIABILITIES
COMPANY
STAFF STRENGTH :
100
REGISTERED CAPITAL : CNY 2,500,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
cny 19,320,000 (AS OF DEC. 31, 2007)
EQUITIES :
cny 3,700,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : up to usd 30,000
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.02= USD 1
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Ren Min Bi
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 Jan. 6, 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 and processing
mechanical and electrical equipment, ribbon machines, plastic products, sound
products, hardware and jacquard ribbon; wholesaling and retailing hardware,
automotive parts, textile equipment, building decoration materials, chemical
materials and products, textiles, garments and electromechanical equipment;
importing and exporting various goods and technology.
SC is mainly
engaged in manufacturing and selling electromechanical equipment.
Mr. Xu
Fangming has been chairman of SC since
1998.
SC is known
to have approx. 100 employees 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 Ningbo. Our checks
reveal that SC owns the total premise about 19,900 square meters.
http://www.keguang.com.cn
. 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
Xu Fangming 52
Chen Zhiying 48
l
Chairman and General Manager:
Mr. Xu Fangming , in his 50’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 1998 to present Working
in SC as chairman and general manager.
l
Vice General Manager:
Mr. Lin Lianghai , in his 40’s with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
From 2005 to present
Working in SC as vice general
manager.
SC is mainly
engaged in manufacturing and selling electromechanical equipment.
SC’s products
mainly include:
Multi-bars warp
knitting machine series
33 bars lace warp
knitting machine
Needle looms
series
KGF high speed
shuttleless needle loom
High speed
shuttleless velvet ribbon looms
High speed shuttleless
nylon velcro machines
Computer jacquard
needle looms
KG crochet
knitting machines series
KG600 crochet
knitting machines
KG-500 Galloon
Crochet Knitting Machine
KJD automatic
winding machines series
KJD automatic
winding machines
KJ automatic warping
machines series
SC sources its
materials 100% from domestic market. SC sells 80% of its products in domestic
market, and 20% 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 Client:
===========
Ningbo YOUNGOR International Trade &
Transportation Co., Ltd.
*Major Supplier:
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Ningbo Technology Garden District Meixu
Yangsheng Nonferrous Metal Casting Factory
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’s suppliers
declined to make any comments.
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.
Zhenhai Village Credit Cooperative
AC#92050101302078463
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2007 |
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Cash & bank |
250 |
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Inventory |
9,850 |
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Accounts
receivable |
15,520 |
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Advances to
suppliers |
0 |
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Other
receivables |
0 |
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Other current
assets |
100 |
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------------------ |
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Current assets |
25,720 |
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Fixed assets net
value |
1,740 |
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Projects under
construction |
0 |
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Long term
investment |
0 |
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Other assets |
1,740 |
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------------------ |
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Total assets |
29,200 |
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============= |
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Short loans |
10,050 |
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Accounts payable |
13,220 |
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Advances from
clients |
0 |
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Taxes payable |
70 |
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Salaries payable |
0 |
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Other payable |
1,880 |
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Other current
liabilities |
280 |
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------------------ |
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Current
liabilities |
25,500 |
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Long term
liabilities |
0 |
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------------------ |
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Total
liabilities |
25,500 |
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Equities |
3,700 |
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------------------ |
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Total
liabilities & equities |
29,200 |
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============= |
Income Statement
Unit: CNY’000
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As of Dec. 31, 2007 |
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Turnover |
19,320 |
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Cost of goods
sold |
16,080 |
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Sales expense |
740 |
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Management expense |
1,430 |
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Finance expense |
900 |
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Profit before
tax |
140 |
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Less: profit tax |
50 |
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Profits |
90 |
Important Ratios
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2007 |
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*Current ratio |
1.01 |
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*Quick ratio |
0.62 |
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*Liabilities
to assets |
0.87 |
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*Net profit
margin (%) |
0.47 |
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*Return on
total assets (%) |
0.31 |
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*Inventory
/Turnover ×365 |
186days |
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*Accounts
receivable/Turnover ×365 |
293days |
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*Turnover/Total
assets |
0.66 |
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* Cost of
goods sold/Turnover |
0.83 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears average in 2007.
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SC’s net profit margin is average in 2007.
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SC’s return on total assets is average in 2007.
l
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
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The current ratio of SC is maintained in a normal level in 2007.
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SC’s quick ratio is maintained in a fair level in 2007.
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The accounts receivable of SC is large.
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The inventory of SC is fairly large.
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The short loans of SC are fairly large.
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SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIR
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The debt ratio of SC is fairly high.
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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. The large amount of accounts receivable could be a threat to SC’s
financial condition. 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%)