MIRA
INFORM REPORT
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Report Date : |
11.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
fengfan co., ltd. |
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Registered Office : |
No.8 Fuchang Road, Baoding, Hebei Province, 072550 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
13.06.2000 |
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Com. Reg. No.: |
1000001003375 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and Selling Batteries and Parts |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
usd 5,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
fengfan co., ltd.
no.8 fuchang road,
baoding,
hebei PROVINCE,
072550 PR CHINA
TEL: 86 (0)
312-3208556 FAX: 86 (0)
312-3208572
EXECUTIVE SUMMARY
INCORPORATION DATE : june 13, 2000
REGISTRATION NO. : 1000001003375
REGISTERED LEGAL FORM : Shares limited company
STAFF STRENGTH :
5,600
REGISTERED CAPITAL : CNY 461,000,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 2,627,328,000 (AS OF DEC.
31, 2007)
EQUITIES :
CNY 1,321,969,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 5,000,000 (periodical review)
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : well known
EXCHANGE RATE :
CNY 6.99 = 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 Renminbi
SC was registered as a shares limited company at state
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on June 13, 2000.
Company Status: Shares limited co. This form of business in PR
China is defined as a legal person. Its registered capital is divided into
shares of equal par value and the co. raises capital by issuing share
certificates by promotion or by public offer. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to the extent of its total assets. The co has independent
property of legal person and enjoys property rights of legal person. The
characteristics of the shares limited co. are as follows: The establishment of the co.
requires at least two promoters and no more than 200, half of whom shall be
domiciled in China. Natural person are allowed to serve as promoters. The minimum registered capital
of a co. is CNY 5M. while that of the co. with foreign investment is CNY
5M. The total capital of a co. which propose to apply for publicly listed
must be no less than CNY 30M. The board of directors must
consist of five to nineteen directors. If the co. raises capital by
public offer, the promoters must not subscribe less than 35% of the total
shares. the promoters’ shares are restricted to transfer- within one year
of the offer. A state-owned enterprise that
is restructured into a shares limited co. must comply with the conditions
& requirements specified under the law & administrative rule.
SC’s registered
business scope includes developing, manufacturing and selling storage
batteries, battery parts and materials, manufacturing and selling battery
production, testing equipment and spare parts, plastic products, glass fiber
products; technical services of storage batteries, industrial investment,
technical consultation, warehousing services, used battery recycling, vanadium
trade.
SC is mainly engaged
in manufacturing and selling storage batteries and parts.
Mr. Chen
Mengli has been chairman of SC since
2000.
SC is known to
have approx. 5,600 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 Baoding. Our checks
reveal that SC owns the total premise about 132,000 square meters.
http://www.sail.com.cn The design is
professional and the content is well organized. At present the web site is both
in Chinese and English versions.
E-mail: ff@sail.com.cn
SC is a listed company in Shanghai Stock Exchange Market with the code
of 600482.
Changes of its registered information are as follows:
|
Date of change |
Item |
Before the
change |
After the change |
|
2006-2-17 |
Registered capital |
CNY 138,000,000 |
CNY 218,000,000 |
|
2007-2-26 |
Registered capital |
CNY 218,000,000 |
CNY 230,500,000 |
|
2008-3-25 |
Registered capital |
CNY 230,500,000 |
CNY 461,000,000 |
In 1995, SC passed the ISO9001 Quality System approval and military
products quality system approval. In 2000, SC passed both the quality system
approval of VDA6.1 of the European Automobile industry Consortium, and QS9000
of the three American automobile giants. In 1999, “Fengfan” was appraised as
the famous brand in China by the National Business Administration Bureau.
MAIN SHAREHOLDERS:
Name %
of Shareholding
China Shipbuilding Industry Corporation 34
Baoding Huiyuan Storage Battery Factory 13
Industrial and Commercial Bank of
China-Penghua Securities Investment Fund 3
Bank of China-Yifangda Securities Investment
Fund 3
Industrial and Commercial Bank of
China-Nuo’an Securities Investment Fund 2
Baoding Fengfan Group Co., Ltd. 2
Agricultural Bank of China-Dacheng
Securities Investment Fund 2
Industrial and Commercial Bank of
China-Yifangda Jiazhichengzhang Fund 1
China Minsheng Banking Corp., Ltd.-Huashang
Securities Investment Fund 1
Tianjin North China Mining and Geological
Exploration Bureau 1
Other individuals 38
China Shipbuilding Industry Corporation:
==============================
China Shipbuilding Industry Corporation
(CSIC), established on 1st July, 1999, consisting of some of the enterprises
and institutes of former China State Shipbuilding Corporation (old CSSC), is a
large state-owned enterprise, an entity with state authorization for investment
and capital management, directly under the supervision of Chinese central
government. CSIC is the largest group in China in the field of design,
manufacture, and trade of military and civil ships, marine engineering and
marine equipment. There are 48 industrial enterprises, 28 scientific &
technological research institutes, 15 share holding companies in CSIC, spread
in more than 20 provinces and cities in China, with a total number of employees
of 170,000. Among its subsidiaries, CSIC has the world renowned Dalian
Shipyard, Dalian New Shipyard, Bohai Shipyard, Wuchang Shipyard, Shanhaiguan
Shipyard, China Ship Research & Development Academy, China Shipbuilding
Trading Company Ltd., China National Shipbuilding Equipment & Material
Corporation, China Offshore Industrial Corporation, etc.
TEL: 86-010-64831775, 64831776
FAX: 86-010-68031579
Website: http://www.csic.com.cn
E-mail: csicweb@csic.com.cn
l
Chairman and General Manager:
Mr. Chen Mengli , 54 years old with
university education. He is currently responsible for the overall management of
SC.
Working Experience(s):
Before 2000 Worked
in Baoding Fengfan Group Co., Ltd. as chairman;
From 2000 to present Working
in SC as chairman and general manager.
l
Vice Chairman:
Mr. Liu Baosheng , 51 years old with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 2000 to present Working in SC as vice
chairman, and also working in Baoding Fengfan Group Co., Ltd. as chairman.
l
Vice General Manager:
Mr. Han Jun , 49 years old with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
Before 2000 Worked
in Baoding Fengfan Group Co., Ltd. as financial manager;
From 2000 to present
Working in SC as vice general
manager.
SC is mainly
engaged in manufacturing and selling batteries and parts
Brand: 
SC’s products mainly
include: industrial battery, EV battery, MC battery
The annual production capacity has reached
3.5 million KVAh.
SC sources its materials 90% from domestic
market, and 10% from overseas market, mainly USA and Europe. SC sells 70% of
its products in domestic market, and 30% to overseas market, mainly USA, Europe
and Southeast Asian market.
The buying terms of SC include 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 Customers:
==============
FAW-VW Automobile Co., Ltd.
Chery Automobile Co., Ltd.
Tianjin Faw Xiali Automobile Co., Ltd.
FAW CAR Co., Ltd.
Shanghai Volkswagen Automobile Co., Ltd.
*Major Suppliers:
==============
Baoding Fengfan Meixin Storage Battery Clapboard Manufacturing Co., Ltd.
Baoding Fengfan Nonferrous Metal Co., Ltd.
SC is
known to have 4 subsidiaries at present:
Shanghai
Fengfan Industry & Trade Co., Ltd.
Shanghai
Fengfan Storage Battery Co., Ltd.
Tangshan
Fengfan Hongwen Storage Battery Co., Ltd.
Baoding
Fengfan New Energy Co., Ltd.
Fengfan
Co., Ltd. Precision Plastic Products Branch
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 : A trade enquiry currently
conducted with SC's supplier(s) reveal the following:
Supplier
A
Products sold: Battery
Clapboard
Date account opened: 2000
Line of credit: N/A
Terms: T/T,
credit of 30-60 days
Average monthly sales: N/A
Current balance: N/A
Rating Key : 3
Any Special Comments:
_______________________________________
Payment record keys :
1 = Prompt : Payment made before the credit
period expires
2 = As agreed terms : Payment made upon due
date
3 = Slightly slow but acceptable : Payment
made 5 to 20 days beyond agreed terms
4 = Slow : Payment made 16 to 45 days beyond
agreed terms
5 = Poor : Payment made over 45 days beyond
agreed terms
6
= No comment : Account is newly opened & record is not yet established
Note : In
some instances, payment beyond terms can be the result of disputes over
merchandise, lost invoices, disputed accounts & etc.
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.
Construction Bank of China Baoding Branch
AC#130665608263030080
Relationship:
Normal.
Consolidated
Balance Sheet
Unit: CNY’000
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As of Dec. 31, 2006 |
As of Dec. 31, 2007 |
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Cash & bank |
209,386 |
279,495 |
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Inventory |
458,479 |
1,314,649 |
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Accounts
receivable |
180,367 |
317,471 |
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Other Accounts
receivable |
13,731 |
19,802 |
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Notes receivable |
39,532 |
160,497 |
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Advances to
suppliers |
92,897 |
81,877 |
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To be
apportioned expense |
35 |
0 |
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Other current
assets |
259 |
3 |
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------------------ |
------------------ |
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Current assets |
994,686 |
2,173,794 |
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Fixed assets |
445,363 |
785,389 |
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Projects under
construction |
303,208 |
113,281 |
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Long term
investment |
5,000 |
5,000 |
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Intangible
assets |
3,510 |
127,323 |
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Other assets |
1,236 |
9,316 |
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------------------ |
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Total assets |
1,753,003 |
3,214,103 |
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============= |
============= |
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Short loans |
425,000 |
1,634,000 |
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Accounts payable |
123,957 |
130,700 |
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Bills payable |
199,000 |
111,000 |
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Advances from
clients |
21,582 |
14,594 |
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Other Accounts
payable |
33,651 |
19,682 |
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Withdraw the
expenses in advance |
3,689 |
0 |
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Other current
liabilities |
101,287 |
-21,836 |
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------------------ |
------------------ |
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Current
liabilities |
908,166 |
1,888,140 |
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Long term
liabilities |
58,241 |
3,992 |
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Other liabilities |
-9,125 |
2 |
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------------------ |
------------------ |
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Total
liabilities |
957,282 |
1,892,134 |
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Equities |
795,721 |
1,321,969 |
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------------------ |
------------------ |
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Total
liabilities & equities |
1,753,003 |
3,214,103 |
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============= |
============= |
Consolidated
Income Statement
Unit: CNY’000
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|
As of Dec. 31, 2006 |
As of Dec. 31,
2007 |
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Turnover |
1,822,043 |
2,627,328 |
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Cost of goods
sold |
1,795,139 |
2,485,361 |
|
Sales expense |
102,097 |
76,168 |
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Management expense |
65,598 |
82,379 |
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Finance expense |
29,841 |
64,870 |
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Profit before
tax |
76,904 |
142,658 |
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Less: profit tax |
10,059 |
26,445 |
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Profits |
66,845 |
116,213 |
Important
Ratios
=============
|
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As
of Dec. 31, 2006 |
As
of Jun. 30, 2007 |
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*Current ratio |
1.10 |
1.15 |
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*Quick ratio |
0.59 |
0.46 |
|
*Liabilities
to assets |
0.55 |
0.59 |
|
*Net profit
margin (%) |
3.67 |
4.42 |
|
*Return on
total assets (%) |
3.81 |
3.62 |
|
*Inventory
/Turnover ×365 |
92 days |
183 days |
|
*Accounts
receivable/Turnover ×365 |
36 days |
44 days |
|
*Turnover/Total
assets |
1.04 |
0.82 |
|
* Cost of
goods sold/Turnover |
0.99 |
0.95 |
PROFITABILITY: FAIRLY
GOOD
l
The turnover of SC appears fairly good, and it was rising in 2007.
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SC’s net profit margin is fairly good.
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SC’s return on total assets is average.
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SC’s cost of goods sold is fairly high, comparing with its turnover.
LIQUIDITY: AVERAGE
l
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 appears large.
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The accounts receivable of SC is maintained in an average level.
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The short-term loan of SC appears large.
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SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly Stable.
Over the past 8 years, SC has made a stable growth with fairly stable
financial conditions. The large amount of inventory & short loans could be
a threat to SC’s financial condition. A credit line up to USD 5,000,000 would appear to be within
SC’s capacities upon a periodical review basis.
RATING
EXPLANATIONS
|
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 |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
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%)