MIRA
INFORM REPORT
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Report Date : |
01.08.2008 |
IDENTIFICATION
DETAILS
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Name : |
junma tyre cord co., ltd. |
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Registered Office : |
no.80 Chenghanghe East Road, Yangshe
Town, Zhangjiagang, Jiangsu
Province, 215617 Pr |
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Country : |
China |
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Financials (as on) : |
2007 |
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Date of Incorporation : |
12.06.1998 |
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Com. Reg. No.: |
320000400001617 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and Selling Cord Fabric. |
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 : |
usd 2,000,000 |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
junma tyre cord co., ltd.
no.80 chenghanghe
east road, yangshe town, zhangjiagang,
jiangsu PROVINCE,
215617 PR CHINA
TEL: 86 (0)
512-58291688 FAX: 86 (0)
512-58292308
EXECUTIVE SUMMARY
INCORPORATION DATE : june 12, 1998
REGISTRATION NO. : 320000400001617
REGISTERED LEGAL FORM : Shares limited company
STAFF STRENGTH :
1,902
REGISTERED CAPITAL : CNY 73,400,000
BUSINESS LINE :
manufacturing
TURNOVER :
CNY 2,545,352,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 311,361,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO usd 2,000,000
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY6.83 = US$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 local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on June 12, 1998.
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 manufacturing and selling cord fabric, thread,
wholesaling its products and similar products.
SC is mainly
engaged in manufacturing and selling cord fabric.
Mr. Yang Peixing has
been chairman of SC since 1998.
SC is known to
have approx. 1,902 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 Zhangjiagang. Our checks
reveal that SC owns the total premise about 165,000 square meters.
http://www.junmachina.com
The design is professional and the content is well organized. At present the
web site is only in Chinese version.
E-mail: master@junmachina.com
SC is a listed company in Singapore Stock Exchange Market.
SC has got the certificate ISO9001.
Changes of its registered information are as follows:
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Date of change |
Item |
Before the
change |
After the change |
|
2008 |
Registration No. |
000435 |
320000400001617 |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Chen Zufu 5.96
Jiang Jianping 3.41
Liu Yaoxiang 3.41
Liu Zhenfeng 6.13
2G Capital (Singapore) 25.07
Yang Peixing 14.98
Zhangjiagang Bole Investment &
Development Company 41.04
l
Chairman:
Mr. Yang Peixing, 46 years old 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 also working in Jiangsu Junma Group Co., Ltd. as chairman.
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General Manager:
Mr. Liu Zhenfeng, 54 years old with university education. He is
currently responsible for the daily management of SC.
Working Experience(s):
From 1998 to present
Working in SC as general
manager.
l
Vice General Manager:
Mr. Chen Zufu, 58 years old with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 1998 to present
Working in SC as vice general
manager.
SC is mainly
engaged in manufacturing and selling cord fabric.
Brand: Junma
SC’s products
mainly include: steel cord, gumming cord fabric.
SC sources its materials 100% from domestic market,
mainly Jiangsu. 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 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.
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.
SC declined to
release its bank details.
CONSOLIDATED
BALANCE SHEET
2007 2006
CNY’000 CNY’000
Non-current assets
Investment in a subsidiary - -
Property, plant and equipment 559,797 616,197
Lease prepayments 53,516 54,687
Intangible assets - -
Deferred tax assets 24,076 64,655
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637,389 735,550
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Current assets
Inventories 275,551 220,374
Trade and bills receivables 478,844 615,471
Deposits, prepayments and other receivables 230,146 136,550
Tax recoverable 954 954
Pledged bank deposits 297,836 187,045
Cash and cash equivalents 337,459 20,160
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1,620,790 1,180,554
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Current liabilities
Trade and other payables 684,698 412,974
Interest-bearing bank loans 956,120 1,052,075
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1,640,818 1,465,049
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Net current (liabilities)/assets (20,028) (284,495)
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Non-current liabilities
Interest-bearing bank loans 306,000 125,000
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Net assets 311,361 326,055
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Capital and reserves
Share capital and share premium 179,340 179,340
Reserves 144,123 134,844
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323,463 314,184
Minority interests (12,102) 11,871
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Total equity 311,361 326,055
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CONSOLIDATED
INCOME STATEMENT
2007 2006
CNY’000 CNY’000
Revenue 2,545,352 1,894,339
Cost of sales (2,378,870) (1,872,745)
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Gross profit 166,482 21,594
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Other operating income (see note) 49,312 42,362
Distribution expenses (41,270)
(42,124)
Administrative expenses (34,794) (33,350)
Other operating expenses (8,145) (6,175)
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Profit / (loss) from operations 131,585 (17,693)
Finance costs (105,700) (90,141)
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Profit / (loss) from ordinary 25,885 (107,834)
activities before taxation
Income tax expense (40,579) 25,505
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Loss for the year (14,694) (82,329)
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Attributable to:
Equity holders of the Company 9,279 (71,728)
Minority interests (23,973) (10,601)
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Important
Ratios
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As
of Dec. 31, 2007 |
As
of Dec. 31, 2006 |
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*Current ratio |
0.99 |
0.81 |
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*Quick ratio |
0.82 |
0.66 |
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*Liabilities to
assets |
0.86 |
0.83 |
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*Net profit
margin (%) |
-0.58 |
-4.35 |
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*Return on
total assets (%) |
-0.65 |
-4.30 |
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*Inventory
/Turnover ×365 |
40 days |
42 days |
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*Turnover/Total
assets |
1.13 |
0.99 |
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* Cost of
goods sold/Turnover |
0.93 |
0.99 |
PROFITABILITY:
FAIR
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The turnover of SC appears fairly good, and it was rising in 2007.
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SC’s net profit margin is fair, and it was rising in 2007.
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SC’s return on total assets is fair, and it was rising in 2007.
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SC’s cost of goods sold is high, comparing with its turnover.
LIQUIDITY: AVERAGE
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The current ratio of SC is maintained in a fair level.
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SC’s quick ratio is maintained in a fair level in 2006 and normal in
2007.
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The inventory of SC is maintained in an average level.
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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 fairly high.
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The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
Over the past 10 years, SC has made a stable growth with fairly stable
financial conditions. A credit line up to USD 2,000,000
would appear to be within SC’s capacities.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.42.37 |
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UK Pound |
1 |
Rs.84.00 |
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Euro |
1 |
Rs.65.96 |
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%)